of all the banks, citigroup is different. jonathan: we are finding out that in the third quarter on wall street, things were ok. the earnings are out from citi. the big beat, the big lift year-over-year, has come from the equity business for bank of america jp morgan, morgan stanley. citi is no different. investment backing revenue, $1.92 billion. the estimate, $1.54 billion. the story for the equity, the stock, we are up by 1.34%. we already had a full picture of what was happening on wall street coming into these numbers. citi is up. the numbers are decent. sonali basak is still with us. your early read on these figures? sonali: huge beat on the equities business, and he did beat on fixed income as well. the investment banking division also doing well. citigroup up there in terms of the top underwriters in the world in equity underwriting. i do also have to point out that when it comes to global consumer banking, their revenue has dipped quite a bit, about 14%. lower card balances was part of that. when you look at the inte

up next, jane fraser in her first year on the job, citigroup earnings are out tomorrow.e have a great story about how she is not only trying to reshape citigroup, but stick it to some of her competitors. that's up next. this is bloomberg. ♪ ♪ caroline: if you are not signed up to bloomberg quicktake, you've got to. and cover of bloomberg businessweek as well, it breaks down jane fraser's big plans to remake citigroup. we have mike mayo on set, critical of citigroup and its executives, but said james fraser -- jane fraser is a changemaker. do you agree? >> she's got a lot of big plans here and citi is in desperate needs of a change. they lag their rivals, j.p. morgan and bank of america. i think she is trying to bring the breath of fresh air, and she is in it to win it. romaine: she has only been on the job for a few months. what are some of the many strategies she has communicated? with regards to what citi will look like into her tenure? >> one of her big focuses is wealth management. citi has long punched under its weight in that area. they were forced to sell off to m

morgan, and citigroup?ey are handcuffed with their ability to grow assets, so they have to be selective with where to get the best profit for the return. as far as investors, i have to disagree -- bank of america looks like a clean quarter. everything is firing on all signals. wells fargo, they have a bigger delta opportunity if they can improve businesses. with wells fargo, the velocity of mortgages, refi is a big engine for wells fargo in they have another big delta on the card business -- they still have a national platform for the consumer, so it is not always who is the best and who is the worst, but who is changing, and that is what investors need to capture. bank of america is a great company, but this is their first clean quarter, as noted earlier, versus the last two. lisa: just to be clear, it sounds like you are more bullish on wells fargo as an equity investor then bank of america. ken: that is correct that i have not seen today's results, but when you have turnarounds and you are kind of in the

bank of america, citigroup, we are overweight citi. we are underweight bank of america and j.p. it is a function of their valuation being a bit more full than the rest of the group i cover. they're still upside for the names. what we have in our outlook? we have two rate hikes in 2023, and with all of the talk of inflation the question on the table is could that be sooner? that would drive up my estimate and make the multiple -- make it more attractive to him the stocks. it'll be interesting to see what jamie dimon says on wednesday. at our conference in june he did a bit of a might drop, he did a market to market on nii where rates were in the curve was. he has not spoken publicly since then, at least in a large forum on this topic. i wonder, is he going to say that given this rate outlook that we'll will end up having an uptick in net interest income as we look forward. guy: pretty down on the bond market for quite a while. a busy week. thank three much for setting us up for it. betsy graseck, morgan stanley, thank you very much. this is bloomberg. ♪ alix: energy moving higher

for citigroup, we advanced by 1.25 percent.rs come been about 11 minutes area we are getting a fuller picture of the banking universe on wall street, and citi, so far for investors, they are liking what they hear. dollar lirar -- dollar-lira through nine. that is a weaker turkish lira off the back of the president of turkey firing three more central bankers of the central bank of turkey. let's be clear right here, there is pressure on this central bank to cut interest rates further. that is not the story elsewhere in em. they are hiking big time. chile the latest. lisa: the idea, trying to attract capital at a time when money has been going to developed markets accelerating faster and considering tightening policy. turkey is its own story. there is an unorthodox belief by president erdogan that if you lower rates, that will reduce inflation. that has not been established or agreed upon by pretty much anyone else. jonathan: that is the diplomatic way of putting things. going us now, damian sassower, chief emerging-market credit

