christine harper from j.p. morgan. with newsne harper from j.p.u say cash flow year, two year, three years out, these are going to be cash machines. is jpmorgan a cash machine? the sensehey are in that they are returning a significant amount of capital, as well as raising dividends and buying back stocks. tom: they have a 13% return on equity. the headline out today, it seems to be a giant norm us number -- with -- it seems to be a ginormous number. how are they returning on equity? they're big beat is in their corporate and investment 3.5er at they did about billion dollars in trading sales and trading. they were significant beats. i am guessing -- i have not had all the numbers, so i'm guessing -- fixed income was a big part of that. prediction twour years, three years out? charles: i am looking for a downside toward tangible book value by the end of twitter and 17 -- by the end of 2017. i think we will see an inflection on the credit front next year, and normalizing credit cost is going to be very difficult for these banks. i think you will see

we are joined by alison williams christine harper. at estimates, but not as much as j.p. morgan? christine: citigroup looks like it is a race business like j.p. morgan that helped them outperform. they were lower on the equities trading business and missed estimates. the investment banking business did well. it looks like it beat overall. one thing to look at deeper is the consumer business. that was the highlight for j.p. morgan. wells fargo does not benefit from trading. the consumer business is where you have to look to see how they are doing. i have not looked at deposits or retail business. alix: we are looking for that as well. credit costs, the lower the better. it rose quarter on quarter coming in at $1.4 billion. what can you learn about the credit quality? alison: for credit quality, we will want to see more of what is behind that. for thehave been seeing last couple of quarters has been an improvement in energy, the driver of higher credit cost and concerns earlier in the year. however, we saw a tick up for j.p. morgan, grow

and christine harper joins us, who essentially invented modern financial reporting at bloomberg. with us today. let's start with a rhetorical view. bank?ldman sachs christine: it is becoming one. it is considered a bank and they take deposits, and most of that has historically been done through its wealth management business. that theyave open up have opened up an online bank. they are becoming much more like a traditional bank. they do not have branches around the country, but a lot of people say the future of banking is not having branches. tom: do they have the pressure to outperform? young hot see us yesterday asked questions of -- christine: one area of popular haveure this quarter, you seen j.p. morgan, citigroup, bank of america all beat expectations. that is the real wheelhouse. at least expectations -- tom: let's look at two outstanding bank of america yesterday. brian moynihan, get it going. morgan, back to 2009, the lehman low. goldman sachs own or just get back on the j.p. morgan juggernaut? we do own some j.p. morgan in the global fund that i manage. sachs, you can ma

david: many thanks to mike regan and christine harper.ill likely hike rates two times or maybe three next year. it's time to reduce risk. we will have pimco cio of global credit. mark kiesel is up next. this is bloomberg. ♪ emma: this is "bloomberg daybreak." , timothy massad. jon: this is bloomberg. 12 minutes into the session, this is how we trade, software, down .4% on the dow. down down .4% on the dow. shares of the biotech giant plunging, leaving $7 billion in market cap on and that ispreannouncement the company making 605 million in revenues in the third quarter, missing street estimates by 4%. machine salesncer are down 26% year-over-year, largely the reason for this huge mess and moved to the downside. move to the downside. another massive mover, rent-a-center down 34% on pace for its biggest drop ever, lowest level since october of 2001. a huge plunge here. also on a bearish preannouncement, a really big one. rent-a-center adjusted earnings for the third quarter are five -- five cents to fit the incense -- five cents to $.15. sur