the quotes, the visiting the largest us bank of jp morgan chase to pursue litigation against russian. vtc bank outside of the country of moving full $100000000.00 in assets belonging to the american bank were seized. the action is policy of a lawsuit filed by the russian bank. the mon thing, the return of its own frozen assets. phones belonging to v td bank had been confiscated, find jp morgan chase, which has responded by town to syria. going to us quote, to block v t. v. 's attends the largest us buying said that congress to an assets to be, to be easier to us sanctions. larry, i spoke with all to contribute for sams. it gave us more detail a v t b, which is a very large russian bank is the 2nd largest bank in russia. was a, you know, as a lot of banks do, holding assets in the us, which then effectively stolen from them. as you steal someone's money, you can't expect for a quote in russian not to rule in favor of that bank to recover those stolen funds . there isn't really any reason for that. none of the funds from what we understand from the information had been used for anything

fairly choppy numbers coming out of bank of america this year. >> you do have to look between the differences. jp morgannii jump compared to last year. if you combine all of the big 4 commercial banks, it is really only a 1% rise. it is jp morgan that is responsible for that expected jump. when i say jump, 1% is not that much of a poll. but you are having to read between the tea leaves. another metric here that i think is going to be important is investment banking. we've heard about green shoots for quarter after quarter. when we have seen such a subdued investment with banking and fees, this is really going to be the first time the year-over-year increase is meaningful and potentially could pave the way for future quarters of growth, which we have not seen for the last year plus. sonali: katherine doherty, thank you so much. we are going to be very busy starting very early tomorrow morning. coming up next, we will talk about a shake at the top of goldman sachs. the top treasure leaves after about two decades. more on the departure and his new fill. stick with us. this is bloomberg. ♪ you know what's b

of their full year and expect -- full year. it jp morgan is spending $1 billion more, what is the ripple effect? the inflation effect for these banksbecause jp morgan has had of the discipline to grow headcount and keep the ability to invest while other banks have struggled with that. i am curious about the broader read here on how much that will turn from the interest rate story to the inflation story. lisa: this was not what you expected. you thought higher for longer would benefit banks. how surprised are you? gerard: the higher for longer is really for the second, third, and fourth quarters so so far the numbers are within expectation. it would be nice to see that pushed up a bit but it is the first quarter and we have three quarters to go and i think it will be a good year for this company. lisa: gerard cassidy, thank you so much for being with us. another bostick, thank you -- sonali basak, thank you. you will hear more from you. coming up, we have ken leon, linda duessel, and mandeep singh. as i parse to this data, jp morgan is limiting money but expeditions are so high based on how much this stock has outperformed. annmarie

bank industry as a wheel. with these interest rates, where they are, some of the big banks, b of a and jp morgan are going to be a bit of money. thend of the day, we're hopeful that earnings season and the banks should be okay and we're seeing great numbers from jp morgan. across the broader markets we're going to see good earnings season and i think we're hopeful that this is nothing more than a slight overreaction and we knew what was happening with wells. of course there are huge concerns they the retrofit portfolio but i think these interest rates are covering a lot of that up right now. maria: jamie dimon told us that the company is going to be prepared for whatever he's thrown at is. it jamie dimon is a skeptic on the soft landing idea, the impact of the stimulus, the impact of the spending. when i spoke with him in january, at the healthcare conference, he was pretty bullish on the capital markets business and on the loan business. here's jamie in january with me on this program. watch. we're coming off this little bit of a drought in capital markets activity. i'm wondering if you're getting a sense the

we thing that, i mean, at the end of the day that money has to flow as a major banking institution like jp morgan. you have to have money deployed in different markets around the world. and that's, that's really the case of the united states, the united states as always, use the dollar. it's use his own capital markets in order to exec influence uncontrolled around the world. the minute the, this, the other countries turn around the go hang on a minute. you're making us do the things. so, you know, let's respond and let's take 5 vote saws. i think it could really have a huge detrimental effect. not just so the us going to be with the economy. the economies of the west in general, the, to the ongoing role in gaza with palestinians have gathered to move relatives killed in his way the strikes of a nice on the enclaves southern most 50 of rough or 8 people have been killed in the is radiator attack. on the residential building, 2 children aged 6 and 8, so among the dead, according to the local hospital. and more than 14 and half thousands of these young casualties have occurred in the 6 months of wa

