in the mid-90's, citibank is like, we have got to unload this thing. to find some but trump's original fixer, a guy named abraham, creating re-datingohen -- p michael cohen. he says, if i can find us a buyer, you can still be involved. so he looks to hong kong at the kwok family. he invites them over with the family. we will take you guys shopping and go golfing. he goes up to get them one morning, and they are trapped in their hotel room. the door is stuck. he has to call security. jason: not stuck like jimmy it a little bit. like trapped in the room. >> he comes up with security guards, they hatchet their way in. not shockingly, the family decides they are going to pass, which makes sense. citibank goes out and finds to -- buyers.wo bbuyers in 1995, up, and eventually by the plaza. as the first time the hotel has been in foreign hands and has been ever since. step back, before signing , he wasom line, abraham loose, a little bit? these families, they are conducting the negotiations to buy the hotel in the plaza. and it turns out there is a secret roo

in the mid-90's, citibank is like, we have got to unload this thing.y to find some buyers, but trump's original fixer, a guy named abraham, pre-dating michael cohen. he says, if i can find us a buyer, you can still be involved. so he looks to hong kong at the kwok family. he invites them over with the family. we will take you guys shopping and go golfing. he goes up to get them one morning, and they are trapped in their hotel room. the door is stuck. he has to call security. jason: not stuck like jimmy it a little bit. like trapped in the room. him >> he comes up with security guards, they hatchet their way in. not shockingly, the family decides they are going to pass, which makes sense. citibank goes out and finds two buyers. they team up, and in 1995, eventually buy the plaza. the first time the hotel has been in foreign hands and has been ever since. carol: step back, before signing the bottom line, abraham, he was loose, a little bit? >> these families, they are conducting the negotiations to buy the hotel in the plaza. and it turns out there is a

it is more of a citibank story than the jgb market itself.e are seeing certain participants love the market still somehow and my colleagues seem to be excited. i find it hard to be too excited because it never seems to go anywhere. i am not convinced boj will be ahead of the curve. even if they are ahead of the fed, it is not that much of it game changer. i am a little more cynical but we are seeing a reaction from market participants and so they are excited the boj might suddenly surprise. given where their expectations were six months ago, every year we come into it with many people believing this is the year the boj will taper and it is amazing how much the expectation is shifting the other way for all central banks. every major central bank is priced for easing. major last november every central bank was priced for further hiking. that shows that massive shift we have had in the rate market globally among not just for the fed. anna: the message -- massive shifting rate and the cutting and easing that is priced in for dangers ifat are the

citibank says about 16% of its revenues could be at risk and union pacific says 5.5% of its overall volume goes from mexico to the u.s. and trucking is expected to see the biggest impact. >> trucking rates are directly related to the supply and demand indicators of the trucking industry a giv cross-border mexico volumes are a significant absorber of capacity to the extent that they're impacted by the escalating tariffs and that woord be negative f trucking and trucking rates for sure. >> those rates have fallen 18% since last april and that'sau largely bec of the trade war with china and how it slashed u.s. exports cutting on the goods exports areli h. it could put smaller operators out of business. for nightly businesspo , i'm frank holland. >> following the new terror threat, s se of walleet's major banks are reassessing their outlook for and j.p. morgan is calling for the fed to cut rates twice by december and barclays is cutting .75% by the end of the near. >> and c leaders are watching closer to see how the t terror t tariff threat with mexico plays out. eunice yun is in beijing. j .

morgan goldman sachs citibank b.n.p. lloyds of london h.s.b.c. they'd have to come out and say you know what we're actually insolvent but they don't allow that to happen so what you're left with is a policy by the central banks that goes like this they buy trillions of dollars worth of bonds forcing the interest rate lower and then they tell people that while the interest rates low so we're going to lower rates again so it's through the looking glass they're not supposed to manipulate the market and then base policy on a manipulated outcome they're supposed to sit back let the market decide what is actually the demand and the supply and then respond to it you know that's the relationship but the fed says we manipulate the price. we drive the rate down to near 0 and then we tell the public that well the rates near 0 so we're going to have to lower rates we of course here in kaiser report did warn for the last 2 years that you can't taper a ponzi as the fed tried to pretend at least signal that it was on winding quantitative easing and that everyth

