disappointing results from goldman sachs and the bank of america. ading fell 40% making it the worst first half of the ceo's term. bank of america declines billing to deliver on expecting boom following the fed bochy rate hike. 's rate hike. overall trading was down just 17%, which is back, but only the worst in two years as opposed to 10 years. >> overall trading was a little worse, but equity is better. banking fees, better, investing and lending income also better. there were some bright spots. here, it is the worst first happen a while, but on the other side of things, the cost ratio is the lowest comp ratio in the public history of goldman's. that shows they are doing what they can in terms of managing costs and a tougher environment. vonnie: what could pose dangers know,he road, you minimizing costs and so forth? does that portend less talent, for example? any red flags? alison: overall for the business, it is a cyclical business the reviewer are going to have weaker quarters, stronger quarters. for goldman, they are underperforming sears, ther

bank of america has the most exposure to rates. would say, their earnings are the least dependent in terms of the bread-and-butter lending. make a lother banks more their money on. however we are seeing the impact of lower volatility as nothing is really happening around those. jonathan: allison williams, great to have you with us. sticking with us. more on those earnings. jeff hart will be joining us from new york city. this is bloomberg. ♪ >> this is bloomberg a break. i'm emma chandra. later, security analysts on netflix earnings. ♪ >> the story in the markets is a flatter yield curve. bank of america and goldman sachs taking a hit. weaker net interest margins and net income. .hick trading down that was pretty brutal for goldman. a different story for netflix. they crushed it after the bill. -- after the bell yesterday. -- 4.1 4 million subscribers added. it came at a cost but look at that. up 10% in premarket. we joined now by paul sweeney. here,with us is that he they increased their subscribers. give us the sense to where they

bank of america and goldman sachs report underwhelming earnings. es that hold any close for european bank earnings which, next week? politics u.s. -- blamestrump lanes democrats and a few you republicans for the failure of the health care bill. let's have a look at where european equities are straight -- ours trading right now. european stocks dropping for the first day in five. you can see broad-based losses 1.4%,germany down eurozone stocks down more than 1%, spain lower as well. if we look at the epic space we fx dollar weakness -- -- space we see dollar weakness as well. after that health care reform bill, the dollar at an 11 months low. the euro gaining against it. 1.15 against it. sterling weakness coming through after the u.k. inflation data unexpectedly softened off 3/10 of 1%. in the fixed income space, yields coming down both in the core and the periphery. we are seeing gold bid along with the yen for today's session. crude is at $48 a barrel. digging into equities, it is what happening with different industry groups. tech stocks leading i

bank of america has a much stronger wealth management operation. s are having theire turning around mortgage banking operations, they have been experiencing pressures elsewhere as well. a dripe: we are getting feed. this is what we know. fixed income trading declining 14%, analysts were calling it 15%. that is better than expected but the bank is blaming a weaker performance in rates in emerging markets this year. relative to a strong quarter and then equities a little bit better than expected. if you're looking at the breakdowns, fixed income declining 14% better than expected, equities better than expected. back to charles, this is not bloomberg possible. this is bank of america with a horrendous release of how they get earnings. charles peabody, a huge governance battle a while back, michael mayo is now over at wells fargo with john silvia. battle beyond?ce >> i think it is. challenges ind various shareholder votes. what he has to do now to show he can grow the bank. capability excellent of cutting expenses in bringing the bank back from the brin

of stock. they still trade above book. that roe for goldman was 8.7%. >> consumer bank, bank of america, goldman earns 90% of what the bank of america earns goldman is great for -- but bank of america is this national juggernaut it keeps grinding. it's not going to overpromise and underdeliver brian moynihan has not come through the other side you get another 3 billion. >> you do but the concern this morning and the reason the stock may be down is they worry that -- >> you need the long bond to trade in wild directions intra-day for goldman to do well and you need the long bond for interest rates to go up for bank of america to do better. this is not like "orange is the new black. >> right it's no "house of cards. >> it is no "house of cards. glad you mentioned that. that was a "house of cards" share quarter and people don't get that. >> steepest decline of the big bank so far? >> no, it's not. the fixed income guys, if i were there, i would be like, guys, i'm sorry. i didn't mean it equities did quite well. i was surprised how good equities were. >> meanwhile, yesterday, in terms of the markets, the weakest volume for a f

