banks with citigroup leading the way.rofit and revenue gains despite a 5% loss in trading revenue. joining us now is tony scherer. great having you with us. -- ife seen the weaker you take out the one-time gain. is that something that concerns you at all? tony: i think that concern has been discounted into the prices of the bancshares, whether it is citigroup or in our case, wells fargo, jp morgan and bank of america. the valuations they have today is pretty ask ordinary and -- extraordinary and attractive price. it has been discounted to an attractive degree. shery: yet, you don't own citi. why is that? tony: we don't. domesticolio owns shares and we want to be in front of what we consider to be the best economic story going on on the planet today which is the united states economy. citigroup is more leveraged to emerging markets and international then say wells fargo which is still today even after all the things, sorting through the sales practices, still the biggest lender. bank of america has outside the u.s. that is

vonnie: citigroup is the first to report today.he lender cut costs deeper than analysts expected, while the consumer division posted its strongest second quarter since 2013. to break down the numbers, here is our finance reporter michelle davis. note, coming out with a post of the earnings call, saying citigroup shows margin pressure on all fronts. theelle: that is something, skepticism is something we are hearing from investors and analysts. before i came on, i was listening to the call with the and theysea -- and ceo were asked about income this year and their targets. the ceo said, yes, we are optimistic that we have some levers to pull if things do not pan out. but it seems like so far analysts are not really buying it. vonnie: we are talking about deposit costs and also loan yields. some thing else we saw was a higher amount of delinquency rates, some thing like 9%. michelle: yes, that is one of the first finds that perhaps the consumer is turning. and with a change in the fed rate outlook from the beginning of the year, the e

citigroup is preparing to cut hundreds of job slumping trading division.cludes 100 positions in the equity unit, that would amount to 10% of the division. wall street banks are facing their lowest trading revenue in more than a decade. w is winding down a credit eads leftafter its co-h the firm. the remaining team will discontinue investing and manage out of the rest of the portfolio. that is your bloomberg business flash. matt: thank you. nejra: let's check in on markets around the world. is annmarie hordern. how are indian markets trading today? >> good morning. started a half percent higher, this has been a trend. markets are higher even after starting the day in the red. this is a wonderful chart which shows how the indian markets are trading at levels where they have come off rapidly from the past, and if you rate down these moving averages. the finance minister comments that indiashe stated needs lower rates. if that were to happen, it is one more thing to watch out for if you are a market investor or watcher. you arene-marie, looking at the rest of

lisa: we did get citigroup earnings. they beat across the board.e came in at $1.83 versus an estimate of $1.80. fixed income revenue really beat , $3.32 billion versus estimated $2.99 billion. you have some mixed results when it comes to equity markets. second quarter equity markets revenue came in $790 billion versed estimates of 800 when he $4 million -- versus estimates of $824 million. people trying to parse through what this means. david: trading goes up, trading goes down, but cost cuts are always there. they beat what analysts estimated on cost cuts, which people are responding positively to because that's one thing they can control. lisa: the theme of the week will probably be how much do the big banks in the united states lean on the consumer? very good results out of their consumer banking unit. it still has room to leverage up their balance sheet at a lot of banks, including goldman sachs, looking to get into more consumer lending. david: consumers important for the entire economy. lisa: exactly. it will be interesting to see the increas

let's but with citigroup later monday. -- let's start with citigroup later monday. the focus is there international business which is key and in asia, how they are doing, will they be able to rein in expenses, which is expected across the board? report.expected to we have got goldman sachs and j.p. morgan on the 16th, similar issues for them. for goldman, they have been able to survive the 1mdb scandal. that,test have to stay on -- the bank has signaled it will increase its dividend and j.p. morgan chase is expected to deliver $28.8 billion in revenue. stay tuned. tuned areall stay plenty to watch for on the earnings front this week. -- we will stay tuned. tornado watch for on the earnings front this week. -- plenty to watch for on the earnings front this week. china gdp and industrial production, a lot of data. i want to start you off right this chart. all those lines are pointing down. is this the trade war affect? >> you can say the length of time those indicators are going down, it has been fairly consistent, slow but steady. with 6.2,to see that 6.3. on top of

we heard from citigroup.y topped expectations for the second quarter, so technically a beat on the corner but there was weakness in the capital markets business. some revenue gains due to the ipo of trade web. cfra research is with us now by phone. also with us is finance reporter michelle davis. ken, we definitely saw a mixed reaction to these earnings. we knew and that interest margins would be under pressure. in terms of what else the market is interpreting about citi, a low earnings quarter, could we say that? >> from the standpoint of total net revenue, it could be better, obviously there is pressure because of lower rates. capital markets is a major factor. is banks like citibank, it 2220% -- 20 to 25% net revenue. we are coming off of a great june performance. the federal reserve off of these stress tests, gives them substantial return of capital, $21.5 billion. shery: there was some initial enthusiasm in the second quarter but that was short-lived, given it had a lot to do with the one-time gain. >> w

