citigroup or jpmorgan? >> they chose to acquire. >> is citigroup a worse player today? no. >> back then citigroup was bad, the investment bank was far worse. you are missing the ultimate point. liz: did not get admired in the subprime. >> one third of originations in 2006, 2008. >> that is what happened. selling it. >> charlie, when you make an acquisition and and acquire as, you get the kickback. they knew what they were buying. but me finish what i am saying. for a year of the transaction until they realized just how large they were at which point they found language loopholes to say this isn't ours. >> doesn't the fdic cover some of this? >> no. when you do a purchase acquisition. >> you are saying there was language in there that allowed them to basically get out of some of their liabilities. jpmorgan? >> no. jpmorgan acknowledged they are now saying there is a loophole so there is going on about this. >> you believe the government, not jpmorgan? >> if you say they are not ours. if it is your liability, but otherwise charlie, guess what, otherwise it is a security f

citigroup hurt by week income revenue. now trading higher. also a pair of dollar names, coca-cola and johnson & johnson. coke profit jumped 6% from a year ago to $2.5 billion on rising volume but revenue fell in the company is planning volatility and emerging market, shares are little changed on that report. johnson & johnson among the two gainers on the dow. beating estimates on the top and bottom line. prescription drugs led the gains. the company raise the full-year earnings guidance. lori: washington dragging down stocks today. where should you keep your focus? bring in david joy. always wonderful to see you, david. i want to start with this news on the short-term treasury auction, three months, six months, 35 billion in volume. the government will have to pay more to borrow money. will that send a message that we want a deal, w we're done with e shutdown and the debt ceiling is drawing ever so close. >> i guess to some extent it will send a message, but this is a prudent response by those who have a fiduciary responsibility liquidity wil

well, as you mentioned, ross, citigroup, the estimate is for $1.04 a share.t versus $1.06 a year ago. so looking for a slight decline. citigroup is part of the financial sector which is expecting the second is weakest earnings growth overall of the ten sectors in the s&p 500. it's expecting a decline of 3.5%. and so this will be a big week for financials. we hear from a number of companies this week and get a better feel for how those numbers might change. >> you talk about the weakness in financials. how much of that is down to jpmorgan? >> right. well, we saw the decline in the financial sector this past week due to jpmorgan. the company reported a loss that was well below the expectations and as a result we saw the growth rate for the financials go from 9% last week down to a decline of 3.5% today. and if you look at the financials overall, it's really a tale of a number of companies. last quarter, we have broad based growth across the sector. but this time around, the jump is concentrated in bank of america and morgan stanley. if you exclude those two com

citigroup will pay a $30 million dollar fine. the new york times reports a citi analyst is accused of offering research information "before" it was made public to s-a-c capital, citadel, g-l-g partners and t. rowe price. the information reportedly had to do with one of apple's taiwanese smartphone suppliers. citigroup says in a statement it takes regulatory compliance requirements very seriously and is pleased to have this matter resolved. the leader of the commodity futures trading commision may be stepping down soon. according to the wall street journal. chairman gary gensler plans to leave by the end of the year. he served during a tumultuous term that included a major overhaul to the derivatives market under dodd frank and prosecution of banks for libor market manipulation. b-p is applauding a partial victory. a federal appeals court ruled more consideration should be given to the terms of b-p's multibillion dollar settlement. b-p claims it's paying billions in bogus claims. however, one judge on the case called out b-p for t

citigroup, coca-cola and johnson and johnson. intel and yahoo! are among the other we will be hearing from. burberry's ceo is leaving the british fashion house to move to, guess where? apple. angela ahrendts is going to take up a newly created position at apple with oversight of retail and online stores. she's going report directly to ceo tim cook. blackberry opening to publishers, appearing in major publications around the world today. the letter tries to reassure customers saying in art, there are no doubt challenges times for us and we don't underestimate the situation. but we should continue to count on blackberry. blackberry is, of course, considering a sale or break-up of its operations. joe. >> what does that mean? i mean, continue to count my blackberry still working? >> and you should be very happy about that. >> let's check on markets. a one-month bill? if you really want to look at the -- what we've seen, the effect of the worry, let's look at the effect on the one month or the three month. billions? when you're talking billions, you k

