citigroup urging the market to go overweight u.s. stocks.y question to the market, do you need more rate cuts from the fed to make equity my -- equity markets go higher. there is one dominant theme for me, the un-picking of phase one. i would say, you are beginning to look a little bit less than the robust deal that everyone was hoping for. the euphoria really seemed to phase yesterday. one point that did it. direction today, a little bit of weakness on the onshore, offshore u.n.. we pushed through seven again today. cable extending losses from yesterday when we dropped as much as 1.7%. some are saying we are not that cable iffrom 120 on things get worse. our top story, fed officials are once again expecting rates are on hold unless there is a big enough shift. policymakers believe they have done enough to support growth following three consecutive rate cuts. we spoke to dallas fed chief robert kaplan. >> i already have baked into my outlook weak manufacturing, pretty sluggish business investment, but with a strong consumer. there would have

citigroup, bank of america, jpmorgan that doesn't mean citigroup is doing it the best.n, talk about a best in class bank jpmorgan is killing it bank of america, talk about fintech. they're one of the best fintech players around citigroup is still our favorite because it's so inexpensive and buying back so much stock. citigroup is still under appreciated for the risk reduction. the sustainability all of these times we go on your shows and people have concerns about recessions and rate risk and regulation and spotty growth and look what the banks did. look what those three big banks did this year, especially in the third quarter. grew revenues greater than expected and when you do that great things happen. >> what about goldman sachs, it's up, outperforming the market up 37% still down from the 2018 highs consensus has 10% earnings growth, 5% sales growth. trades one times book. why is this thing stuck in the mud? jpmorgan has highs and you have a bank that has head winds. >> needs to start growing again, right? >> look at trading for the decade >> yeah. >> trading for th

the third one is citigroup, and this is where it gets a little tricky.here has been some cuts around the edges at citigroup from what we understand. not significant cuts. we understand if they're going to cut and they are still eying it, it'll be next year and it could be along the lines of morgan stanley. a couple of comments here, citigroup tells us there are no planned cuts for the rest of the year so whatever they have done they've done. we continue to grow and add talent strategically across the company, we're still working on 2020 planning anything rumored about the next six months is conjecture. i'm hearing it just so the conjecture is from people pretty close to the matter. i got so go through this. ge declined to comment but referred to background stuff that mr. culp made where he's talked about the corporate division needing to get synergies in various levels. synergies again as liz pointed out another sort of euphemism for job cuts, viacom and cbs declined comment but would not deny the matter. liz: charlie thank you very much let's bring in o

david: tobias levkovich of citigroup will be staying with us.on what is making headlines outside the business world. viviana hurtado is here with first word news. viviana: next month the turkish government will ask its government to authorize deployment of troops to libya. president erdogan saying the north african country asked for help. reporter: says they would be --erdogan said they would be a deterrent not an active fighting force. the bank of japan government are urging business leaders to pay their employees more. telling companies boosting wages would help strengthen the country's economy. japan's week wage growth has been a hurdle for long-term price gains. this year wages rose an average of 2.1%. by mitch-- disturbed mcconnell's stand on the lisaing senate trial from murkowski according to the wall street journal. mitch mcconnell promises total coordination with the white house. unifiedy has largely the hind president donald trump. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists a

citigroup and deutsche bank have also eliminated hundreds of jobs this year.a's struggling yes bank is excited to reject an offer that accounts for more of its half to raise $2 million in capital. the board meets tuesday and will rebuff an offer of $1.2 billion from the canadian businessmen, stpg holdings. yes bank initially fell on the loose, to close higher. shares down 17% since the end of november. paul: apple is officially returning to the las vegas electronics show for the first time in decades. to discuss consumer privacy rather than pitching a new product. the last major appearance was in 1992. john scully introduced the largely failed device. apple has worked behind the scenes of ces for years, identifying the next big thing. speaking with partners and suppliers. shery: markets open in tokyo and seoul. let's turn to sophie for what to watch. sophie: futures are pointing to the downside. trading flood in the asia session. gtv the focus of the five-year sales do later today. we have this looking attractive according -- given the five year yield is at th