how is citigroup's cost-cutting better from other banks we have seen?r one, there is cost-cutting to improve efficiency. and then there is the amount of money you have to invest. citigroup is benefiting from the fact they are becoming more efficient in some areas allowing them to continue to invest. to some extent, the benefit this year is because fourth quarter was a difficult that they implemented a lot of measures. they ended up missing their cost target in the fourth quarter because the environment changed drastically. now a lot of cost-cutting measures will come through in the second half. costs will is their be coming down in the second half. that gives them some protection against revenue risk. investors were worried about they were factoring in one rate cut later in the year and that is not what the market is expecting. romaine: did you think to yourself, this is more of a permanent change or shift in the trading environment or their ability to make money off trading or something temporary? >> the fixed trading environment does continue to strug

citigroup is out in about an hour. we have everything you need to know.or bastille day. the amazing video of a french soldier taking to the skies. no plane needed. all that and so much more coming up. fox business network's deirdre bolton, mitch rochell and former white house correspondent ron ica cleary. negative earnings but it's really about the outlook, is it not. >> i think it's about the outlook and the guidance for the rest of the year. investors will pay more attention to the earnings calls than the earnings numbers to see what the companies say about the rest of the year. >> citigroup is the first one this morning. dagen: investors need something to keep the markets propped up. >> all-time high records. dagen: there's a lot of hope in those numbers. and we'll get to more of that. president trump tweeting again this time on democrats. when will the radical left congress women apologize for the foul language that they used and terrible things they've said. so many people are angry at them and their horribly disgusting actions. that, we will cover m

this is a serious move by citigroup.familiar with the matter tell us hundreds of jobs are going to go away. that includes maybe 10% of the equities trading desk. this is a serious move because citigroup has had serious problems on the trading revenue side, much like the rest of wall street does. for the first half, if you take out a one-time cane -- again, citigroup's cell 5%. drop, aslso saw a big did jp morgan. so all of wall street is seeing trading decline and citigroup has responded with hundreds of jobs being cut. paul: they warned of their earnings report a few weeks ago that there would be cost-cutting measures. how does this announcement fit in with that announcement? is working on two areas for cost-cutting. they are trying to improve the banks'efficiency ratio and improve the return on capital equity. we are in the second half of the when youand that is tend to see lest revenue compared to the first half. thanks do not make as much in the second half. so it will be harder for them to hit their target for the e

citigroup, banking is in. trading profits, not so much.ding revenue fell more than analysts estimated. moretors brace for disappointment in trading. with details on what to expect, dani burger. dani: citi's trading revenue slumped 5%, but they cut costs more than $100 million than analysts expected. these banks need to look for profit elsewhere if the slump is industrywide. in profits that beat estimates, but the net interest margin was a miss. that bears on the next three, goldman, wells and jp morgan. but it may also lower the bar for reports. options are pricing in some bigger moves. we have other big ones wednesday and thursday. thursday, morgan stanley, they might need to lean on the money-management business to make up for the trading miss. so as citi ceo michael corbat tradingey have lowered forecasts as far back as may, and other executives said that. citi might be reflecting a broader industry trend. comparedee estimates to last year expect a slump. why? the vix, partially summarizing it. in the second quarter, only one time did t

citigroup was up yesterday.ll of the other banks as well. tom: right now, mr. diamond saying the usual -- we had a strong second quarter, diversified mobile business model, market performance was relatively steady on slightly lower credit volume. the single headline i find -- 4.1dinary is 4.1 year percent revenue growth year on year. that is a pretty good number. thomas: we had been looking for 1.9% on an operating business so we would love to see if there is nonoperating numbers in there. trade web was a big investment. i don't know what jp morgan's position was, but the headline number looks strong. tom: a meaningful increase to our dividend and repurchases, that is the story. sonali: we already knew it. average total loans up to percent. that is -- up 2%. that is much lower than a year ago. 7% total growth in loans. nejra: second quarter equity sales and trade revenue coming in at $1.37 billion so a miss on the estimate. investmentter revenue, $1.78 billion, a little bit of a miss on both of those numbers. i

patrick burke, coming from citigroup, will replace michael roberts at hsbc. now unicredit selling the remaining stake in the fine coat bank. something we had been waiting for but it is doing it today. a couple of headlines on banks. time for the stock of the hour. that is state street. one of the worst performers in the s&p 500 today, sales down more than 3% after getting a double downgrade. kailey leinz has the details. atley: betsy gray took over morgan stanley, cutting state street from overweight to underweight. heavy itn being how exposed the trust banks are to the curve. we have seen yields drop. they are heavily exposed.

