citigroup coming up with earnings that beat estimates. jpmorgan and bank of america fell yesterday and are coming back in today's session. health care also one of the top performers despite the fact pharmaceuticals is getting a subpoena. the rest of the industry not feeling that pinch. tandemn them moving in on concern about pricing but today, the big drugmakers like johnson & johnson and the big biotech companies are trading higher. betty: he saw that not just in stocks but bonds also. julie: we see it flow out of bonds and into stocks today. the yield are going to little higher. -- a little higher. i should mention the move we see in the dollar as well. the dollar has been under pressure lately and that is changing today. more of a risk on trade and on that economic data. i do want to mention gold prices. gold is not behaving as you might think. you would think they would be down today but it are not. here is the year today -- but they are not. here is the year to date. move, golday's bucking the trend. betty: thank you so much, julie.

we are with citigroup and global citigroup. stay with us.is "bloomberg surveillance" on a beautiful new york morning. ♪ tom: this will not make headlines in america. it should. the prime minister of the united kingdom is talking of domestic issues, but maybe not. we go to guy johnson as david cameron speaks in manchester. you mentioned the e.u. referendum. where is the nation? are they behind prime minister cameron, or do they have other ideas of what the i-19 them -- of what the united kingdom should do? guy: we do not know where camera is. that is the starting point. that is what we're listening for in the -- we do not know where cameron is. that is the starting point. where does he think the government should be positioned on this? we do not know where he is starting from, i think is the problem right now. we are still waiting to find out. tom: does he have a united tory party guide him? guy: that is a joke, right? no, is the answer to that question. he very much does not have a united party behind him. inform those to dumb americans like

citigroup missed the revenue side.alking about, this has been a problem for wall street. you can massage the bottom line but it is difficult to make a topline do anything to what it actually does, so citigroup coming out with revenue of $18.5 billion and we will looking for a $2.6 billion. not as big a mess as goldman sachs. -- we were looking for $18.6 billion, not as big a mess as goldman sachs. goldman obviously was a bigamist than any of the other banks. -- a bigger mess than other banks. perking uperik is because i said i do not know what they would do today and he said they would crush it. talk they did, but let's about trading numbers because we have seen them from jpmorgan and goldman sachs and bank of america. citigroup, similar to the other banks, had a tough quarter on fixed income, almost $2.6 billion in trading revenue but down 16%. stephanie: one, six? erik: yes. equity markets which have been strong for other banks, massively strong for citigroup on a relative basis. 990 $6 million, almost $1 billion in

citigroup numbers leading vestments.in david: and mark crumpton at the news desk.sk: president obama abandoning his goal of taking all troops out of afghanistan before he leaves office. the president says he plans to keep more than 5500 troops there when he leaves office. we have madema: and a norm is stabilizing afghanistan. afghani's are making it a difficult but genuine progress. this modest but meaningful extension of our presidency waltzed into our missions can make a real difference. --is the right thing to do extension of our plan and it is an extension of our mission and it can make a real difference. it is the right thing to do. president benjamin netanyahu said he is open to meeting with president mahmoud abbas. he saidt netanyahu said a meeting could be "potentially useful." he has accused mahmoud abbas of inciting violence. havejapan, and ukraine disputes with russia. and david, back over to you. david: the biggest ipo of the year is make in its trading debut this morning. shares are flat. ofis below the target range $18-$20 per share. spoke with the ce

parsing of debate between ed morse of citigroup and dennis gartman of "the gartman letter code right now we need to get to our news from our desk. here is vonnie quinn. vonnie: it is chaos for house republicans. they now have no clear leader and they have to raise the debt ceiling within four weeks. kevin mccarthy took himself out of the running yesterday. kevin mccarthy: if we are going to unite to be strong, we need a new face to help do that. the conservative caucus did not want him to become speaker. john boehner was planning to leave at the end of the month, but he will stay on as speaker until a successor is chosen. russian says some missiles are not reaching their targets in syria. rockets fired from russian ships in the caspian sea hit iran.

a mixed earning report from goldman sachs and citigroup. citigroup earnings beat expectations. first time jobless claims fell to a pre-recession low. look at this. inflation fell 0.2%. that makes the interest rate hike less likely. kia recalling hundreds of thousands of sorentos. 2011 through 2013 recalled with a faulty brake shift mechanism. it can shift out of park and the car can roll away. >>> drivers stranded in a southern california mudslide as a raging texas wildfire burns homes to the ground. we have the update on both of the dramatic stories next. you tuck here... you tuck there. if you're a toe tucker... because of toenail fungus, ask your doctor now about prescription kerydin. used daily, kerydin drops may kill the fungus at the site of infection and get to the root of your toe tucking. kerydin may cause irritation at the treated site. most common side effects include skin peeling... ...ingrown toenail, redness, itching, and swelling. tell your doctor if you have any side effect that bothers you or does not go away. stop toe tucking... and get the drop on toenail fun