i asked about citigroup.up had a rough week in the news, ceo at the white house, god knows what that was like and also pressure from new york attorney general, all of that combined, don't worry about it, stay with citigroup. >> a lot of the impact in the stock price, company is trading, that is just book value, indeed 11 times earnings, a cheap stock but what i like is a culture problem at citigroup, much glamour, types of investment no one understands, they brought to the head place a real meat and potatoes banker. people have great things to say, he is a continuation of positive aspects. cheryl: 160 countries, there you go, global name. i like to quote. thank you very much, appreciate it. dennis: if you could, would you buy into twitter's ipo? that is the twitter question this hour and we flash your responses and with their take on it, richard billups of albert free and company and the president of ipofinancial.com. you are the ideal guy so first of the top of your head, would you buy? >> unqualified yes. d

as we said, disappointing numbers from citigroup, less money coming in, the stock is down 1%.h. 49 bucks on citi. the walking dead: the season premier. it drew 16 million viewers, a record for the series and it easily beat sunday night's playoff baseball game. amc puts out the dream-- the walking dead stuff. and they're up again, $67 per share and they're laughing at me because i said the walking dead stuff. couldn't remember the name for a moment. content is king. nobody knows that better than netflix, hot on the heels of the house of cards success. it's ended into another production deal with a major hollywood studio and netflix ordered a psychological thriller series from sony and the creator of fx legal series "damages". netflix down 323, 322 on netflix right now. it's an emerging media stock clearly. let's go to the senate and the proposed deal. that's what everybody is talking about. and the senator roger winter, republican from mississippi joins us now. senator, did you, as a republican, the republican party in the senate, do you think that you won on the issue of spend

you know, you look at citigroup as well. it's, it seems like it is a very tough time for these huge conglomerates? >> it's a tough time. it is a tough time for different reasons. the most surprising one for me was goldman sachs today which had a very substantial decline in revenue. melissa: yeah. >> in the big money division, ficc, fixed income and commodities. that is the bread and butter that is the business lloyd blankfein came out of. melissa: what happened there? >> we don't know exactly what happened. they said basically that client business dried up a lot towards the end of the quarter. what the suspicion is though they got caught on the wrong end of trades. the banks hold securities and take positions just in the normal order of client business, not is what is normally considered prop trading. september was extremely volatile month because the fed pulled back from tapering much the suspicion is they got caught on the wrong end of some trades in september as a result of that. we don't really know the full truth. we kn

then he basically went to citigroup, one of the banks -- >> you say there are many culprits. a lot of people say, are just. you say if you go after one you go after all, the people who provided that environment. >> i wrote a book called sell out, in 2009, about how -- listen, bubbles are not created by wall street, they are incentives that wall street is -- one of those incentives, prodding the barges to make the loans. ne: the flip side, those folks saying that jamie dimon could have said no. >> i think what hank paulson calls you in the room,. neil: former treasury secretary. >> tim geithner, the top regulator of the banks, when that comes in, you -- they say we would like you to do it, do you it. neil: the goal to me is paying fannie anything, that is what -- >> it is bogus, and absurd. it is so upsetting, the irony, 5 years after the financial crisis, fannie and freddie that helped cause this official crisis, they are getting money from one of the banks, j.p. morgan, which avoided a financial crisis, not saying they are perfect but in terms of risk management they were th