citigroup upgrading from a buy to a neutral analysts see about 13% upside, citing little credit risk, improving capital return. the move pushing the banking etf to a record high tim seymour, do you agree with the call is goldman sachs a big-time buy? >> this is a time where it historically thrived, risk on, a lot of opportunity with low rates, derivative products if you look at the financials that could have been another where covers showed after ten years we have a breakout we're at all-time highs on the xlf. you can own goldman here, if it's still no longer the same but it's goldman the valuation is still something that has a lot in it. >> stocks overshoot to the downside i think it traded down to 145 and chances are it overshoots the upside my metrics are, what's book value, book and goldman vas laits, but i don't think they deserve much more than 1.4 times book value and you can do the math. so i think that 255 level gets there, it may, but it will be extraordinarily stretched if it does. >> the analysts raced from 222, 55 the analysts had to do something. downgrade so they obviou

catherine mann from citigroup.und and it is beginning to look like it is a sale, everything is on sale, there is nothing list price anymore except tuition, catherine mann's research and that little thing from tiffany's she just has to have. do you know where i am going after the show, this is bloomberg surveillance." anna edwards and for francine lacqua and we are right on the holidays right now. what is the bustle in london? with the johnson landslide is the consumer going nuts? anna: you told everybody to go away and have a nice christmas when he welcomed his victory. maybe families across the land focused on that or may be people thinking about 2020 and what that holds. 31st of january will be interesting for many people. tom: a tear to my eye to see nejra cehic on downing street bonding with the cat. with this serious story, an important story from saudi arabia, viviana hurtado. .iviana: that is where we begin it saudi arabia finding 8 people guilty of the brutal assassination of journalist come all khashoggi.

bank of america at these levels a buy or sell >> hi, i like bank of america here i think bank and citigroupre one of these with jpmorgan the money center banks will appreciate as the yield curve continues to steepen a little bit and rates go a little higher having said that, i like citigroup better than bank of america. slightly better price than book. >> good questions. >>> coming up, disney movies dominated this year. shares up 30%. can the stocks continue momentum we're going to debate that next. but first, joe is here >> like ships passing in the night. >> like where are you? >> thanks, scott, 2019 saw the biggest wage gains in a decade can that trend continue and what sectors could see the biggest growth in 2020 right around the bend. plus, it's the best-performing tech stock of 2019 up 330% and far outpacing the competition. the name and whether there's more room to run >>> and with $66 billion in play for sports media rights a oklo at who could come out on top that and more on "the exchange." that and more on "the halftime report" back after this. and how much better i look. myww joi

still with me as catherine mann of citigroup and emily roland.chael was talking about, that is something you help with. sanjiv: that is true. affordability has been an issue. the way we help on affordability is we allow people to borrow more than what they normally would in traditional debt to income ratios. we find the performance of that has been pretty good. mike's point around affordability being an issue in general across the country is absolutely correct. i would like to highlight that in certain cities affordability is still very good and we are seeing this migration where people are moving to cities like -- maybe not cleveland, but definitely tennessee, charlotte, and jobs created around those places, like technology. there is an interesting urban migration phenomenon because of jobs, affordability, and taxes. alix: in terms of the fed lowering rate, what kind of impact you notice on that versus wages stuck in no man's land? sanjiv: i would like to separate the uncertainty questions. the impact of the fed lowering its rates has been pheno

. >> the same thing b about citigroup, wells fargo, all the financials, up until six months ago a. i'm putting a stake in the ground those are fossil feels and a youpg man, they think fossil fuels, they'd rather i'm sure you've read the articles pointing out the amount of fossil fuels that have to go into batteries yes, eventually, there will be a pay c payoff, but right now, there's demand for fossil fuels to build the renewable energy sources >> yesterday, scott and i were talk iing about unusual activity scott's over there and he goes wow, you got two of these things bp >> sold today. >> and marathon. it's gone from 46. it's run up and now up through $60. been higher. but been bouncing around in between call at 58 and 62. i agree. bp wasn't performing maybe that's the catch up snok now at this point in time because when you u look at energy, yesterday, about 50% of the unusual option activity we had was somewhere in energy. multiple big names, some of the names that kicked around, but also some of the big names like a bp, royal dutch u, some names that don't get talked about oft

thanks to positive momentum around trade, citigroup says risk on has room to run. boeing shares fall as it says it will stop production of the troubled 737 max in january. the playmaker says the factory pause is the least disruptive option. >> sterling weakens as boris johnson changes the law to guarantee the transition phase is not extended. 'sis is the bank of england capital demand for the biggest u.k. lenders. welcome to daybreak europe. 6:00 a.m. and london, 7:00 in europe. there is room to run in the rally, the note from citi. palladium breaks $2000. the taiwan stock market at the highest level since 1990 and there may be a sustained u.s.-china trade truce and if that remains the base case an era -- scenario, we could grind higher. it depends if you are in the believer can't or the naysayers. which one are you in? nejra: exactly, continuing the conversation from yesterday. is it enough for the market? are we at peak optimism and what is the outlook for central banks and whether the prospect of continued support through 2020 will keep the risk assets high. whe