the rally resumes thanks to citigroup, surging 5%.his after it came out with results that showed cost-cutting , the new name of the game, boosted quarterly profit. half of revenues from expensesoosted, cut faster than revenue fell. it really blew the estimates away. sold assets and close branches. -- closed ranches. -- closed branches. >> we still don't have clarity on important in juice -- important issues. we don't know the impact of recent volatility on sentiment. in many large markets, high degrees of political risk with economic ramifications. and keycorp also rowling -- rallying, as did black corp.. -- blackrock. out todayliam dudley saying he does not know what the fed will do. he does support a hike by the year end. economyo do with the improving. he thinks it is slowing. take a listen. economy performs in line with forecasts, i would support lifting up this year. blankfein, lloyd dialed into the conference call to discuss drop in third-quarter earnings. he assured everyone he will be around for a while managing things. missed

we got positive earnings from citigroup, the street seems happy with that data. the markets, however, aren't showing it, but high anxiety swirling in the nation's capital. hours ago, the treasury sending a flare up into the sky over congress. government is going to run out of money two days sooner than we originally thought. that creating fears of another government shutdown and default on the debt which has never happened in the history of the united states of america. treasury secretary jack lew breaking the news today in a letter to congress telling our nation's leaders they have only 18 days to raise the so-called debt ceiling. the new date, november 3rd. that date taking on more significance, it is five days after the house is expected to vote on the new speaker replacement for john boehner, but there's no name floated for sure right now. a leadership position that the house gop doesn't even have a candidate for at this moment. i talked to jack lew today about the debt ceiling move and much, much more in a fox business exclusive interview. that's why we're h

joining me now is ed morris at citigroup.n you see copper prices heading towards marginal production cost, what does that tell you? >> if you want to keep production going, -- it could happen in the oil markets, but if you shut it in and a market that is getting to be tighter and supply than you think, there could be a bounce. we do have a bullish call, unlike oil, which is for a lower price. beingbased on mines postponed, shut in, and we expect a demand bounce. inventories are are being drawn down. we think there is the man on the horizon coming out of china. we think demand is essentially a function of decisions of state grid, seven grid, rebuilding the transmission grid. of copper is used and consumer electronics. i would not have thought that. towards thegeared consumer, not just a commodity. -- a capital expenditure commodity. isthe housing market shrinking in terms of vacancy rates, a combination of those two would also bring the demand that. the timing in the fourth quarter , maybe first quarter, but we are at the edge

citigroup and bank of america delivering strong profits on lower legal costs. meantime, wells fargo was the only bank to grow its top line as it looks to replace citigroup as the third biggest u.s. bank. expectations are pretty high for morgan stanley this morning which is set to report before the bell after a forecast topping quarter last period. so let's talk with david hilder, banking analyst from drexel hamilton from new york, new york. david, i think the consensus on 62 cents apiece on 8.5 billion for the three months. what are you looking for? >> i'm actually looking for 70 cents. i think that this quarter has shown a lot of strength in m and a, merger and acquisition fees which are two of morgan stanley's franchise strength. >> i feel like morgan stanley is doing better than their peers, relative peers in this space, because last quarter they came out with some pretty good results and given that goldman has reported some -- you know, some problems in their trading business and then jpm also having the same problems, they won't escape that. given the shif

mixed earnings from goldman sachs and citigroup.nomic data in the mix. >>> women earn 78 cents to a man's dollar. at godaddy, they make more. female employee there is paid about one cent more for every dollar the males make. the gap still remains at management where female earns 96 cents to a man's dollar. >>> sheryl sandberg mid a rare appearance. she said men who lead are liked because they follow stereotypes, but women are expected to be likeable. when they lead, they are seen as bossy. she said she gets up in the morning and writes down three things she did well every day. >> go to sleep with stress. >> you don't go to sleep thinking what you did right today. that is interesting. >> one other thing she said. boys are not called bossy because they are expected to lead. >>> "early start" continues right now. the race for president could be flipped upside down by sunday. joe biden said to be days from deciding to run for president. what sources are telling cnn. >>> u.s. troops targeted and hacked. personal information of over 1,000

in this hour, willem buiter, ed morse, and tobias levkovich of citigroup.eillance ," live from our world headquarters in new york. i'm tom keene with vonnie quinn and guy johnson. this could be a six hour program this morning. cameron will be speaking soon on the e.u. brief us on what you think you will hear from mr. cameron. nominally, he is going to be talking about houses and the fact that the u.k. needs to build a lot more houses. also any hint about a referendum membership is going

ngie: what about citigroup it is next in line, what can we expect?u: goldman will be out with numbers. citigroup has been forecast to come in with rising year-over-year earnings. revenue is expected to decline year-over-year. bloomberg has been looking at analysts around $1.47 a share. citigroup has pointed out for the banking sector, equity trading is continuing to outperform at many of the global banks. the estimate continues to be a bit of a rough ride. will they also outperform in terms of cost cutting? but is a big question for tomorrow. for us, you will have it later today. angie: su keenan, thanks. checking other headlines for you right now, u.s. stocks were dragged down by walmart, which saw its biggest launch in more than 27 years on a weaker than expected earnings forecast. the company warns profit could drop as much as 12% in the next fiscal year. analysts were expecting a gain of 4%. ceo doug millon defended his attempt to revamp the retailer, saying he is taking the long view, including growth in china. >> there is pressure, but there is

