citigroup declined comment.kesman for their one-time executive, former secretary rubin, told us the justice department never interviewed him and he only learned about the possible criminal referrals through media inquiries. the justice department and former attorney general eric holder had no comment. in 2013, holder said this about the big banks. a.g. holder: i am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them. sharyl: we did find one staunch defender of the lack of prosecutions -- peter wallison, a republican-appointed member of the financial commission or fcic. do you feel like those referrals were properly handled based on what we know? there were never any prosecutions of individuals. peter wallison: yes. it's very har unless you have the levels of proof that are demanded by the courts and the juries. sharyl: wallison has his own take on the financial commission's flaws and has written about them in "hidden in plain sight: what r

citigroup to say that did well but wells fargo disappointed?topher: i think broadly that both jpmorgan and it citigroup had good clean beasts, noted -- beats, notably it was , it was quarter actually down slightly less. but still down. despite that, nice growth in the other core banking operations out of citi and a jpmorgan. wells fargo, it was know one thing. a little bit more on the expense, less on the revenues. i think it is a function probably of some degree of distraction, both on the part of management and of the staff. and in the wake of all of the sales practice issues. vonnie: what can jpmorgan hope to do with fixed income after citigroup is on their tail, something like $1 million behind, a couple hundred billion dollars worth of trading revenue? christopher: the thing to keep in mind is it is very volatile on a quarterly basis. on an annual basis, it is stable. the last three years have been for our industry group between 106-1 $10 billion, so very between $106 billion-100 $10 billion, so very stable. and you will see a lot more act

you have jpmorgan chase, citigroup, wells fargo all to release quarterly results. jpmorgan expected to post higher earnings but analysts expecting eastern to go come lower. we will have, of course, maria, as soon as they are released, trading revenue, big question back to you. maria: of course, we are also watching what happens next, scott, in terms of the bank earnings, they've gotten the go-ahead to ramp up the dividends. >> you saw really good stress results weeks ago. what's interesting to me, maria, the interest rate curve, the interest rate curve with the fed hiking has flattened, remember the heart of the bank earning situation, borrowing short from the fed, lending long to us the consumers. they make the spread. the fed is hiking the short-end and that spread is narrowing therefore putting pressure on bank earnings. maria: are you worried about this quarter? >> i am concerned about because there hasn't been the favorable move in interest rates but there's a chance with some confidence back in the economy, we have seen business confidence numbers and consume

wells fargo and citigroup where expected to see a 2.3% rise or decline. wells fargo sees a 3.5% move while citigroup is in line then the 1.8 from p% from pnc that's less than the move higher or lower, despite the moves, it could still represent a $20 billion shift in market cap next week michelle, back to you. >> great set up. thank you so much. how should you play the banks into earnings? mike's at the plasma with the call to action as we say >> hey, so, we're going to take a look at buying a call. when do you buy a call it's a bullish bet secondly, options have it define am of time, so look for catalysts. we have one. earnings next week and this is really a good strategy to use when options are cheap jpmorgan, which is trading close to its all time highs where it closed today, this is one of those situations where the options are cheap. if you bought the stock, you're chasing it at a high level i'm looking to buy a relatively short dated cal ed i'm look inie july 94 calls. they'll expire after the -- you can spend 1.50 for those this is an interesting a

citigroup is in line with its average and 1.8% move expected from pnc that's 1% less than the average 2.8% move higher or lower. despite the less than average implied moves, it could represent a $20 billion shift in market cap next week michelle, back to you. >> great set up, thank you so much how should you play the bank into earnings. mike has the call to action as we say. >> mike, we're actually going to take a look at buying a call when do you buy a call pretty easy, when you're bullish. it's a bullish bet secondly, options have it basically defined amount of time until they expire. look for identifiable catalyst finally, this is really a good strategy to use when options are cheap. seema mentioned that jp morgan trading close to its all time highs where it closed today, this is one of those situations where the options are cheap. if you bought the stock you're chasing it at a high level i'm looking to buy a relatively short dated call and looking at the july '94 calls and those will expire a week after the earnings they report next week you could spend 1.50 for those and you'll m

that is at citigroup.tion little bit to the right, or left, depending on where you are on the oil trade or u.s. trade or it goldman sachs is undertaking a review of its commodity business. that is disappointing results. the bank is considering the difficulties are reciprocal, or may a more fundamental change in the market. the -- of how it has disrupted the oil sector. >> the industry underestimated the extent to which shale could cut production cost and operate at lower levels of oil prices. expected 45-55 to hold as an industry because opec was doing two things. not only was it agreeing on production ceilings, the bringing in non-opec members, including russia. it was making allowance within opec for specific numbers. 45-55, shale can come onscreen more than people expect it. now we are looking at lower oil price, and this continuous disruptive technology coming in. people have to understand what is happening on shale much more. >> there is no questions shale has fundamentally transform the oil industry.