of this. it is what the fed is doing. it will persist. banks are inherently asset sensitive vehicles. they cannot do so when rates are this high. in the case of jp morgan, as you mentioned, they guided higher with expenses. $91 billion. i think that is giving investors a little bit of pause. it bears mentioning that jp morgan was up 17% coming in. that is quite a bit higher than the market. i think expectations are a little bit high for the stock. sonali: how do you think about that expense guidance? when you look at jp morgan, the big difference is they have added head count but they are spending more across the board. the fbi see assessment, a lot of banks are feeling -- the fdic assessment, a lot of banks are feeling the pain. stephen: they will do so will ahead of that to take advantage of the better market opportunity when it comes along. as you said, some of the guidance was a special assessment, lingering effects from the fourth quarter. we can overlook that. banks are not immune to the inflation story. if inflation is higher than expected you would expect costs for banks and businesses all over. it certainly bears watching. i would have liked t

seems to be to stop through a lesson quote, as these more than $400000000.00 of assets belonging to us, jp morgan chase bank. i'm a responsible suit followed by a russian bank, the mountains into a ton of its own frozen houses, funds belonging to russian v t. the banquet, early of frozen by jp morgan chase. the russian bind demand that they were ton in response. jp morgan chase lost its own little search in the us course. it's going to store but v t b's attends the us banks that it converts to announces to b, c, b, g c us sanctions. let's find out more about this case and i told him in the studio is contribute to chris m. thanks for coming in, chris. let me stay with always a jp morgan. this is jp morgan chase done a chunk of avoiding the seas of his assets. and what we're supposed to expect from the by now? well nick, i don't think they did because effectively what they did v t b, which is a very large russian bank is the say can largest bank and russia was united as a lot of bank. steve, holding assets in the us, which then effectively stolen from them nicely steal someone's money. you can expect for a qu

banking family and, and why they're still even relevant today. given, reportedly, they're not even among the wealthiest families of the world anymore. why do today is bankers like jamie diamond at jp morgan chase, for example, still turning to this, this banking family from my understanding americas, jp morgan began as a subsidiary of the rocks child bank in europe. right. so i don't know, has this sort of family legacy then just shaped modern banking? she of, i mean huge. i mean, the, this is what, this is where i say, you know, when it comes to the american history, um, there's other historians that are much more expert in terms of the amount of influence, the, the rothschilds i had in terms of american finance. it's clear that the america and that the rothschilds had agents in america, or was jp morgan, an agent of the rothschilds in particular, i don't know that i know that as you say he's his original partner p body was a, was in england. and morgan was trained in england, so essentially he was, you know, he respond by the, the, you could say like, the bank of english or the private, a private but central bank very much. what the federal reserve in america has, which again was proba

katie: you have goldman sachs and bank of america linking arms but what about jp morgan? they've been among the rare contrarians with the lowest s&p 500 target among the big banks. they are implying downside of about 20% from current levels and they have been sounding the alarm on high valuations. their chief global equity strategist last week said valuations are way too high and there is no upside catalyst and that ai excitement and nvidia are not enough and we need some oomph to justify the valuation so they are concerned about crossing -- frothiness. katie: you also track closely year and strategist target for the s&p 500. it was up 10% last quarter. how much movement are we seeing there? >> one of my favorite functions on the terminal go to spx equity and we have a nice round up of the wall street targets on the index for this year. we've seen a lot of people moving up like socgen and oppenheimer. they were the highest on wall street. we've seen other firms like goldman sachs and bank of america in tandem revising their outlooks for the index. there is a concern that

of the times. 25 first republic locations in the bay area will close last year. last year jp morgan chase acquired first republic which is one of three midsize banks to fail. the closures will happen may 24th. of a giant tells us they will reopen 10 locations in our area as jp morgan or chase branches. >>> sometimes we get lucky to share an event that reminds all of us where we are in the universe. a lot of people travel to certain parts of the nation, even to mexico for a front row seat to the solar eclipse. in the path of totality, it did not make it to the bay but we got a partial viewing. it was hard for me, future scientists and students gathered at stanford. in oakland, chabot space and sign center hosted people who got to learn what it means when an eclipse happens. they held a viewing from the campus for all to enjoy. >> it feels so powerful. it feels magical, almost. and it is beautiful. >> i feel lucky to be alive to see all of this beautiful stuff. in this world. >> astronomers say it is a lucky time because the moon is slowly moving further away from the earth and at the same time the sun is getting bigger, meaning we hit the sweet spot. for tho