how is citigroup's cost-cutting better from other banks we have seen? >> for one, there is cost-cutting to improve efficiency and the amount of money you have to invest. citigroup is benefiting from the fact that they are becoming more efficient in some areas and that is allowing them to continue to invest. the bottom line is they reaffirmed the common equity targets. that is a key metric for the company, despite the fact that they have these revenue headwinds, they are cutting cost. >> earnings week for the big u.s. banks underway. j.p. morgan snapped streak of quarterly increases. wells fargo posted its lowest lending income as the pain of interest rates hits revenues. powerhouse balance sheets, but still problems with margins. >> we are 3-3 in terms of the bigger u.s. banks. j.p. morgan bringing down their guidance. wells fargo -- which had already brought down their guidance couple times -- missing that estimate. the more negative than from wells fargo is on the expense side of things. they are coming into the higher end of the range, then flat expe

no comment yet from citigroup. what do we know about these cuts? >> the cuts are pretty broad-based. we are expecting hundreds of job cuts across the fixed income and equities trading divisions. it's like you said, it's been a tough first half are trading across wall street. this is the latest thing to take this action. paul: so how does this fit in with other cost-cutting measures citigroup was warning of? jennifer: they are in a rare position. they have set some pretty lofty the return on tangible common equity. it's a key measure on profitability. usually in the first have it's the best time for banks, when we didn't see that materialized this year it means for city to meet the target they really have to cut cost to achieve those goals. shery: we have seen in drastic overhaul for deutsche bank, announcing 18,000 job cuts as well. it will be interesting to see how this plays out. the cuts are really broad-based. it will be interesting to see what we see from other wall street banks. are they cutting more of these front office clients or are they

also they talked about how the stock was trading down yesterday , in light of jpmorgan and citigroup and wells fargo, sort of foreshadowing that lowered expectations today. the other thing that is going to differentiate around here is cost. lower are going to have revenue, is there a way to offset that? one of the offsets is going to be continued dollar credit, so maybe that is an offset but not a headwind. we will continue to see that underscore profits, and citigroup is expecting some cost-cutting benefits come through in the second half, jpmorgan and goldman saying they will continue to invest. wells fargo guidance, the high end of cost range, that was a negative due to operational risks and compliance, less , and bank of america saying today that they were going to basically target costs to come in below last year. they have been targeting about flat. they are saying they are not going to cut tax spending, but they are going to look for other ways. shery: and capital markets ending on a high note, despite the volatility we saw in the last quarter. a mixed bag. what do we see for

vonnie: citigroup said a 25 would only main $50 million difference.t sound like a lot. >> it depends on how they keep score. you can think about what they will be able to charge on consumer loans because their consumer business was big in the second corner and what does it mean for bond yields. there are lots of pieces of the puzzle and it becomes a matter of how the puzzle really fits together when you see the effect of lower rates on the results. areie: what sectors unloved. thanksed earlier about being unloved but with indices at records, there is not much unloved. >> not really but you think about energy as another example. oil prices certainly have bounced around. there's the threat from electric cars and so on. that's an area that will be worth watching. taking a look at some numbers with week to week calculations for the s&p 500 and in the last week, we saw the energy outlook pick up along with the financial outlook. this week, we will see if the financials are on target and in the next couple of week, we will get a preview of how they look in

citigroup lead european economist ahead of the ecb tomorrow.entioning over the last couple of seconds, we have seen news from lvmh, the french fashion house. q2 organic growth 20%. 14% thewell above the market was looking for. good news, and we saw from mx a couple days that, the good news for the luxury sector continues. vonnie: the puerto rico governor is under pressure to resign following days of protests and departure's. scandalous text messages among his inner circle were exposed does go weeks ago. let's bring in our reporter for an update. the puerto rico governor is under pressure. he decided he was not going to run again. what is the latest. how in control is the federal oversight board? michelle: the island is in turmoil. he is under so much pressure to resign. the local media is reporting anonymous sources that he will be resigning soon. it could be today. what this means is that it is possible a federal oversight board that manages puerto rico's bankruptcy process and its finances, it is possible that federal oversight board might be

john yung, citigroup had of research.ing up, after a selloff in trade talks, science and technology are being brought back down to earth. speaks to the man who helped devise some of those companies, next. this is bloomberg. ♪ s bloomberg. ♪ ♪ yvonne: a quick check of the latest is nice flash headlines. than your boss of struggling deutsch danske bank says anyone who has an idea about how to run -- company to drop in email he says he would like to hear it directly from employees and investors. the ceo says he is handing out his contact details to staff and others across scandinavia. david: phillips is redoing is global expansion amidst the ongoing trade war with china and the u.s.. the company will not spread manufacturing of key products, trailed the world rather than focusing anything on single markets. phillips reported second-quarter profit beating estimates, but says it is bracing for more than $20 million of costs when the next batch of expected tariffs comes into full force. >> these trade wars are divisive in the w