work with microfinance institutions to get them ready for this $5 million fund that anne and bank of america are providing as part of that $50 million so what we do with that philanthropic capital is get those enterprises ready for that type of investment >> and clearly, you and bank of america are very committed to environmental causes what did you make of bank of america, the president's decision to pull out of the paris accord >> i think you see it as a long-term commitment so as you know, we were one of many companies that have stayed the course this is a commitment to try to not rise beyond 2% celsius over the next century or by the end of the century, so i think we will all be long gone, and we will be many administrations beyond this -- >> we're talking water, wilf we're not talking about 2100 >> it's all linked this is something -- >> -- something you can really get behind it's solvable right now. there's 663 million people that don't have water let's -- can we just focus on this >> we are. >> okay, good. >> i'm asking a question different from making a statement. >> all right i hear

wilfred frost has more on bank of america earnings. romised you went through and looked at the most minute details of this. >> i have, indeed. a bigger bonus to come when meg comes on but let me go through some of the geeky numbers i love first of all as you already said in terms of eps, 46 cents a share. revenue 22.8 billion versus expectation of 21.8. the core part of the business, the consumer and business bank about 45% of their earnings. 8.5 billion versus expectations of 8.4 billion so pretty solid number that meant net income within that part of the business $2 billion. does show that they continue to keep costs under control there operating leverage, slowly coming through still for bank of america in terms of the rate hike cycle what does this all mean in terms of net interest income across the whole business up 9% at 11 billion. so you say that pretty solid, better real little than the jpmorgan number which was up 8.5% net but they don't have the guidance going forward for net interest income that jpmorgan had so in terms of th

. >>> bank of america, goldman sachs, johnson & johnson, lockheed martin, united health, schwab, hurleynd ibm will be reporting today. you are watching the banks what do we expect from goldman and bank of america. >> goldman, 65% of the business is capital markets they're up against it. we saw from citi and jpmorgan that trading was down. if you narrow in on trading, for jpmorgan it was down 14% year on year, citi group 7%. all eyes on goldman sachs, how they do relative to those two. it will definitely be down if it's down more than those and significantly more, it's a second quarter in a row where they missed relative to the others on trading. last quarter they had that big miss for bank of america, it's interesting to see, trading will be down, they guided 10% to 12% down probably somewhere in between the citi and jpmorgan performance. but they're finally delivering on operating leverage and there was a difference between citi and jpmorgan jpmorgan slightly missed on that area bank of america will focus to see how they're doing in that core consumer lending f that interest rate hike

and amazon trading at an all time high very different story for bank stocks goldman sachs and bank of america following the foot steps of their peers and dropping. the question is do you buy this dip in the bank stocks or stick with the winners which is tech stocks >> i think you have to -- where your looking year-to-date or one year performance? that tells a bigger story that we're looking at right now if you look at tech, obviously the runaway leader if you look at financials versus tech on a year ago basis financials are up 32%. i don't think anybody knows they beat tech on a year ago basis because of the pop coming out of the election so it's not as if they really lagged fms, that is. so i do believe you buy tech now. as the underperformer to the financials because netflix reported up 10%. >> it's a tough trade. what steve is talking about year-on-year basis it's up we have a lot of the tech stocks that make a disproportionate -- most indices are up so much. facebook making so highs google is up 25% they are really accounting for a large part of the performance in the major u.s. indices w

jon and pete najarian and kevin o'leary, the chair of otf investments let's go to goldman and bank of america. raises a whole host of new questions about the future of a group many investors, pete, including you, have been counting on. >> yep. >> do you feel worse about this space? >> no. >> why >> if you look at the volumes and look at volatility, the volatility is low. they are working hand in hand together and you put up the quarters that they put up. specifically, i'm talking about bank of america. goldman sachs we know. it's the thick trading was a huge overhead. >> they put up incredible numbers. i think it's a misread and that creates an opportunity in goldman sachs. i looked at this and was hoping to see the stock down. it was flat at the beginning of the trading session. i couldn't wait to see this thing start to drop and i think that's the opportunity. >> weiss, you have morgan stanley to deliver their results. you feel better or worse about the financials today than you did go into earning season >> i feel the same i feel it's going to take longer to work out. i look at a 2.31 ten-