citigroup up .33%, too. earnings season was perfectly, and this is not the earnings of apple yet. lisa, we finally got running that maybe they got supply chain issues, too. jp morgan numbers drop, adjusted revenue, 30.44 billion dollars, the estimate, 29.6%. the estimate 13.19 billion dollars. the credit cost net benefit of $1.5 billion included. we will go to a ton of numbers here. you wrestle through a load of numbers, and you have the story. sonali basak will be going through those numbers now. she is going to tell us a story just a moment. third-quarter investment banking revenue, the estimate 2.65 billion dollars. that was expected to be strong. it is better than expected. adjusted revenue, $30.44 billion, so to add to this, sonali, those numbers just dropping. a holland more still to come. sonali: part of that is coming from much stronger-than-expected banking earnings. trading revenue just about flat, where they were expected a little bit short, jon, but the comparison is also from two years ago befor

citigroup is an international player, and i don't like international banking at the present moment.f the big reasons, you know, for that. i think that citigroup is the weakest of all of the banks that i just mentioned, and therefore, that's one that i would tend to stay away from. liz: citi down about half a percent most of the financials are lower today. give me a one line on goldman reporting friday. >> i love it. you've gotta buy goldman, you've gotta by morgan stanley. they are going to show big numbers and show big numbers because merger and acquisition business, which is their most profitable business, soared in the quarter. some said well jpmorgan had a tripling and even smaller companies, jefferies, tripled its money from m & a and these companies are the leaders in m & a so you've got to be buying goldman and morgan stanley. liz: dick, always a pleasure thank you so much for coming on. >> thank you, liz. liz: the kracken has been released, the nhl season underway but the newest franchise debut, the seattle kra cken, i held up that t-shirt today, not the only big news find o

i'm asking you seriously >> citigroup yeah, citigroup is mine.he ten-year yield is i think it is slowly going higher yield curve steepens, benefits citigroup which continues to buy back shares well below tangible book value >> don't be so defensive gosh pete >> geez, you have trained me well >> thank you >> we were talking energy just a moment ago and i'm sticking with energy devin, some huge upside call buying layout in january >> paypal is yours, josh real quick >> yeah, real quick. >> good stuff, everybody "the exchange" starts now. ♪ ♪ >>> thank you very much, scott hi, everybody. welcome to "the exchange." i'm kelly evans. here is what is ahead. >>> markets are bouncing back after yesterday's sell-off should you race to buy what is left of the dip? we will hear from one investor who says don't buy until stocks fall quite a bit more. >>> speaking of key numbers, bitcoin above 50,000 as money continues to flow into crypto. are signs pointing to a bigger rally? >>> everyone is talking about facebook, the whistle-blower is on capitol hill, but y

citigroup bonuses in the crosshairs.ittle notice changed to the firm pasta rewards for executives has set off a detractor. we will speak with the tradezero ceo, dan pipitone, to track a deal. food inflation marches higher. we talk to chris webb, ceo of chow now, about how the industry is handling inflation. amanda: inflation one of the issues dogging these equity markets, but as we look ahead to the official start of this quarter pasta earnings season this week, that may well be the weight and see -- wait and see the markets are demonstrating. we have rate sensitives leading the broader s&p 500 higher. you see consumer discretionary broader for the s&p, but tech and communication weaker, and beyond that, more granular early -- more granularly, some of the biggest banks we follow, watching that 10-year yield at 1.5 8% come elevated relative to where it was. is it i levels where we would see something of a rotation happening? that is something we are watching. something we are watching from bloomberg intelligence, that net

citigroup realigning some of the earnings forecast. the worry about u.s.-china tensions is putting a dampener on some of these equities. they are almost up and running. tom: a very clear tug-of-war now between the earnings session we are seeing. 81% of s&p 500 companies beating the forecast versus those inflation concerns. it has really been underscored in australia. we will talk about that shortly. what you saw was the three year yield getting back to levels we have not seen since about july of 2019. let's see how this is going across the european markets. the futures pointing lower. losses of .2%. looking ahead to the budget and whether there will be any rabbits full out of the hat, we look at what will be longer-term, a more fiscally conservative stance from the u.k. government as we look ahead to the boe decision next week. let's look at the mixed assets that we want to be focusing on. the australian story around core inflation, surprising for the month of september. that had an impact on the three year yields. the currency higher. markets pricing in a

there is interesting call by citigroup.they are talking about his we are going to getzen -- get consolidation within sports betting. they are not convinced the draftkings entain bid is going to happen. why not? there has been a lot of speculation. bloomberg's thomas sealed here to talk about this. this was the expected path we would see. consolidation and quite a big footprint in the states that this issue -- this industry would continue to consolidate rapidly. why are people not so sure? thomas: it is complex and there are a lot of moving parts. the bit of the pie everyone wants his m and jim -- is mgm. draftkings has to find a way to unpick that and strike a deal with mgm for sale a license to the underlying technology. this is the secret sauce that makes it valuable. meanwhile entain is growing superfast. it rejected an offer in january worth $11 billion. it is already valued more than double that. the incentives may be do not line up. the other thing that may be concerning to shareholders is the offer from draft kings i