to buy from neutral, the price target implying nearly 12% upside what's behind the call citigroup seesimited downside for goldman sax noting it is weathering the environment and other banks. gold man saches. are up the question is can they keep winning? >> it's up 37% this year over the st past three years it's basically flat. the banks the best argument you can make right now is it's really cheap it's unlikely to get that much cheaper. >> so this is the downside story in your mind >> yeah. >> although to be sure, we heard josh say this is a thing undergoing a major transformation gold man sachs is moving into providing banking service and credit cards to people who may not have the best scores goldman sachs is a incredible story. >> do you see a fall from great, a white shoe master now hawking credit cards. >> the gamble has to be whether they can make the consumer thing work what i don't get i don't understand, all the of the hype around this apple credit card with goldman have you seen this thing advertised anywhere? >> no. >> you what you can into an apple store see them talking ab

disney, carmax, tyson foods, exxon mobile, goes to some of the energy plays citigroup, intel, kimco, densply and american electric power. big plays into 2020. it's a stock from each sector. >> right >> so, let's go sector hunting >> quality plays obviously, i own disney. the characteristics i like about all these names. number one, you can identify them as what i like to call quality momentum that means when you look at their price, it's moving higher and they also have fundamental metrics that you can define them as quality i also think what is important in 2020 is within your portfolio an understanding that at some point you'll have to deal with the unique circumstance of volatility we had a deal with in 2019 you want to be in names like these names that you're able to end endure and withstand that volatility some of the high-flying semi names i don't know if you'll endure that type of volatility when they have exposure pushing above 17. >> core holdings for a minimum of the next year and they think you're going to do well in these. i know there is belief in disney on the desk beca

i have the energy analyst and strategist at citigroup. good morning to you. of the first ones to give me your version of this proposed 500,000 barrel cut. we don't know all the details. what am i looking for today? >> [inaudible] the russian energy minister said -- [inaudible] in the first case, it would not be a meaningful shift. group which opec 11 of the 500itty be cuts proposed. [inaudible] manus: october 2019. 500,000 barrels. is it the proportion that russia takes? who wells takes the pain of 500,000? >> absolutely. how will this be shared? saudi arabia is signaling that it is no longer willing to accept cuts. equal burdenre cuts for the opec 11. the remaining 150 will be for the non-opec. the other thing is how long the 500,000 cuts will be kept in place. me it novak suggested to would be until the end of the first quarter. that is when the opec plus deal runs out. perhaps that was a subtle use of language. he means it will last until the end of the second quarter. he could ask if it is based on october 19 levels to heighten the market further. 2019, i

citigroup did this with media n pay and there has not been a flood of banks joining them.gave a report last week saying this is how many results we had. it is not like every other platform was like, here are our numbers. i guess it starts somewhere. you start to add these things up. potentially, may be a regulator or changing government may weigh in. it is a loss leader thing where you are taking a big risk at of -- out of the gate that may pay off in the future. taylor: it is notable these results for 2017 and 2018 were pretty much wrapping up 2019. any indication that 2019 could have been better? jeff: we will never know. this data was collected under a program that was brought forth by the obama administration. and the trump administration has said we don't need to continue this, it is hard on the companies. this data in the current form will not be collected for 2019. we will have to see if there will be a new program or companies coming up with something voluntary that shows this. that is the sad part about this. this data is really interesting and we may never get a

or as my guest at citigroup said, very much a technician, and he wants the numbers to stack up.a: and why? why do we see this seemingly cosmetic adjustment? what other the reasons people are giving for it? well, it's because of the wrangling, really, over why should we do more? study aramco has carried the burden for the over complaints for quite a period of time. which is compliant. therein lies the point, if there is a new baseline to draw from, october 2019, it would mean nigeria and iraq would have to do more, not just comply, but do more. it would also appear there's a fraction in terms of some of the social snobs, and the etiquette of abu dhabi, where one or two were not invited into the meeting. these memories run long and deep and many people the yonder opec -- beyond opec need to remember this is as much about relationships and etiquette. but the studies are joining a new communications line in the sand. nobody spoke night number two, not a word. indeed, they told us we should expect a beautiful day. the russians got what they wanted. i say that tongue-in-cheek. they go