vonnie: disappointing quarterly results from bank of america. ading fell 40%, making it the worst first half in that area of lloyd blankfein's term. bank of america's interest declined, failing to follow a boost. overall, trading coming in line i think it was a little , worse but equity is better. there is a little bit of trade-off. banking fees are also better. there were some bright spots in the quarter. on the other side, the cost rates show the lowest cost rate ratio in the first half for goldman. that shows that they are doing what they can in terms of managing costs in this tougher environment. >> bank of america is very tied to long-term rates. so any time that you see the 10 year not doing what we think it should be doing and picking up, that is bad for bank of america. what really sticks out is net interest income for that bank which is core revenue for any , bank, especially for bank of america. that is something that fell despite these productions from brian moynihan two months in the quarter saying we will have at least $35 million to

similarly, when we asked the question this morning can you tell us which banks were not doing well, bank of americat really call them out. all of them did badly. i think they did point to rates and emerging markets. scarlet: four bank of america, bloomberg intelligence and many others have said this bank is more sensitive to rate changes than any other bank. if that's the case, why did the net interest income disappoint? questionswere asking -- this long-term rate, we had these two rate rises. one of them with results a little strained four bank of america. eventually, the back end of the curve where we are concentrating securities, that was not the humming the way we thought. they also had the sale of the u.k. credit card business which hurt as well. scarlet: so of all the things we can look ahead to, we have morgan stanley results due out tomorrow. what do the goldman results suggest or is that not a fair comparison because they focus on different parts of trading? guest: i dig is a fair comparison. it is worth noting the commodities business, morgan stanley has largely gotten out of that or they

of america, higher than expected results? bankup so that is actually quite a big boost for bank of america because they are lending out so much money, higher interest rates mean they will get a little bit more money. the last quarter was pretty good for bank of america and going forward , good for bank of america and going forward, if we think we will see more interest rate rises, it could also be pretty good for them. on the flip side goldman sachs, they have reported their earnings and there was a big drop in their bond trading. dropped by a0%. the other banks that reported on friday, we also sought their trading desks lose, but goldman sachs lost the most when it came to the trading desks. they are the most dependent bank on that kind of trading. they are trying to diversify and get their fingers are trying to diversify and get theirfingers into are trying to diversify and get their fingers into different areas of the banking world, but right now, they are still pretty exposed. let us they are still pretty exposed. let us look

of america's net interest income jumped, like we expected. the second quarter, bankrted a surprise drop. there is that decline there. bank of america blamed stagnating long-term interest rates is one reason. he also talked about the sale of a u.k. credit card business. the word transit seems to come up quite a bit these days. >> we have talked about the 210 spread and other shapes of the .urve steepening dramatically the banks loved that move. since then, it hasn't done much, so not a surprise that that hasn't continue to accelerate. >> a tough -- fascinating when we talk about earnings -- we talk about the fact that expectations come back to a point where the companies -- the expectations when actually they print the results. but at this for goldman sachs earnings potential. i'm showing some of the revisions, year to date. the white line you are looking at the pf -- current quarter. they got a whopping 14%. linechon you in the blue apf estimates for the second half of this year. they've only come down around 3%. this is simply too optimistic for the second half of t

you see the tenure not doing what we think it should be doing and picking up, that is bad for bank of americaing that really sticks out is net interest income for that bank, which is core revenue for something like bank of america. that is something that fell despite predictions two months into the quarter saying we would at least have 35 to $50 million increasing. ♪ after two more republican senators announced their opposition to the health bill proposed by gop leadership, not only is mitch mcconnell's effort to pass that dad, but repeal only and replace later looks like it is a no go, as that, but repeal only and replace later looks like it is a no go, as well. >> this bill that failed miserably, last night you have senators coming out and saying they are against it. the bill fails. that you have the senate majority leader saying let three vote to repeal this, and less than 24 hours later you have senators like susan collins saying we don't even want to have a vote to proceed. discussionsou that are already underway for a new passport, but they are going to be relying on a very narrow path