wells fargo and citigroup later.erminal to see if we have jp morgan earnings out early. we may see them with "daybreak" in a bit. ken leon with us. it's wonderful to have him on with us with the acclaimed s&p star outlook system. he's with cfra this morning. ken, are they all five-star banks? ken: so we have four-star buy recommendations on most of the largest banks and that's on the positive fundamental trends we see ahead. tom: within that is the dynamics of the yield curve, the ability to make money on the income statement as well. what are those dynamics right now? is the yield curve helping mr. diamond and company? ken: it is but it's going to be even more powerful as we get into 2018 as the spreads widen and the ability really to put available capital into the market for lending. lending, investing and trading. tom: within that lending, investing and trading is about management. there are huge distinctions between our financial centers, which is not so much a single best buy but which is the bank that seems to

is talk more with a citigroup -- let's talk more with a citigroup chief china economist.reforms, do we look beyond the 19th party congress into next year? 's next year when we actually get some of these reforms coming through mark -- coming through -- is next year when we actually get some of these reforms coming through? guest: the overall data we are hearing is very huge. think soe's will be able to use future earnings to repay the huge debt. the only solution is to engage in reform. the state would have to deleverage its shares, using the money raised to honor those debts so that china can regain to the best of its ability. in addition, we need to look at what kind of financial sector reform china will need to have. we do see very visible policy shifts from previously focusing accounts toapital allow freedom of capital flow, two more foreign participation in china's capital market. we think this is the right strategy in the future. china's financial liberalization will be less risky than the previous strategy that allows faster capital account liberalization. we think

morgue p, citigroup, wells fargo and pnc beat earnings expectation, so why did they trade down today? there were several issues. first, trading activity in stocks an bonds were below expectation. you can blame that on the low volatility. trading is a major source of revenue, from other bank businesses second, xhek data was des pointing. inflation is sfil belstill belo the fed's target mean banks wil make profit, which is the difference between interest earned on loans and paid on deposits. expect analysts to lower expectations for the banks i th. finally, it was a seasonal phenomen phenomen. mov higher in the mon before they move earnings. generally, flat the whole month after. even as the rest of the market moves up. it's a typical phenomenon for. investors will typically buy on the rumor and sell on the news. for "nightly business report," the new york stock exchange. >> on wall street, stocks rose to those record ons upbeat expectations and the s&p 500 rory recorded its best weekly performance since late may. the dow jones industrial avrnl advanceded 84 points to a closing high of

bank of america, versus citigroup. he is finally getting it going.ells fargo or jpmorgan-like performance? >> earning cost to capital. that is something they started to do this year for the first time. i've not seen her r.o.e. but to earn a 10% plus r.o.e. is what they need to do. i think they are starting to do that. francine: boiling down bank of america's quarters to just one number, charles, would it be the net interest income? >> that is where the leverages for all of these banks. generally speaking if you look 's earnings and jpmorgan's earnings it is the income growth that has been driving revenue growth. income has been weak because of the weakness in trading in capital markets. tom: trolls peabody, thank you very greatly appreciate that. peabody, thank you so much. sequence horrendous from bank of america. we will give you more on this as we translated in slow motion over the next 20 minutes. then that conference call as well this morning. ofant to get back to the why this and it is the same thing with j&j. growth, kaplan talked of this. the

citigroup faring the best, off 5.4%.e in seven years. %. 0.4 we head into as the open. also watching some retail names. walmart, ulta getting an upgrade from goldman sachs from neutral to buy. channel checks show no great changes in trends. it will be all about the banks, inflation, and the fed, going forward. david: the big news was the cpi numbers. if the fed was looking for inflation in june to turn things around, it did not get it. this was the focus of janet yellen's testimony earlier this week. earlier in the program, we spoke with robert kaplan. he gave us his thoughts on the subject. robert: march was week, april and may were stronger. i believe strongly some of this is transitory, meaning there are some one-time factors in the march numbers but i think some of it is not transitory. have the did not latest cpi numbers when talking about the prior months, in fairness to him. joining us now is david lefkowitz. he is joining us from new york. ira jersey is here as well. he is in princeton. ira, i will start with you

wells fargo and citigroup are expected to see a 2.3% rise or decline. wells fargo sees 3.5%. then there's the 1.8% move expected from pnc. that's 1% less than the average 3.8% despite the higher than average move, it still represents a $20 billion shift in the market next week michelle, thank you. >> how should you play the banks into earnings. mike's at the plasma with the call to action, as we say. mike. >> we're going to take a look at simply buying a call when do you buy a call pretty easy, when you're bullish. it's a bullish bet secondly, options have a defined amount of time before they expi expire look for identifiable catalyst we have one. earnings next week finally, this is a good strategy to use when options are cheap. seema mentioned that jpmorgan, which is trading close to its all time highs where it closed today, this is one of the situations where the options sheet, if you bought the stock, you're taking it at a high level. what i'm looking to do is buy a short dated call i'm looking at the july 94 call. after the earnings next week, you spend 1.50 for those you

