citigroup estimate -- citigroup revenue 19.6, estimate 18.4, much better-than-expected. trading revenue 4.0 8 billion, the estimate 3.8 4 billion. these headlines come off as beat, beat, beat. lisa: and you are seeing shares go up, up, up. sonali basak, our stalwart wall street reporter parsing through some of the numbers. sonali: a few things. the fixed income trade beat is massive for citigroup. jane frazier is trying to turn around the bank and also invest. you assume that in the results in their trading desk in an era when jp morgan missed wall street expectations. currency, commodities, these are the trading desks of the season. winning counts for something. i would say you are seeing provisions higher up. especially because you have the global waiting. are they worried about recessionary forces elsewhere in the world. i have to also say they beat on revenue. for citigroup they were trading at half of their book value relative to any other bank in the united states. they were cheapest. you see that lift in the shares off of this beat because good news is welcome new

for a bank like citigroup, and potentially goldman sachs, it is a good sign.on: a great breakdown, as always. bloomberg's sonali basak. we are also watching the chilean peso, rallying after the central bank announced a $25 billion foreign exchange intervention program to support the battered currency. for more let's bring in emerging markets editor. we watch in canada what is happening with the price of copper taking a huge tumble with the strength of the u.s. dollar, then specific policies within chile. it seems to be the perfect storm working against the currency. >> that is totally right. it has been a combination of bad drivers for the peso. as you said, copper prices are slumping. there is also political turmoil because they are trying to rewrite the constitution. this kind of uncertainty is never what investors want, so the currency was hit hard. yesterday we had the central bank announcing an intervention program. $25 billion is really sizable for the amount of currency that trays -- traits daily and we are seeing this big rally today. it is the biggest

citigroup, next. futures, up 11.d morning. ♪ to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight and keep it off. who loses 138 pounds in nine months? i did! golo's a lifestyle change and you make the change and it stays off. (soft music) >> what is happening in europe is impacting the u.s. >> i think we are near the peak of cpi. >>

jonathan: citigroup thinks we need to get to 4% by year end.ures up more than 1% on the s&p 500. yield higher by four basis points. from new york city, this is bloomberg. ♪ ♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. jonathan: good morning. moment away from bank of america earnings. an hour from now you will hear from goldman. futures up by 1%. on the nasdaq, up 1.2%. bramo would want to tell you where the bond market is. the fed decision next week, yields higher by four basis points. on a two-year come up by a couple of basis points. just wrap things up, a peak week ahead for the ecb, between a rock and a hard place. dollar-yen facing weakness, down by .3%. euro-dollar down by .8%. this decision for the ecb th

tom: what do bonds do with a citigroup economic outlook?rge: we are not -- veronica: we are not expecting a near-term recession. we expect the fed to be more hawkish, responding to high inflation. i would not be surprised if we see yields still moving higher. markets are pricing cuts as we are getting into later next year, but this really comes down to inflation, and if inflation stays high, the fed might not be able to cut, so we see some upside for yields here. lisa: can you respond to michael shaoul's point that there could be some sort of financial accident in the next couple of months simply because of how quickly things are moving and how much tightening is getting affected, and that the fed will ultimately have to respond to that? what is your view on how high the threshold is for some sort of step in by the central bank? veronica: it is really hard to know when the fed is moving so quickly, and this is unlike something we have seen in a long time. that is certainly possible. i think ultimately the fed's reaction function will still

we're looking ahead to citigroup.ourse another big week for earnings. what is your take-away so far on the earnings period, ken? and let me just share with you this from the morgan stanley call yesterday. james gore p man, the ceo, said this, the stock was at 120, now the stock is at 72. i like buying our stock at 72 and i get benefit of retiring $3.10 dividend shows strength of our capital position and resilience of the business model. even though morgan disdisappointed, the earnings call was optimistic and investors are looking for bargains after a selloff in stocks. how do you see it. >> i think the jp morgan report stands out, putting more money towards loan reservers. reserves. it talked about the economy. the puck is going for more bad loans and reserves. with banks, maria, they thrive on a kind of nice deep yield curve. we're not seeing that. in fact, we're seeing yields invert, we're seeing twos and tens and twos and fives. the yield curve is troublesome for the banks. i don't think they're going to make earni