morgan stanley said they were approaching the levels for iron ore and citibank saying they have had the00 right now, so they are a bit more cautious here. people had been managing the supply side better as well? peter: yes. i told you it was going to go through 100, so i feel i have one point there. rishaad: you did, yes. peter: i think the supply-sider seeing better managed. people got frightened by spending vast amounts of capital on new projects. hours are lucky because is operating at around about 100% of which it capacity. rishaad: you have another one. are you looking at opening up that one as well? peter: in a nice way. we organize prices better. yes, we have not made any decisions, but it is a poignant time for us. times been good -- buoyant for us. it has been good. i am chairman of irc. rishaad: that is the hat you are wearing today. irc.take in doesn't it make sense for you to sell that? there has been a lot of talk about it. peter: there has. engaged to someone to look for a buyer, but there is no point in telling it along is that -- as it has that guarantee . -- so long as

. >> look at bank of america up 14% year-to-date and goldman up 19% and citibank up year-to-date everyone looks at jpmorgan as the one that leads the financials i'd look to a citi orman in the virnted we are in. >> you have to see how aggressive jpmorgan was. these are guys want to give as much back in terms of capital as they can and they know its balance sheet as well as anyone and has the ability to what do we say is in the things are trading cheap? the fact thee guys are loofg to be aggressive apple return to investors we are now probably two and a half years in this regime after almost a decade where banks couldn't do anything as an investor i like that. >> rates are where they are. there is no real belief that rates are rise what happens with the banks in the future >> i think it's interesting to segregate the money center banks and investment banks when i look at them, they should be it's a party over this the ipo scenario and a lot of the banking environment we are seeing mna is crushing. goldman is take% off 2018 highs which was their post prices high and doesn't add up with the

citibank and bank of america routing the most since january -- rallying the most since january.led an openness to cutting interest rates. one would hope he is always open to cut rates if necessary. wells fargo analyst says if the fed were to cut rates, banks would party like it's 1995. he said it would be yet one more parallel with that year, when bank stocks were strong out performers. mike mayo is probably the most famous bank analyst and all-america. mandel is still with us. how come the european banks are so widely hated if it's almost like party time for u.s. banks? benjamin: i'm not sure i would use the words party time with regards to u.s. banks. i think they will react to a steepening of the curve, as per usual. it's unclear the type of steepening they would ideally like to see. i think what will be preferable is an improvement in the outlook that causes long and yields to to rise.ng end yields i'm clear that a rate cut is party time -- unclear that a rate cut is party time. anna: i have got a chart here that shows what the rate is in question. this shows the relative we

>> i think if you think about banks, banks like b of a and citibank are lending and five times over collateral. you have to make sure if you're lending 100 million companies making quite a bit more than that on all this new debt that is coming out on the bdc that jon talked about best case, 1.5 or 2 times. you're taking a lot more credit risk and that's what he's worried about. because it's loans that b of a would not make so, right b of a will make those loans. that's the only reason bdcs are and they're charging a lot more. >> so, we had christopher wailen on who said the following. i want to listen to that and react to that. >> high yield spreads are going up and in the nonbank sector and unicorns like tesla that are assumed to have access and the mortgage space, they're not making money >> what do you think i mean, the point is the straw that breaks the camel's back in this area is one big potential bankruptcy, not necessarily whalen saying that tesla is the one that does it but you kind of get the point. >> i do. i don't know if that is correct. i think it will make things more difficult.

. >> citibank has an index that compares current data releases to their 12 month moving average and all over the world, those are steeply in negative territory and have been all year, and in the eurozone, even for the last full year, not just year-to-date. so there's plenty of indicators recession might be coming. liz: so plenty of indicators a recession might be coming. you didn't hear fed chief powell say that. could an imploding economy, though, tip us into recession? could it be that catalyst that really brings up the "r" word right in front of our faces and hurts the stock market, by the way stock market not hurting right now. dow is up 62. let's bring in glenn hall, dow jones newswire chief global editor and international assets advisory ceo and president. glenn, again, we don't ring fence the united states anymore. it is for better or worse a global economy. what do you think he was really saying there? what does he see? >> well, you are absolutely right. i think the undercurrent in all of these things is trade tension still. the fed mentioned it but it's also been the thing that