earnings season is here jpmorgan set to report and also citigroup and wells fargo before the openingpresident trump was the guest of honor at the bastille kay ce day celebration in paris after a nice dinner last night in the eiffel tower at the jules verne restaurant we'll show you what he said about relations with france, steel imports and donald trump jr.'s e-mails. no word on whether he had steak with ketchup friday, july 14th, it's "squawk box" right now >>> good morning yes, is that for bastille day or is that -- >> i know it's early, but yes r, when you said i know this song, i figured you understood why >> okay. just putting that all together welcome to "ua

final story as daybreak focuses on brexit and the bank citigroup.s its newest eu trading hub. u.s. lender will add up to 250 new roles in the german city with a proposal expected to be shown to the board this week. frankfurt will handle some of the activities currently done in london through the u.k.. though the u.k. capital will remain the headquarters for europe. citi was outlining how many people they employed in eastern europe. this is regulated and involves perhaps trading activity. sticking with brexit, the second round of talks continue in brussels. warning that uncertainty it is having on market. 3.7% this pwc expect year, down from 7% last year. house price figures are expected to be released at 9:30 with cpi, ppi and rpi's to dissect the eyes -- i's. mark carney and the financial regulation body will be happy. the momentum of house prices 50%, buted nearly still, inflation is up there, 2.9%. that is what we are expecting today. or are you in the balance of risks for the bank of england and the dissent westmark can grow? >> i think it can't

citigroup played a major role in crashing the u.s. market.ded up getting a $45 billion taxpayer bailout to survive and eventually paid $7 billion to settle federal and state complaints. but to this day, the justice department hasn't charged any top bank executive with a crime. intended to hold people accountable failed and, bowen claims, even helped cover for them. not much has happened in terms of, from what i can see, to the actual people at citigroup who were allegedly responsible for this behavior. richard bowen: i think that would be very accurate. sharyl: the "immaculate corruption" next week on "full measure." that's all for this week. thanks for watching. until next time, will be searching for more stories that hold powers accountable. ♪ ♪ award winning interface. award winning design. award winning engine. the volvo xc90. the most awarded luxury suv of the century. this july visit your local volvo dealer to receive sommar savings of up to $4,500. around the world, this is "government matters" with francis rose. >> thank you for watch

i think citigroup is a classy example of that.i is a long-time holding of my charitable trust, and the company's come back very strong since the stock bottomed at $10 a share during the financial crisis under the wise leadership of their ceo, citi has shed its underperforming assets and generated robust returns while the stock is nowhere near its all-time high, it's made a stunning comeback, and it is up 580% from its 2009 lows. and just keeps getting better. though there are still a lot of open questions about the financials, mostly surrounding how quickly the fed will raise rates and whatthe trump administration will do to roll back regulations, citigroi thin there's a lot to like here but don't take it from me. earlier today, i spoke with citigroup's ceo to get a better sense of what's happening here i need you to check it out mike, you just held citi's first analyst meeting in nine years. in the interim, let's go over it some of the most horrendous events big fines for currency rigging, fraud at a mexican bank, two different f

for citigroup despite far worst predictions. some catch-up going on for citigroup.here's what i want to know. when was the last time we had to bleep out something as ceo said from a conference call? have we ever had to do that before? that is historic. scarlet: he's always colorful. julia: tom keene talks about how to listening.rd a new high or a new low. call it what you will. scarlet: the market close is next. unless than four minutes to go before the close, the dow at a new high and the s&p 500 also at new highs. from new york, this is bloomberg. ♪ ♪ joe: the s&p 500 and dow hitting new records. inflation data came in a little iffy. if you are tuning in live on twitter, welcome to our closing bell coverage. every weekday from 4:00 to 5:00 eastern. scarlet: let's begin with our market minutes. another green day for stocks. the dow gaining 87 points. s&p 500 adding 11 points. up by at least 4/10 of 1%. the way, this marks the sixth straight day of gains. this is on the heels of disappointing economic data. joe: remember rotation. scarlet: what happened to that? not

citigroup which should not be here is here i have no idea why they would suggest such a thing i have no idea how this board gets away with doing what it is doing. i have no idea why a company which underperforms so consistently over such a long extended period of time is not even questioned by the marketplace. i mean, back in new york -- >> it is questioned by the marketplace, right there is a reason buy goldman shares are down year to date 7%. as i said, there's no comparison to the peers which are obviously up more substantially than that. all are in the green the xlf is up 7% that in and of itself tells a story that the market itself has begun perhaps to scrutinize goldman a little more. no >> yeah. and you got to look at that -- take a look at that 33% decline. no company does anything like that unless you've got years of problems that have accelerated within the company you've got a problem with the structure of the company there are serious problems within that division which the company refused to discuss yesterday. they just kept saying, commodities, commodities, commodities.