you see the 10 year not doing what we think it should be doing and picking up, that is bad for bank of americaat really sticks out is net interest income for that bank, which is core revenue for any bank, but especially for bank of america. that is something that fell despite these productions two months into the quarter saying we will have at least $35 million to $50 million increasing and we saw a decline. vonnie: after two more republican senators announced their opposition to the health care bill, not only is senate majority leader's mitch mcconnell's efforts to replace is done, so are the efforts to repeal. president trump: i am not going to own it the republicans are , not going to own it. we will let obamacare fail and the democrats will come to us. they will say, how do we fix it? >> this bill that failed miserably, let's go through the tick-tock. last night, u.s. senators coming out and saying they are against it. the bill failed. and then the majority leader backed by president trump himself saying let's revoke to appeal this. then senators like collins -- like susan collins saying w

couple of things going on, one in the case of things going on, one in the case of wells fargo and bank of americaore bank accounts and people are starting to see that, in the case of bank of america rises in interest rates in america rises in interest rates in america are not necessarily as yet been passed onto consumers which is helping the bottom line of big firms that of america. ok, thank you. the uk's advertising watchdog says it will crack down on adverts that peddle stereotypical gender roles. ella smilie wrote the report for the advertising standards authority — here's what she told the bbc earlier. what the report tells us is that there are certain kinds of gender stereotypes which when repeatedly detected over time have the potential to affect people's assumptions of expectations about how they should behave or look according to their gender. so what you're looking at is though specific types of gender stereotypes that we have identified in the report, we will look to draft new standards to prevent those stereotypes were appearing in ads in the future. this is part of a developing pictu

>> it is a pleasure to be joined by the bank of america-merrill lynch global m&a chairman. you have been in this capacity firs -- for about 18 years. give me a couple of trends. differe about how things today in the m&a landscape than a few years ago. >> 18 years. time flies when you're having fun. i can think of a few major trends over that time. the market is rewarding growth via m&a. it is not always the case. sometimes you announce a transaction and the price goes up. you announce a good, well structured, strategic deal, stock prices follow the acquire. number two is how m&a deals are being made.

we're talking to paul ciana from bank of america merrill lynch as well he'll tell us why he thinks the dollar decline is done that's at the top of the hour. >> thanks so much. what do we think freepo freeport materials? minors now the time >> well, for a balance for a trade. for a quick trade. for more of a longer term investment i think it's more of a prove it story that's got to come over multiple >> they keep building more capacity in that you don't want to be in commodity when on stream >> up next, chipotle, boeing, caol fd,co-ca,or mazon plus final trades when we come back hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go.

white middle class americans that this is not peaceful protest this is anarchy this smashing bank of america there's measuring. i've never seen somebody have so much sympathy for bank of america you know they give americans like oh yeah we sort of they deserve that. again the vast majority of protesters were nonviolent including those who were detained not to mention that half a dozen journalists covering the march were also arrested and two are still facing multiple felony charges which is a further chilling slap in the face of the first amendment. well at least the d.c. police didn't finger anybody's you know the holes. oh wait they did and officer ordered five of the detainees to take off their pants before grabbing their testicles and then inserting a finger into their anuses as other officers laughed this is amounts to molestation and essentially rape one of the people subjected to this said he felt like the police were trying to break him and make sure he was punished. lawsuit time the a.c.l.u. is suing washington d.c. police alleging that officers wrongfully arrested innocent proteste

bank of america on the other hand, did okay, rising interest rates helping on bank of america becauseest rate sensitive, mortgage holdings and consumer deposts, higher rates for a company like bank of america. the shares are down half a percent, likely dragged lower by weakness in goldman sachs and the big picture today which is this health care gridlock in washington. all eyes here on the floor, zeroed in on the trump administration and what is going to happen next with health care and down the road what it means for the trump administration's plans for tax reform, infrastructure setting. it's very interesting, right? materials names, energy names lower because of concerns that we won't get the economic shot in the arm that the president had been talking about with the latest hiccup in health care, cheryl. cheryl: you bring about the pro-growth economic growth, and david, that's the concern here, particularly gary cohn saying it's very clear, we're going to get more than 2% growth, 3% growth. that's the gdp number from gary cohn, the economic adviser to the president, but a lot are q