i think the most impressive thing is the banks citigroup is up 14%. yes, this was the cheapest of the big banks coming in, but what do you think is behind this kind of very strong enthusiasm we're seeing now for the whole group? >> well, as you know, those stocks have been hit hard and so people have gotten out of the way. you get any good news and these things pop i hate to be a bearer of bad news, but i think this is typical of a bear market rally what goes down the most often pops in a bear rally i'm not convinced we've seen the bottom yet we've had a bunch of mini bottoms, but i'm not sure we're there yet. but the banks have decent balance sheets they didn't get into a lot of trouble they did before the great recession. so any good news at these great prices gets them going. >> barb, are you a buyer on any of the news we've gotten jpmorgan which declined has come back today. >> i think going into the earnings these stocks were looking really attractive. it comes down to risk/reward i think what you're seeing today is the relief rally. banks are al

wells fargo and protect her with mortgages, the housing market, citigroup with the consumer. both of them with a key into preparations, in terms of expansion plans. also, we get a slew of economic data. we were talking and matt mentioned retail sales. for the month of june, how much do we see an ongoing reduction in spending, particularly on an interested basis -- adjusted basis? university of michigan consumer sentiment data 10:00 may be a key factor, especially with their expectations of consumers for inflation over the next five to 10 years. we know that's a key data point for the fed chair. the last time they actually went 75 basis points, did we see an ongoing surprise there? there is a slow fed speak. is the last slew of fed speak before a blackout. that starts next week ahead of their meeting on july 27. the atlanta fed and mary daly all lined up. what do they say? do they continue to knock down the 100 basis point rate hike as they did yesterday? they came in more conservative well again, highlighting their aggressive fighting of inflation. tom: we need to stop here w

they also rate cease and desist letters like citigroup and left to stop helping employees who seek abortion out of state. and in arkansas state senator has called for a law helping those traveling for care and that the governor of south dakota to rule out laws who travel for abortion. because we also know that some are pushing for the bands and the thomas more society working on draft legislation. thesh vice president told the "washington post"'s because she goes with a straight law it does not have a pre- abortion card when you drive across the state line. antiabortion legislation led by legislators is also to be working on similar legislation modeled after the texas law there is no doubt some will continue to move forward with this kind of legislation. quite frankly some onha the other side of the aisle have try to have it both ways for years. at the same time they supported increasingly limits. even following supreme court precedent and now we know those we assurances were false. we saw reproductive rights eroded and we know but then to assist american women can get care when we know ant

citigroup hits the tape today. warm welcome to the show. friday. we got there. it's been good to be together. i just listen to the chris waller tape. we all get ahead of ourselves. that's the key message from the fed. we into a 100 basis point hiking frenzy and it's been tempered. far too aggressive, and of yourself. dani: this is the bullish guy. if you expected someone to endorse 100 basis points, it would be him. he found it more like powell, centrist. getting the market to back off basis points hike. as high as 94 basis points priced into this month. now it's 84. manus: i don't know what the italian word is. we have to call francine. she's on the beat [speaking non-english language] in italy at the moment. italy is in a state of crisis. that could be punched out in the spreads to boones. dani: makes the conversation much more difficult for the ecb. i was ready to show you futures. they don't open until 7:00. we have an hour to go into like and show you that. let me walk you through the rest of the equity market. hong kong tech is open and falling. down more

>> citigroup you saw that >> yup you are glass half full. >> yeah. i've been that way i don't know we all have 401(k)s. we all are long minded no one wants the markets to go to zero, obviously i try not to be pollyanna. >> doesn't it make it harder for jay powell >> i hope not. not with oil at 90 commodities rolled over. fly in the ointment. you are hitting it on the head 3.6% unemployment in a recession, it has never been seen before. that's why you worry about the wage people being able to demand more and that becomes stubborn. if commodities are rolling over -- >> you think powell is going to 75 that's what the journal is saying. >> we will have roger ferguson on in a little while before the quiet period, they were all indicating 75 >> if everything is going so great, maybe you need to >> we may have back-to-back negative gdp quarters. it is technical. it doesn't mean we're in a recession. i'm hoping that it is all said and done and the supply chain was -- i don't know. i'll use the "t" word. maybe some of it was transitory. maybe it is not all th

morgan stanley said to report any minute, citigroup and bank of america, the other behemoths you're are seeing even bigger drops. we will get the latest read on u.s. data initial jobless claims and u.s. june pti. we are looking at inflation data only causing the fed to double down in rhetoric in terms of aggressive rate hikes. how much are we reaching a pivot point where people are saying the negative outlooks -- outcomes are looking more likely because the fed will be aggressive and keep going despite potential recession risk and the increasing likelihood? i 11:30, chris waller with michael mckee at the rocking on economic summit in idaho, talking about what this will be for him a chance at how fast he will go this month, not just september but the rest of the year. if you're .7% fed funds rate. we are bringing forward these rate hikes and they are getting more aggressive in terms of market expectation. that is changing through estimates on wall street. jonathan: i think the bid -- big conversation -- joining us now is the chief investment officer for wealth and investment management.