la corporaciÓn bancaria citigroup le informÓ a sus empleados que deberÁn vacunarse contra el covid, oligiosas o mÉdicas. $88,000,000. esa es la compensaciÓn que recibirÁn los sobrevivientes y familiares de nueve personas asesinadas por un hombre blanco que les disparÓ en una iglesia de carolina del sur en 2015. 14 personas demandaron al gobierno federal alegando que el fbi fue negligente al permitir venderle un arma semiautomÁtica al asesino, quien confesÓ que querÍa causar una guerra racial y por eso eligiÓ esa iglesia frecuentada por la comunidad negra. vamos a abordar un caso de violencia domÉstica. las autoridades de texas estÁn tras la pista de un hombre que habrÍa secuestrado y agredido a su propia esposa. hay una recompensa por informaciÓn clave que conduzca a su captura. desde mcallen, veamos los tstimonios de la vÍctima de este caso que tiene alarmada a la comunidad hispana. reportero: la policÍa de houston busca activamente a este hombre de 31 aÑos, quien secuestrÓ y asaltÓ fÍsicamente a su esposa, quien ahora tiene serias marcas en el rostro y lesiones por todo el cuerpo, e

jonathan: how do you respond to citigroup -- tom: how do you respond to citigroup's research note?is a shock to see their index named in honor of tobias levkovich, it is so sad he died. the index said we are going down. there is a huge likelihood of caution. how do you respond to the caution right now? margie: tobias had been saying that all along. he was very cautious on markets. i think it is premature. all of our corrections have been caused by the fed over tightening. to me they are telegraphing they will not do that, they will keep the market high and use the labor market as an excuse for transitory inflation. i think they may be right but i think we have to push it into 2022 at the earliest. jonathan: thank you as always. margie patel of wells fargo. priya misra said the market is planning the fed will be forced to hike, we do not think so. that is where the debate is right now. this week i do not think we resolved anything. tom: bottle that. what you just heard, whatever you heard, margie patel was lights out. so importantly, you linked someone managing equity and bond dolla

i heard an interview this morning regarding jean frazier at citigroup, and she's wrestling with all of these same types of issues, and it's quite innovative, what she's planning, so it might be worth looking at her remake of citigroup in these post pandemic times. >> okay. thank you. >> yeah, it was interesting. if there's no questions -- joe, go ahead. >> one question. >> okay. >> yeah. jay, i know the building owners contract with the janitorial service to do all the daily cleaning. i'm just wondering, do you think they're as thorough and complete and appropriate for all of our staff at sfers, but whether we want to go back over ourselves and wipe down with a very powerful disinfectant? >> we, as part of the safety provisions provided by the city over the pandemic, have the lysol wipes and materials that we can wipe down common areas, kitchen machines, and other areas, so the protocol for staff returning as it stands right now on november 1, is we would urge people to wipe those areas down before you use it so you don't count on someone wiping it down after they used it. the cleaning

in terms of loan growth, they do expect citigroup and j.p. morgan to do better than other banks and there are analysts who have talked about what that is going to mean. citigroup's card balance will be in focus, banks are looking at bank of america to kick off the slew of earnings, the revenue diversification has been cited as serving the company. wells fargo shares up 51 percent year to date, the best-performing bank. regulatory issues are expected to be an issue and morgan stanley will be bringing up the rear in terms of the reporting. institutional revenue expected to put them in good stead, particularly as trading revenues skewed toward equities and the m&a and ipo activity has been strong. haidi: su keenan with the latest on the banking earnings. just getting started. let's look at one of them movers in the early part of the session, seeing them gain the most in about eight months, up by about 8%. and off those session highs of the most 12%. agreeing to pay over $1.5 billion for a group for a 45% stake in the copper project in chile. thi

was powered in part by financial heavyweights bank of america, morgan stanley, wells fargo, and citigroup, all reporting stronger-than-expected earnings. gains of about 1% in london. a bit more in paris and rank for. the number of americans claiming unemployment benefits dropped again. that is the first time those weekly numbers have dropped below 300,000 since march 2020. the overall unemployment rate has also dropped to a pandemic low of 4.8 percent in september, but the decline was largely driven by a sharp drop off of people looking for jobs. new data showed 300,000 women left the workforce in september. they continue to bear the brunt of job losses since the start of the pandemic. a group of ngo's has accused the french state of ignoring environmental and human rights standards by supporting a controversial oil project in uganda. critics say projects in uganda would deprive thousands of their land. an energy company said it did t expect meaningful output, but it is a sign it is hitting dustries as well as households. e worl's largest producerf microchips said profits rose in the thir