vonnie: disappointing quarterly results from the central bank of america. ing fell 40%, making it the worst first half in that area of blankfein's term.oyd line.l trading coming in >> i think it was a little worse but equity is better. there is a little bit of trade-off. banking fees are also better. there were some bright spots in the quarter. on the other side, the cost rates show the lowest cost rate ratio in the first half for goldman. it shows me they are doing what they can in the tougher environment. >> bank of america is very tied to long-term rates. anytime you see the 10on the ott doing what we think it should be doing and picking up, that is bad. what really sticks out is net interest income which is core revenue for any bank, especially for bank of america. that is something that fell twoite these productions months in the quarter saying we least $35 million least $35 million to $50 million increasing and they actually saw a decline. vonnie: after two more republican senators they would decline the health bill, not only is senate majority leader'

leadership from that division to put them on par, in my opinion, with a morgan stanley, with a bank of america, with a merrill lynch, to put them on par with the traders and investment bankers >> i think the investment banking division is where the future of the industry is going to be. >> i said investment management. maybe i twisted my words i mean the investment management division, which is smaller compared to morgan stanley by a lot >> yeah, it is obviously morgan stanley made a major, major play in that area the whole company took a bet on investment management, wealth management, and it is paying off in a major fashion but i'm a believer in investment banking. i think investment banking is where the future is for the financial services industry and i think the investment bankers should be running that company >> what i'd say to dick and to jim is that clearly, dick, your comments put a target on mr. blankfein's back i think that there will be a target on the people who ran fixed income commodities trading, currencies, and all the rest at goldman sachs. i don't think this takes down lloy

disappointing quarterly results from goldman sachs and bank of america. x income trading for goldman sachs, down 40%, making it the worst first half of ceo lloyd blankfein's term as ceo. think of america's interest -- bank of america's interest in decline after failing to capitalize on a fed rate hike. i don't want to completely malign the banks. there were some bright spots. >> look overall, they are solid. they are generally beating expectations. in general, they are making progress on overall revenues and keeping costs under control. most importantly for investors, credit continues to be under control. vonnie: what is confusing for investors is that the disappointing areas where the core businesses. would it be better if the losses came in peripherals? >> it sure looks like the market was looking for loan growth and interest expansion. it seems like each bank has disappointed one way or the other. either one, the market seems to be penalizing banks. vonnie: the biggest banks overall have recovered close to -- to the to before levels before the financial

it is the battle they are doing with bank of america. sn't do business with his bank of america. it does business with j.p. morgan. the gold standard of banks. apparently they have a memo that they leaked out that this is right when i can do it this way. well have a lot of information on the ownership structure. and basically pointing out that they don't do business with you either by the way. you did not make the cut for an underwriter selection we have. it is really a fascinating story between this big company. they are going to be out there more. that hurts bank of america more. there may be a slow down. now that china is looking to reel back some of its equated nature. that said that i can have that play here. if you are that. they will leak out internal memos. they own 8% of deutsche bank. this will be a major player of financial services. thank you very much. still syllabus 77. again were watching them. ♪ ♪ ♪ ♪ ♪ won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the

a lot of them rise, so it is just more about then -- oliver: central banks, there is policy from washington that must happen, and the final chart. we are taking a look at this from bank of americait is tracking the number of issuances of guidance by ceos each quarter. i want to highlight the downtrend in the past couple of years. you can see the tech in the last quarter that for 2017, the fewest issuances by companies going all the way back to 2000. that tells us ceos are not sure about the future. that will be important to find out whether or not they are able to give us more indications about what they see ahead. i think it is politics mixed in there, that is where bank of america started looking at this in december, also there are questions about rotations happening in the market and what it means for each individual sector and industry, that is important as well. sighte ceos have a clear than we do. vonnie: oliver, great analysis of the week. i do want to reiterate the s&p 500 has bypassed its previous closing high, now above june 19's closing high. see if it will stay there until 4 p.m. now we are taking a work at first word news. mark: the president plans to put washingto