of america's biggest bank. he says certain factors may continue to fuel high inflation and bring interest rates as high as 8. here's abc's lionel moise this morning. >> the leader of the nation's largest bank, jp morgan chase, is sounding the alarm that interest rates could soar beyond 8% in the coming years, despite recent figures showing inflation has been cooling in his annual letter to shareholders, jamie dimon said there has been too much emphasis on the short termism and not enough focus on long tum trends, writing huge fiscal spending, the trillions needed each year for the green economy, the remilitarization of the world and the restructuring of global trade. all are inflationary. >> you've got the russian war in ukraine and the impact that's having on energy markets, oil markets, natural gas markets. you've got the conflict in the middle east and that's disrupting supply chains. and also there's a threat to energy prices. and then just the rising tensions between the us and china. >> while experts agree on the economic impact of conflict, not everyone is on board with diamond's latest statements. >> you've got to be humble when you're forecasting anything, particularly the economy. >> in 202

you can see the stocks of jp morgan and bank of america, they've come roaring back. nothing comes close to american express with a 13.advance last friday after a kbert that was initially a disappointment before people reassessed. it was almost up another two bucks today. six, nvidia, the stock bounced. now listen to this. don't laugh. this company has lost more than $300 billion in market capitalization almost a straight line. it's hideous stock as any decliny recall, down 10% alone on friday. the stock mounted an advance today, but not enough to erase friday's games. it went from being the star to goat of the game and i'm not talking about the greatest of all time. we've learned from multiple pieces of research today, that nvidia, the business is doing quite well. now i think the stock finally got cheap enough to start tempting people. i don't want to make too much other than nvidia because all high multiple stocks came roaring back today. but if nvidia couldn't rally today, it would have been a horrible sign. luckily, it didn't happen. i don't know how much staying

banks. haidi: what sort of outlook so we are expecting to hear given the level of uncertainty around banks? >> a lot of people are talking about jp morgan wells fargo. they are expected to potentially revise their outlooks. of course, what their chief executive officers, in particular jamie dimon, say about the market will be watched. jamie dimon talked about how the markets are pricing in a potentially 80% to 70% chance of rates lowering. he also said given the inflationary pressures the market is facing, we could see anywhere from 2% to 8% or more and that the bank was prepared for that. haidi: there are concerns over money laundering controls with regulators. >> that's right. in a way, not all of this was new. we know the federal reserve was looking to see if morgan stanley's business was taking adequate measures to prevent potential money laundering. at the time, it was reported the regulator was prepared to improve controls and processes. today we learned it's actually the sec, occ, and some other u.s. treasury department offices, digging into it banks did enough due diligence. what we don't really know is why the huge share drop g

already trying to keep a handle on costs all over the board, all of these banks have suffered from the weight of that fdic assessment. even jp morganexpenses higher in part of that assessment. the story isn't over. regulatory costs may remain somewhat high, but we are getting passed at least that first year now since the bank failures. lisa: i am old enough to remember when it was cost-cutting trying to reduce the expenses was the focus of these banks. bank of america, first quarter compensation expenses. what you make of that? sonali: direction of travel is higher. we've been talking about it with goldman where if you are making more money you have to pay people more. that is the problem, isn't it? so, on balance, that efficiency ratio higher, that flurry of ideas with compensation being higher, regulatory charges being higher, so keeping a handle on costs. net interest income came in above expectations. you been pointing at it all season that that has been a big weight on that net interest income. for them to come in higher is good news. jonathan: stock is down by zero point 1% in the premarket, an upside surprise on trading reve