. >>> we start off with a big earnings report, citigroup kicking things off ahead of names like jpmorgan and goldman sachs. we've got tech giants, and microsoft, plus dough laggard united health. do you trade or fade these names going into the earnings report we thought we'd kick off monday strong with a game of trade it or fade it. >> monday, right out of the bat. >> right out of the gate netflix, guy adami, trade it or fade it? >> trade it, see that, you thought i was going to quiver. i think we've been steadfast on this my concern prior to the last couple of days, here's a stock that's gone from 250 to 380 in a straight line. the selloff the last couple of days has me somewhat encouraged. people are taking profits into the quarter. i think it's wrong i think their international net adds will continue to dominate and impress people all the competition talk two or three years away, the stranger things which i've never seen, apparently everybody is watching now. i think the franchise is strong. yes, they have a debt problem. they have a huge mote. i think you buy netflix. >> you know wha

lisa: it is early yet, but we have jp morgan and citigroup.it fair to say that the narrative right now is that banks are looking increasingly like utilities going back to once they once were -- utilities, going back to what they once were, catering to consumers but not necessarily making bank on it? alison: for the banks we have a few core businesses. jp morgan is a great bellwether across those businesses. we have the consumer bank, the .nvestment bank investment banking, trading has been weak, and we continue to see that. asset management has its own. but i think the consumer will continue to gain in the narrative. it is a little more insulated from that income pressure and charge-offs, which you generally see tick up. in card tick up charge-offs this quarter. overall credit looks solid, and a release in the reserves versus a build. david: going forward for financials generally, is there perhaps an indication in the economy more broadly that the is doing well, commercial not so well? is this reflecting that the consumer is really strong, com

chicag >>> consumer lending helped citigroup top expectations.nd that's where we'll begin tonight's market focus, with the bank also saying it was helped by a gain from the ipo of its electronic trading platform called trade web. citigroup is the fthst o closely watched major banks to report its quarterly results. w share down a fraction today to 71.71. >>> elsewhere, symantec and broadcom merger talks have reportedly collapsed. cnbc is reporting the negotiations stalled because of price. broadcom offered $28.25 a share. symantec wanted more. the deal wld have expanded broadcom's growth in the enterprise software industry. symantec fell more than 10% to $22.84 while broadcom rose more than 1% to $288.34. >>> drug maker gilead planssto invever $5 billion to increase itske in biotech firm galapagos. >> one of my priorits was expand the portfolio at gilead and this collaboration we announced is exactly in line wi what we need it's a collaboration with one of the leading biotechn companies europe that allows us to collaborate, have significant invest

but the first out of the gate on monday will be citigroup.st of the big banks to report earnings. investors will be closely watching the results from citigroup for any signs that banks are still able to grow loans and deposits in a slowing economy. they will also be looking for any signs from these particular earnings that could offer some indication on how other main banks will report later this week. joining us now is laura cooper, head of fx solutions and strategy for rbc wealth management. nice to see you. let's pick up on the theme of earnings as we are starting to get insight into corporate results as opposed to just the big economic headlines we have had of late. it is a crucial time 110w had of late. it is a crucial time now for earnings seasons and we want some indication of how corporations are dealing with the impact of us china trade tensions and slowing global growth. analysts are quite pessimistic, but we could potentially see back—to—back quarterly declines in terms of earnings which is the first time since mid—2017. earnings w

. >>> and number three, bank earnings are about to kick off in a big way with results from citigroups on deck we're digging in on all these big stories for you on this monday, july 15th, right here on "worldwide exchange. ♪ you make my dreams come true, oh yeah ♪ ♪ well, well, you >> welcome back and good morning, thank you for being with us here on cnbc happy cyber monday wait, that's a different day you're looking live at amazon's website. that's a live shot not a lot happening on that website. prime day kicks off, really it's now two days it's in full swing it's of course their day where they get people like us to talk about why you should go on their website and buy stuff. we're going to have much more on amazon's prime days in a moment. first we've got a news alert just crossing. president trump is reportedly considering ousting commerce secretary wilbur ross. this just crossing now, and it comes after the supreme court threw out a citizenship question from the census in a defeat for the white house. the census bureau falls under the commerce department. some white house officia

let's get to citigroup. citigroup kicked off the big bank names, second quarter earnings season this morning before the bell. the bank reported better than expected earnings and revenue for last quarter. now, you can see the stock is responding at the moment positively, up higher, but there was some concern that the fact that it might have a little trouble with some of the margins and trading business might ding other banks. speaking of other banks, 25 other financial institutio, jpmorgan chase, goldman sachs, wells fargo, all set to report this week along with tech names like ibm, microsoft, and netflix. we're going to be sweating it out here on "the claman countdown" but 56 s&p 500 names are set to report this week. 80 s&p companies overall have warned, though, that their second quarter financial results will be weaker than initially expected. this is hitting companies from alphabet google and apple to pfizer and adobe, micron and netflix also on the list. will this finally be the earnings season that reve