bank shares slumped because of weak trading volumes reported by both bank of america and dow component goldman sax. shares weighed on the blue chip dow index which fell. nasdaq rose 29 to that fresh record. it is the eighth straight day of gains and marks its longest win streak in more than two years. s&p 500 added one, but it was good enough for a record. >>> what should investors make of the market that sits at this lofty levels? >> reporter: there is a growing chorus of voices insisting the market topping out? why? some say the federal reserve will have a hard time reducing rates. the lack of progress on health care and tax cuts will catch up with the market. the biggest argument is how the market is overpriced. worry warts should calm down. earnings are historic highs. the global economy is improving. is the market overpriced? the most important determine is s&p prices. not dramatically so. even the complaint the technology stocks are too expensive doesn't really ring tree. most tech stocks are below historic norms. there are pockets of the market that seem expensive. apple. tradin

we will have more from the head of asia-pacific emerging markets from bank of america merrill lynch. a looming crisis looking in the wrong direction. we hear from the investment firm's head of macro and asset allocations. this is bloomberg. ♪ ♪ bank of america merrill lynch says it is turning tactically bullish on asia and emerging stocks as china is set deposits monetary tightening trend. it focuses on the tech sector. joining us is head of asia-pacific and global emerging-market strategy. let's get to the semantics of this. you've been tactically neutral, but structurally bullish. now you are tactically bullish. explain this to me, and let's go further from there. we have been structurally bullish for over a year. every now and we get concerned when we think the sentiment has gone too far, too fast. some cited monetary policy. i was really concerned about the energy and materials sectors. that is what we didn't really like. we took a pause for breath. has changed really in the last three months is that inflation has dropped. that makes a huge difference. as i said earlier, i am not

an investment banking business kind of showing signs of weakness when we get that report. i do feel about goldman sachs and bank of america goldman sachs trading revenue is something we put a fairly low multiple on. we are seeing more down than up at this particular point in time. the story of the banks and financial institutions is ultimately they will normalize the yield curve. higher short-term rates now. that means better potential profitability. in this quarter, to see glimmers that's beginning to happen. take that as a little bit less stringent regulation and a very attractive sector. cheryl: that's good for banks and we'll get numbers later today. let's talk about earning results so far in general. despite everything happening in washington, some of it hasn't been so good. earnings have seen to be positive for the last three quarters or so. do you think in general that will be overall positive? >> for two years earnings went nowhere and now it's starting to see it makes us think we are earlier. is it really as strong as it was? slow growth for a while. either one of the scenarios gives you markets. cheryl: thank yo

bank earnings, bank of america and goldman. sults, and i can give you the positives and negatives on both because i do think there are. >> the response of bank of america seemed to be not bad and look at the return on tangible equity and for goldman it was kind of like, okay, there's problems, but there's also some good spots. >> i really think that it was kind of -- they were both mixed. i think bank of america was better than goldman, but i think goldman's expectations were much lower than bank of america everybody has been piling into bank of america on the rate trade. had a very good quarter. the one issue was a surprise on the downside, and the fact that they guided the third quarter higher, that actually alleviated concerns goldman it was nec neglecttic fic. who knew there would be a bad negative fic number and did really bad on equities when you have fic down 40 and your overall trading is down 17, your equity component did very nicely. >> that's true. >> puts and takes no doubt and with the ten-year and negative sentimen

we had netflix overnight, but we are gearing up to bank of america, goldman sachs, ibm. earnings season is usually friendly for stocks. we see another round of gains. betty: we absolutely will be. it is interesting because, you know, we know earnings will be a driver, but there is certainly differing consensus or differing aboutamong strategists how much earnings will propel markets higher. we know mike wilson says it could propel the markets up 10%. we have a guest coming up who does not think quite that, is probably on the opposite end of that spectrum. diverging views are forming. shery: i will be quite curious to ask him why he is so pessimistic. many in asia are looking forward to other data points including china's property prices, not to mention we do get rba's in the july meeting minutes. take a look at what the markets are doing right now. new zealand flat at the moment. 76.97. -- new zealand flat at the moment. 7697. missing estimates, coming in flat or no growth when it came to inflation. take a look at sydney. futures right now losing ground. we saw the asx 20