citigroup, wells fargo thursday. goldman sachs on friday. as kelly mentioned, financials have been on fire. but particularly the superregional banks, new highs in companies like fifth third, the highest level for fifth third down in the middle of the day. but since 2007 a lot of superregions before the great financial crisis us bank comp and some of the insurance companies doing well the higher rates are really what matters for the companies. meantime, energy is as kelly mentioned having an incredible run. congo fip fill i want was downgraded on valuation. you think show up 25% in three weeks. why? well obviously you got global demand increasing oil prices up. but these things are so small. this company is $91,190,000,000,000 that's a conocophilips, pretty small compared to the rest of the s&p 500. you get a little bit of demand all of a sudder the prices through the roof 25% increase in. >> 3% of s&p 500 that's what the xle is right now. >> think back 20, 30 years ago, bob. energy was was 15, 18% of the -- >> exxon was biggest in the united

the present and the ceo of citigroup and jpmorgan chase urged republicans not to blocking extension of the debt limit warning the economic damage it would cause. >> hello, folks. i want to thank -- we can take these off while we are speaking. i want to thank her participants here as well as those on zoom. this is to state the obvious. it's an important get-together here. i am going to make some brief comments and maybe ask a few questions and then we will yielding go down the road and maybe we can all of us talk virtually as well as in person and hopefully make some progress. i want to thank us the secretary of the treasury's secretary yellen congressman it's good to see you and the leaders of some of america's most important business is in institutions. the american association of retired persons are, bank of america deloitte intel jpmorgan nasdaq the national association of realtors and raised on and we are joining today to talk about the need to raise the debt limit. we haven't failed to do that since their inception as a country. we need to act. the united states pays its bills and

we are standing by for citigroup out any minute now. eye on inflation, as big tech led the way, european markets today also in the green, gains in england, france and germany in asia overnight a mixed story, bile gains on the kospi, south korea and nikkei in japan "mornings with maria" live right now. . >> some top stories we're following this morning majority americans losing faith in president biden. cheryl casone has more hey. cheryl: hi. good morning again so in this warning poll shows most americans don't have confidence in the current state of the country, when asked if things going right direction, or got off track 62% u.s. says on wrong track 38% says things going the right direction the president approval rating tanking, the poll shows only 46% approved of his job so far, the biggest issues facing voters struggling economy, and security issues including the crisis at the southern border. >> well the fda, zwil whether o to approve a booster shot of johnson & johnson covid vaccine regulators says it bolsters defenses caution limi

citigroup for example posted a 40% jump in that area for the quarter.rowth has been a key issue for banks and they remain challenged. any surprises this time around? investors reporter: were certainly very concerned about that. we did see a couple of those stocks selloff pair that is because while they are doing really well in dealmaking, loan growth still has not come back. most people are still using those stimulus checks to pay down debt. while they are starting to spend a little bit, they are not yet borrowing money. we saw consumer growth down and that was 2% as well as 5% at wells fargo, dropping a 15% and 7%. that is still a big concern. shery: our asia finance reporter. brian moynihan has joined other finance executives in warning that inflation is clearly not temporary. he spoke exclusively to bloomberg just after the lender reported third-quarter earnings that beat estimates, boosted by a record-breaking period for mergers and acquisitions. >> the activity levels and what goes on day today is bigger than before they pandemic. factual company -

in focus, another batch of bank earnings from companies like morgan stanley, bank of america, and citigroupwall street went through another choppy session. the dow shed nearly a point. the nasdaq gained 105, while the s&p 500 added 13. >>> 70 million people will receive social security are set to get a big raise in the cost of living adjustment. the payment will increase 5.9% in january, the biggest hike since 1982. that translates to about $92 more per month. the move comes as many seniors have struggled after a year of surging inflation which has pushed up the cost of everything from food to rent. so far this . in the first nine months of the year, nearly 4,500 passengers were stopped trying to carry guns through security. that's a 20-year high. hartsfiled-jackson international airport ranked the highest for seized firearms among u.s. airports. >>> want to get paid to watch homer and the rest of "the simpsons" gang? a uk site is hiring someone to watch every episode of the animated series, offering nearly $7,000 and a weekly box of doughnuts. analysts will look into the well-known phenome