i love citigroup stock right now. i like citigroup stock.pany better than at any time since they were in their current form back in 1998. and better lucky than smart in some ways, they were not a top three mortgage player during the crisis, so they don't have the same degree of legal risk like a jp jpmorgan or bank of america. but on the positive side, it starts with accountability, and mike consider bet, he used -- corbett, he uses the word accountable, but they have compensation schemes in place, he's been termed mike the mechanic. he knows the nuts and bolts. the prior ceos you had a dealmaker, a lawyer, a hedge fund manager. now you have a guy who understands banking, i think these the most -- that's the most important factor, and i think that stock can double over four years. liz: i like to aerothat. i'm a client, so thank you. mike mayo, bank analyst. outspoken, has his eye on the prize, and that's for shareholders. thank you so much. closing bell ringing in about 15 and a half minutes. what are you afraid of right now? is it another c

david: began his job in citigroup with 2008. a unit of citi called alternative invests, according to "the wall street journal" they were infamous for overseeing structured investment vehicles that actually hid mortgage risks out of citi's balance sheets. >> it is totally legitimate point to be saying, well, wait a minute, is there some element of selective prosecution lurking in the rafters as well? meaning in simple english is this main culprit here and were there many, many and was this entity singled out. this is ripe top i can for discussion in this analysis. david: jack lew entered citi, in january of 2008 largely after the bad mortgages were bundled together. the fact he was working for the same unit. >> right. david: are we likely to see enough pressure for those concerned about the non-equal justice or non-equal prosecution for us to see other prosecutions not only jpmorgan and citi and other banks? >> there are so many components to that recipe and that calculus. political factors, relationship factors, doj factors and

citigroup's were a problem. that stock was down on the open. charles schwab hit it out of the park, up 52-week high, and johnson & johnson looked pretty good today as well. we said no word about that. >> sam, are you concerned about peak earning margins for the s&p 500? i mean, it's one thing to have priced earnings multiples high but with margins so high, hugely mean-revert, doesn't that indicate a more expensive market than people are seeing at first blush? >> we're seeing margins were over 9%, very high. note put out by s&p 500 and dow jones indices saying a slight improvement in this third quarter so we're able to squeeze out a little better. i think possibly what we end up doing is not rolling over and seeing a sharp decline in margins, but actually probably plateauing at these higher levels for a little while. >> joe, what do you make of all this mess and are you a buyer or seller right now? what are you doing? >> we're a holder. two things we have to keep in mind. this is not a grand bargain. this is simply punting the ball down for two

you saw citigroup on the financial team, citigroup received an upgrade. $65 price target two days ago. sitting in the $48 range. that's something you can look at picking up. financials are going to lead us higher. long term, if you are looking out a year from now, there's nothing to do right now with what is going on in washington. it will pass. >> mario is one of the world's best investors. main fund gavely asset fund. up 21% year to date after a double-digit gain last year as well. it is also the second best performing fund in its morning star category over the past decade. mario's chairman and ceo joins us set. good to see you again. >> privilege to be here. talking about stocks. >> let's talk about markets first. what do you make of this? it is nonsense. what do you make of the nonsense in d.c.? >> you do have a structural problem. the u.s. has a -- the global economy is 75 trillion. the united states is 16. over the next ten years, based on the numbers, debt. currently 17 trillion, goes to $25 trillion. you lose total economic flexibility to when that occurs. have you no margin o

while devastated giants like citigroup get bailed out again and again and again, many smaller banks arefailing. the federal agency that takes over unsound banks is the federal deposit insurance corporation, the same people who guarantee that depositors won't lose their money. and you don't see the f.d.i.c. seizing banks, because these takeovers happen secretly at night to make sure that there's no needless panic by depositors. but in february 2009, scott pelley was given extraordinary access to one of these operations, because the f.d.i.c. wants you to see what happens to your money when your bank has failed. >> they're gonna start at one branch, pull the cash out, take it inside the bank. >> this is a team of f.d.i.c. agents preparing to seize a bank outside chicago. >> what we need to do is, we need to pull the corporate records. >> they've checked into this hotel under a fictitious name, cb and associates. to prevent a run on the bank, they don't want anyone to know who they are or why they're here. >> you all know that this is for the closing of heritage community bank. >> cheryl ba