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 i mean $1000000000.00 more to sail out could get much bigger billing even in troubles for the u.s. economy. and they're building up the next term. 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 economic sue 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 powerful than before

today, citigroup was out with a forecast that 10 year yields will hit a record low of 1.25% in 2020.y are not even the lowest option. he is definitely at odds here. it is again those longer-term risks he sees treasury yields rising on. risks, he thinks those are underpriced. he also thinks the u.s. budget deficit, it has been growing steadily and he thinks eventually that will reach a breaking point. shery: inflation risks scares this year or next year? katie: next year. this is something that we are starting to see more of on wall street. investors bracing for inflation. we have not seen it yet but gundlach said jay powell, the head of the federal reserve, he is really committed to boosting inflation and investors are underpricing that. amanda: always good to have you. katie greifeld, thank you for that. bloomberg users can interact with the charts easy on the network. the function is gtv go. from toronto and new york, this is bloomberg. ♪ [ dramatic music ] this holiday... ahhhhh!!! -ahhhhh!!! a distant friend returns... elliott. you came back! and while lots of things have changed

most 60 think citigroup's the in political figure who tells her it's a sunny day. politics is now cash as arad says main business i start a job this summer because it adds it launched his political party. on the black sea the site of his ambitious 2 and a half $1000000000.00 deep sea port but the ports future is in question georgia's government has delayed its support and has it i'd say and the business partner of fighting a separate fraud investigation accused of laundering meaning $17000000.00 through their bank t b c. president has entered politics to fight back courting voters and challenging the government on prime time t.v. in life there's certainly a lot of rich in the world don't want to cross. should you made a deal with them or change not only for you but change qantas future so that's why i just decided to leave business. the government party says presidency has to own soon for the missing millions when you are under investigation and you are just creating. a political party you have to say something or at least hate. about what happened. this is one loo

and part of the legacy that i think is still so present here , he transformed citigroup into -- he scaled it like crazy from the bank in the city to a bank that serves the world with atm's, interstate banking, credit cards, turning it into a money center bank. and then what the legacy draws our attention to in so many ways are the questions of scale and problems of scale. that is what i want to focus on tonight, that we have a question of scale. if something is good, more is better. and then of course, the quality element, where once you get to a certain scale, maybe you do different things. this was the vision for citibank. and then perhaps there is also another dimension, where maybe you are changing the world into a better place. from a free-market perspective, perhaps by making or expanding capitalism, you can transform the world on a trans political level. that was the hope that walter had. in some ways, this resonated with me deeply when i was starting paypal, where we had this vision we will lead this financial revolution against all central banks, we would liberate money from gove

the number of banks hitsing 52 highs, morgan stanley and citigroup. >>> time now for the day's powerting with roku. the company's cfo is leaving saying he wants to be close to his family in seattle. he will help the company find a replacement. they say the move was expected >>> unileverer on pace for its worst day in a decade. two buy outs to tell you about tallgrass energy being bought by black stone for more than $4 billion and logmein being taken over by san francisco partners and evergreen for $4.3 billion the company makes software that allows for remote connectivity >>> the oil market closing for the day. we have the numbers at the commodity desk >> oil prices settling higher. traders are optimistic about global demand growth it's at its highest level since sent both are expected to show dry out as stockpiles further support prices back to you. >>> the shipping wars are heating up with just about one week until christmas yesterday during this hour fedex shar shares fell as amazon announced they are blocking third party sellers from using ground shipping amazon is up nearly 20%.

>> top three, citigroup. >> right >> i love the fact that an activist is in the house yesterday theyouse for two more years they can still go for a board seat in a year behind the scenes they're pushing management to do better. bank of america, what a great fin tech company in bank they've doubled mobile banking in the last five years they're doing amazing things ahead. jpmorgan, best in class. we were to add to that group especially in the short term, goldman sachs is having its first investor day in its 150 year history, january 29 that's the first time they show what's happening behind the scenes you get to see management. you get to see talent. by the way, one of the greatest off balance sheet assets at goldman sachs is their culture we get to see their culture up front and center. >> where does wells fargo, in your situation, land we had bill daily on the 6:00 hour who's now the vice chairman, head of public policy. >> that's the one bank i don't cover. if you want to see what i think about the ceo, you can look at cnbc.com, hugh thone did a huge piece two years ago about what m