>> citigroup did three of these deals in 2012 this year they have done five. about a small group of properties here. they've done some office buildings in london, europe, so we're seeing them but essentially there is not a time towersest residential going up in every city around the world and they are being selective. lot of bet if they get a demand, they will do more. >> they competition is deathly ramping up. there are a lot more evil horsey for these properties as something that international investors want to go in on. nice to be able to say you helped to build a four seasons hotel in boston or the tallest residential tower in new york. it is a nice cocktail party tag. have at least a quarter of a million dollars to get in. >> at the very least. some of these deals are offered only to the billionaire clients you can put in $5 million in some cases. >> thank you so much. our personal finance reporter at bloomberg, and cory johnson. scarlet: thank you. coming up on the bloomberg market day, how washington is tapping silicon valley to help the global german r

citigroup to report earnings a buck, 38 but revenue expect today drop, it's about $1 billion. we should see when numbers come up. >> nicole: farm -- pharmaceuticals, seeking information related to how it prices drugs, distributes them and how patients afford these medicines. the pile of treasury bill sold zero and grew further this weeks delayed plan to sell stock. price is offering lower than bankers had expected. >> cheryl: coming up, we have a computer glitch which caused chaos at airports around the country. we are going to tell you about the outage of federal terror watch list. in baseball celebrations breaking out in toronto and kansas city as blue jays and royals win. looking a lot better after yesterday's rough day on wall street. looking like the dow is going to point higher. you're watchingst look at morning markets and breaking news. ♪ng platfor ♪ the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our spe

citigroup seeing an increase in global equities through the end of next year. global -- 55% of a joe: you to love all the news these people put out. scarlet: the case here is that analysts -- they forecast it is too high. alix: i will -- i think -- take a look at what happened today in the oil markets. this is a chart of brent. run compared to its moving averages, the 50, the 100 and the 200 day and look at what we saw yesterday. you can see it looking -- you can see it going about that 50 day average and we have seen some followthrough and the reason why that is significant is because it had a big impact on the energy stock in the u.s. it's the same kind of situation here, energy stock above that 50 day average. it's a little surprised that it was not -- that it did not help over -- with the overall. i would look at my terminal real quick because one of the stories we've been talking about is the global growth manufacturing slowdown. you saw that are clearly in this morning's german factory orders. earlier this year they were going in nice, around 2%, month ov

citigroup is due at 1:00, u.k. time. guy: bank of america has the profit rebounding and the third quarter. in an interview with brian moynahan, they said the fed hike would boost earnings for the -- for the. >> in the u.s. it would be raised to 3% 10 year treasure rate. we make 4.6 billion pretext per year -- pretax per year. netflix gained lost ground. what does netflix blame for this ship credit card? -- chip credit card? ♪ anna: welcome back. here are the stories you need to know. guy: walmart suffered its worst stock decline in over 20 years. the retail giant says earnings will fall the next fiscal year. analysts had estimated a gain of 4%. anna: david cameron will try to of his renegotiation of britain's the bishop of the european union onto the next phase today. he is heading to brussels for a second round of meetings with the parliament president. he will then join a full summit. tumbled flicks shares as much as 15% at one point after the video streaming service earnings missed expectations. blames chip-based cred

goldman, morgan stanley, and citigroup are warning that prices may stay lower for years.arnings season is upon us. yum! brands down 19%. raw materials stocks did well. billionaire activist carl icon got his way and putting favorite on the board. mining was also one of the big winners, up 3%. angie: the imf made interesting comments on the fed. >> no shame in their game. there was a lot of criticism on the fed's holding off on pulling the trigger. imf is giving them renewed credit for the weaker dollar. the director of the monetary department told bloomberg that waiting as the fed is doing is less risky than a premature liftoff. he thinks they should do what they are doing. back to you. angie: su keenan, tracking all of that for us. it has been a week of relative calm in the markets here in asia. i say "relative." markets have risen for six consecutive sessions. that has coincided with a weeklong holiday in china. will that change when chinese markets come back online? juliette saly with what we can expect. juliette: the longest winning streak in asian markets is april 28.

jp morgan kicked off be followed by bank of america, wells fargo, today we will watch for citigroup. >> cheryl: intel said third quarter profits fell more than 6% from the same quarter just a year ago. intel did get some benefit from higher chip prices and demand for larger computers. intel exceed analysts forecast, 64 cents a share, that's down two cents from a year ago. expected profit at 59 cents a share. expect to open lower today. stock was down 2-3% in afterhours trading results. >> nicole: delta airlines scheduled to result revenue so far this year. delta has been flat, but over the past 52 weeks the stock is up nearly 49%. how about netflix, it will release third quarter results after close today, analysts decline in earnings per share but increase in revenue for the most recent quarter. netflix to report earnings of 8 cents of share on revenue 1.75 billion for the quarter. >> cheryl: apple could be facing $862 million in damages. after the iphone maker lost patent lawsuit. apple used technology owned by the university licensing arm without permission and chips found in most

