brian moynihan and michael dell. regulate the banks and create barriers to the free flow of capital. >> we feel good about the u.s. >> we see plenty of art organically to consolidate. opportunity organically to consolidate. alix: it's all ahead on "bloomberg best." several major investment banks released earnings this week. with the sector coming up a string of lackluster quarters, people watched anxiously -- >> bank of america reporting for quarter earnings that beat analyst estimates -- >> you saw them post better-than-expected bond trading revenue. at jpr to what you saw and citi they are not as big in the macro products that had such a good quarter. this was a bit of a surprise to the upside. given the results. >> we are seeing a pattern here. they seem to be surging back. will have to get in the quarter of data before we call it a rebound. it's been good for one or two months, certainly this is more than that, this is the best it's been in a while. investors will want to see a couple quarters of sustainability o

hello again, jim. >> i have brian moynihan who runs bank of america.your bank evolve from the company that was pretty much like all the banks to one that has -- understands a mobile strategy and understands who their customers really are. i want to talk about how maybe this is the time where some banks break-away from other banks because of technological advantages. >> this is the time. but before i do that, look how beautiful it is out there. i want to give a shoutout to our teammates in florida, going through a tough time. doing our best to protect them. think about it. we have been after, you know, online banking, mobile banking for decades now. atm usage and everything. it's a chance to really have that intimate, always-on relationship with your client that was not available through bricks and mortar. you had to wait until somebody walked in or called you. now you can be talking to them all the time in a great context or conversing with them and that allows you to do things we've never been allowed to do. >> it's also important to be empirical abou

since we're out here to examine this kind of technology, i got to ask brian moynihan, the ceo of bankamerica, how his company is harnessing tech to improve its earnings in the face of a low interest rate, low growth environment. take a look. brian, we're out here in san francisco, and what i realize is that technology is really starting to figure out and help you who should be your client, who should work for the bank, what is going on here. just talk about what bank of america is doing to stay ahead. >> sure. we actually moved one of my senior executives out here who run the retails and consumer system, to get closer and make sure we maintain closeness. but we have to be state of the art in mobile technology because that's what the young people in particular and all people need. that's how they interface through the public. that's how they find their news, they find their sports, they find everything. they got to find their bank. then we've got to be ubiquitous when they go in to pay. that's apple pay, google pay, samsung pay. they've got to have us with them wherever they go to pay

bank of america's brian moynihan tech titan michael dell. apple is putting the brakes on its project to develop a self driving car. this is bloomberg. ♪ best."his is "bloomberg i'm alix steel. have beenbanks calling for consolidation and on monday, a long-awaited merger finally went through. >> shareholders and italian have backed the merger. the deal marks the nation's andest in almost a decade lands a big win for the prime minister, matteo renzi. >> it was the first merger in almost a decade. if the deal had not gone through, it would not have been a vote of confidence in italy's banking industry, which is already suffering under the weight of more than 300 billion euros of bad loans. i think it was the bare minimum needed to restore some confidence in this industry right now. how frail are italy's banks? and if we do not have resolution for the other banks, do you think the share price will suffer as a result of investors also discounting you guys? approval think our last saturday was very important, not only for our banks, but for our sh

bank of america's brian moynihan and tech titan michael dell.traight ahead, we have more top business headlines, including a bloomberg scoop apple is putting , the brakes on its project to develop a self driving car. this is bloomberg. ♪ alix: this is "bloomberg best." i'm alix steel. let's continue our global tour of the week's top business stories in italy, banks have been calling for consolidation and on monday, a long-awaited merger finally went through. >> let's talk about italy, now the shareholders and italian lenders have backed the merger. the deal marks the nation's biggest tie up in almost a decade and lands a big win for the prime minister, matteo renzi. >> this is a pretty important merger, right? >> it was the first merger in almost a decade. if the deal had not gone through, it would not have been a vote of confidence in italy's banking industry, which is already suffering under the weight of more than 300 billion euros of bad loans. i think it was the bare minimum needed to restore some confidence in this industry right now. >> h

later on jim's exclusive with br brian moynihan of bank of america. we'll talk to jason furman, the chairman of the president's council on economic advisors about the jobs number. we'll keep our eye on break even levels for the week as the three major indices still stand a chance of going positive for the week. we're back in a minute. >>> honeywell's down sharply in the premarket. the industrial conglomerate lowering year end forecast, they cite a business slowdown and delays. margin apparently going to take a hit as well. david, you're watching this one. >> yeah, i mean, certainly also as a proxy for the industrial economy. it's an important one. what does it say about whether there's been delays or referrals in capital projects and if so what is the reason behind that. and, jim, you know, they may say they lowered the high end, but a lot of people tell me they lowered the whole thing. >> oh, you're dead right. they did lower the whole thing. they were talking about organic growth what we look for for these industrials, flat to minus 1 now goes to mi