ones that will be more interesting to watch the ones that have the most to gain would be here at citigroup wells fargo both considered turnaround stories to some extent. wells fargo is a little bit further along on its transition there. they're going to be looking to say are you guys selling your regulatory issues they'll be also be paying very close attention to their expenses as they do so. >> those of the companies buying for the most improved trophy. beverly let's get to the most fun were going to have in this segment. of course captain kirk going into space. there's lots of other spacesuits but let's start with the william shatner finally getting on a real rocket. >> only going were only a handful of men have gone before praise flying into space on a blue origin rocket that jeff bezos' space travel company next week i expect to hear were spending and matt damon's to mars. [laughter] there's also some of that rocket news, rocket labs is flying high after announcing a series of contracts. including one with nasa that has some developing a solar sail that basically uses the pressure of s

wells fargo up 1.2%. >>> wells stanly and citigroup up by one and a third percent. >> coming up, wantus new plans to get you there. you will hear from a top airline executive when "squawk box" returns right after this in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. ♪ i'm a reporter for the new york times. if you just hold it like this. yeah. ♪ i love finding out things that other people don't want me to know. mm-hmm. [beep] i just wanted to say... ♪ find yourself in these situations and see who you are. and that's just part of the bargain. ♪ >>> united airlines making a big play fortravelers who wants to head to europe as countries there open up. phil le beau joins us. he has a special guest good to see you, phil. >> hi, becky let's bring in patrick wales he overseas rout

bank of america, morgan stanley and citigroup report today.ides to another record low after president erdogan fires three central bankers overnight. anna: let's look at the futures picture, positive, pointing to the upside. u.s. futures pointing to the upside. it is almost we have forgotten around concerns of inflation. we got that 26 year high-end factory inflation out of china. it looks like we are set for a positive start. tom: larry summers is very concerned about inflation, but the market is looking through the data out of the u.s. and china, suggesting inflation remains sticky at the moment. the markets in europe up 0.3%. wti is above $81. rises as well for brent. yesterday we saw technology rally in the u.s., a strong session in europe as well. the u.s. 10 year yield comfortably below the 1.6 level. the yield story giving comfort now for technology. the earnings picture in focus, jp morgan m&a deal strong. the cac quarante, gains 0.8%. spain as well gaining, 0.8%. the italian ftse is in similar territory. let's look at the sectors. tech

citigroup will require all u.s. employees be vaccinated against covid-19 citing president biden's directive. the wall street giant has asked employees to submit proof of vaccination. a memo says january 14 is the final cut off. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ shery: still ahead, we discussed australia's commitment to reach net zero emissions. up next, we get the market outlook from a portfolio manager and her reaction on u.s. gdp as well. this is bloomberg. ♪ >> q4 should be much better now. we should see an increase of semi conductor supply quarter after quarter. >> we have seen recovery on the impact of q3 from the supply base that caused deeper impact. i am optimistic that we are through the worst of it. >> we are already seeing issues with finding product on the shelves. >> we have a fully aligned supply chain when it comes to 2022 and 2023. shery: ceos talking about supply chains. that we

think of america, citigroup among those warning growth will fall short of the 8.2% estimate this yearenda curran. goldman sachs also cutting their 2022 forecasts to china gdp, as well. enda: good morning. indeed. the economists are now concerned that growth will now miss 8.2%, haidi, but also saying growth next year might slip to the 5% level. that would be the slowest growth in three decades. you strip out the 2020 year last year. the reasons, you've got some structural issues going on, this big tackle, the big push to reign in debt a systemicnd -- and systemic risk. and then equality, which is triggered education and technology and the like. and then, more cyclically, we have this energy crunch and the virus outbreak we heard john talking about. when you add it all up, it certainly does mean there's pressure on the chinese economy. growth for this year is still expected to come in or around or above the 6.6% growth target, and there are economists who say that's the healthy growth rate for an economy of that size. kathleen: and gives them some room to power forward with this while t

banks including goldman sachs and citigroup have been investing so much in technology.ot of junior banker work is getting stepped away. things like valuations of certain industries and companies that has been happening for some time now. every bank is investing in analytics at their m&a business, three or five years ago everyone thought that it was a person-to-person business only and now we know that's not completely true. caroline: briefly, how are the apps going? >> this is worth looking at. record digital adoption. things that were harder to do online like getting a mortgage are happening easier. at bank of america, headcount has gone down. you can see the technology investments paying off. millions flocking even on the traditional banking app. caroline: thank you. let's find out more about the future of the crypto sector and banking. we heard jamie dimon way in. -- weigh in. >> i think the next thing which is already here is crypto. it's already happening. we talk a lot about the central bank digital currencies, the fact that you already have around 100 billion of