bank earnings kickoff. jp morgan points to a normalization. we will talk to a ceo of a tequila company. shoring up consumer confidence. moments away from the consumer sentiment numbers after another hot inflation we -- inflation read this week. i am sonali basak again welcome to bloomberg markets. looking at the s&p lower on the day, leading to perhaps the second week of declines on the s&p 500. the nasdaq 100 also down on the day. still has a chance to end on the green, now down more than .9%. the two year yield breaking below the 4.90% mark. about 4.89%. we have the kbw bank index down 1.3% and almost every stock barring two are down in that index. consumer sentiment data crossing the terminal now. michael mckee joins us to break it down. mike: if you did not like the cpi report you will not like the sentiment report because it shows some on mooring of inflation expectations. the one year ahead inflation expectation jumps to 3.1% from 2.9%. five to 10 year from 3% to 2.8%. enable -- maybe gas prices reflecting that. the sentiment number goes up a little overall -- actually falls, rath

geopolitical tensions in the middle east and strong buying in china on the part of central banks and consumers. jp morgant's the number one -- says it's the number one pick. look at the big movers going into today. this growth sentiment really driving among the gainers here. alphabet is hitting a record high, 20 years to the day after gmail debuted. many folks thought that was april's joke when gmail came out. the joke would be on the doubters. nvidia shares are also getting this morning with china complaining about some of the negative restrictions around semi conductor imports from the united states. on the losing side, we have ups down even though it has struck a deal as the primary air cargo provider for the postal service and fennec shares were sinking on that as well. at&t is less surprising with shares down 1.70 5% after disclose the presence of a data leak affecting 73 million people, many of them former customers. katie: thank you so much. coming up, we will take a look at operation challenges following the collapse of the francis scott key bridge. we will speak to the ceo of supply chain manage

of jp morgan chase. he's still concerned about inflation and believes we might be in for more interest rate hikes. here's abc news reporter lionel moise this morning. >> the leader of the nation's largest bankorgan chase, is sounding the alarm that inflation could soar beyond 8% in the coming years, despite recent figures showing inflation has been cooling. in his annual letter to shareholders, jamie dimon said there has been too much emphasis on the short terme and not enough focus on long terme trends, writing huge fiscal spending, the trillions needed each year for the green economy, the remilitarization of the world and the restructuring of global trade. all are inflationary. >> you've got the russian war in ukraine and the impact that's having on energy markets, oil markets, natural gas markets. you've got the conflict in the middle east and that's disrupting supply chains and also is a threat to energy prices. and then just the rising tensions between the us and china. >> while experts agree on the economic impact of conflict, not everyone is on board with diamond's latest statements. >> you got to be humble when you're forecasting anything, particularly the economy. >> in 2022, diamo

bank? oh yeah, absolutely. we thing that, i mean at the end of the day. a money has to flow as a major banking institution like jp morgan. you have to have money deployed in different markets around the world. and that's, that's really the case of the united states. the united states has always use the dollar. it's used his own capital markets in order to exec influence uncontrolled around the world, the minute the this, the other countries turn around to go hang on a minute. you're making us do the things. so, you know, let's respond and let's take back what saws i think it could really have a huge detrimental effect. not just so the us going to be with the economy. good economies of the west. in general, the russia and china are pushing for a un security council resolution calling for an international probe into the sub baton rouge of north street. the gas pipelines linking russia to germany were destroyed by explosives in september 2022. moscow saves the west, has been trying to cover up the truth. used to not use up if the narrative of western countries looked unconvincing before he was now there arguments simply ca

of futures in america last year. it seems like a monopoly to me. all these banks came in as our partner, 10 of the greatest trading firms, jp morgan, goldman sachs, citigroupmorgan stanley, wells fargo, barclays, i'm sure i will leave someone else come up bank of america, citadel the number one futures trader in the world, the number one treasury traders, these are all together, all coming behind this exchange to make this exchange so fun and so amazing. sonali: if cme has 99% of the volume here, how come these banks haven't supported you in this before? what is the outcome you're looking for? >> when you are alone like the cme, they serve -- they have a great product and they charge a great price like holy moly. sort of like every christmas, they just raise their price. it's crescent -- it's christmas present, let three surprise. the banks want a competitor and they want innovation. we have the fastest system, the tightest spreads and we did this in u.s. treasuries so we started with the u.s. treasury. the cme when we announced we were going to be in the u.s. treasury market like an exchange, they had 85% market share. i call them the heavyweight champ. i