holiday season, we think that will benefit the names such as bank america, jp morgan, chase and citigroupould get the benefit if capital markets pick up, those stocks should benefit as well. on the regional side, they should benefit with the merger between bbnt and suntrust. not only do you get the benefit of southeastern economy picking up steam, you also get the cost savings from that transaction. moving to the u.s., you can look at key corp that does a very good job as well two ways of approaching. pure investing, probably stay on the sideline now >> before we let you go, one of the things that i and many others on wall street know you for is the texas ratio you look at some of the nonperforming sectors. are there any places you are seeing stress within the financial system that would lead you to be a little more cautious or is it all systems go for banks? >> it is a really good question. at this time, it is all systems go two areas are bubbled up to a concern. right now, relative to the size of the banking sector, they are not material going into 2007, or 2008 there is auto showing so

citigroup. he is left in there, a recent shakeup of the bank.ommercial bank out there for several years -- ran the commercial bank out there. >> they are tightening their belts. reducing -- about >> they have to meet efficiency targets. out actually called technology units of the bank. invest inen banks automation and other technologies. this seems to be the first time we see a bank saying, this is not going away. >> credit suisse this morning and focus. negativesions and trait tensions away in the bank tensions weigh on the bank. >> i think investors are going to be surprised but most of all, disappointed. they have cut back their main target. share buybacks, dividends, safe for now. is going toow what happen in the next couple of years. >> deutsche bank considering deep cuts. we have learned they could be cut as much as 20%. they try to eliminate billions of dollars of costs. what happens if -- >> deutsche bank and obviously they have been trying to turn around this investment banking unit. how do they retain talent while also cutting that onu

we are viewing nonqualified mortgages, those not secured citigroup said we had $15 billion of non-gsc sek youred mortgages. not unlike here in london where you had 15 million jobs created and only 10 million units. you have a consumer doing well 3.6% unemployment. 50-year low. you have a strong consumer as evidenced on black friday, cyber monday looking at rates being low that's what we view as a way to play a tough situation where the market is ripped and the consumer credit is strong. >> i want to unpack that a little bit we spent in of 2019 talking about the possibility of a u.s. recession. you remember the yield curve is back up. surely if you are investing in those areas, that must be a huge risk for you especially given how late we are in the cycle that >> that is the argument on the other side the fed acted quickly with three rate cuts. usually that effect takes six months we do not believe in 2020 there will be a recession. you pointed out the pmi for manufacturing is at 48 that's the fourth month in a row it is under 50 it is in recession as to consumer spend 70% plus will be

you can't rule out one external candidate that has been mentioned, stephen byrd of citigroup. in their the most -- in their most recent shakeup of that bank experience. which, so does know what quinn. he ran the commercial out that she ran the commercial bank out there -- >> morgan stanley is tightening its belt, eliminating 1500 jobs globally. is this strategy, or is this about reducing headcount? >> i think they have to meet efficiency targets they have set. what is interesting is they called out folks in the operations and technology units. we have been seeing banks invest more in automation and other technologies, so we have always knew that meant jobs would disappear. this is the first time we have seen banks say that is what is going away. focus, --n trade tensions and negative interest rates grow -- weigh on the bank after a three-year restructuring. how much of a surprise? >> markets have been hinting at this for a couple of weeks. i still think investors are going to be a little bit surprised, most of all disappointed. maint has cut back its profit target. on the plus

citigroup says in either case that the federal reserve is unlikely to step in.ed bloomberg earlier today. suggesting the fed is not doing anything until 2021, that the fed has said clearly they will not raise rates unless there is sustained inflation, and that does not seem imminent. next year, the fed is not going up or down. jobless claims and consumer comfort numbers are due next week. japan's national broadcaster today mistakenly issued an alert saying north korea had launched a missile. nhk retracted it minutes later. it is the second time that nhk has issued a false alert on north korea. a similar incident took place in january 2018. federal regulators unveiled a sweeping proposal that mandates the tracking of most drones. woulda said the measure promote public safety and help prevent terrorism. the draft rules call for a massive new tracking network so law-enforcement can spot the devices flying anywhere. the constitutional court in ankara says the courts ban on wikipedia is unlawful. the ruling was reported today by state run media. the court said bannin