you are now at citigroup. what's the mood with the financial sector?ggest? >> well, yes, only because it looks like a deal is in prospect. but frankly, we're just playing russian roulette much too much here. there's no doubt that the recurring fiscal dramas which i think will continue even after we have a deal in place is harmful to the economy. >> i'm sure you hold house republicans responsible for the showdown and the shutdown. do you have any criticism for how democrats have handled this, has president obama been right to say that he won't negotiate and to not talk to members of congress, leaders in congress, until recently? >> the problem here is the country has polarized. you have two parties with dramatically different perspectives on the right way forward and we've just got to figure out how to function despite those significant differences. so where i would raise a question is whether the debt limit is the right technique to have those differences play out. i think the answer to that is no. >> but as we've seen, there have been any number of me

we will welcome former citigroup chairman dick parsons when "squawk box" comes right back.rtunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. >>> good morning, everybody. welcome back to "squawk box" here on cnbc. i'm becky quick. and the futures this morning are under some pressure. this is coming as it is clear there's no deal, at least not now in washington. dow futures down by about 82 points, s&p futures down by close to 9 1/2. in our headlines this morning, as we mentioned, still no agreement to ending the government shutdown. now in the 14th day. also, no agreement on raising the nation's debt ceiling. that optimism that fueled the stock rally on friday faded over the weekend. with democrats and republicans still apart on key issues. democratic senator dick durbin told nbc's "meet the press" that reaching a deal to raise the debt limit is crucial. >> if in four days we default

you have citigroup posting results on tuesday before the open. b of a on wednesday before the open.e's gold man sacks. they report on thursday. yes, before the open. big tech names, intel, ibm, google. all of these guys are reporting. according to s&p capital iq senior analyst, third quart wither earnings per share are expected to post another record, but, and this is a big but, sales may not be as robust. that's why there is still cause for concern. >>> despite the upbeat estimates, one name feels could have some sickly earnings. dan nathan, you're taking a look at johnson & johnson. >> yeah. this plasma is getting a little lonely so i thought i would come up here. johnson & johnson has been a massive performer, 27% on the year. massive beneficiary earlier in the year when rates were low and investors were looking for high yield end stocks. it is expected to grow high single digits. what my issue here with johnson & johnson as we look at q 3 earnings, it isn't they are going to miss so dramatically. expectations are high. stocks acted very well. and the technicals set up weak in th

u.k's serious fraud office will accuse former traders and brokers from major banks including ubs, citigroup, and hsbc of rigging the london interbank-offered rate, or libor. in a separate suit, evidence shows barclays employees knew of the alleged rigging since 2007. sac capital has a tentative deal for a $1 billion settlement for insider trading charges. the deal still needs a judge's approval. federal prosecutors wanted a $1.8 billion penalty and a guilty plea. but sac's lawyers argue the government should deduct $616 million - for money sac already paid to the sec. the port of baltimore remains shutdown as thousands of workers strike. arbitration begins today between the steamship trade association of baltimore and representatives from four labor unions, including the longshoremen. two- thousand workers walked off the job this week over contract disputes. its expected the closure could hurt east coast auto sales. baltimore is a port of entry for cargo from mazda and bmw. in detroit-- number crunching shows the city has some cash on hand. in july, detroit issued the largest bankruptcy fil

but we're going to get earnings from the likings of citigroup, coca-cola, they look better than expected, and johnson and johnson. the dow at 15,301, closing at the high yesterday, the nasdaq will start at 3815 after adding 23. a new poll finds older americans are accepting that they just may have to put off retirement. 82% over 50 say it's somewhat likely they will work for pay in retirement. nearly half now expect to quit working later than they previously thought. on average age 66, two years later than back when they were in their 40s. the growing trend of people working longer and the fact that people can't afford to retire. older adults are the fastest growing segment of the u.s. work force for people 55 and over expected to be a quarter of the laby force. and a student -- for the first time macy's plans to open at 8:00 p.m. on thanksgiving night. the move is an effort by brick and mortar stores to keep up with online retailers who offer early black friday deals. among the door busters macy seas pushing, 999 coffee makers and a luggage set. i will tell you i live in new york city w