and i would highlight actually that we're going to get get earnings of the big banks tomorrow starting with jp morgani group. all of that is in the minds of investers as they try to figure out how to position themselves. >> as mentioned surging gas prices and sky high mortgages and rent sent inflation rising far more than expected on real surprise news yesterday, some political ramifications certainly for the president's re-election effort. but also the next question for everyone, on everyone's mind is what does this mean for the fed's potential rate cuts campaign? silvia, what's the latest? >> absolutely. let's digest the number. the cpi precipitate, the headline number came in at 3.5%. that's better than some of the readings we had seen last year, but it came in above what markets were expecting. off the back of that as a result we saw downward pressure on equities. we saw treasury yields moving higher, and perhaps even more importantly we saw investors repricing their expectations for fed cuts. they have now moved their expectation of the first rate cut from june to september. and just as a remind

jp morgan is set to win big, partly because of the size compared to peers. earnings of 20 $3 billion in the first quarter, seven times more than the estimated average. investment bankingstrengthening u.s. equities and dealmaking and jp morgan has the edge again with a projected $1.8 billion, up 10% from a year before. bank of america is a rival likely to report 1.3 billion dollars from investment banking, up 14% from a year ago. for updates on how big banks plan to counter exposure, wells fargo is the one to watch as the share of lending is the highest versus the largest peers. a 2% right down of cre loans would reduce by 13% before accounting for reserves that have already been satisfied. haidi: from wall street banks to india's lenders we are scouring for trading talent as the economy booms in the employment market is so strong that stories are circulating about private bankers demanding 50% pay hikes. our reporter joins us with more with today's big take so we know the india economic boom success story has been one of the biggest drivers across the region and then we see that play through to financial labor markets and labor conditions. >> absolutely. a signs of ex

of the day. a money has to flow as a major banking institution like jp morgan. you have to have money deployed in different markets around the world. and that's, that's really the case of the united states. the united states has always use the dollar. it's used his own capital markets in order to exec influence and controlled around the world. the minute the this, the other countries tied around the go hang on a minute. you're making us do the things. so, you know, that's responding. let's take back what saws i think it could really have a huge detrimental effect. not just so the us going to be with the economy. economies of the west in general. now, a full face is potential legal action in africa. the democratic republic of congo has accused the tech trying of using mineral smuggle from the countries conflict when regions into neighboring rolanda journalist timothy a base who can tell us more so nice, 3 minerals that includes 10 ton tell them thompson and goals are found in commercial quantities, east of the democratic republic of congo. however, for more than 2

of the day. a money has to flow as a major banking institution like jp morgan. you have to have money deployed in different markets around the world. and that's, that's really the case of united states. the united states has always use the dollar. it's used his own capital markets in order to exec influence and control around the world. the minute the this, the other countries turn around to go hang on a minute. you're making us do the things. so, you know, let's respond and let's take 5 vote saws. i think it could really have a huge detrimental effect. not just so the us going to be with the economy, economies of the west in general. okay, let's turn attention out in the program to the guys that war where palestinians have gathered some more in relatives killed. and this really strikes overnight on the entry of southern low city rough uh 8 people were reportedly killed. and then this really are attacked on a residential building. 2 children aged 6 and the 8 are among the dead. according to gas and health officials, you'd say some 14 and a half 1000. all of these

others that maybe he doesn't have to worry at least about the most onerous of regulations on the banks. >> i'm excited about jp morgan and the report the regulation and the lack thereof is not maybe what is getting me so excited. i hope he's right. i hope he's absolutely right i hope what you said about bozell three losing its teeth is the case but if it isn't the case, you have good loan growth, investment banking picking up, trading on all the volatility in the markets. credit call isn't that bad the financials are in a very good position right now. i think you should own financials, and jpmorgan is the creme de la creme. >> jason >> for me, the theme as we look at banks is m&a activity picking up, so i like goldman here >> we'll do a quick break and "finals" on the other side [alarm beeping] amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. why not? did you forget something? my protein shake. the future isn't scary, not investing in it is. you're so dramatic amelia. bye jen. 100 innovative companies, one etf. before investing, carefully r