we spoke to citigroup's chief economist and a local investor.audi's first of the year raised $2 billion. we took a look behind the numbers. oil headed for one of its best weeks of the year as u.s. group shrank, opec, and other producers agreed to further output cuts. we ask about future steps to rebalance the market. >> first, i want to start with saying we have analyzed the jvc report presented to us by the jtc. it did have good and thorough analysis. it is based on actual data, but also on forecasts. i can say that we have a fairly diversified range of opinions, which we have looked into. they will give us grounds to be optimistic. the gdp forecast, for example, we can see that they are being revised upwards based on the economics of the global economy. we believe we have solid grounds to assume the global economy is headed in the right direction, and this should boost demand. reporter: the traders i speak to and a lot of other key people, how much room do you have to maneuver in q3, q4? the situation changes. do you have the leverage to topt,

we are really only expecting growth in terms of earnings forjp morgan and citigroup. and bankamerica, they are more likely to report earnings which are flat compared with the same quarter last year. so really reflective of the fa ct year. so really reflective of the fact that generally speaking second—quarter earnings, first—quarter earnings are not necessarily the best banking earning quarters for the year, and really we are getting stronger results from jp morgan. susannah showed us some of the figures of where the share prices have been going up, notjust affected by the results put external factors like donald trump's election, the financial choice act, something the banks were looking forward to, explain why they wanted and how likely it is to happen? for many years banks have either complained or lobbied, i should say, that the low interest rate environment that we had up until the end of 2015 and also cumulatively probably the strongest regulatory regimes seen in decades had served to really crimp their net interest margins, the margins they actually managed to

jpmorgan, citigroup, and wells fargo are all lower.per share, for example, beat estimates. jpmorgan cutting its net interest income. wells fargo coming out and saying its auto originations growth has been slowing. there has been slow growth. jpmorgan's loan growth slowing in the quarter. same situation for wells fargo. they cast apollo over the banks. it's not just the bank that reported trading lower today. they are lower today. we've got the regional banks that are seeing the drop as well. part of it does have to do with the tone the jpmorgan is setting. also the fact that the bond trading revenue came in worse than estimated. it is coming in among the exchanges. those relying on trading revenue. yields continue to pull back tonight. the s&p 500 banking index. thanks specifically. that's the blue line. it is spread between the 5-year note and a six-month bill of the yield on those because that is really a proxy for net interest margin at many of these banks. on the bottom here, you see the correlation between the two that has crept u

and followed by citigroup and wells fargo at 8:00.from legendary value investor on what it is going to take to get a tax or form deal in washington. from new york, this is bloomberg. ♪ scarlet: what did you miss? republican lawmakers were reaching an agreement on health care and investors were looking ahead to tax reform. cio of valley portfolio spoke with the bloomberg surveillance team about what it would take to get a tax deal done. >> within the framework of reforming the tax years later, you need mcconnell and schumer to have a beer together. you've got to reach over and say, what good for this country? and more importantly, how do we get people more money and give them an earned income credit. that is what the dynamic should be. reform, the $1.3 billion and how to get the eu. we will solve corporate taxes on a territorial basis, not a global basis. drop the corporate rate down, make it competitive. let's move on. when donald trump was in school realized, he probably that 200 50 years ago, lafayette help the united states and a l

this is from citigroup. risk premiums, the return on shares is expected to deliver over a risk rerate remain high, and they have provided evaluation buffer against increasing yields. wonderful chart to finish today's chart chat. how is it looking over their? vonnie: we have just hit the dollar mark. there we go down again. that is the trend for the dollar it seems. for the canadian dollar, it is the opposite. that seems to be strengthening. it was below 1.25 earlier today. c kicks off their two day meeting today. global macro movers, we will get back to that. we can tell you more about that, that the more interesting day today is the earnings that are out. it has been a big week for earnings. abigail doolittle is here. we are in the heart of earnings seasons. 500ail: 127 of the s&p companies report. hadtive to sales, 82% have higher sales. that is a positive earnings season. we are looking at caterpillar, mcdonald's. these companies have beat earnings. caterpillar by 19%. and what theyt, really listed was cu

look at jpmorgan, citigroup, wells fargo all reporting earnings this morning.the ceo jamie dimon of jpmorgan getting quite a bit of attention especially when he expressed frustration at the government saying it's, quote, almost an embarrassment to be an american citizen traveling around the world and listening to the stupid blank we have to deal with in this country listen >> since the great recession, which is now eight years old, we've been growing at 1.5% to 2% in spite of stupidity and political gridlock because the american business sector is powerful and strong and is going to grow regardless. i'm saying it would be much stronger growth had we made intelligent decisions. >> on that point, he told jourmistjourm i journalists, why you don't write about it every day is beyond me. this is vintage dimon, if there ever was one >> we talks about having recently traveled to france, argentina. meet with the prime minister of india and china. amazing every one of those countries understands that practical policies to promote business growth is good for the average