citigroup kicks off the week with week trading revenue expecting to weigh on the numbers. manus: a warm welcome to a break gear. the world's first largest sovereign wealth fund has delivered its annual report. that theare saying twenty-year year return is forcing a 5.4% -- the majority --the 696 ilya and in at billion in assets. if you are one of the unfortunate people running into a bumpy time looking for a job, they are looking for if managers. expect to add new managers. in terms of the positioning, of the boarde 55% actively managed, up from 50%. private equity playing a critical role. there are some lines and there about india and china. we will discuss the markets with our guest host. a look at us take some of the markets. a record00 closed at on friday. futures point to a bit of a flat open. the focus turning to fed speakers that we will hear from this week that also earning season. bloomberg intelligence saying this could be the worst of times. that is where people are turning for equities. we have had three days of decline. and copper bouncing on the london metal

citigroup did not do as well in treating. we have had guidance from other banks that they are not going to do very well so it is interesting to see whether the macro environment has played out poorly for the rest of the banks as well, paul. on top of that, we have jpmorgan reporting tomorrow. a consumernitely has side of the bank so we will see if the consumer division can really save the date for the rest of the bank. goldman sachs does not have that big of a -- revenue driver. we will see if goldman has been able to be better than its peers in terms of that power has reputation it has got. paul: lananh nguyen, they very much for joining us. still to come, fresh rio tinto reports and fresh output figures. we will go to melbourne for reaction. to latest market moves as u.s. stocks hit fresh eyes at the start of a busy week for earnings. this is bloomberg. ♪ shery: this is "daybreak asia." i am shery ahn in new york. inl: and i am paul allen sydney. another day of fresh records for major indexes as gains and tech outweighed lo

at citigroup, foreign banking is in. trading profits, not so much. revenue fell more than analysts estimated, even after warnings from the ceo. other major banks report as investors brace for more disappointments in trading -- here with the details as dani burger. 5%, morenumbers fell than estimated. but they cut costs $100 million more than what was expected, and that helped them beat on profits and it really underscores the need for banks to look beyond trading to get that profit. we saw it beat, and though they did also miss in net interest margins. for the big three others that are reporting today -- goldman, jp morgan -- that portends poorly for them, and already options are showing wider moves when they report today. but also the bar may have been set lower by what we saw from citigroup. we also saw bigger ones this wednesday and thursday. thursday, morgan stanley may need there money management unit to help make up for any lapses. hadou said before, the ceo warned against lower trading, as did all these banks -- it shows it is a trend in the b

citigroup starts us on monday. this is bloomberg. ♪ ♪ >> live from bloomberg world headquarters i am romaine bostick. >> i am taylor riggs. >> i am joe rosenthal. romaine: here's a snapshot of how u.s. stocks close. the reality in risk assets into higher. the dow, nasdaq and s&p have rank -- record highs. seeing a u.s.l is solid economy with -- at the mercy of global uncertainty. why the stock of facebook is shooting up. and rigs at risk. oil faces a double threat arising stockpiles and tropical stormwhy the stock of facebook s shooting up. barry, which may make rainfall on saturday as a hurricane. we begin with breaking news on facebook. i mentioned the ftc settlement. the ftc has approved their privacy settlement worth $5 billion. it marks the most significant action against facebook we have seen over a series of mishaps that have compromised user data and sent the stock reeling from one crisis to another. we want to bring in kurt waggoner on the phone in san francisco. restthis settlement put to all of the regul

back to you. >> thank you, bertha, for that now citigroup kicked off banks earnings this morning. estimates what can we expect from the other banks due to report this week let's bring in former wells fargo and ceo. dick, good afternoon thanks for joining us. >> thank you >> what was your snapshot take away from citi >> i think it's pretty much as expected i think banks, the overall s&p analysts are forecasting to be actually lower net income and eps. i think banks are going to do better than that, but i don't think they're going to be robust earnings margins are declining and there are lone increases, positive earnings from banks, but not robust >> that said, dick, we saw roe at 11.9%, they reiterated guidance next year for 13.5% it's still trading below book value. does that surprise you whether it's citi or the broader sector when you see the level of roes relative to price to book values >> well, it does but if the whole industry is that way, it is surprising to me you know, the p/e ratios are 60% of the market. they have high yields. when they're announced, dividend increases

we have citigroup saying they are going to focus on tactical cost cuts.s an offsetting positive. taylor: how prepared are these things for the rate curtsy echo -- cuts? you have banks pricing in rate cuts. how sticky are the expense levers where in something like three fed rate cuts, they can reduce thee pipe and expenses fast enough? alison: one thing is technology spending is an area where banks are not willing to reduce. even if the environment becomes more uncertain and we heard that from j.p. morgan and goldman sachs. we hold it from wells fargo where they said they will have higher risk costs. morgan stanley basically said they are going to continue with their current cost program. they don't think things are so drastic that they need to implement more measures. there are a couple of banks in the fourth quarter, when things were difficult that said we need to take some more aggressive measures. one of those is citigroup. another would be a global peer at ubs saying the same thing. we'll see the benefit of that in the second half. broadly, i would sa