citigroup told staff to avoid scheduling calls and meetings between 12:00 and 1:00 p.m.e company tries to fight burnout. ceo jane fraser says all hour-long meetings should be shortened to 45 minutes. she says the density of the workday is impacting employees. google's online store crashed tuesday as it debuted its pixel six phone. customers trying to buy it were met with a sluggish website. googles upgraded its latest pixel with a better processor and camera as it tries to compete with the iphone. rishaad: we've got more news breaking at the moment. this is coming through at the moment, that there is the belief that north korea has a new type of ballistic missile. they did have these ballistic missiles fired. the deputy chief cabinet secretary is speaking in tokyo and talking about them. they believe this north korean missile fell outside of the economic zone of the country. that is what we have. we have a bit more on what is going on in pyongyang, message they are trying to put across after this. this is bloomberg. ♪ rishaad: we've got a bit of a bifurcation. chinese st

taking it a bit too far in citigroup's opinion. there is still a lot of time.still see a lot more defaults. most economists and credit analysts say that what the answer to your million dollar question is, nobody knows. francine: [laughter] thank you so much. coming up, we speak to facebook's nicola mendelson after facebook said it will invest in 10,000 new jobs in europe in the next five years to help it build its meta-verse. this is bloomberg. ♪this is bloomberg. ♪ francine: welcome back to the open. 30 -- 38 minutes into the trading day and we are seeing some pressure as we wait for earnings from the u.s. and we are worried about chips and ships. it is all about the supply chain disruption and what that means for future growth earnings. mix into that the energy concerns. corporate news, facebook is investing in thousands of jobs in europe but the u.k. will miss out. the tech giant wants to create about 10,000 new positions in the eu in the next five years as part of its push to create a meta-verse. it targets a market span. mark zuckerberg painted his vision

you have citigroup for example who are expecting or saying that there is a high possibility that we coulde that run rate of 400,000 barrels per day increase going up to 800,000. i'm not so sure that would happen myself. it is not my base case. given there are some pretty smart people out there calling for an increase in output, if we see it maintained, that could push the price up in brent about $80 on a closing basis and wti at 76.95. shery: the debt ceiling, the debate ongoing in d.c., how do you price seven? --price that in? >> take a look at the price action we saw on friday. it traded at a 10 basis point range, which is pretty punchy. if we do see yields moving markedly higher, that volatility could spillover. as currency and rate traders, we struck political risk. we look out for the signs and at the moment, they sell off significantly and you can see higher volatility in asset classes. shery: you are not alone. chris weston, thank you so much as always, pepper stone group head of research. coming up next, facebook is bracing for a whistleblower to link the social network to january

banking shares have been getting ground, citigroup turning to value stock in financials and to hedge against higher rates and protect against market turbulence. shery: let's get to su keenan with the first word headlines. su: the ecb is studying a new bond buying program to prevent turmoil when emergency purchases are phased out. the plan would replace the existing crisis tool and complement an older come up open-ended q. week scheme -- qe scheme acquiring debt every month. a spokesperson declined to comment. to russia where president putin has intervened in the energy market, offering to stabilize the european debt crisis and is saying russia could export record volumes of fuel this year. his deputy said certification of the controversial nord stream 2 would be one way to boost exports. european natural gas futures plunged after early record highs. the carlyle group believes firms are under investing in china. at the invest summit, the ceo said many corporate and investment leaders are under exposed the china market. they added the regions markets have always had what he calls short

the head of fx analysis at citigroup, it does not do justice to a large and holistic global view. i want to start with a great essay from bloomberg opinion where he talks about a hawkish dawn. are we at a hawkish dawn? >> great to be with you from london. i do think that we are. markets are grappling with what is accurately described as a bit of a change particularly for the inflation outlook. that is inducing central banks to look for some optionality if not now than in the months to come. we will see this continue across central banks. we think the ecb may be a bit of an exception. lisa: particular when it comes to inflation, does that mean it's persistently transitory and some people are expecting in places like canada and the united states where the central banks are expected to hike more quickly than they say they are? >> there's a combination of factors. still relatively positive demand, but also generally high labor markets and inflation expectations. this is set to last a little longer than we expected not so long ago. in that narrative we've a lot of sympathy with the inf