citigroup was under pressure on friday after performing better than some of the banks year to date.ank is saying that investment banking results were the strongest in years. trading also, traders proving adept at avoiding an industrywide slump. j.p. morgan has long been the dominant bank in that business. theceo on friday called best performance in seven years when he talked about the investment bank, revenue from $3.2 income was down 6% to billion, just $1 million less than j.p. morgan chase comes so they are on their tail. big question is how will it play out for goldman sachs and bank of america. wells fargo are planning to shelf more businesses. about theirtalk cost-cutting on friday, and some more headlines since then on reduction in businesses. ceoof the things the pointed out is the bank has suffered the loss of tens of millions of dollars in municipal underwriting, and that is because a lot of states have backed away after their accounting scandal. is not a material and tack on the bottom line, but are concerned about the disaffection of clients and have pledged to win back

citigroup needs international trading and -- and that passport into the e.u. safest pattern is having a base ready just in case to see what happens and i think it has made that choice in frankfurt. early days yet, but i think you see two kinds of situations developing. nejra: we are talking about a trading hub, not a move of headquarters. nonetheless, frankfurt does seem to be winning in terms of what we have heard from other banks as well. lionel: true. i think it is seen as a center of eurozone finance because that is where the ecb is. given there is also the regulator there, there may be an advantage in opening your first hub there. in terms of the number of people, it could be a couple hundred and that would not be the majority of the employees a lot of these big banks have in london. nejra: thank you so much to line all around l --ionel -- lionel laurent for joining us on the program. vonnie: daimler announcing a voluntary recall for 3 million diesel vehicles in europe. daimler announces a voluntary recall, 3 million diesels in europe will be recalled. to

strong more like natural teeth. >>> citigroup just out with rules. the top and bottom line beat, but wilf the stock is down about almost a percent right now. wilfred frost here with the numbers. >> literally just hit, melissa eps beat 1.28 the expectation was 1.21 revenue 17.9 billion, the expectation was 17.3 let's have a look at a couple of the other top things on the page return on common equity, excluding the deferred tax benefit looking at close to 10%. that's pretty good for them. they've been building from a low base and they're highlighting on the front page, returning 18.9 billion in capital they of course were the big winners of the seacar results a couple of weeks ago. i need to dig down into a bit of the other things to find out exactly why those share prices are down 1.2%. but on the top and bottom line they did beat. >> wilf, thanks a lot. of course it's important context to keep in mind the price action of both citi and jpmorgan prior to the release of the earnings going into the earnings for the past three months, jpmorgan has been up

citigroup actually coming in better.hey're fixed income is much more important for their equities business. >> jamie dimon has come back from a busy trip overseas. he's got something on his mind. >> we have money the most bureaucratic, confusing, litigious societies on the planet. it is almost an embarrassment being an american citizen around the world and listening to the stupid [beep] we have to deal with in this country. we have to get our act together. >> jamie dimon is consistent in calling for tax reform and how he thinks that can benefit the economy. we have been hearing this from him generally consistently. he is perhaps exceeding expectations with his enthusiasm on the subject and his sort of passionate plea for action to be done. ♪ anchor: still to come as we review the reek -- review the week, the leader of france's central bank offers a view into the policies. plus, conversations from sun valley on u.s. health care reform and other hot topics. up next, more of the week's top business headlines. another opec n

alex: today a citigroup analyst came out with a note suggesting to acquiret tried verizon.s is not the first time that analysts have looked at this megamerger between the largest u.s. cable company and the largest u.s. wireless provider. comcast of course has made or try to make several large acquisitions over the years. it wouldn't be outside of ceo brian roberts' typical mo to go after a large company like for ricin -- verizon. they made an offer to buy disney more than 10 years ago. they tried to buy time warner cable, that was a huge deal. regulators blocked that one. severalakes sense for reasons right now. one that verizon stock has come down a bit this year, down almost 20%. a deal may be more economically feasible for comcast, verizon is now significantly lower in market cap where even a few months ago, these two companies were about the same market cap, maybe verizon even a little bit higher. secondly, there would be a lot of synergies in a deal. he estimates $2.1 billion in annual synergies and a third reason to give their tops efficiencies that are involved in th