and citigroup being a suit over allegations they rigged the global foreign exchange market the claim is to make it to be worth more than 1000000000 euros was filed at the competition appeal tribunal on monday. alternative meat products company beyond me to saw its 2nd quarter revenue break passed estimates to more than $67000000.00 that's $15000000.00 more than analysts a dissipated u.s. company expects full year revenue to grow 170 percent to $240000000.00. a new round of trade negotiations between the u.s. and china is getting underway in shanghai it's the 1st face to face discussion since to go see actions collapsed in ne washington and beijing house of a hit each other with punitive tariffs covering more than $360000000000.00 in 2 way trade the u.s. accuses china of unfair business practices including staffed of intellectual property a few days ago trump threatened to pull recognition of china's developing nation status of the world trade organization prompting an irritable reply from beijing about the arrogance and selfishness of the u.s. . well for more on the. fresh round of u

then you have standard and poor's and moody's and citigroup and more economists warning that the costs of climate change won't be measured in the hundreds of billions, won't even be measured in the trillions, but will be measured in the tens of trillions of dollars. that is penalty worth avoiding and worth the attention in the senate. so here i am seven-plus years later giving my 250th speech. somewhere between persistent, tiresome, and i suppose foolhardy is where you'll find me. i never thought i'd still be at it well into 2019, but the fossil fuel industry, with all its wretched dark money, is still calling the shots here in congress while the rest of corporate america still sits on its hands. the united states senate still is not seriously considering any serious legislation to reduce carbon pollution, and i'm still frustrated. but i am optimistic because the denial wall is cracking. bankers and asset managers and financial titans recognize the massive economic risks of a fossil fuel-based economy and they see the huge economic potential in a low-carbon economy. they now see real b

and citigroup are all being sued by investors over allegations they rigged the global foreign exchange market invest as a taking those 5 banks in a u.s. style class action to ports in britain the claim estimated to be worth around $1100000000.00 euros was filed at the competition appeal tribunals on monday the banks declined to comment some of world's biggest investment banks have already paid around 10000000000 euros combined in fines to settle u.s. british and european regulatory allegations that trade has wreaked the currency markets lots of interesting stuff there for my financial market correspondent as it has pun day in a frankfurt azure toys disappointing earnings reports there and a us style class action against 5 big banks which news moves the market most. both really but for now it's by and the new fans that would be taking a beating they're expected to open in the red by of course 18400 years is not really staring at a penalty in excess of a trillion dollars if you apply the penalties that have already been imposed on the company so clearly by a would be not looking at setti

we saw citigroup raised their price target, credit suisse up their rating.now the most positive they have been on average since november of 2017. a lot of what they are citing are those more popular filters that are driving stronger user trends. goldman noting in may 41 million people downloaded snapchat. number of noting that according to some estimates, user download growth will have grown 67% in the second quarter compared to a 5% drop on that metric in the first quarter. things have turned around for snap. vonnie: you have to wonder how it takes these companies so long to get woke. they were not available for all of their potential customers until they added these altars. same thing with it -- these filters. same thing with facebook and instagram. they were not catering to the companies that might use the filters. our expectations too high? kailey: that is part of the question. we have seen an incredible run out. the street is expecting 37% revenue growth. they're expecting app users to be 139 million in the quarter. it raises the question of can snap me

how is citigroup's cost-cutting better than other cost-cutting we have seen? >> for one, there is cost-cutting to improve efficiency and the amount of money you have to invest. citigroup is benefiting from the fact that they are becoming more efficient in some areas and that's allowing them to continue to invest. the bottom line is they reaffirmed their return and common equity targets is the metric despite they have revenue headwinds. they are cutting costs. >> earnings week for the big u.s. banks underway. quarterly increases and wells fargo boosted its income since 2017. -- 2016. pretty much powerhouse balance sheets but the problems of margins are out there. >> we are three for three in terms of the biggest u.s. banks. net interest margin missed estimates and jpmorgan brought down their guidance. wells fargo have brought down their guidance a couple of times and missed the estimates. the more negative thing for wells fargo today is the expense side of things. they sort of kept their guidance for this year, coming into the higher and of that range and flat

i need to get you in trouble with the general counsel of citigroup today.om the perspective of the u.s. president it is. he has criticized mario draghi for talking down the euro and has criticized powell for not down the dollar. xm: every president does that months before an election. are we manipulating the dollar? willem: there is a hope and expectation expressed that the dollar will be weekend by the forthcoming cuts. monetary policy, conventional and unconventional, works in part through the exchange rate and you cannot get away from that. francine: willem buiter and marcus ashworth. we put the focus back on banks, deutsche bank trading a touch higher after taking a beating this week. of u.s.pth analysis bank earnings, we will discuss that next. this is bloomberg. ♪ viviana: this is bloomberg "surveillance." a change of the boeing 737 lindblad isc retiring after only a year on the job. his replacement will be mark jenks who has been in charge with developing a proposed mid range at. nike will go ahead with the factory in arizona despite the flak caused