that all-time high or from those 52 we got for individual names including apple, amazon, intel, citigroupt is a large group. the question is, is this the threshold where you come back in or is this a major reevaluation of these valuations? with facebook this goes much broader than what we are talking about with the seller. there's a hearing going on today without whistleblower. you had the outage from yesterday. it will be interesting to see whether 15% drawdown we are seeing can actually bring it back up anywhere close to where it was a couple of days ago. couple of other individual stories moving the market, j&j higher. they will submit approval for a booster shot. alberts down 4%, downgrade at bmo, and marathon digital, bitcoin hovering around 50,000. tom: thank you so much. right now, hugely anticipated we speak with george saravelos of deutsche bank. he has the toughest job. peter huber, matt lizaetti are churning away and george has to figure out the economic dynamics and what it means in foreign-exchange. he joins us this morning. what is your dollar call? george: great to see you,

i'm using citigroup with airflow coming out this morning. tepid on ibm.horowitz very excited about goldman sachs. what is the craft to avoid an ibm? adam: you have an issue of share losers and margin contractors underperforming. if expectations are starting to rise about a turnaround story and the disappoint, the stocks don't act well. i have this whiteboard behind me and i write down things people ask me. i say the phrase is i want to long compounder's and short melting ice cubes. 18 compounders, nine melting ice cubes people mentioned last week. i think ibm fits in the ice cube category for a lot of hedge fund managers. they don't see a path toward sustained revenue growth for margin expansion. tom: let's get you in trouble on the ice cubes. i don't want you to fall into the ocean like a polar bear. where are the hedge funds now? what is the commitment you see right now? adam: there are different flavors and styles. i think generally people are still overweight with tech stocks. the risk is obviously if you get a backup and yield -- in yield. people wil

bank of america, morgan stanley, and citigroup report later. we break down the figures this hour.lus, revenge of value trading. we speak to the chairman and founder of research affiliates about the market bubble and the revival of cheaper stocks. looking forward to that conversation. very good morning. i've got a conundrum. i don't understand. inflation at the highest since 2008. core inflation is up there at a 25 year high. tapir is set to begin. why is the bond yield dropping? is it more worried about growth? dani: good morning. is this a recession signal? it's not just a conundrum for us, it's the return of the greenspan conundrum. this is something that was flagged at not alliance. when you have this move lower in the 10 year yield, buying on the long end as rate expectations pick up. it's indeed a conundrum for both of those strategists. they say this is all positioning. perhaps it will be short-lived. manus: short covering is a great excuse to cover everything. i put it to the chart. we looked at it this morning. we will have a disagreement about the quality of the rep up an

set to make a bid for the citigroup asia unit. suppliers of what tesla are what we are tracking. when you look at these third-quarter profit projections, it sees them being able to surpass that. you have supply chain issues. shifting to cheaper lithium batteries already tried over and china. what does this mean for the whole gamut of suppliers and companies within the value chain of tesla? let's bring in our bloomberg transport coverage. good morning from hong kong. who does this benefits the most? >> i think it certainly will benefit the makers of these cheaper lithium-ion batteries globally. we are seeing shares of korean battery makers falling this morning. tesla has a number of challenges it needs to address on the supply chain front and also the semi conductor shortage and one of the things that the cfo talked about this morning was the higher price of nickel some of the cost seven flowing through to the company. he was also talking about the clear on margins. it is going to be negative in the short-term and put it little pre

over at citigroup, the chip unit is set for a robust recovery going into year-end. tesla is hosting its annual shareholder meeting as we speak and its new factory in austin, texas. let's get to our auto reporter for the latest. austin is going to be the new home for tesla. in real terms, what does this mean? >> that's the big new so far, that tesla is moving from palo alto to austin. the gige austin that they have built is a massive factory that's going to produce the model y compact suv and by the end of next year, the cyber truck. elon musk also said that the model y will become the best-selling car in the world by 2023. that would surpass the toyota corolla. i have also said at this gathering that by 2030, tesla will be selling 20 million cars annually. that would be more than double what toyota sold last year as the world's top seller. >> how is the chip shortage factoring into all of that? >> >> elon musk says it has been frustrating, but tesla has managed to get the chips. as you know, their sales in the third quarter were nearly 250,000 vehicles. they have ma

citigroup up just half of that. bank of america definitely keeping pace with its peers.rter results to some extent outshining them. jon: pretty incredible looking at all of those charts. it feels like we are at an interesting point for these banks. you are absolutely right, we have seen huge numbers on the investment banking side. some are worried about the inflation picture but low interest rates have fueled a lot of those deals. it feels there is no buzz building on what will lead us forward. you made a reference to trading. do we have a sense on how that will play out from here? dave: trading is always the wildcard. from bank of america's perspective, if you were looking at indexes across the corridor, not a whole lot of movement necessarily. then we throw in the asset management piece of the business, merrill lynch, and there is real growth they are when you consider they are bringing in the high net worth clients. organizations of more than $10 million in assets and up more than 48% this year, balances rising 21%, and bringing in younger clients, 20% under the age o