that is brian moynihan, the chairman and the chief executive officer of bank of america.street. back to you. vonnie: wonderful interview, erik. >> talking with ambassador to iraq. he joins us here in studio. this is bloomberg. ♪ david: today is the fourth day to retake the city of mosul in iraq. that country's second largest city and this week president obama said it will be a "difficult fight." a victory would be strategic and symbolic significance. joining us now is someone who knows the region now, the former u.s. ambassador to iraq. a real treat to have you here in studio in new york. so we're four days in here. why is this fight so important and why is it taking so long for us to wage? mosul fell about two years ago? >> mosul is a big place, probably the second largest city. they've got a couple of problems. one is just the military issue of retaking it. and that looks like they can do that. but the real problem, of course, is the politics of it. because it's in a largely sunni rea in northwest iraq. and their kurds, who have an interest in part of it. and then you h

we had the bank of america ceo brian moynihan yesterday talking about the leader of the markets businessg -- investment banking there, better rates trading because that rate had not been always so great in rates. was there are differences in the businesses. a really good overall for the banks does not necessarily mean all of the reasons are the same for that bottom line number. matt: fixed income currency and commodity trading. a huge thing. i am sure you will get back on the call. mark? mark: coming up, a legal battle over brexit. who should get the final say on the decision to leave the eu? this is bloomberg. ♪ mark: this is your global business report. we are watching strong first-half revenue. shares tumbling on concerns of every asian lucky market. matt: more trouble for the airlines as technical -- technical problems cap travelers from making online reservations. we will find out which companies have been resurrected. matt: johnson & johnson posted third-quarter earnings that beat estimates. arthritis treatment, remicade boosted pharmaceutical sales. bloomberg spoke to the cfo and

give me the scorecard on brian moynihan.s and made some tough decisions given the cards delivered. brad: that's right. bank of america is a difficult bank to manage her he has taken his expenses down. the merrill lynch franchise is still a very powerful wealth -- wealth management franchise in north america. he has a powerful retail business in north america. a lot of the other things we still have some problems. the powersone of that i -- i guess i think this has gone slower than it could have. tom: let's go faster to taylor riggs with the bank of america earnings. looks like it is a beat, $.41 per share, coming ahead of the 44 cents per share. looking for an occasion of just .ver $20 billion the other thing we want to look as the -- the other thing we want to look at is fixed income. last quarter, brian moynihan said things could still grow earnings if rates stay lower for longer. we had the rate pickup in september, so we will keep following that. but for now it looks like $.41 34 cents is ahead of per share. tom: we went

at 12:40, bloomberg's erik schatzker since down with bank of america ceo brian moynihan.-based bankers? this is bloomberg. ♪ ♪ michael: good morning, new york city. cloudy day. 64 degrees. going up to 70. a little rain in the forecast while we think francine making her feel like home. i'm tom mckie along with francine lacqua. as it is all about the euro, we would like to look at the u.s. political race as reflected in the mexican peso. he continues to weaken, strengthen rather. it was way down at the debate suggesting people who trade the pace of think that hillary clinton is going to probably went through the election -- probably went through the in the election. francine: i don't feel at home anywhere. i in being chastised by all four corners of the u.k. coming up is david westin, jonathan ferro and alix steel. what will happen in terms of tapering and will they be able to expand qe. we will be front and center when it comes to the election speaking to peter navarro. an economic advisor along with wilbur ross who wrote the analysis of trump's economic plan. we will dig

about the role of brian moynihan at this company, he announced the last volley to cut $5 billion in savings. he has been successful. i was talking to chris whalen and he said he was surprised he was still on the job. of that criticism is he getting? is amazing that john stumpf, a guy wells fargo shoulders and has done really well by his ceo and brian moynihan has suffered in terms of the show. it is amazing if he has kept his job. however, this quarter has finally shown that all the actions started to pay off in terms of this tougher machine. vonnie: also, he is not under investigation. that we know of. out, and morgan stanley as well. are we seeing similar trends or are there winners and losers? >> i suspect the winners are all american banks. three out of five tanks are 30% plus with fixed income. if goldman and lawrence family don't, it will be a huge surprise. america's strategy has been to cut costs, what is goldman's strategy? to lastn strategy is longer than their rivals, which they have done with deutsche. hold on to their market share and when the tides come back, that is what we h