alix: citigroup has decided to cut its financing of coal mining projects.ear, another bank decided to turn away from coal financing as well. activist them policymakers are zeroing in on coal as the biggest source of fossil fuel pollution. scarlet: our bloomberg reporter joins us from chicago with more. citigroup andke bank of america are reducing their financing but it's not like they are cutting it off completely. guest: that's true. they have come out and said they are going to dial back the financing and lending to some of the coal industry, particularly toward those that engage in a practice of what is called mountaintop mining, where you essentially cut off the top of a mountain to get to the coal seams. it is important to note that this is a dialed back but not a full out elimination. but it's already going to squeeze out the guys feeling the pain. coal is still used to generate 40% of the worlds power, so we still need it. what happens as the financing gets squeezed? mario: if you imagine king cole as this big santa claus like figure for the last two

new york time, citigroup on bloomberg surveillance. stay with us, good morning. ♪ tom: good morning. "bloomberg surveillance" in new york. we need to look at her first word news from bloomberg. here is guy johnson in london. : far-reaching implications for facebook. the european union high court decided a data sharing deal between the u.s. and eu is invalid. they say it does not adequately protect the privacy of citizens. have been pushing facebook. this deal goes back 15 years. in germany tomorrow, volkswagen must give the government a plan for fixing diesel powered vehicles. one of the vw's options is the replacement of cars. they must regulate at this worldwide. the scandal has up to 11 million --s with emissions tr tricking equipment. dropping 1.8%. the ranks of the jobless to 2.7 million. it surprised economists. they are talking about this being related to the slowdown in china. we haven't started talking that the impact of vw. let's bring hans nichols into that story. how vulnerable is germany right now? we have frankfurt's whic

citigroup below book value. people are pricing it as worth liquidation value. very low pe.redit for anything going on. that is one of the cheapest stocks in the world. less than seven times earnings. they keep reiterating china will okay, that margins will hold up, no one believes it. when you look out next two to three years, i don't know what the fourth quarter brings for these stocks. i think it will be good. expectations are so low. when i look out two to three years, these stocks are tremendously undervalued. most cases 50% upside from here. liz: patrick, what would you simply avoid? >> we avoid companies like utilities sector generally looks pretty expensive. a lot of consumer staples out there look expensive. i hate to name companies i don't like but i don't understand companies like campbell's soup. only 30% of the analysts recommend campbell's soup. it is 20 times earnings. not growing very fast. number of that type of company trading very high valuations with very low growth. there are better opportunity out there right now. liz: better opportunities. citi is repo

citigroup is upgrading goldman sachs today. the shares have been benefiting from that.n terms of the earnings trajectory for companies like this given that rates are, at some point, sometime going to go up? we no longer cover the sector from a fundamental perspective, but it was the second highest performing s&p 500 sector. the s&p was up 7% and they were the third worst performing. not even on the upside have facing momentum come into the group. what we focus on his goldman sachs for the simple reason, it is the worst performing of the universal and investment banks since those july highs. lower, instructure is line with jpmorgan, and significant lead below citigroup, bank of america as we read it. a divergence out of the options market that is interest -- interesting to us. julie: term structure meaning what? it's implied volatility over time is lower, a suggestion that the underlying stock is lower risk men bank of america and citigroup. is comparison that we made valuation based, im sure embedded in the view that we take out of the option market. we want to go all t

citigroup came out and beat estimates that beat estimates, we have seen that trending. we sought trading revenues lag, that appears to cut trading environment. jpmorgan rebounding from yesterday's losses. also some notable tech movers, apple gaining positive coverage over barclays. amazon rising to a record close. and facebook gaining as analysts theirey are positive on transition to mobile. it was not all positive in technology. netflix shares fell sharply after the companies u.s. subscriber growth trailed estimates. they blamed it on a consumer transition to chip cards. saying they interrupted service for some of the customers. it was also not a great day for the years largest ipo. raised $2.6tion billion in its initial public offering, price below its initial range of $16. they ended up falling by 1.5% on their first day. that is what happened stateside in equity markets. let's bring you up to speed on what is happening in the asian market session. yvonne man is standing by in hong kong. she has details. morning, we want to end the week on a green know. we are seeing

ebrahim rahbari from citigroup. we will be right back. ♪ scarlet: i'm scarlet fu. miss?" while we were talking, valiant shares went off a cliff. stock isee how the performing in extended trading. men on the latest trade because that shows the movement. that is the big drop-off in the stock is down dramatically in after-hours trade. alix: this was on the news some insurers will be reviewing some of their specialty pharmacies. that is on top of the news that terminatingpts is its contract with fillet or. fillet door. the snowball is rolling. one bad thing, another bad thing and now you have pharmacies looking into this saying i don't know if i want to do business with these guys. headline risk is a big problem. the employment cost index is out at eight: 30 a.m. tomorrow. that's another way to measure the much-needed signs of wage growth that the fed on notice. other data out tomorrow -- personal income, core pce, i is some milwaukee, chicago pmi -- a huge day for data. exxon, exxon, exxon -- loo >> bonsoir. respect toall due jeb bush, we would critique you, but our f

followed by jpmorgan, down 23%, bank of america, 11%, and citigroup dropped 5%. with meas jpmorgan -- now is devin ryan. looking at goldman shares, they are down and citigroup is up right now. what happened with goldman? was hard quarter. betty: worst among others. kevin: i think they have a mix. goldman is more exposed to businesses like mortgages so that was a tougher area and equities was stronger in the quarter. i think it was more. it is clear -- it is rear view booking. morgan had an extreme move in the quarter and i think you will see deception, but the good news is there was not the trading blowout so we were encouraged by that. if you look back six years ago, the risk would have been much higher. betty: were there other parts that you felt, ok, it is on the mend and other areas? devin: i think all the businesses will be tied to the markets. we will have to figure out how much of the extreme volatility is going to reverberate into the fourth quarter and year and. we are trying to figure that out. i think trading could remain tough into the year end. one o