shout out to citigroup for basically hitting the over the head several years ago.until the beginning of this year, the call on gm has just been brilliant. and you wonder what they're going to do. is it a tech company or an auto company? jonathan: last year it was a tech company, just less adept this year. these things change frequently. i don't think this year you want it to be considered a tech company. tom: my question is has the middle-class been boxed out of the new car market? the answer is they have. jonathan: the euro weakness is a story we will pick up on in just a moment. millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. so many people are overwe

citigroup a 8%, morgan stanley, goldman, jpmorgan showing nice gains. on to the wba, wnba star brittany griner, she returned to one quarter we could go giving a guilty plea. what happens next we are not sure. susan: her doctors recommended she is medical cannabis to treat her athletic pain and permission position on behalf of the department of health, her defense submitted tests she underweight as part of an anti-dopeing check which didn't detect prohibited substances in her system so she pleaded guilty to possessing the canisters but said she has no connell intent and were just in her luggage because she had to pack quickly, this is scheduled on july 26th. her 26. her legal team says they might be able to finish her defense by the end of august, russia has permission to detain her until december so this could go on for months. ashley: thank you very much. lebron james questioned the usa had her back. >> she feels america has her back, i would be feeling like do i want to go back to america? ashley: he tried to backpack, claim his remarks were not meant

we have citigroup, wells fargo out. they're coming out as well.oned the to morgan's they had a plunge in investment banking revenue particularly thinking revenue with morgan stanley -- banking revenue with morgan stanley. >> was get the details of this, any common themes, the big banks have reported so far? >> they are talking about recession, that appears to be the theme coming jp morgan with buybacks to build up capital reserves, 428 billion reserves -- million reserves. banking fees more on the plus side, big upturn in trading revenue. everyone is focused on outlook. let's hear what ceo jamie dimon had to say. >> there is a range of potential outcomes. from a soft landing to a hard landing driven by how much rates go up, effective quantitative tightening, effective volatile markets, will not change how we run the company. we minister a recession before and we will manage through a recession again. >> he is the one that said there is hurricane clouds and storm clouds on the horizon, he is telling everyone to get ready. >> give us a sense of morg

rishaad: citigroup is more retail oriented.id: deals have in a lot of ways dried up because of the uncertainty over the environment. there was a lot of issuance leading into this and that will reflect part of that. so we will see of course, this all comes to fruition today. jp morgan. morgan stanley. wells fargo of course as we wrap up this week. rishaad: the two morgan's today and city group tomorrow. all right, let's have a look at what we got coming up. we are looking at how the covid pandemic compounded internet poverty. you will be hearing from the brookings institution, who say everyone needs a minimum internet package to access basic internet resources. find out why. this is bloomberg. ♪ david: markets mixed as you can see. we will talk about that later. in the meantime, let's talk about the concept of poverty. when he think about that concept, it's about people going hungry, lack of material if you will. unable to go to school for example. access to health care. our next guest sees internet poverty, that is a fairly int

how does that stand from morgan stanley citigroup which we are hoping for training to stay the day?aining to say -- stay the day? a lot happening on wall street, jp morgan taking shares, but jp morgan has been investing in that business while they are cutting in other places. they were the first bank to start cutting headcount in the mortgage business. the provisions for loan loss came in higher than wall street was expecting. the caution, especially those share buybacks will be notable and set the tone for everybody else, including the rest of corporate america. lisa: including the rest of the banks, i was looking at the knee-jerk reaction of bankamerica in citigroup and we are seeing a knee-jerk response. this is the bellwether for the rest of the banking complex and beyond, how much is that accurate? how much has that been borne out in previous earnings cycles that this has been an accurate read on the tone for the rest of the season? sonali: it is and i would point out the jp morgan and morgan stanley are the most expensive of the big banks, especially in terms of price-to-book.