bank of america told investment leaders to halt investment with a china grew. urces say the bank is joining citi and morgan stanley, steering clear of hna because they cannot get enough transparency. we are told the bank of america decision could still change. china's largest property deal has taken a twist. the group stepped into by hotel assets dalian had planned to sell. they will hand over $6.5 billion for wanda's themepark projects. there is scrutiny around their business around the world. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. u.s.-china first economic dialogue is off to a start. wilbur ross criticized china over the trade imbalance, where both governments canceled scheduled conferences. more from the sarah mcgregor in washington. it seems these meetings started off a very tense. do we know what the biggest sticking point was that ultimately led to a cancellation of press conferences from both sides? sarah: yes. i think why this meeting was remarka

the czech republic central bank ,et to raise interest rates bank of america sees the first rate hike l probably -- the will add moreulu stimulus. when does it come back to focusing on what the central banks are doing? >> growth of 2.5 percent, 3%, very strong, so it is surprising that hungary is still adding stimulus. hungary still stimulus, pollen on hold, but a dovish hold -- poland on hold, but dovish. , we are coming out of abnormally low interest rates, a crisis with us or 10 years. i think country should be out of these zero rate emergency settings. we are seeing more countries come around in emerging markets and developed markets. we may get some hands of have the ecb will unwind, so that is a good thing and markets will reward countries that are normalizing. worry about the countries that are still stepping on the gas pedal. crs .looking at w the peso, we know the story there. the polish currency up 14%, czech republic up 13%. i don't think a lot of people so theytrong feel, ok, are exposed to eurozone economies. fundamentally, what are the big growth drivers? when we talk

bank of japan came in to market forcefully. be thek the yen will funding currency of choice. we are thrilled you are with us to get us started this monday. kamal sharma of bank of americalook at the return of the present to washington -- president to washington. what a good time to catch up with carl weinberg. from new york, this is bloomberg. ♪ ♪ minutes past the hour. i'm guy johnson in london. tom keene in new york. kamal sharma is still with us. yen weakness.of what happened over the last several weeks is central banks tacitly or not the agreed that we are in a position now to talk about exit and reflation. most central banks seem to be on the same page, and the bank of japan six out because it is not. go you arent do you thatdifferent page, currency manipulation, people will pay attention. kamal: i think currency diplomacy starts to become an issue, but we are a long way from that. get to aarting to position where folks make tor -- may turn to the weakness in the end. -- governoroded kuroda does not want to declare victory on reflation too early. for them this is domestic story rather than a currency manipulations toward. tom: bring up the chart. we are going to d

bank of america lockout thousands of customers from an online account. orning was frustrated customers couldn't get to their smartphones or computers. the bank would not say what caused the shutdown but that is what's happening now. train to the latest record gains on wall street coming as the market despite historic outs. david nelson joins us now. there is a great number of "the wall street journal." i've never seen this before. the markets had never gone without a pullback of cyprus and in 30 years. we have been riding high for the entire year now. or we do? you think it's going to happen? >> it's pretty scary. when you give him access to wall street gets pretty high and a lot of people in crowded rooms at the movie theater looking for the exit. if you get the 5% correction, what are you going to do with it? i can tell you this. i will probably be an event coming gop political in the 5% correction will feel like it's headed for 10. most people will not give into another all-time high. using your debt to make those decisions probably going to work. >> a

bank of america is probably going to be the best deposits, because they're the most sensitive. >> anton, do you have a favorite of the big cap stocks? >> yeah, i just said it. it was bank of america >> i knew you liked it, but that is your favorite of the big boys >> yes, exactly. and it's simply because they're so intrasensitive. they've got huge deposit share and their balance sheet has more floating rate loans on it. >> i'll ask you, pinnacle financial is your favorite of the mid-sized regional-type names. pnfp, the ticker who is pinnacle and why do you like them? >> well, pinnacle is based in nashville, tennessee so growth rate is phenomenal they just bought bank of north carolina, which you heard me talk about in the past so they've got great growth in nashville, got great growth in south carolina and north carolina they're in virginia. a lot of those states are growing faster for many simple reasons. i mean, tax rates are favorable. labor laws are favorable and very importantly, the panama canal expansion has allowed a lot of shipping t inping to go ports there. a huge amount of t