on jamie dimon's outburst, easy to miss key themes from earnings themselves you have to commend citigroupbers relative to expectations they didn't have either of the little disappointments that jpmorgan had in terms of capital markets, trading and disappointment in net interest income citigroup overall is solid, they did better than the other two. and still one times book compared to jpmorgan a little slip there. looking ahead to the rest of the numbers, you say goldman, sachs is probably under pressure, 70% of revenue comes from capital markets, both citi and jpmorgan showing decline in that business focus on goldman, sachs, particularly given the miss last quarter. >>> still ahead. getting down to business brexit talks under way between the uk and eu. we tell you what we are watching. >>> as we head to break, here's how european markets are trading at this hour a mixed picture. only slightly so stay tuned chgeonnbin"wlddewi exan" cc. s coveted. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call

the giants of us banking report their results later today and we are talking about wells fargo, citigroup and, the biggest of them all, jpmorgan chase. investors have been betting that the good times are back for america's bankers thanks to the election of donald trump. that's helped stock markets hit record highs. but are they right? today's results could give us a better idea. let's show you the details. take a look at these share prices, especiallyjpmorgan chase since president trump was elected. they all got a boost from hopes he would help the us economy grow and interest rates would rise. the slow pace of policy change has, though, cooled that enthusiasm a little. in particular, president trump has promised to scrap the heavy regulation of banks brought in after the financial crisis in 2008. but his new more lenient rules, the financial choice act, are unlikely to get through congress in their current form. what could help the case is that the top banks all comfortably passed so called ‘stress tests' last month. it basically means they've been judged financially solid enough, with a

of particular note for next week, we have jpmorgan and citigroup both reporting on friday.ise in yields has helped feet into some of the bank earnings. yousef: a jampacked week to look for two. but get an update on some of the points just mentioned in terms of the emerging market space. we are enjoyed by justin carrigan. welcome back. was ins of the week it terms of margin marking currency, the biggest drop since march 3. be the beginning of a reversal in trend, or a more intensified disruption? justin: i think we are probably seeing the beginning of more episodes of this nature. ist we seem to be seeing now instead of the taper tantrum a few years ago, we are seeing and of, not so much tantrums, but dull groans from the market. it is becoming more frequent. it is like the market is coming -- becoming more adjusted to the rhetoric coming from central banks. what was interesting on friday was the u.s. data, we saw what on the surface was quite positive in terms of employment, that the wage growth was not there. so how is the market going to interpret that in terms of what we

che citigroup, jp morgan and wells fargo will all be releasing their second—quarter earnings later today big kick—off of rank and earnings, when three big financial institutions report. what can we expect? analysts are not expecting this past quarter to be much amazing. you'll remember when donald trump was elected, us markets we re donald trump was elected, us markets were downright euphoric. the tax reforms and infrastructure spending we re reforms and infrastructure spending were going to boost the economy. fast forward to july, and were going to boost the economy. fast forward tojuly, and not much has happened. that is leading many to believe the trump ump may be dead. what does that mean for banks? bank stocks were a big winner when it came to be trump bump. they were one of the best performing spec is —— sectors. now the reason for the bump, trump's legislative agenda, is no longer looking as plausible as before, that has analysts wondering if this will mean the gains made by ta nks if this will mean the gains made by tanks may start to come down. —— banks. in news just in newsjust

lenders, citigroup, jpmorgan chase.d we will be keeping an eye on that. cheryl: ftse in london and dax in germany slightly lower and in paris the cac is higher, that's not really, but the market is up slightly. live pictures coming up. the parade in paris is wrapping up in the next couple of moments. as we mentioned, president trump is there and melania trump. they had dinner the identical -- eiffel tower. so what's interesting too, is bastille, 100th anniversary today of the u.s. entering into world war i, one of the biggest wars our country has seen. u.s. the participating in that. i know that you've done parades in the navy, do you enjoy doing parades? >> there's differently a sense of pride but when you have your military baring on it can be very uncomfortable. there's a sense on pride. when you're on the move is great. you look at whoever is reviewing the troops, today is president trump, military baring and discipline is in order. cheryl: we should say that we are looking at, of course, president trump, president

the upside, especially if the big banks will start with their earnings next week with wells fargo, citigroupnd j.p. morgan come out with their earnings reports. >> thank you. >> german engineering conglomerate siemens says it has set up a task force to investigate why -- russia annexed crimea from ukraine in 2014 and the reason is subject to european union sections, preventing eu firms from providing crimea with energy technology. now for some pricey fruit, high integrates has set record prices -- high grapes have set record prices. ruby roman grapes, it took 14 years to develop this variety. producers plan to ship about 26,000 bunches of the great before the season ends -- grapes before the season ends in late september. >> to german politics, 11 more weeks to go before people here in germany go to the polls. it is time to catch up with the latest leg of our election vote trip. we are taking a look at the big election issues ahead of september's vote. they are on a road trip visiting cities and towns across the country. this week they have been to the western city of cologne to find out how