. >> moving on to citigroup.y posted third quarter results that did meet wall street forecast, hurt by weaker income revenue, coca-cola, 54 cents a share and johnson & johnson raised its full year guidance. there we have three of the larger companies in the united states of america. city did come in a very bit below the earnings estimates and fixed income does seem to have slipped a bit, banking revenues down 10% from the prior year. >> that was not a great quarter. >> not a great quarter in terms of fixed income trading, which we can see as a delta on terms of better or worse whether it be morgan and stanley, goldman sachs. >> almost a year to the day of corbat being named ceo. >> this is a good opportunity to sell that box to somebody. >> who is going to buy that box now? >> it would be a good opportunity if they were 6-0. >> they had an opportunity and they missed the window. >> what about the other names, coke and j & j? >> i told you goreski. i got a man crush on him. >> brees i got a man crush on. >> whom y

citigroup which recently settled with fannie mae and freddie mac over questionable mortgages albeit for lower sums, is also still under a cloud. in an interview outside his office today, jpmorgan chief jamie dimon said he's working to put the mortgage litigation behind him. >> when i woke up this morning, people coming in bright-eyed and bushy-tailed. >> and they're not happy to see us. >> 260 people around the world doing a great to be our clients. we're doing a great job. we're trying to get our product behind us. >> reporter: in the end even the $13 billion won't wipe jpmorgan's slate entirely clean given that criminal charges could still be forthcoming. i'm kate kelly in new york. >>> how could the jpmorgan fine impact the housing market? coming up a little later in the program, we'll examine whether the penalty along with the proposed new mortgage rules could make it more difficult for homebuyers to get a home loan. >>> meanwhile, where does jpmorgan's $13 billion settlement with the justice department rank among the biggest corporate fines ever paid? take a look here. bp was fined

we saw citigroup and jp morgan come in a little light. i have a measure move target down of around $14 looking at the 14 half 14 put spread for around 20 cents for this friday's expiration. i can double my money if the stock trades below 14 on friday. > >and no signs of a breakout then james? > >i don't think so. we've had some pretty choppy trading in a lot of the financials due to this shutdown situation. i think that there will be pressure on the banks tomorrow if bank of america comes in light and especially if we still don't have a shutdown deal. > >and a quick peek at mattel. > >looking at mattel we see a completely opposite story from bank of america. the stock has rallied 5 out of the past 8 quarters with an average move of around 5%. i have a measure move target for this one above 44. so i want to look at the 43- 44 call spread in mattel. strong looking chart. i'm gonna buy this for this friday for 30 cents. the most it can be worth is a dollar so i can double my money if the stock trades above 44 on friday expiration. > >that wo

citigroup posting results on tuesday.on wednesday before the open, and then there's goldman sachs. they report on thursday. yes, before the open. you've also got big tech names on tap. intel, ibm, google, all of these guys are reporting. now, according to s&p capital iqs howard silverblat, third quarter shares are expected to post another record, but sales may not be as robust, and that's the reason there's still cause for concern. back over to you. >> thank you very much, dominic chu. despite upbeat estimates, there's one name that one of our traders feels could pose sickly earnings, trying his hand is our own dan nathan. you're looking at johnson & johnson. >> without carter here, this plasma was going to get a little lonely. here's the thing. johnson & johnson has been a massive performer, up 27% on the year. it was a massive beneficiary earlier in the year when rates were really low and investors were looking for high yielding stocks. right now it's a 6% dividend yield. it's expected to grow probably high single didn'