i am looking at from bank of america. number of times any kind of guidance is issued by a ceo for each earnings quarter. there is a general slope down here over the past number of years with the lowest number of guidance is issued by ceos last quarter going all the way back to 2000. ceosations will be that will have a bit more clarity on what the political scene means and what the outlet for some of these economic numbers mean as well. here is another, this is the margin pressures. the bottom line shows the margins in the s&p 500, they come down a little bit but are still close to the high. the top panel, the blue line is the labor cost, the white line is ppi. some of the labor cost catch up to some of the inflation we seen, that could apply pressure to not the bottom line are the top, but the middle line. i think that will be pretty important here as we set out what this all means in a really important earnings season. but the first quarter we just had, that was the biggest jump in years, 15%, that now we get to the bigge

a man got stuck in an atm machine i would say he couldn't get out because bank of america is one of the stuck stock is. if only jarvis was stuck in the atm. if republicans are leaving taxes in our those across are those across the board tax cuts out. think about it we are on it. with candidate and ben stein. along with gary. and look at who is here. all right kennedy, you're the one who has pointed it out. they are buckling on getting some of the things out.

betty: folks at bank of america are asking, could this be the end of a bull run for equities? u -- what are the indicators telling you? adam: this is a proprietary indicator that the folks at bank of america use. they use it as a contrarian indicator. they use it to see when things have gotten to euphoric levels in a bull market. they are saying that this is where we are at the moment for u.s. equities. the indication is that they will have some kind of cell down with any level of magnitude of u.s. stocks. of indicator is one of many that traders and investors use to gauge market timing. of course, allocations to u.s. stocks are very overweight. some people have then holding those downs. they have been moving money into european shares, which, of course, have been outstanding performers in the first half of this year. all of this builds to tell one more picture in this story of u.s. stocks. we are potentially entering some kind of inflection point where we could see some kind of turn in a bull market. we will see how it develops over the next few months. betty: thank you so muc

weighing, banks of america and goldman sachs falling after showing weakness. vals for a second quarter in fixed income while bank of america posted a surprise decline in net income. lenders with the best-performing major bank stocks in the three months after president trump's inauguration. biggest australia's banks will have to hold for capital under fresh guidelines. holdour majors all have to 2020,ne capital ratios by this coming from the austrian regulatory authority, ensuring that the institutions are "unquestionably strong." china the u.s. and economic officials from the two superpowers are due to sit down today to focus on trade, setting aside north korea, or can they? our next guest sees more difficulties ahead. pasts assisted with u.s.-china economic dialogue spirit how is this dialogue going to differ from historic precedent? is this about managing expectations? >> i think it is a little bit of that. this is different only in how it is package. every united states president puts his own stamp on how these dialogues are carried out going back to george

we saw that strength at bank of america, we saw strength at wells fargo which was a precursor but those are key metrics. they focus on that r.o.e. and the margin is one of the goals they focus on to get there. fixed debt in line, the banking fee is something we have seen. alix: what have we learned about morgan stanley on goldman sachs? is it all about commodities? >> it is more execution. alison: it to be a little bit of both. every quarter is going to be different in terms of where the strength of the overall business is and depending on where the strength in the industry is, that is going to impact who is doing better. and of it is just business product but goldman also says for a second quarter in a row they did not navigate markets well. that is what investors are focusing on. they are keen to say in the present the resilience in the environment. what does it say about the morgan stanley franchise that they are able to do that? alison: they are the leader in equities, a broad-based business. they had on its back. the fixed income, they made cuts some time ago but they sort of and t

maria: state of emergency snafu bank of america shutting customers out of bank accountings tracee carrascood morning if you couldn't get into account yesterday you are not the only one thousands of customers across the country, shut out for hours, due to a system outage impacting web site and branches, some customers reported receiving e-mails probably before noon according to downed detector.com web site tracks system frustrated customers looking forrance one tweeted wouldn't it be nice if manager at bank of america would have told us system had been done before we wastewatered 40 minutes waiting around another said every bank of america system down across the countryis i can't find lease tonight catch me home legal thanks bofa. >> bank of america did not say what caused the problem do not believe a hack in staipt said we have identity theft solution updating systems no i many who experienced difficulty are operating normally as of last night the system appeared back up and running. >> headache. >> that is. >> crazy how bad banks web sites are still in this day anage technology where it i