citigroup is saying they are rallying. comes through from a lot of these commodity-based markets. new zealand, australia both up. the nikkei is flat as is singapore. you also mentioned hsbc earnings coming through today. we're seeing a lot of upside coming through from the hang seng. it had a great rally over the course of the last week. friday was the only day we saw hong kong stocks in the red, as we saw profit taking come through. it is pretty much reversing everything aloft on friday. good really coming through once again am tencent, one of the best performers in terms of index points in the region and the hong kong hang seng holding at about 27,000 points. we will see what impact hsbc has when it comes through with its results, normally around the lunch break. having a look at other players, steel is up. earnings were playing through into asia, as well. rising not only on this rally in commodities, but a broker upgrade. we are seeing toshiba still under rusher -- under pressure. we've heard that toshiba and western di

after president donald trump's election going down a little bit, we break down the earnings from citigroupd morgan chase. and it is july, but winter is coming as game of thrones returns to tv screens, why the company is pulling back on its streaming service. vonnie: we have to wait until sunday for that, but let's get a check on the markets. abigail: the gains not looking large, but we are looking at ec

jpmorgan, wells fargo, citigroup also report today.ks off second-quarter earnings season. i know you can't wait -- >> i'm psyched. ecstatic. >> like playoff season for banks. last season, profits grew at the highest pace in years. expectations are high. and analysts predict s&p 500 profits will rise at least 6% this quarter. in a rare event for wall street, retail stocks surged, target, jcpenney, gap, jumped at least 5%. even sears, even sears which says it may not even stay in business. its stock popped 7%. brick and mortar stores have struggled with the threat of online shopping. target projected a solid boost in sales the past two months. that kicked off the rally. one little sign of strength in traditional retail is enough to pop those stocks a lot. >> we'll take it wherever we can get. it. >>> breaking overnight, a federal judge loosening restrictions in president trump's travel ban. now grandparents and relatives like in-laws, aunts and uncles, will be allowed to travel to the u.s. from six mostly muslim nations targeted by the m

morgan chase, citigroup and wells fargo.mic data on retail sales, consumer prices and manufacturing. dough rising 20 points to 21,000. nasdaq up 13 to 6274. have a nice weekend. >>> the search for answers is now expanding. the investigation into a bucks county murder mystery makes its way into philadelphia. the area where detectives are zeroing in on. and last chance for deal. tell you what's in the latest version of the republican health care bill as lawmakers try to garnish support they need to pass it. >>> i'm tracking showers and thunderstorms. showers just on the way to philadelphia. won't be long. the rain will be coming down. and thunderstorms in chester county. see some flashes of lightning this morning. won't be the tend of it. heavy downpours and more strong storms possible later today. you're first alert neighborhood forecast just ahead. >>> search for answers expands. >>> rain on the way. storms moving in and their set to ruin the start of your weekend. >>> travel ban changes. the new guidelines downsizing the pr

citigroup coming in better than expected.e better but for the most part analysts expecting a week order there. alix: we have seen revision momentum from goldman unlike its peers. will they live up to the down expectation? his sentiment turning too much? >> over the last four weeks use our revenue estimates coming down for the group and the most a goldman. very in mind that they earn the most from overall trading revenue -- that is why there is focus on that in the quarter. will be thethat relative performance versus peers. one quarter of underperformance due to a difference in mixer a tough quarter -- analysts can get over that. as long as they can recover and have a decent quarter. people will feel fine about the franchise it is just when you start to see a trend analysts get worried about market share gain or loss or what is happening in the overall business. david: trading numbers coming in. what is it say about the long-term strategy? can he say oh the volatility wasn't there and i can make money on trading and i will wai

the sector is well off its lows but a rough session for jpmorgan, citigroup, and wells fargo. pnc and first republic also reporting this morning, guys it is a big bank day the overall market is up, sirott, the banks are down is this a buying opportunity for banks or wait, because they're going to go even lower >> i think wait a little bit they're great opportunities. i want to own the banks down road i'm pretty fully invested. i think going forward, if you believe that our economy is going to have steady, slow growth, you believe that interest rates will slowly move up over time, these are great management teams they're going to underpromise and overdeliver. and i think the expectations going forward are not as good as what we think -- >> i hear you, but jon najarian, that doesn't look like it's the case today it looks like they're overpromising and underdelivering. >> well, jpmorgan, you look at the numbers they put up, they were fantastic -- >> but they're only fantastic with regards to expectations we know how wall street workes. >> well, okay, but look at the number they p

same story for citigroup. the guidance was disappointing.t is why we spoiled the negative reaction in the market. in response to good results. it led to market negative reaction and investors are concerned about the vick staying low, bond market conditions staying difficult, liquidity on the bond market remaining poor. if we want to down the expectation of u.s. treasury yields trending significantly higher and if we are stuck in 2.2 or 2.5 for the rest of this year, that again is not a positive for the banking sector when businesses are prompted to take profits. we have had a good run. this is from the big for u.s. banks. some people suggest the banking sector needs progress. on those issues you rightly mentioned. guest: first point is, the banking sector in the states looks cheap relative to other sectors, most notably the tech and health care sectors. are theth care sectors most crowded positions domestically in the united states. having said that, american banking sector looks expensive relative to the european banking sector. they take p