of the day. a money has to flow as a major banking institution like jp morgan. you have to have money deployed in different markets around the world. and that's, that's really the case of the united states. the united states has always use the dollar. it's used his own capital markets in order to exec influence and control around the world. the minute that this, the other countries turn around to go hang on a minute. you're making us do the things. so, you know, let's respond and let's take 5 bought saws. i think it could really have a huge detrimental effect, not just to the us going to be with the economy, economies of the west, in general. the western countries try to sell for 2 years between russia and serbia, but their relations remain strong. that's according to certain politicians, on the former head of security, intelligence in republic, a strip sca alexander bowman. he set down with archie on the sidelines of an international security for him in saint petersburg, a nickel. cool. any one who does not like russia is not a friend of serbia. and everyone who

. >> if you bank at first republic, no, you don't. as of next month, jp morgan chase is taking over the san francisco based bank. existing accounts will convert to chase accounts over memorial day weekend. first republic's 25 bay area locations will close may 24th. ten will be remodeled and reopened with new branding. 15 of them that are within a mile of existing chase locations will close permanently. >> developing news in the east bay. investigators looking for the cause of a two alarm fire that burned a building in hayward last night. this is just west of interstate 880 on hall road. fire officials say no one was injured. >> if your morning commute takes you through the posey tube, it is back to normal. after this dangerous situation last night, drivers had to ditch their cars and walk out of the tunnel through smoke after a truck caught fire. abc seven news was there when crews brought the burn truck out of the tunnel. nobody was hurt in the north bay. >> we are learning. two people facing charges for a chop shop operation this morning in sonoma county. inve

bank of singapore. still to come, more market analysis with jp morgan. why they think indian stocks could deliver high returns over the long cost. tune in next for the latest on recovery efforts. this is bloomberg. ♪ lates anywhere. so i started my own studio. and with the right help, i can make this place i love even better. earn up to 5% cash back on business essentials with the chase ink business cash card. make more of what's yours. haslinda: welcome back. you're looking at live pictures from taiwan. the earthquake killed at least nine people and injured more than 1000 others, toppled dozens of buildings. our reporter joins us with the latest. no major damage at tsmc. >> that's right, they don't see any major damage but the production line has not fully resumed production yet. they filed an announcement late last night saying it has almost resumed, it is unclear when they will get back into normal production. haslinda: what kind of ripple effects are we expecting if production does not start again? >> i saw a report yesterday saying there will be som

of the situation, otherwise all that awaits them is disgrace. thirdly, pressure on johnson has already attracted financial market tycoons, the largest american executives, the largest american banking corporations, here is the ceo of jp morganto be a failure for kiev, you will witness the destruction of the pax americana, which will be a disaster for the entire free world. ukraine's struggle is our struggle; our help in achieving victory is first and foremost the implementation of the america first approach. please note, ukraine is pax americana, yes, and if if ukraine fails, then pax americana, according to dimon, will also fail. well, fourthly , the former, the former prime minister, and today the minister of foreign affairs in great britain, david cameron, joined this company of pressure, he held a number of meetings in washington this week, but before that he went to see donald trump in maralaga and tried to convince put pressure on trump. an interesting conversation between senator eric schmit and secretary of defense austin. let's listen to this conversation. what does victory look like? for ukraine? how do you define victory? perhaps you heard my previous statements, senator? we said from the very beginning that we w

bank of america and morgan stanley all due to report. joining me is jenny surane who covers all this across the team in the banking space for your we had jpgan, citi and wells fargo reporting friday. >> they all one by one said this is probably the end of the boom times for net interest income. if the fed was to cut rates later this year, while there is a lot of discussion about when and how fast, and how quickly they will go down, they basically one by one said this is looking like the end of boom times. we will have to start relying on other parts of our business. he saw things like bright spots in capital markets. real good equity underwriting and debt underwriting results from these banks. he saw them point to other areas that might bolster results as interest income fades away. tom: a transition in terms of the earnings picture and in the numbers. goldman sachs, the preview for today, what are the metrics eu and the team will be scrutinizing? >> they are the wall streetiest of the wall street banks. when he thing rebound in capital markets and dealmaking, those things benefit goldman sachs paid that being said, you had a lot of bank