you see the likes of -- citigroup coming out and saying these are positive signs after the guidelinessh the development until another 14 years or so. rishaad: a lot of moving parts. we are speaking to the aipac secretary executive director about the group's efforts towards gender equality, and why it is crucial for the economy. this is bloomberg. ♪ yvonne: the asia-pacific economic cooperation has pledged to implement women's access to capital, market and labor force participation and access to leadership positions. rishaad: let's discuss this with the aipac executive director, thank you for joining us. why are we discussing this now? how much has covid changed the lot of women in the region, this is crucial because, they have been disproportionately hit, more needs to be done to rectify the situation. tell us. guest: thank you so much for having me. we just had ministers in charge of women affairs have a meeting in september, they discussed this message. for us, let's important is -- there is a lot that is said about women's contribution to the economy, a lot of rhetoric, but the thi

citigroup and more saying opec may actually double its output boost from previous discussions of adding00 barrels a day. it boosted output again by 360,000 barrels in september. opec-plus, output increases still lag the demand recovery and all-out buying across all fuels for the next month could tighten markets even further. and then you have the world's largest independent energy trader predicting that the production policy will actually be the main factors driving oil prices in the coming months. they will basically control price for the near term. analysts and traders show the view that demand could outstrip supply over the coming months. let's look at the last week of oil trading. for west texas intermediate answer brent, it was volatile even though we saw both prices for brent and for west texas intermediate hit three year highs. brent hit 80 for the first time since 2018, only last week. there are fresh signs that the increase in oil is becoming a political issue. if you look at the big picture oil charts, you can really see why. the order from beijing last week for state owned oi

a fascinating note from citigroup's morning.ally heartfelt and wonderful, what rob buckland over at citi is doing, honoring tobias levkovich. i will let their words speak for us. "we mourn the passing of our dear colleague and as are some of these to his family. we renamed our panic indicator as the left of it -- as the levkovich indicator. " i know i speak for us and the whole of the team, we will, too. ritika: with the first word news, i'm ritika gupta. the senate is closing in on a deal that would potentially avert a debt crisis for now. then, congress would have to vote again to avoid a default. bloomberg has learned the fate of imf managing director kristalina georgieva. she has been caught up in an ethics scandal from the time that she was at the world bank. the u.s. is the imf's largest shareholder and could ask georgieva to resign. bloomberg has learned the european central bank is studying a new bond buying program that would be used to prevent market turmoil when emergency purchases get phased out next year. the plan w

alix: we would like to take a moment to mourn the death of citigroup's longtime analyst, who passed awayfter a car crash. tobias levkovich was 60. ♪ >> it is time for the bloomberg business flash. one of the world's largest share and eric -- generic drug makers has made air massive recall, recalling more than 2.5 million vials. they said the drugs may not be sterile. j.p. morgan chase's ceo jamie dimon is defending his pay again. he told the axios hbo program that the bank's board decides what he makes. the board awarded him more than $31 million last year. he said the ceo's compensation as part of a broader umbrella designed to maintain -- retain senior management. captain kirk from the 60's series "star trek" is going into space. blue origin says he will fly on board new shepard 18. it follows the first successful human flight in july which included jeff bezos. shatner is 90 and will be the oldest person ever to fly in space. and that is your business flash. guy? guy: thank you very much indeed. i am trying to think of some great "star trek" quotes. alix: it doesn't matter. it is brill

edward morse is publishing a storm at citigroup. there is talk of copper. were copper is right now. kailey, i do not know the timeline. one year, two years, three years. his bull case for copper is 20% plus move. it is opaque to me, but nevertheless there is the bull case, much like oil to 100, copper right along. kailey: you are seeing in across the commodity complex with aluminum at a record, iron ore up over last month. with copper, this is a longer-term case because in the near term you are starting to hear more strategist talking about the potential downside for copper, given the fact that power shortages are impacting production and a lot of places in the country. in the near term it will be a lot bumpier for this metal in particular as we undergo a green transition. tom: i will go to the bull proxy , which is on pacific rim and asia. with copper, not that we are the authorities, but it appears to be much more about demand out of china and the pacific rim. all of it is hinged on asia recovery. kailey: you also have to consider china is attempting to u