. >> citibank came out with a statement saying half of apple's 19% in greater china is at risk.s probably aggressive but it made a good headline, the citibank analyst got his kudos. stuart: if china did want to rachet it up, what would they do to apple? >> they can start with just racheting up the social media animosity toward apple which has already been happening over the past weeks and has led to this kind of domestic china, you know, does apple buy huawei within the market. there's a kind of, you know, we had this with auto makers in the united states. buy ford, let's not do hyundai and samsung -- subarus. so there's already that going on. that can have a real effect if it's seen as, if you pick up your phone and people give you really nasty looks because you are buying their phone, right, that has a kind of social impact. there is some evidence already that's happening. if they can rachet that up and say hey, it's not us, it's the social media -- stuart: it would be relatively not easy, but i can see the way to a meeting between president trump and xi jinping at g20 at the

citibank is among the first wall street strategists to cut their earnings forecasts.have a lot of bad news to price but it's going to happen very slowly. paul: mark, let's focus in on one potential one that's brewing right now. have a look at this chart on the bloomberg. w.t.i. right on the cusp of a bear markets now. what are the implications of this? mark: oil has been tanking for the last few weeks. i think we're getting towards the sort of stretch face. we're starting to see capitulation in the market. i don't think it's going to turnbullish. but there's a chance we're getting towards the end of the slump. i think it's turning much more towards a neutral area, maybe a little bit more downside to come. while oil hasn't been the main driver in the u.s. field, there's certainly been a component. it might cause a little bit of a short-term in yields. these yields aren't long term, it's just short term, the move in yields seems very stretched and emily: will play into that story. shery: scott miner saying that treasuries were pretty overbought at the moment. what's goi

. -- city banks and reo you described -- citibank scenario you describe is the worst possible outcomemany fronts. it is a very vibrant part of the u.s. economy, and i think, you know, it seems to me at least markets are getting a little too pessimistic a little too early right now. we will see if that sort of pessimism and markets leads the fed to start worrying about impact on consumer confidence, impact on investment confidence, and leads them to act. if you are just looking at some of the economic data coming through, it has been slowing. it has been weakening, but it is not anything -- it seems to me that the markets have been overreacting of late. paul: christopher, and terms of potentially resolving the trade impasse, we are looking ahead to the g20 leaders meeting in no soccer -- osaka at the end of the month. but then we have president trump saying if president xi of china does not show up, there will be more tariffs. to what extent does that put president xi in a no-win situation and is this really about president trump by being a 2020 -- eyeing a 2020 election form? christop

also, economic data, citibank has an index that compares current data releases to their 12 month movingtive territory and have been all year and in the euro zone, even for the last full year, not just year to date. so there's plenty of indicators the recession might be coming. also, consumer spending, i believe, is at risk because of the tariff fears. we have already put significant tariffs on some chinese goods. if we end up putting tariffs on more chinese goods and do that coincident with the president talking about well, we will make a deal to remove the tariffs, that will absolutely put a halt to imports from china, because if you were going to buy something from china with a 25% tariff on it, and you suddenly started to get rhetoric that the tariffs might go away in, say, three or four months, you are going to stop that buying decision. so maybe the president is really as die boclever as some of his conspiracy theorists say and he's trying to get the economy weak now so consumer spending can rebound sharply in 2020 just in time for the presidential election. neil: who knows. let me

crisis to bank of america, fortress diamond, bank of america -- citibank rolling over in scandal. selection as we go into the summer? gerard: that is a key issue for investors, stock selection. though the macro trends will impact all banks, owning the best quality banks that will benefit from a steepening of the curve is the way to play it. isyou pointed out, wells challenged and looking for a new america, j.p.of morgan, and citi, those investors should look at. regional andarge, banks with 200 employees. where is the opportunity? gerard: there is a couple places to look. when you look at the regional banks that will not be negatively impacted on a net interest margin standpoint should the fed cut short-term interest rates. there is an expectation the fed will cut short-term interest rates and the banks the last few years have benefited from a rise in the short-term interest rates. that rise in short-term interest rates started to work against the banks. regional banks are the one to look to. keycorp is not a very asset sensitive bank. m&t bank is another one that would not be a -