talking big bank earnings season rolling on, citigroup posting results on tuesday before the open.on wednesday before the open. then goldman sachs, they report on thursday. before the open. you also have big tech names on tap. intel, ibm, google, all of these guys are reporting. now, according to s & p capital iqs senior index analyst, third quarter earnings per share expected to post another record, but and this is a big but, sales growth may not be as robust, and that's the reason there is still cause for concern, melissa back to you. >> thank you, dominic. despite the upbeat estimates one name that one of our traders feels could post sickly earnings, trying his hand, dan, you are taking a look at johnson and johnson. >> without carter this plasma would get lonely. sickly earnings may be pushing it. johnson and johnson has been a massive performer, up 27% on the year. it was a massive beneficiary earlier in the year, when rates were low. and investors were looking for high yielding stocks. right now it has a 3% dividend yield xpekted to grow, probably high single digits, it's tra

calling about citigroup.oticed with the government shutdown the stock has gone down like a lot of the financials and then they had some, you know, some that has gone up and down. it hasn't moved the way i thought it would. what's your opinion of that? >> yeah. i was not impressed with that quarter. i think that it is going to be another couple of quarters. that just -- didn't deliver, frankly. and -- i'm disappointed. i thought that citi had more going. perhaps next quarter but that was not a good quarter. let's go to tom in new jersey. tom? >> caller: jimmy from the city. boo-yah. >> boo-yah, tom. >> caller: thank you for taking my call. jim, thank you for talking to investors and not at them. my question, blackstone. i have a large position in it and love it. is there something that i'm missing? something i should be worried about? >> no. i think that this was just turned out to be a very undervalued story the whole way. i think there is a lot more movement ahead. this is a good buy. you should hold on to i

overturns a key section of dodd frank you'll walls want to miss it and you might not be a fan of it but citigroup they sure are and they should be seen as how their lobbyists are easy two percent of it to finally mr zuckerberg sorry but twitter now tops facebook as teens and most important social media tool will see how this crisis is into the impending twitter i.p.o. let's get to this show. is it a license to steal or wall street meets main street fifteen months after the jobs act was passed wednesday the f.c.c. finally proposed a rule to make equity crowdfunding available to so-called unsophisticated investors not surprisingly controversy about filmmaker spike lee appeared on bloomberg and didn't seem to appreciate his hosts connotation that he has enough money not to crowd surf check this out. saying that's what many are saying to spike lee as they call him the famed director to end his new kickstarter. campaign now if you don't now kickstarter is the web to help. her get out there. that is why we. should grin and he will make it people worry about her so you know you hate it like get it done

overturns a key section of dodd frank you won't want to miss it and you might not be a fan of it but citigroup they sure are and they should be seen as how they're lobbying for the two percent of it to finally mr zuckerberg sorry but twitter now tops facebook as teens and most important social media tool.

citigroup, run by democrats, jack lew. all up and down, they were major player. merrill lynch -- adam: robert reuben has never done an interview about his role as risk assessment at citi. >> i spoke with him at that time the time. he said he wasn't involved in the risk assessment. adam: why did he get paid 120 million. >> why were you a board member. that was my point to him. he couldn't answer that question. you think i will make stewart again? lori: i think you will be creamed on stewart again. >> jon, put me on the show. i will go toe-to-toe with you. lori: get to the markets. adam: rare to make her speech countless. got to tell you. >> i'm no dummy. nicole is at her post and good day for homebuilders. >> i will stick with the homebuilders, lori and adam. that may be my best bet at the moment. when you look at pulte, you can see pulte group, they talked about the current environment and gave a great outlook. this is why you see the stock up 6.3%, at $17.74 a share. they said the slowdown in new home orders would actuall