can't rule out one external candidate that has been mentioned quite a bit, stephen byrd, formerly of citigroup recenthe shakeup of that bank, and has specific experience. of course, so does noel quinn. vonnie: so was that the most surprising move? what about the entrance of the former hp employee? reporter:reporter: yes, this is the one that hadn't quite leaked out. andy mcguire was retiring after five years as ceo. the hewlett-packard man, you can't help but wonder that bringing in the executive indicates of the highest levels of hsbc that they are concerned about some of their tech issues with the overhaul. as far as we have heard, hsbc indicated in its most recent earnings that it was going to write off a lot of previous technology spending. it is tempting to say that the two things are related. also, with the digitization of all kinds of banks and banking, where hsbc is going to be concentrating their capital, it may be easier to build up through the apps and digital than to build a branch network. guy: are we going to get an idea of what nole quinn's shakeup is going to look like? are we

single level, and by the way, we only really have two major banks in the u.s., morgan stanley and citigroupve news on already. let's see if j.p. morgan and goldman sachs follow. vonnie: how many of these jobs are going thanks to digital efficiency? are any of them going because a certain percentage of jobs go every year? sonali: a little bit of both, not to mention morgan stanley's operations staff is going is welcome but a lot of these can be digitized over time. people still have the need for humans. in the u.s., the fin tech industry is raising record amounts of money, so you see people moving proactively into that second your, hoping that that is where the future jobs will be. vonnie: right. so if we widen our net and talk about banking including fintech, perhaps the number isn't so bad. sonali: that's right. some are starting up offices in new york, hoping to grab some of that talent from the big banks, and you also have tech bunnies like huber looking to get into financial services and a bigger way as well. so the option i would get people looking for a job is maybe the big tech firms

we ended up creating -- i helped to create what is called the cashmere citigroup. 26 leading scholars the next 10 years i spent a tremendous amount of time and energy between india, pakistan, kashmir, and came under the idea under this umbrella that solution should be peaceful. accepted byould be people. should be honorable. and feasible. david: we are speaking with farooq kathwari, chairman and ceo of even how he and a native kashmiri. you made progress, shuttle diplomacy, yet it fell apart. is it possible in this day and age with prime minister modi, for example, and iran con and pakistan, who says he wants to fix this, is it possible to get back on a road to real reconciliation? i think so. crisis creates opportunity. today it's worse because of the fact that again cashmere is in lockdown. india and pakistan are two armed countries. when i got involved at that time there were millions of troops on the borders. when they asked me to do that shuttle diplomacy, i went back and forth. along with a lot of other people , we came up with ideas that felt relevant in kashmir. as well as in

stephen byrd formerly of citigroup. recentleft in their most shakeup of that bank.out there for hsbc for several years. : morgan stanley is tightening its belt. is the strategy or is it about headcount overall? >> the strategy is they have to meet their efficiency targets that they said. they actually called out it's folks in the operation and technology units of the bank. we have seen banks invest in automation and other technologies. we always kind of knew that some of those back office jobs would disappear. this is the first time we are seeing a bank say this is going away. >> credit suisse this morning focus, casting its main target for this year and the next. trade tensions weigh on the bank after a three-year restructuring. how much of a surprise is this news from credit suisse? >> analysts have been hinting at this for a couple of weeks. i think investors are going to be a little bit surprised, but most of all, disappointed. credit suisse has cut back its main profit target. the capital returns, the share buybacks and dividends, they are safer now. you never

. >>> welcome back citigroup and jpmorgan moving higher after wells fargo increased price target but banking group still sharply below it what does 2020 hold for the banks? let's bring in your trading nation team. craig, started off here. the group obviously has taken the lead one of the best performing sectors for the year can it continue? >> i think the banks continue to roll on. if you look at a spread between the 2 and 10 year yield you will see it's widened out we're close to seeing nice break out here the next is around 61 and then 65 from our perspective we want to be buying these banks. >> if it's working better, does that mean the committee economy clear and the yield curve with continue steepening? >> the economy is slowing down the yield curve has been steepening because it gives the fed the room to keep rates low i think that will keep the yields curve steep and continue to help banks. the bigst thing that helps banks is valuation they continue be the cheap relative to the rest of the market and right now investors want good value and banks right now have probably some of

jpmorgan, bank of america, citigroup and wells fargo all spiked let's bring in the trading nation teamoday. let's talk about whether this can continue obviously financials have been an out performer for the last few months part of this value and cyclical trade. with the fed on hold, does the group still look good to you >> the group still does look good this is one of our top sector ideas. right here, right now the financial sector spider is testing its pre-crisis peak back from may 2007. we are banking on a break down we upgraded in october you have overall bullish conditions and we see very constructive behavior in how the sector is performing we can see financials basing versus the s&p 500 now breaking above resistance. see a lot of similarities to the fourth quarter of 2016 that's how we're thinking about returns going into 2020. we think there's more upside for leadership here. >> yeah, obviously very dramatic move to the upside back then see if we can have a rerun or not. how does that filter into your view of this sector? >> you've got two major things that are supporting banks