you see citigroup getting worse to 6.8% and while they're improving to 12% that's a big gap. is that going to persist >> we think it will. they're one we don't think can outperform the market at this point. they have risen through the capital employment which is the biggest piece of their puzzle. that capital piece we got the benefit last month as we look at earnings and returns citigroup is not generating revenue growth. isn't generating as much efficiency gain so we'd rather be in bank of america that has the capital as well as expenses going down as well as some revenue generation so much rather shift bank of america at this point versus citigroup. >> all right guys thanks to you both. >> thanks for having me. >> move to united airlines here this morning reported earnings beat but the stock is trading low on the third quarter revenue. phil joins us with more. >> carl it's the revenue for the third quarter and also what they saw in the pacific region in the second quarter those two points are really what swag on the stock today it was up 2.1% in the second quarter but for t

sharyl: citigroup played a major role in crashing the u.s. market.up getting a $45 billion taxpayer bailout to survive and eventually paid $7 billion to settle federal and state complaints. but to this day, the justice department hasn't charged any top bank executive with a crime. not much has happened, in terms of from what i can see, to the actual people at citigroup who were allegedly responsible for this behavior. richard bowen: i think that would be very accurate. >> viagra helps guys with ed get and keep an erection.

struck a genius deal to take the fund to fund's business out of citigroup when citigroup was restructuringbona fide fund to fund's business when people were giving up on that industry. remember, you are layering fees on top of hedge fund fees. most investors don't like them because if you have two and 20 plus one and 10, you are losing 3%. out was anthony figured there was an audience out there for a fund of funds that could invest with hard-to-reach fund managers. guns like job -- guys like john paulson. raised enough capital to make it relevant for those guys to do business. julie: lots of different little investors. erik: exactly. he built this conference business by identifying the untapped audience which was the high net worth broker. a bunch of guys brought to them from morgan stanley that had wealthy families and wealthy individuals as clients. not mega millionaires, but enough to be relevant. grouptively, they were a that people like john paulson wanted to talk to. they would go to the sky bridge alternatives conference. julie: it seems like he briefly found a new audience. is conf

representatives from bank of america, citigroup, and morgan stanley to climb to comment.t is your bloomberg is this flash. -- business flash. scenarios releasing -- a releasings guidance. rate doubling after a favorable first half. let's join the boss of this business, joining us from helsinki. but get some thoughts on where this busy this business is going. neu are expecting the ebit li to double. we have done the math on that and that translates into around 110 million euros. the issue is the market is expecting somewhere around 140. do you think the market is over its teeth here in terms of what it is expecting? guidance that we expect our profits to grow in double, that means that it can than 110 or lower. we are focused on executing our goals strategy and our revenue growth was very robust in the second quarter. we continue to grow throughout the year. guy: you putting a lot of capacity into the market and you talked about planning to grow faster than ever. you talked in the past about that being stuck at 15% in the second half. can you give us a sense, that is a ver

the index up 2.3%, jp morgan and citigroup are some of the big gains within that. of time. -- within that amount of time. julia: as we mentioned, stocks are dropping across the financial stuff -- stocks are taking off across the financial sector. -- will does be market sick around and questions about loan growth and credit quality. analystus now, the bank at far keep. jason, great to have you on the show. we wanted to run over the numbers for the individual banks. but the banks seem to have started so well going into this that they have managed to beat these order to numbers. why are investors disappointed here? is it washington? what is driving this? sell onuy on a rumor, the news. so you do have a big runoff and the prince, and the prince come out -- prints and those come out. sachs has been held back all upr long, and wavy was not as much as expected, and while the short and increase, -- and increases, the long and -- credit quality was pristine, cost controlled, and the bank continuing to buy back stocks. scarlet: that return of cash to shareholders to use to b

when it comes to corporate earnings, this is the citigroup earnings revision. this, returning negative. we have citigroup returning index going negative and this is the precursor to the global earnings season we are about to enter. quite shocking giving everything that has been said. the idiosyncrasies are important in terms of europe and u.k. and the united states. this is a cop as it of -- cop as mposite of excluding the u.k. it is the white and the global one is the one in the blue. in the u.k. is interesting. we talk about gilt markets. cgi, domestically generated inflation. out all the noise. it is domestically out all the . it is domestically generated inflation. at the bottom of your screen, 1. this is where bloomberg intelligence off the bank of england model. this is where you need to get to before cci hitting 2%. we are still weigh on the way for thatwe are still weigh on ty for that target. you can see there is so much more to be done for domestic inflation before the bank of england considers a move. one of the gentlemen voting for a height putting