a2-year time were citigroup did not pay any dividends either.ough pill to swallow for deutsche bank shareholders. they are shrinking the balance sheet dramatic late. they have 416 billion euros in risk loaded assets right now and they are trying to take that down to 320 i the end of 2018. 310 billion euros by the end of 2020. as morgan stanley discovered, it is hard work to bring down risk-weighted assets aggressively. it is worth it if you look at morgan stanley stock. you can see the effort is worth it, but it will be very painful. they also plan to cut costs and they want to get to a run rate of 22 billion euros in adjusted cost on an annual basis by 2018. they are right now in the $30 billion neighborhood. betty: this is part of the plan becauselay out tomorrow investors were not very satisfied with his plan that he laid out a few months ago. we're getting a few words on this but it sounds like there will be more to come when they lay out the future plan. he will explain how they get it done. right now, getting the numbers for it ultimately

the citigroup story is so interesting. it is the third quarter where citi holdings u, which is the b bank, has become profitable. quite a reversal of citigroup and bank of america. jpmorgan, wells fargo and goldman suffers. perhaps the expectations for those banks are too high in this market. >> you are right, citi holdings, net assets, 110 billion. those assets are producing decent income. goldman, listen. it is funny. we talk about fixed income being a weak area. it is in terms of trading. although, we have these enormous capital races going on in the bond market. namely, the two big deals from this week. dell is going to borrow as much as $45 billion from banks. much of it investment rates from a good high yield. they are going to come for $55 billion to the credit markets to finance their deal to buy s.a.b. >> ecm over goldman, missing expectations. you are really seeing a sharp slowdown in stock even at the same time as the capital markets have been pretty healthy for debt issuance. >> jpmorgan, they were much more po

we will hear from goldman sachs and citigroup before the bell. >>> a restaurant taking on the minimum wage issue. danny meyer getting rid of tipping. he wants to even the pay gap. the museum of modern art restaurant will get rid of tips. meyer says some menu prices will rise, but the impact on the diner will not be significant. the idea of paying people for gratuity is a skill. >> it will go to the other retailers. everybody has a different opinion. >> if everyone is paid fairly, that is the outcome. >>> "early start" continues right now. the race for president intensifying. hillary clinton and bernie sanders campaigning late into the night. this week's debate causing a shift in strategy. >>> is donald trump sexist? his daughter ivanka answers that question in a cnn exclusive. >>> breaking overnight. computers crashing across the country at airports. >>> good morning. welcome to "early start." i'm alison kosik. >> nice to have you here. i'm christine romans. it is 5:00 a.m. in the east. let's begin with hillary clinton. capitalizing with a series of campaign events in las vegas. last

we get numbers out of goldman sachs and citigroup. also expected to release united health and we round out the week with general electric, ge and honey well on friday as well. >> now the fed's decision to hold off on hiking rates last month was not a close call as some members have suggested. minutes from the september meeting show that the fomc was hesitant to pull the trigger on worries about global risk. most thought it was a good idea to wait but they still expect strong economic data to make a clear case for a lift off this year. >> not everyone agrees on the fed's decision to sit by and wait. he thinks the central bank should have raised rates in march of this year. he is speaking at an nyu business school event and the fed kept rates too low for too long. back in january he said he would put money on the fact that the fed would be hiking rates in 2015. let's bring in the managing director and chairman of the index committee visiting us here in london. good to see you. lovely bow tie as always. do you agree they should be hiking

citigroup more than analysts estimated. after a drop in legal costs help to cut expenses faster than the revenue fall. from a credit perspective big banks are facing a number of concerns. moody'sus is the assistant managing director who covers the global investment banks. from an equity standpoint i know one of the big questions is how do the banks row earnings. what is the growth strategy that fell from a credit perspective, have you gotten any indication the conference calls and results? what is important to raise the perspective, they are not focused on earnings growth. our focus is not so much on deliverables, but really performance for the cycle. we believe stability of earnings is key for bondholders risk. it is and the expectations considering the market in general macro economic pressures. do they have a strategy beyond getting through the quarter? citigroup reporting today. i think it is important to note city is tracking well to perform . iti is tracking well to perform. not necessarily performing. alix: it seems

we have numbers from citigroup, goldman sax and u.s. bank corp. after jp morgan's miss on the financial sector for more guidance. still with us is ted peters. ted, in this current environment do you want exposure to investment banks or retail banks? >> well, we like retail banks, actually, specifically blue stone likes community banks because we feel that community banks are going to out perform the market for the next 7 to 10 years for a couple of reasons. large merger and acquisition in the retail space and rising tied is going to lift off ships and rising interest rates. we know they're coming. but rising interest rates are going to help the bank space immensely and help the community bank space because of the really strong core relationship deposit. we're bullish on the bank space in general and bullish on the community bank space. >> at what point are you going to be concerned about credit quality though? >> well, right now credit quality is really good and they're very good but nonperforming loans continue to go down but you're always worrie