citigroup had two strategist writing one technical indicator shows the vix index is pointing higher.the s&p and the vix moving in tandem and it was followed by a 7% decline in the s&p 500. you can see this four red bars. the s&p has been trading within points of its record highs. it is just under 1% and you've had 38 trading days without it going higher or lower by 1%. something to keep an eye on. tomorrow you have the fomc rate decision and sunday the looming tariff deadline for the u.s. to impose new tariffs on chinese goods. something to keep an eye on as there are a lot of market catalysts. you can find the chart by running gtv . vonnie: indeed you go. i will be going back to gtv after this and having a look at both of the charts. something tells me the standard is getting higher and higher. it is so high today that i'm going toward a tie. both ritika gupta and john hyland when today's battle of the charts. congratulations to you both. do not overdo the celebrations. coming up in the united states, we have balance of power with david westin on bloomberg television and ra

citigroup is choosing to go 100% ownership on investment banking.bs, jpmorgan, or go with a majority stake. everybody is sizing up the opportunity and the risk differently. shery: it's a huge market but the risk, the chinese government is pulling the strings. peter coy, thank you. our economics editor for bloomberg businessweek. goldman has been shopping for bankers from competitors in recent months. what they are trying to achieve next. this is bloomberg. ♪ shery: this is bloomberg markets. i'm shery ahn. goldman sachs is making a push to provide banking for middle-market companies and getting talent from rivals to do so. they have hired more than a dozen managers from competitors in the past few months. to break it all done for us is sonali basak. why do they even need to do this? a rowis a third year in that they are number one in mergers and acquisitions, well over 30% market share. last year, the average deal volume was 2.6 billion dollars. the reason they were number one is because they didn't just work on the big deals. they also worked on sm

just this year we're in the green today check out some of the new highs across the board micon, citigroup and kellogg joining that party ty >> thank you very much with a few trading days left in what's been the best year for the market since 2013, bob is at the new york stock exchange with a look at what worked in 2019. hi, bob. >> a lot worked. that's the good news the rally has opinion fabeen fa but don't kid yourself top 23 stocks in the s&p 500 all were up. all 23 were up some of them were up really big. how big? s&p 500, up 28%. the top ten stocks by market capitalization were up more than 40%. that means as they get bigger, those stocks have more and more influence on the s&p number one, nothing knows bigger than apple this year look at this, 77%. that's not a typo. how much is that that's 800 points in the dow jones industrial avenuage. that's what i'm talking about. the dow is price weighted. microsoft up 53% for the year. these are the top two. beyond that it's not just tech stocks you get financial stocks visa has been a monster this year jpmorgan, all the banks hit new highs. t

citigroup did this with median pay and there has not been a flood of banks joining them.ve a report last week saying this is how many results we had. it is not like every other platform was like, here are our numbers. i guess it starts somewhere. you start to add these things up. potentially, may be a regulator or changing government may weigh in. it is a loss leader thing where you are taking a big risk at of -- out of the gate that may pay off in the future. taylor: it is notable these results for 2017 and 2018 were pretty much wrapping up 2019. any indication that 2019 could have been better? jeff: we will never know. this data was collected under a program that was brought forth by the obama administration. and the trump administration has said we don't need to continue this, it is hard on the companies. this data in the current form will not be collected for 2019. we will have to see if there will be a new program or companies coming up with something voluntary that shows this. that is the sad part about this. this data is really interesting and we may never get a ch

citigroup did this with media pay and there has not been a flood of banks joining them. a report last week saying this is how many results we had. it is not like every other platform. i guess it start somewhere. you start to add these things up. potentially, may be a regulator or changing government may weigh in. it is a loss leader thing where you are taking a big risk at of the get that may pay off in the future. taylor: it is notable these results for 2017 and 2018 were pretty much wrapping up 2019. any indication that 2019 could have been better? jeff: we will never know. this data was collected under a program that was brought forth by the obama administration. and the trump administration has said we don't need to continue this, it is hard on the companies. this data in the current form will not be collected for 2019. we will have to see if there will be a new program or companies coming up with something voluntary that shows this. that is the sad part about this. this data is really interesting and we may never get a chance to see it again. taylor: jeff, do they o