citigroup will be setting their bar.hey joined the other wall street lenders warning there will be a profit top in trading. analysts expect a drop of 3%. that is a smaller decline than forecast by several banks. as that forecast hits, goldman sachs is going to give more of a clue. they are going to report tomorrow. management has spent a lot of time looking at the fed. low rates means homeowners refinancing. that is good news potentially for wells fargo. jp morgan, that same day, followed by bank of america. the biggest lenders think that net interest income is going to respectfully. 3% keep those numbers in mind. if there's -- if they trimmed those significantly, the market is going to stand up and take notice. credit quality, any deterioration going to be important. if you cannot make money on spread with those low rates, you make it on these. morgan stanley, their earnings are out thursday and focus is going to be on their large wealth management this. it should be a decent quarter. the markets ended on a high note .

that helps citigroup yesterday. jpmorgan reiterating their cost. goldman sachs is a different story. the equity trading revenue for that business coming through and that is what investors are happy to see, as well as better fees. vonnie: there is volume and there is rates. what is the outlook for volume when it comes to revenue growth? alison: on the volume side of things, we are continuing to see deposit growth. we see some pickup and deposit cost. that was concern yesterday with citigroup. , healthy growth we saw today at jpmorgan, on the loan side of things, that is something we are looking for in the outlook. the consumer continues to be healthy in the u.s. on the corporate side of things. from the investment banks, we are hearing sentiment is resilient. we are hearing in general a positive tone. the question is will we see the execution, will we see the execution come through and will we see the execution in terms of loan growth in the second half. vonnie: we did see looser restrictions this quarter impact the result. where did that happen mos

we will speak to tina boredom, citigroup chief global financial analyst. influence voters in 2020. that is next on today's follow the lead. live from new york and london, this is bloomberg. ♪ viviana: i am viviana hurtado in the hewlett-packard enterprise greenroom. coming up, bank of america merrill lynch head of equity and strategy. here is your bloomberg business flash. the world's most valuable marijuana company will step down. he was also a cofounder. the other ceo will become soul chief executive. he will meet with the board to begin a search to identify a new leader. amazon will hire more than 2000 workers in the u k to develop its latest technology venture. the employers will include engineers. amazon's british workforce to almost 30,000 people. in kentucky, firefighters are battling a blaze you see a warehouse filled with 45,000 barrels of jim beam bourbon. two warehouses catching fire last night. one was extinguished but the other has burned for hours. an official says lightning may have started the fire. i'm viviana hurtado and that is your bloo

>> citigroup, clearly financials have been a sector of underperformance michael corbett has paired off a lot of assets globally which was incredibly important, the consumer division in the last earnings report what they were able to show to the street was fantastic. so citi, the analyst community is finally coming around to it, price targets raised above 80 and i think citi will eventually get there. two other names, copart, cprt, everyone knows i've been long in it the auto industry is basically ri writing off cars quicker copart does a fantastic job s salvaging the cars, turning around the cars and a profit this has been an industrial name on a steady march higher and walmart, to me the consumer play the american consumer is the strength of all of the economy, of global assets at walmart, gets you that exposure to the consum consumer >> what is the thesis behind copart as auto sales taper off and a less robust annual vehicle number, that cars get cheaper and it may be easier to buy a new car than to refurbish your old. >> it's a little bit of a different industry in the sense of the

we're going to be hearing from citigroup.s we head to a break, here's a look at the biggest premarket winners and losers in the dow. squawk returns in a moment ♪ >>> investors saw markets pass multiple milestones last week ending the record setting run on a high note on friday. joining us now, global investment strategist at pro shares advisers, and brian leavitt. great record closes on friday. over the weekend we've seen a little bit of lackluster data out of china do you expect that to weigh on the u.s. sentiment last week seemed to shrug off any of the -- >> kind of mixed numbers there i mean, i was kind of -- it brought me a little more optimistic to see a little steepening in the yield curve out of the fed's comments. if the fed cuts, you want to see the long end go up a little bit. maybe they're not pushing on a string i think with decent economic data that we've seen, we're not going to get blockbuster earnings, but maybe we avoid that earnings recession and stocks hold up reasonably well >> the record closes are justi

next, at citigroup, hundreds of trading jobs are set to go.e for the rest of wall street? this is bloomberg. ♪ matt: welcome back. this is "bloomberg markets: the european open." we are 50 minutes into the trading session. you see gains on the ftse as the pound falls and drops elsewhere across european equity indexes with the dax down .5% right now. let's get to hedge funds at a time when many are slashing costs for investors because of poor performance. have a different approach. the element c ceo is raising performance fees to a whopping 40% at the end of this year. it is a testament of his success. it has produced an annualized return of 20% since its inception. with more, our reporter in london. i was surprised when i saw this story. i thought most hedge funds had to slash fees because of tepid performance. >> you are absolutely right. element is an outlier. what is going on in the industry since the financial crisis, fees have crashed. there are about 1% management and 15% performance fee. that is probably the trend in the industry but so