i read the citigroup statement and provides for exceptions.rdre, in any business sector there are exceptions to the general views. this is hurting phenomenon relative to coal. for instance. hurting power plant legislation is blatantly illegal. we will overturn that in the courts. that will change the future vision of coal. i know this -- deirdre: not necessarily, bob, any. i'm going through citi's notes, they will lend to responsible coal miners. in citi's words, that are environmentally responsible which i assume your company is? >> yes, ma'am. that is why i said in their policy, they state there are exceptions. they will not deal with companies that do mountaintop removal. we don't do that. we are responsible. there will be exceptions. to their policy here. that is clearly part of their statement. deirdre: sound like that will be an exception. why are you fighting this so hard if it is not going to affect your employees? >> deirdre, i'm an american and what the obama administration is doing is destroying reliable, low-cost electricity in ame

i own citigroup. >> others are making it too based on the landscape changing a little bit, interest rates going higher, and the overall picture for the banks is only going to get better if you are a long-term investor. >> maybe you are crazy uncle. i sometimes feel that way as the value investor on the desk. with the cheap multiples, we don't have to have a rapid raise. we're not going get that. we don't have to have that. we just have to have continued economic growth for it to be worth the money. >> a couple of things here. these stocks are undoubtedly cheap. >> citi had good news foed. bank of america was interpreted well. >> we'll see where the -- >> exactly right. >> there's where the puck has been. there's where the puck has been. >> i'll wait. i'll get in. financials. i'll make money on citi. you could make money if you bought goldman told premarket. i think financially -- i think financials have led in the past. they're going to lead again. i don't think we're all that far. >> take a look at the preferreds instead of the equity. the preferreds is where money is made. these compani

i have a chart from stephen englander of citigroup.he top shows the 10 year break even rates for the u.s. and germany, what investors think rates will look like. the bottom is brent crude, the benchmark. oil is supposed to be transitory. central banks are supposed to look past it and they say they do but there is a clear correlation between these two panels and you can see how oils move shows up long-term. when oil was sinking, it drove the headline numbers lower, which the fed does not use. it drove inflation expectations down as well. alix: you are looking at three oil charts. with the exception of two inflation charts and one oil chart. scarlet: what happens when oil recovers? what do the central banks do with that? alix: then it puts the pressure, we havethe brakes on qe seen. piggybacking on that, jeffries had a great note saying there's a good correlation between the 5-year and plied inflation expectation and u.s. earnings revision. the idea is if you do not have good underlying earnings growth, the yield curve is going to be dic

citigroup is saying sell jcpenney and buy shares of lululemon.ut free cash flow concerns at jcpenney. and they have been experiencing issues with demand for the company. u.s. comparable sales have just started to decline for kors. on the flipside, the audience in the leisure retailers for lulu has been beyond its prior problems it is experienced. and that is where that prefered buy rating. "athleisure."rd, that is my jam. is is a modern-day sweatsuit. i see you in your athleisure. eye is to have a doorman that asked if i was of mega marathoner? my husband said no, she just wears sweatsuit. betty: all the big names in finance from the spinal yesterday at the most influential summit. bill ackman made plenty of headlines when he talked about who he thinks should run for president. asked abouthle another hot button issue was is the high cost of drugs in the future of the pharma industry. win the most innovative bio-farm industry in the world. those profits get redeployed into already in buying successful companies. investors make money and you get mo

stocks are moving higher as investors respond to some positive earnings surprises, including one from citigroup, which reported better profits for the third quarter than analysts were expecting. still ahead on news four at noon... he was scheduled to be put down. but this quadraplegic dog had an army of friends he didn't even know he had. now---four airplane flights and countless hours and miles later, he's getting a new lease on here's a live look at west lake okoboji from okoboji skycam... meth is a huge problem in the state of iowa, but now a highly concentrated form of the state. iowa senator chuck grassley says he wants to change that. lauren moss has more on the new concern for lawmakers and enforcers. << "there's a lot coming in due to the supply and demand." lt. corbin payne of the waterloo police department's tri-county drug enforcement team says a pure form of meth is coming from over the border...and ending up here in iowa. "the yield of ice meth our lab results indicate around 97-98 percent pure meth compared to the home based meth labs are anywhere from 45-60 percent..so the yield

with reports on unemployment and inflation and earnings from citigroup and goldman sachs. the nasdaq is down. this was the first time in october that all three posted back-to-back losses. on. >> now your first alert weather. >>> it's a cooler start t. temperatures are still fouling. our skies are mostly clear. it is right now in the 50 in philadelphia. neighborhood by neighborhood forecast coming up. jessica buying-to-be is in the first alert traffic center. >> right around the schuylkill expressway, headed northbound and southbound, there is no problems. but i have updates on the street bridge closure coming up at 5:30. we'll be right back. . >> good morning. a new traffic headache for drivers in philadelphia. the chestnut street bridge is closed at penn's landing to repair a serious problem. >> time is almost up for homeowners. we'll tell you about the deadline. >> you better grab a jacket. there is a bit of a chill in the air. more where that came from more ahead in the first alert