citigroup did this with median pay and there has not been a flood of banks joining them.t lastve a week saying this is how many assaults we have had. it is not like every other platform has said here are our numbers. you start to add these things up potentially, may be a regulator rate change in government might weigh in. people who get ahead of this might have a way -- an ability to shape it. it is a loss/leader kind of thing where you are -- you are taking the risk out of the gate that may pay off in the future. in 2017these results and 2018, as you know. any indication that 2019 could have been better? ? we will never know. this data was collected under a program that was brought forth by the obama administration. the trump administration has said we do not need to continue this, it is too hard on companies. this data in its current form is not going to be collected for 2019. we will have to see if there will be a new program, or if companies will come up something voluntary. this.s the sad part about this data is really interesting, and we may never get a chance to se

, 9 basis points in the ten year, and the curve itself you see the money center banks, jpmorgan, citigroupbunch of super regional, fifth third, morgan stanley, bank of america, goldman, sachs, 52 week highs. and if you get this move up in yields, people start talking about the idea that maybe some of the inflation targets could be met as well all sort of things could happen. we still don't have the terms of any deal that's of course what we're waiting for now. back to you. >> yes, indeed, and it is not just us. perhaps cupertino waiting to see if the china deal is indeed close. apple shares have been on a tear, outperfeorming the s&p the impact of the 15% tariffs slated to go into effect sunday. wedbush, saying iphone cost could go up 150 bucks. credit suisse warns of trouble in china, iphone shipments down a second straight month, dipping as much as 35% in november with us at post nine, editor in chief, and mike murphy good morning how big a deal is the potential of the tariffs going sunday for apple, they have some of the highest priced technology, also technology that people are willing

citigroup is still warning that is a risk, but analyst at bloomberg intelligence saying because pg&e'sn, the fact they have settled with wildfire victims me they would get paid out quicker. it is likely is the plan that will no through but that remains to be seen. do in: what does pg&e case of more wildfires? is its equipment ready for something like that? kailey: we saw the rolling blackouts the company was putting in place to avoid this happening again. record blackouts across the state of california. they're having to take dramatic steps to ensure this does not happen again and did not get another $30 billion in liabilities in the next year. vonnie: thank you. that is our stock of the hour. trading around $11 and has traded up as far as $70 and 2017. russiahead, we will talk and ukraine talking peace in paris. ons is "balance of power" bloomberg tv and radio. ♪ [ electrical buzzing ] [ dramatic music ] ahhhh! -ahhhh! elliott. you came back! vonnie: from new york, this is "balance of power." i'm vonnie quinn. kevin: i'm kevin cirilli. for bloomberg first word news go to mark crumpton

deal is likely to allow our financial institutions to do more did you see the stock at jpmorgan, citigroup, jpmorgan, goldman sachs. if you need confirmation, look no further than the price of oil which finally got some lift. granted, oil is probably climbing but if the price of crude can rally, that means the oil stocks can rally and the positive pin action from an oil stock that rally immediately extends to the drillers. you want crazy found myself saying am i nuts? union pacific. the railroad >> all aboard! >> they came out with some grim tiedings fourth quarter volumes down at least 10% and another market this stock might have fallen 10% on that news nah, mine are much higher. the fashionistas drooled over the 7 billion plus dollars that union pacific returned to shareholders including 5 dividend boosts in the past nine quarters industrial volumes flat, energy down 20. call, secular decline. that didn't matter at all to buyers because expenses are being slashed left and right trains running much more efficiently, fabulously low. operating ratio. that's the real driver of performance to

they want to see citigroup, morgan stanley, the ones we know cutting jobs, can they grow the revenue while they are cutting jobs? growth may slow into a tougher economic environment, which we do not know what will happen. they need to show profitability rising. david: the challenge is not getting rid of cost, it is keeping your revenue up. sonali basak, thank you so much for joining us. we now go to london and we will talk about the brexit negotiations. we thought everything was passed with a resounding victory from boris johnson, but it sounds like he has someone they will negotiate within brussels and they are not so eager to get a deal. >> he is having a jolly good time in the caribbean. the eu commission president seems to think the brexit decision may not happen by the end of 2020. that seems to be the received wisdom. everyone thinks it will be extremely hard to pull off a trade deal given the presidents. these are technical talks and they will take several years. my cap yet at this point would be do not discount the possibility of making it happen given the political urgency.