citigroup was up today. i am not a fan of citigroup. this earnings season will be unforgiving.dam: we will get economic reports again. lori: a lot of analysts are talking. this whole shutdown is shaving six tabs off of gdp this quarter. sixteen it will be interesting. i think wall street will give it a free pass. adam: charles payne, give very much. we want to check markets with nicole petallides. nicole: we are looking at a mixed market. we are looking at some analyst calls. solar city is up 6.5%. then there is 3d systems. a vibrating there from piper jaffray's. the stock is up over 110% over the last year. they both sound like great quality. adam: thank you. lori: forbes releasing its list of most expensive zip codes. belvedere, california is number four. the zip code for the upper east side here in manhattan takes the third spot. number one, the most expensive home listed right now in the silicon valley is third $3 million. the cheapest house is a two bedroom bungalow, $1.2 billion price tag. adam: mark cuban getting out alive and stronger. we have an exclusive interview. ei

the firms that were bad players like citigroup, merrill lynch, was not jamie dimon.ling people there is no changes, but can only tell you common sense dictates something would have happened, but he is standing behind his people right now. cheryl: we will keep you around. we shall charlie gasparino. 31 minutes until the bell rings. supplies for the next decade. is this deal going to put them on top of the tech world? we will ask coming up. plus we will brin breakdown the biggest movers for you. my mantra? always go the extra mile. to treat my low testosterone, i did my research. my doctor and went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your d

ashley: right the quickly, todd, next week bank of america, citigroup, morgan stanley, goldman sachs,u expecting? >> it's going to be a very tough road next week, that's for sure. not only do we have the weakness in the mortgage that we know is going to, you know, translate through the numbers, but you're not going to see theestrength in capital markets, investment banking from those, from particularly citigroup and bank of america that you saw today with jpmorgan. but nonetheless a very tough road next week for everybody. ashley: we'll be following every step of the way. todd, of stearn agee, glad you could hear us and we could hear you. thank you very much. >> thank you. ashley: adam: off the hook. toyota wins big in sudden unintended acceleration court case. the impact on future cases for all the automakers. ashley: as we do at this time every day, look how oil is trading today down to a weekly loss, down to 101.57 a barrel. international energy agency warns the u.s. fiscal crisis could hurt demand. a warning that the eia will stop reporting data after today ironically because of t

even banks like citigroup, jpmorgan have said fidelity. we will not have this because we are not sure it will be safe to have them on the books if the government to deal does not come through, for example. if we were to show the yield on the 10-year or the three-year, you would see them. it has been extremely disturbing to some people who worry about that. what cracks in the foundation have you seen at all, anything catching your eye as an all-time trader? >> not really. they talked about one of the most extraordinary circumstances we have seen in a long time. most of them have been negotiated. when you look at the treasury volumes, the yield going up, it doesn't surprise me because look at where we are coming from. we are coming from below. this to me is almost a normal course of business. i am surprised it is not more than it is. >> 25 years in business, you have seen a lot of crazy things happen. this there any lasting damage? what we have experienced many times in short memories of people, is there any lasting damage for the u.s. marke

ken jiobi is with citigroup global markets japan. thank you for being with us today. what do you think the impact is going to be, the broad based impact from this hike in sales tax? >> actually, we expect the economy to slowdown significantly. we expect around 3% growth for this fiscal year. however, we expect the economy to slow down, but we do not expect the economy to fall into recession and negative growth. so the stimulus package is going to prevent the economy from falling into recession. so japanese equity have room to rise going forward. >> do you think abe-nomics is working properly in terms of slowing deflation? >> i think they're making good progress in getting japan out of deflation. however, it's true that now we see increase in prices because of the cost. and that is the stage we have to go through in order to get demand oriented growth because we need the yen depreciation to stimulate the economy and the yen depreciation camp cost driven inflation. then we have a better economy then. companies can raise earnings and wages. and so that will produce the d

we do get earnings from citigroup korks ka cola matched expectations, we'll hear from johnson & johnson. the dow starts at 15,301 after rising 64 points, the nasdaq at 3815 after adding 23. we'll hear earnings from yahoo! this afternoon, marissa meyer making lots of changes there. and we've got the futures now pointing to a higher start on optimism over the senate. but as you mentioned, really the house that we've got to watch. >> wall street believes. thank you much. it's 5:16. news out of twitter that will make you say it's about time or, i have no idea what you're talking about. you'll now be able to direct message people who are not following you. if you change the setting -- >> nice. it's about time. >> it's about time. people who do not follow you will be able to dm you. for twitter users like marla it should expand the usefulness. for those who don't use twitter what we said was -- no idea what we're talking about. now dms, when you don't follow. >> it makes me happy. >> whatever you said it put a smile on everybody's face. that's good. all right. including christina loren. >> sh