look for results from of america, citigroup and gte. an industry survey shows the national average fell half a cent to $2.34 a gallon down 52 cents since mid-june and more than 90 cents from a year ago. >>> landlords of social security can expect in increase in benefits next year. the annual cost of living adjustment is based on the consumer price index. this year the cpi is being dragged down by low gas prices. >>> we begin with football night in america, giants/niners met life stadium and a back and forth battle. in the third score tied red hot, eli manning in the pocket to beckham jr. and niners strike back with colin kaepernick hitting selleck over the middle. 26 seconds on the clock, manning and the shotgun formation finds larry donnell and the winning touchdown. giants 30, 49ers 27. >>> cowboys/patriots in big "d" tom brady sacked by greg hardy. brady ran for his first touchdown since 2012 and throwing for two t.d.s, undefeated patriots in a drubbing of the cowboys. >>> the rams did pick off a pair of aron rodgers' passes first of

its sales forecast shares plunging 10% and furthering 10% this earning season and earnings from citigroup and goldman sacine sa. the nasdaq down. this is the first time in october that all three major averages posted back-to-back losses. >> the red is the new black. netflix tacking itself on to the list of disappointing third quarter earnings. the streaming company known for original series missed on both top and bottom lines citing lower subscriber growth and that credit cards were to blame. hong kong, taiwan and singapore in early 2016. >>> and pharmaceuticals received subpoenas regarding drug pricing. both the u.s. attorney's office of the district of massachusetts and southern new york have also recently issued subpoenas. it is currently reviewing them and tend to cooperate with the investigation. guys, back over to you. >> definitely something to keep an eye on o. thank you very much. >>> meantime, a computer glitch in the terror watch list data bank. responsible for delays at several major airports last night. looking at the backup at jfk. one of the airports impacted. the departmen

citigroup wants to ditch the atm card swipe altogether and test new technology allowing customers to have their eyeballs scanned before withdrawing or depositing money. one of which includes a smartphone code in lieu of the traditional card swipe. >>> plenty of swiping for black friday while more stores are opening earlier and earlier. one is deciding to balk the trend. outdoor retailer rei announced it will close its doors on black friday and pay all of its 12,000 employees to take the day off and get outside. rei is inviting the nation to join in by choosing to opt outside to reconnect with family and friends this thanksgiving holiday. a bit of a self-promotion involved there in that whole thing. >>> coming up next, too many gas leaks. the complaints in one san francisco neighborhood that could get a company kicked right off the job. why let someone else have all the fun? the sometimes haphazard, never boring fun. the why can't it smell like this all the time fun. the learning the virtue of sharing fun. why let someone else have all the fun? that's no fun. unleash the power of doug

shares of citigroup are among the climbers after it reported a jump in earnings.the industrial average near a session high -- the dow jones industrial average near a session high, up 1.1%. shares ahead on this side of the atlantic. technology shares led the way during the european trading day. unilever did well after it reported better-than-expected third-quarter sales. with bring you up-to-date a few other stories we have been watching for you throughout the trading session. shares of burberry among the laggards in london, closing a percent lower. the luxury goods group said sales growth had slowed to a trickle during the past six months of its financial year. china plus slowing economy is seen as the main culprit, undermining demand for burberry's trenchcoats and bags. the chief executive said that he hoped sales in the second half will pick up. sspanish oil company is to lash spending and sell assets to the tune of 6 billion euros. it is taking action to safeguard against the low price of oil. its goal is to break even with the oil price of $50 a barrel. it will cut 6% of its workfo

next week, we will get all of the big financials, the bank of america, jp morgan, citigroup, goldmanachs, wells fargo reporting earnings, and then we will get a bit of a better idea of how strong earnings season might be. >> thank you very much. opposition is building up across europe against the transatlantic trade investment partnership. there is a large demonstration scheduled tomorrow in berlin, an organizer sake millions of people have signed a petition against the agreement. the free trade agreement between the eu and usa is highly controversial. opponents don't trust it because it is being negotiated behind closed doors. it would allow the companies to circumvent the law. supporters say it would remove trade barriers and help both europe and the united states to prosper. here is more. >> opponents in berlin last week resorted to singing to get their message across to german economic ministers. gabriele does not see any chance of an agreement being reached install trade talks, but he also says dropping the entire project is not the answer either. >> my urgent advice to those wh

they saved citigroup, they let wachovia fail. rule of law was gone. so we were going to have an economic correction. we'd created a housing bubble, and we needed a correction. but a lot of the damage was done by the panic which was absolutely unnecessary. it was -- there was no rule of law. and the beginning economic environment wasn't as bad as the early '80s and arguably the early '90s, and yet we had this panic. by the way, i don't -- there are a lot of big banks that i would have let fail, but they were the secondary effect of the crisis. the fed enabled the crisis. >> i wonder, mr. allison, could you briefly comment on the notion that perhaps banking was deregulated, and that might have contributed to the instability, and it clearly wasn't the fact that the fed was too interventionist but, in fact, it kept a hands-off policy. to you agree with that? >> absolutely not. there was a massive increase in regulation under george bush. there was a massive increase in regulation. banks weren't deregulated. you can just go count the pages of the federal r