of minutes with a great guest. we have the actual report at 12 p.m. u.k. time. then the focus goes into corporate america, specifically, it wall street banks. citigroup, wells fargo and jp morgan kicking up the earnings story. when we talk about the rate cycle potentially ending, does that mean peak margins for a lot of banks? but coming up on this program, we talked geopolitics. joe biden vows to back japan and the philippines among growing chinese influence in the south china sea. more on the joint summit next and why you should care as an investor. ben bernanke set to unveil his review of the boe's forecasting models today. michael saunders weighs in, the former member of the boe monetary policy committee, coming up at 6:45 a.m. london time. an interview you do not want to miss. this is bloomberg. ♪ kriti: welcome back to "bloomberg daybreak: europe." i'm kriti gupta in london. the u.s., japan and philippines say they are committed to free and open indo-pacific. the statement after a summit between the three countries' leaders following chinese actions in disputed waters. isabel, this is a story we have been watching as the leaders of japan and of united states meet, now br

>> the beginning of the letter starts about the history of bank mergers and the idea here that jp morgansolidation of four of the 10 largest u.s. banks from 1990, if you can believe it. you forget exactly how much. now when he is talking about bank rules he is making the case for the banking system to keep consolidating toward off the idea that even apple acts as a bank. he is talking about the competition they are facing and he calls out one big tech player by name. >> everything is changing. >> the idea is, what is your biggest competitor? big tech was sort of three years ago. now it is basically apollo and other firms. >> great to see you. stock is up 16%. bank of america up by about 10. all of those banks having a decent year so far today -- year to date. let's catch up with dani burger. >> crude oil is declining coming off a five month high. israel is preparing an offensive in rafah. a chipmaker will receive grants and loans from the u.s. to help build factories in arizona, an agreement that they come he will build a new factory in phoenix at the facilities in the state come a expec

bank is being taken over by jp morgan. bank officials say 25 branches in the bay area will close by may 24th. all first republics set for closure are within one mile ofse bank. >> we could have a decision this week on a possible name change for oakland international airport. the port of oakland, which operates the airport, plans to vote on the issue on thursday. that proposal is set to change the name to san francisco bay. oakland international airport. port officials say the change will put oakland on the map for travelers, but san francisco officials are now threatening to sue over trademark infringement involving sfo's name. >> we've had these trademarks for so long that they're incontestable under federal law, and so from our perspective, if oakland chooses to move forward with its proposal, we will have no choice but to pursue legal action to prevent the misuse of our trademarks by the port of oakland. >> sent us a statement saying the change would clarify, not confuse, and would help identify where the airport is actually located, which is on the san francisco bay. >> did you see it today? what we saw as our partial solar eclipse. it's being ca

the expectation for bank of america is that it looks similar to wells fargo or jp morgan, who reportedpointing earnings last week, in particular, on net interest income. that's coming under pressure as consumers seek to get more on their deposits. there's more competition in the deposit state -- space. potentially bank of america having to pay more to keep those deposits. tom: we are coming to the last leg of the earnings season when it comes to the u.s. what are the takeaways for you? quakes the message we get from these banks is a return to the old normal. the old normal wear net interest income wasn't getting this huge boost that it was getting from rates. a return to the old normal at the likes of goldman sachs will -- where they will focus on core. a return to the very old normal for consumers, say were thinking about maybe the 1990's when consumers were very used to competition for where they want to put their deposits for competition over rates. that's a return to an old normal, which we could see as we hear inklings of the federal reserve may not be cutting rates as much as mar

of earnings. on friday we had the big banks such as jp morgan reporting $1.3 trillion. one will be april 22, and it always feels like we are in earnings season with the off-calendar reports. you can see lessons from those two last weeks of april. elective to cpi, investors expect cpi to come in 3.2%, which is where we are right around here. the swaps ar is looking for cpi to drop to 2.5%, even below 2% on the one method. it is interesting because jamie dimon suggested inflation may not be over. we have had indications of that, and that we could see rates go back up towards a percent. never a dull day. katie: never a doll day, a lot happening a 8:30 a.m. tomorrow. this is bloomberg. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth manag