>> well, what you would think, when you look at what's hand with say citigroup and bank of america their executives didn't survive this kind of crisis. >> sure. >> no, you've got very prominent banking analyst mike mayo saying -- >> testify lon. >> -- he's been called the testify lon ceo. -- teflon ceo. a resounding vote on whether someone an executive should have these two position he as ceo and chairman, it's just too much power. he survived it, 70% of the vote. so it seems like he's in a good place and that j.p. morgan is one of those rare companies that could survive. if it comes to pass, a $13 billion settlement, it's already put away, it's putting away $23 billion -- >> the cameras were out in front as he was showing up for work, his idea was let's power there this, keep moving. >> i he was upbeat and he said everybody was eager and the morale is good and he wants to get this behind him. there are certain crisis management experts who would say that's right. face it get rid of it and move forward. >> susan great to see you. >> like why tony. >> come on back and see me again, all ri

fidelity, citigroup, jp morgan, executives saying they have sold off all their short-term debt, specifically debt that matures over the next month or so, before october 31st, for the most part, because of a fear of a possible government default. that being said, i want to point out the fact that the stock market is still holding on gain from when the government first shut down. in fact the s&p 500, gauges the stock market, still posting a 1.4% gain from the first day the government shut down. so we are still holding on to the gains, and, as one trader was exiting the floor i asked him, what does it mean for the markets if we actually see this small chance that the government default? he said it would be a calamity and we could see 500-point selloff in the dow in a single day if that happened. possibly an 800-point selloff over self days. so traders are starting to think this could be a possibility. we would wait on the ratings firms to make any decisions. fox business network reporting that the white house us putting pressure on wall street executives to seek out to republicans on extending

they bought the smith barney brokerage firm from citigroup and now they have the whole thing. >> therequestions at the time whether the smith barney guys were going to stay or now they are pretty happy because the bonuses at goldman are going down because they are trying to prop up -- >> something interesting. if morgan stanley keeps doing what they are doing, beating expectations, if they keep this one going, if this business model does work you've got to question what goldman is going to do. do they go out and buy an asset manager? do they have to get -- they have high network brokers but not going in that direction because the old goldman sachs model we brought up again and again, the new york times, we have been doing it for many days including yesterday, the old model doesn't seem like it is working with the new rules and i think lloyd blankfein will have to do something more than girl beard to combat what looks like i could be wrong but it looks that way, looks like the emerging new model. we should get him with the beard. cheryl: for our listeners on channel 113 we got to get th

citigroup has raised its target price on the stock. now looking at 3.2%. we've seen also assa abloy. 2.9 billion swedish crowns. waking up negative. 2.5% lower. gemalto stock is down. this is the digital security firm. it's been cut. credit suisse. >> thanks, karen, for that. let's get back to david kelly, chief strategist at jp morgan. kevin wrote in and said i appreciate david's outlook on commodities, both hard and soft. >> overall we're relatively positive on commodities. i think in the world where you're looking for assets that are going to provide income in return, a lot of fixed income is locked out in terms of the long term returns, i think you have to have commodities in the portfolio. i'd keep precious metals apart from the rest. precious metals are not reacting the way they used to as a volatility hedge. i regard them as more risky and less connected with the global economy. the rest of it, industrial metals, will do well. the one thing that's really great is that they're a wonderful inflation edge. if you take gold out of it, it's a huge protec