so on a cost issue, a cost of banks, this is a big emphasis of brian moynihan. quarter they were down about $500 million from a year ago. i think investors will want to hear about anything that might be going on underneath that. are there investments being made argument thatsts they have that they have 250 billion -- david: thank you so much. and michael moore is joining us from london today. let's go to outside the is this world with emmett chandra. -- with emma chandra. emma: iraqi soldiers are being backed by shiite militias. it is been called a decisive moment in the campaign to deliver islamic state a lasting defeat. islamic state captured most all -- captured mosul two years ago. the syrianuld target and russian governments. john kerry and his british under par, boris johnson, -- his british counterpart, boris johnson -- donald trump and his surrogates have roundup there -- ramped up their criticism. saying the election is "absolutely rigged" at going places and through media coverage. says thegiuliani election board is controlled almost entirely by democr

everything you could ask for from a bank, better even than i thought when i caught up with ceo brian moynihan in san francisco. the result, after a initial surge higher, ultimately closed up. in short, bank of america's stock did next to nothing on this monster quarter. this lack of action is astounding when you consider that with the country's largest deposit base, bank of america is the biggest winner if the fed does raise interest rates at their december meeting like everyone is expecting. remember when you open a checking account at bank of america, they don't pay you anything and they can invest that money virtually risk free for a terrific return. literally two quarters, we were shaken by the amount of exposure these companies had to the oil patch, with crude in the mid-20s. now that crude is trading just around 50 bucks, it looks like all that bad news is behind them, and the worries have shrunk pretty dramatically. performance last week from citigroup and jpmorgan. but the market was similarly unimpressed by their numbers. the gains are so meager, it's hard to make any case that they'

an exclusive interview with bank of america ceo brian moynihan after a glowing earnings report.out the bank's equities business, return on investments, and progress is the 2008 financial crisis. this is bloomberg. ♪ " -- bankat'd you miss? of america reported third-quarter results that beat analyst estimates as profits rose on bond trading and cost cuts. ceo brian monahan spoke exclusively with erik schatzker, who asked the chairman if the bank's successful quarter, particularly the fixed-income trading business, can be sustainable for the next year. you have to give me what the market will be like. in the market is plugging along. we expect to be in a fairly narrow band. looking at five or six years, are trading revenues probably had a low of $2.53 billion and a high of $5 billion. the way they set up that business is to basically make money in any reasonable environment. so this year we have made money in every quarter. we made about our cost of capital. the first quarter was kind of interesting, and we still make good money. so we took a lot of cost structure, a a lot of capi

what do jamie dimon, brian moynihan, and other bankers need from janet yellen?mon was at the imf meetings, talking about the need for a rate rise. they are hoping for that. tom: they need that rate rise. christine: although i will doubt that one element of earnings today is that one of the rates of business was a big driver in the beat. they talk about good client activity, markets remain active after the brexit vote, and in -- and in anticipation of the vote. tom: here is the reality that adam parker lives with, and other strategists, including charles reba -- including charles peabody. you can comment on the financial sector links that the steepness of the yield curve how will that be in a year? adam: i was joking around with you guys. i am a big patriots fan. some time right before kickoff, i will go through the bank earnings. is --tely, i think there we are neutral to big banks in the portfolio, and you have a lot of shareholder return which is positive. that theouse call is 10 year yield is much slower. -- that the 10 year yield is much lower. tom: francine

brian moynihan, i had him on last week for "mad money," that bank -- there's some banks doing quite wellause there was a lot of activity in bonds. this was a point of turmoil. remember these international banks do well in turmoil. >> i do. >> can you imagine if we get a rate hike? like rosengren said imagine if you get a december rate hike, you're talking billions of dollars to the bottom lines of these guys. so now every time you get in front of these guys something bad happens. they've cut your heart out. kind of like "indiana jones and the temple of doom," remember that? >> one of the darkest of the three. >> every time i hear rosengren i'm thinking rosen krants and gilden -- >> no time for love. okay, shorty. >> yes. >> dow up led by goldman by the way as we were just saying. let's get to bob pisani on the floor. hey, bob. >> and a big sigh of relief down here on the bank earnings. we're strong almost 70% of the stocks are on the upside down here. asia closed strong. take a look at europe. they've had a very nice session in europe. they opened gap up in europe, bank stocks have been

now, earlier, jim cramer sat down with bank of america ceo brian moynihan and asked for his advice onut the german bank and its problems. >> i this i if you think about the american banks, because the impatience of investors like you, we're forced to get the capital up very early. standards in 2019. get to the place you have to go, because we're going to ask you about how you get there. >> you can see the rest of that interview tonight 6:00 eastern time on "mad money". >>> stocks cutting their losses a bit, but the major averages could have their first down week in a month. and we're also following the path of the hurricane. imagi as it heads up the east coast. "power lunch" continues after this. or. or. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very impoant to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on t