jp morgan is the standout performer and do you think that is akin to the performance of the bank andore broadly. >> its performance is -- is incredibly strong in terms of its ai maturity. it is head and shoulders above other banks. it was early to the game. jamie dimon made aia focus six years ago where he made clear that it would be an ai first organization. from that followed a lot of initiatives like establishing a research lab and doubling down on hiring talent and reorganizing the executive team. that has really play -- paid off and you can see according to our measurements you can see that they really stand out against other banks and are strong on ai capabilities. ed: we have been looking at the data behind the hiring and you made an interesting point which is six years ago this started. let us show the chart. there is the ai hype of 2022 -2023. but if you track hiring. what is so interesting is the title is jp morgan slows ai hiring but look how elevated it was in 2022 started back in 2020. how do you -- what do you make of how ahead of occur -- ahead of the curve jp morgan i

of the front and center and it varies by bank. big over small has been a real theme, obviously. the regional banks have not been as advantaged. what about within the big banks. jp morgant of the group, what do you prefer? >> in general, the funds will favor the bigger banks. i think that goes to the diversity of their revenue stream at this point. more competitive cost of funding. and just, you know, a better capitalization and so on. so that -- that is for this year. you know, obviously, there is a disparity in terms of valuation between some of that and the smaller banks. but going forward, within the big banks like wells fargo, you know, it is still trading at 1.3 times tangible for '25, you know, improving operations, simplifying the business and then an ultimate catalyst as the cap is removed. >> i guess the credit question, people have been feeling better in general about things in terms of consumer credit, certainly corporate credit. is that going to soften up at any point or has it already? >> so new york community bank, you saw a hot spot. so we'll get some of that noise. i mean, you saw the headline in the wall street journal about st. louis. people are cons

morgan chase brand. well, the head of the nation's largest bank warning interest rates could soar to 8% or even higher in a letter to shareholders, jp morgan chase ceo jamie dimon says record high deficit spending and geopolitical stress will make it harder for the fed to fight inflation by traditional means. he says investors started the year predicting that the fed would cut rates up to three times, maybe four. but after a strong jobs report friday, diamond says investors anticipate far fewer cuts. fed chair jay powell acknowledged the dangers of cutting rates too soon. >> if we reduce rates too soon, there's a chance that inflation would pop back and we'd have to come back in and that would be very disruptive. that would not be a good thing for the economy. >> the fed's action. >> the 30 year mortgage rate is at 6.8, according to freddie mac. >> new at noon california spent $24 billion to tackle homelessness in a five year period, but didn't consistently track the outcomes or effectiveness of its programs. this, according to a state audit released just today. the report attempts to assess how effective the state and local cities

jp morgan, black rock. i agree about the strength of goldman sachs. but the overarching comment i'm making here is in the financials, i want to be in the big banks.ant to be in the regionals. we all know the problems they're facing i don't find the risk/reward potential there appetizing to me where i look at the big banks and see the multiples that don was just talking about and also including low earnings nul multiples. you did mention that ipos have been slow. they're starting to pick up. in the meantime, the fixed income issuance market has been strong all year. there is just loan growth. that interest income we know has been held back by what's going on with the fed. that will eventually be pureed, eventually there is a lot to like in the larger segment of the financials. >> yeah. i guess i'd say the high margin of businesses like ipos and like mergers and acquisitions, we have only seen a hint of it. they haven't kicked in the pipelines are full that's the high margin that will really drive earnings revenues. >> josh, you own jp morgan it is one of the stocks you love you hold it fondly >> yeah. i have been in this stock forever. there is no

jp morgan chase reporting that futures net interest income is a key measure of what the bank makes onin short of analyst expectations ations and stock down 6% shaving 730 bernards healthcares off the dow and wells fargo falling into the trading and jamie dimon warning warning that persistent inflationary pressures continue to weigh on the economy. and cricking to the inflation worries rising oil prices that touched a six month high on r ising tensions in the middle east and finally a warning for ewe middle income stacks filers and tax day approaches more than half of outrebounded ditterman targets 63% earned 2 million or less. 4 million? it's 200,000. larry: sure, willie sutton, the famous economist with the money. why go after the middle class? that's yours truly money is. gerri will willis, the best ofe best. thanks ever so much. with us now is kevin hassett, former chair of council of economic advisers. distinguished fellow at hoover institutions and author of most important book of the century called drift stopping socialism. import price up 0.4 in march after 0.3 in february and