citigroup sees prices falling with the steel slowdown looming in china. price target is for $95 for the fourth quarter and you can see we are trading about $1.14 a ton. the chart has to be oil given what is going on in the geopolitical sense and supply-side of the market. i am looking at the bullish bets, seeing the highest net longs since may. we did see these spikes and oil on friday as well, but still, it ended down for the week about 6% lower. it will be interesting to see how much we see moving into the net longs given the geopolitical concern. british likeed the tanker and it is in iranian possession. look at the supply-side and what is going on in libya. an unidentified group gained hold of their biggest field. that production did initially, off the market. nejra: it is really interesting in terms of how the persian gulf conflict could impact prices. lng may rise even more. a lengthy conflict could accelerate the move away from fossil fuel's as well. bloomberg first word news with debra mao in hong kong. hey, debra. debra: serious consequences. tha

. >>> still to come, next week the banks of course kickoff on monday citigroup the first. we'll have a preview of all of the banks. > and up next, which cyclical sectors are worth rotating into as the market touches new you unchartered territory. and here is a look at the dow winners this week that helped drive the index to a record high these folks, they don't have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps.com print discounted postage for any letter any package any time right from your computer all the amazing services of the post office only cheaper get our special tv offer a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again! >>> welcome back have a look at how we finished the day. record all-time closing highs for the dow, s&p and nasdaq. there was the high of the session as well. a nice little rally in the final 20 minutes or so of trade. up around about 1.5% for the week as a whole for the dow. china was down 2.6%, europe just shy of 1% for

stearns is running to the feds to stay afloat president bush today defended the decision to bail out citigroup fannie mae and freddie macin asked for a total at renewable 1000000 dollars more to sail out could get much bigger are they willing even in troubles for the u.s. economy. and they're building up the next term. a b. each time the taxpayer is called on to bail out those who created the crisis increasingly the major financial institutions. in a capitalist economy you would do that in a capitalist system that would worry about the investors who made risky investments but the rich and powerful they don't want a capitalist system they want to be able to run to the nanny state as soon as they're in trouble and get billed a taxpayer it's called the too big to fail. i mean there are no will or it's an economics who significantly disagree with the course that we're following people like just stiglitz paul krugman others none of them were even approached the people picked to fix the crisis were those who created the robert rubin crowd the goldman sachs croak they created the crisis are no more p

goldman sachs, jpmorgan, citigroup all beating expectations on the top and bottom lines while bank of america matched revenue expectations. there are concerns over lower interest rates, that did dampen profits, but that certainly helped markets overall trade up. joining me now to look back and ahead is the founder of pointview wealth management and the president, david dietz with $400 million in assets under management. it's great to have you. this week i feel like it was a lot about the federal reserve. on friday you had the president of the new york fed saying, what did he say, let's prevent -- an ounce of prevention is better than getting behind. so he was advocating a 50 basis point cut in the rate from the fed in two weeks. what's your take on what went on this week? >> well, certainly, i think the fed is the number one story, of course, despite it was the start of earnings week, and the question is will they or won't they next week in terms of a rate cut, and if they do, how much. we're kind of getting baked in for a quarter point cut, but then, you know, williams came out yeste

earnings season gets under way with citigroup's numbers this morning. >>> american airlines will keep the boeing 737 max off its schedule until at least november 3rd, two months longer than it had planned. american is canceling roughly 115 flights per day. the airline is confident the max will be recertified by the faa. united has extended cancellations until early november. the "wall street journal" reporting that fixing the max's flight control software and completing other steps will likely stretch into 2020. >>> and barney's, new york, is exploring a bankruptcy filing as it struggled with high rent and changes in consumer taste. nearly 100-year-old store could file for chapter 11 in the coming weeks. 15 flagship regional and boutique department stores in the u.s. including on madison avenue here in new york, beverly hills, san francisco and chicago as well, this would be one of the highest profile victims. scott and laura, back to you. >> so many big names. >> rahel, thank you. >>> kari, it looks gorgeous behind us at least right now for the start of our day. >> we have a clear st

citigroup preparing to cut hundreds of jobs in its trading group.d citi plans to slash jobs. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. nejra: thank you so much. turkey, headlines from theyinance minister saying will announce a new economy program in september. we will expect significant rate cuts coming through this period. overshot a lotnt of market expectation and we have seen the lira string for the past five days. expect to manage the gdp debt restructuring themselves and they cannot expect the government to rescue the housing sector. scarlet: the lira holding near session highs at the moment. we are looking at u.s. index futures holding near session lows. mixed trade across europe. gdp numbers out of france not helping. the gdp yields moving down to 1.84%. up by more than 1% as everyone gets ready for the fed decision tomorrow and the u.s.-china trade talks to yield headlines. nejra: the weakness indicated by