tom: what does that mean for jamie dimon, brian moynihan, and a bank in des moines? fully, banks would behave as they have always behave. when rates were not encumbered, banks were reluctant to cut retail policy rates when the fed cut their policy rates because the banks are loyal and the banks want to say that we will meet you with currently higher rates until we really have to cut rates. when we know the central bank is serious. that has been the policy all along. retail depositors are their loyal customers and they do not deserve to get rate cuts immediately. when you are at zero interest in the banks know that the central banks cannot cut very deeply, they are not going to cut rates below zero for the retail depositors, so bank margins get squeezed. so the current regime, which is a halfway house, is very difficult for banks to navigate. sri-kumar, you are usually skeptical about negative rates because you observed the halfway house in the various experiments in germany and japan. sri-kumar: absolutely right. that is where it comes from. justify8, ben bernanke qu

as interest rates are on everyone's mind now, brian moynihan told us even when rise we probably willy more interest paid to us in those accounts. that is a good thing for banks. david: thanks very much. oliver, what do you have? >> i immediately regret not being more topical since banks are the story. i know you like currencies. i am looking at a basket of seven different currency pairs to the u.s. dollar, their volatility over the next three months versus the s&p 500. the white line is the basket. pound/dollar. yen/dollar. this is the volatility expected in the next three months in the white line. the blue below it is the same term for the s&p. the bottom is the spread. you are looking at divergence where volatility in the currency market is still high. it has come off in the past couple of months but still relative high to history. the three-month fix on the s&p 500 has not gone anywhere. at about 1.4 times the volatility in the s&p50is the lowest in a long time. something has got to give. currency volatility might be high, but i think we have seen the vix spike up and that is not

brian moynihan, get it going. morgan, back to 2009, the lehman low.ack on the j.p. morgan juggernaut? we do own some j.p. morgan in the global fund that i manage. sachs, you can make more of a valuation argument for it because i believe the share price's trading right about in line with tangible book value. paying basically tangible book for the stock. if they can grow their book overtime, which you would expect them to be able to do, you would think that would be a moneymaker. j.p. morgan has the cash flows that are more dependable. it has the deposit base, which is better for funding. it is a less risky investment with a big fat near 3% dividend yield on it. the more conservative investor would probably be better off with j.p. morgan. for a longer-term investor who can live with more volatility, goldman sachs at tangible book value is probably not a bad place to be. is atine: volatility hallmark of the goldman sachs stock price. francine: is there a danger that goldman sachs -- that we are expecting too much? looking at some of the bloomberg intelli

didn't we just have this fight with brian moynihan and jamie dimon?nge that may tend to bring back some of those pressures. gavemorgan and citi guidance to the fourth quarter. if you look at that guidance, its weakness versus what was just reported. some of that weakness doesn't incorporate volatility. if i look at citigroup -- and estimates for the fourth quarter are somewhere between $1.10, $1.20, i have a down year next year.r citi how do you do that in a 2% gdp environment when you are trying to normalize rates with central banks and you have uncertain capital markets? scarlet: what did they say? what is their response? matt: well, they are not giving guidance at this point. the banks are not. what was disturbing is that they toe not willing to commit flat extensions in 2017. can you grow revenues without growing costs? if you look at some of the subsidiaries, their bottom lines were down even one revenue was up, and part of that is because you are starting to see a normalization of credit card cost on the consumer side. scarlet: the era of cuttin

if you are brian moynihan and you want clarity, you pick up the phone, who do you call in the u.k.political advisor. alix: that is it philip hammond that really has the final say? is it theresa may? there are so many officials involved that it is hard to get a single voice. >> that is europe. you cannot make one phone call with europe. you have to make a lot. alix: when you look at the banks that have the most exposure, who might those be? >> you can go to the city of london, it is jpmorgan, citi, goldman sachs, morgan stanley, bank of america. david: thanks so much, fred. fred cannon, kbw global director of research. we're going to talk a little bit itst deutsche bank and troubles. at 10:00 a.m., john micklethwait sits down with u.k. chancellor philip hammond to talk about britain after brexit. this is jonathan. jonathan: this is jonathan. we are about 11 minutes away from the open. this is how we are trading -- europe is pretty much unchanged. the open is 11 minutes away. ♪ alix: this is bloomberg . i am alix steel. look at the terminal, a 15-day chart of deutsche bank. each