la empresa "citigroup" est trabajando con el creador de los cajeros automticos para probar tecnologaalizar su transaccin simplemente escanendo la retina de sus ojos.. lorena-take vo ---y hablando de tarjetas de crdito, por lo regular las recibimos por correo....... pero tenga mucho cuidado, porque los estafadores se la estan ingeniando para robar la informacin de la tarjeta antes que sta llegue a sus manos.... ---los expertos recomiendan que no entregue informacin personal por internet.... una va muy utilizada por los piratas ciberneticos... ---asegurese que cuando solicita una nueva tarjeta, lo haga directamente con el banco que la emite y utilice el sitio web de la institucin financiera. juanfra -- las predicciones de los expertos indican que el fenmeno "el niÑo" traer mucha lluvia al estado de california en este invierno... lorena -- y aunque la lluvia es necesaria, tras aÑos de sequia, el riesgo de inundaciones es severo... asi que desde ahora, el sur de la bahia se alista para aliviar el posible impacto... take 2 box paola paola reyes nos tiene un vistazo a los preparativos desd

look at results for jpmorgan, citigroup and ge. on friday, the dow rising 33 points to 17084. the nasdaq closing up 19 to 4830. >>> gas prices barely budging in the past two weeks, even as oil prices roseanne industry survey says the national average fell to $2.34 a gallon and that's down 52 cents since midjune and more than 90 cents a year ago. >> twitser planniter is plannin. it comes as twitter is restructuring its engineering organization to make it more efficient. the company has about 4,100 employees in 35 offices around the world. >> landon, thank you. >>> new details this morning about the house benghazi committee. a former staffer is opening up about how the focus of the probe turned from the attack to something else. something he's described as a partisan investigation. major bradley is an air force intelligence officer who got fired in june from his job on the benghazi committee. he said gop lawmakers initially looking into what happened in lib libya focused to hillary clinton's private server. he lost his job for resisting that order to shift along with them. >> i'

other big banks releasing earnings including bank of fargo, andlls citigroup. goldman will take an interesting planning to tweet with a link to a press release. cut dorsey says he plans to 300 jobs as part of a restructuring effort. most of the jobs will be in the product and and you nearing departments and will not include executives. he returned as ceo last week. he said the move is aimed at releasing twitter products more swiftly. culture ofeated a indecision and made it harder for the company to move quickly. he has also pledged to make twitter more accessible. users treasure the format but others find it kind of confusing. it will cost between $5 million and 15 nine dollars with the expenses coming mostly in the fourth quarter. back to you. rishaad: another story we are following, why warren buffett is skipg companies should paying wall street for advice. has clinchedrewer a deal to take over its biggest rival. but there is an interesting dilemma. we will tidy what that is. -- tell you what that is. an in-depth look at the chinese consumer. ♪ japan, leadin

ok, we had better-than-expected numbers from citigroup. they had to pay less for all those legal matters that a year ago. then again, we had goldman sachs missing earnings and revenue estimates and stocks still traded to the upside by a good 3%. talking about banks in interest rates. banks complained quite a bit that there is low interest rate environment is actually hurting their business but nobody really seems to care. the market was straight up here on thursday. monika: thank you very much for this. that is in the business desk. sarah: thanks, monika. he has been given the full backing of the european soccer governing body despite being investigated over possible corruption. he held up -- it held a press conference to reaffirm its support on the frenchman and demand a decision on his ill in november. he was suspended for 90 days by the ethics committee of world soccer body fifa while he is investigated over a payment he received from several bladder -- sepp blatter nine years after the consultancy work he was supposedly paid for. he wa

. >> i know you like citigroup, jpmorg jpmorgan, and wells fargo.ms to be the housing play among the names. if you had to pick one to focus on, which would it be? >> we would probably go with citigroup. the shares are still trading below tangible book. if you look at results in this quarter, pretty solid. citicorp continues to grow revenues. they continue to wind down the bad bank and citi holdings at a profitable level. credit quality was benign. some investors were concerned there. but the quarter came through just fine and they continue to execute on their plan and yet it's one of the few banks still trading below tangible book. >> you mentioned wells fargo as well. wells fargo is the only major banks to report an increase in revenue. i'm wondering if you think that the right play going forward is still to stick with these or to bet on the ones that could benefit more once the fed raises rates. maybe a jpmorgan or a goldman sachs could see the lift -- the real lift in trading for instance. >> generally speaking we think the group will benefit fro

citigroup is testing technology that would allow you to withdraw money by scanning your eyeball. the company is also testing an automated teller machine and smartphone codes instead of pins. bank of america is said to be testing its own cardless atms. >>> you've seen these in movies, retinal scans and what not. i remember that was -- the avengers movie, where the bad guy goes and pulls somebody's -- >> you're thinking of someone stealing your eyeball. >> got to consider every possibility. >>> stay with us, "news 4 today" continues at 5:00 a.m. >> "news 4 today" begins with breaking news. >> that breaking news, congress and the white house strike a deal avoiding a federal government shutdown. the details just coming into the newsroom. >>> also right now, it is cold for sure. but it is about to get wet too. it is 5:00 a.m. now. good morning, everybody. i'm aaron gilchrist. >> i'm eun yang. straight to chuck bell and look at whether or not you'll see rain in your hometown. good morning. >> good morning. okay either cold or wet. nobody likes to be both cold and wet. a chilly one late