we start with citigroup. up 4%. it is pretty much a good story.s that talk estimates. even though they set aside money for loan losses, strengthen institutional business. city ship up. wells fargo, moving the opposite direction down a half a percent. it made adjustments for the high equity valuations. that made earnings better. revenues were short of expectations but they expect wells fargo credit losses to move higher from current low levels, but they are not seeing a deterioration in consumer and commercial businesses. black hawk down about 2%. thin volumes. it is the world's biggest asset manager. assets under management came in lower amid market turmoil. that reason you got profits and revenues coming in lower. i will say that blackrock says inflows were better than they thought. people are still putting money in. how cool would it be, dustin johnson is in the lead at the british open. right now. rory mcelroy is creeping. what happens if they are in the same group >> pulling for dustin. >> i just tweeted you the photo. make sure you join us. >

they have also written cease and desist letters to companies like left, citigroup and even law firms to tell him to stop helping employees who seek abortions out-of-state. in arkansas, a state senator has called for a law targeting businesses helping employees travel for care. let's not forget south dakota because the governor of south dakota refused in an interview to rule out laws that target women who travel for abortions but we are not done yet. because we also know some anti-choice groups are actively pushing for such bands. the thomas more society, an extremist anti-choice group, is working on draft legislation. it's vice president told the washington post, quote, just because you jump across a state line doesn't mean you're home state doesn't have jurisdiction. it's not a free abortion card when you drive across the state lines. national association of christian lawmakers, antiabortion organization led by republican state legislators is also reported to be working on similar legislation modeled after the texas law. there is no doubt in my mind to some states are going to conti

citigroup or wells fargo believe it or not, citi is the best-performing stock in the entire s&p 500 afterreported better than expected profits and revenues and strengthened the sales and trading units and it's making the more money given the rise in interest rates wells fargo is up big despite where profits topped estimates and wells did say that it sees credit losses headed higher in the watch you are and albeit from low levels right now and by the way, among the banks that reported so far. as for some of the other stocks in the headlines and still watching a share after a wall street journal cited activist hedge fund elliott management had taken a 9% stake in the social media platform. also watch the solar stock enphase energy, first solar, sunrun, others and that's following an nbc news report citing sources that said democratic senator joe manchin of west virginia will not support a bill to address climate change and the alternative energy stocks like the solars, kelly and jon. back over to you >> let's stay on the markets there are several big questions investors are asking themselve

it's six flags citigroup downgrading the theme park operator to neutral from buy, slashing its priceon the stock to $26 from $41 the analyst there believing rising ticket prices may be to blame for a recent slide in attendance the stock down 7.5%. >>> up next, former vice chair of the fed, roger ferguson, on whether last month's wage growth surge means inflation is unlikely to come down quickly. we'll be right back. lemons. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels. so you can go and see all those, lovely, lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪ >>> it's been a choppy session here on wall street as investors digest the june jobs report, which did come in stronger than expected, countering some of the recent recession concerns. joining us now in an exclusive interview is former federal reserve vice chair, roger ferguson it's great to have you back on the show, roger, welcome >> thanks. nice to be here. >> do you think this jobs report seals the deal for 7

well citigroup says yeah, oil could hit $65 a barrel by the end of the year, and then $ 45 by the endat is drastic, and it feels like whiplash. we bring in a fox business exclusive gasbuddy petroleum analysis head patrick dahaan. $45 next year what do you make of these predictions? >> there's certainly a lot of the predictions on various ends of the spectrum and i guess bulls are conceivably possible but depending on how things unfold we could see one end of the spectrum moreso than the other so we're not out of the woods. we did see as you mentioned plummet to 9% today, but i almost think we move from an overbought market to an over sold market. keep in mind, we still have some of the fums sticking on here, not only that but an active hurricane season could cause prices reverse, but for now maybe a little bit of light at the end of the tunnel, the national average down $0.25 a gallon from its peak causing americans to spend about $100 million less on gasoline everyday, so far. lauren: so do you think in the near term people complain and this is true, it's true historically, gas price

citigroup is up 12% right now, better than expected profits and revenues they are making more money on higher interest rates. they are also setting aside money for more possible bad loans in the future as is wells fargo. but generally speaking wells fargo mixed earnings report is still ending up with a gain so far today. they think credit losses could accelerate from here, but with a caveat that there were low levels in terms of credit overall being a problem. so it could go higher, it shouldn't be big, but wells fargo also says that they are not seeing any material deterioration in their consumer or commercial business lines right now pay attention to that. and i'll point this out, of the four big banks, kelly, that have reported this week, only one company has beaten revenue estimates and that is citigroup. back over to you >> just a striking jump in those shares and a very different tone than what we saw from jpm and morgan stanley >>> this week has been all so let's recap markets are looking much more relaxed about inflationary pressures. and we have break evens, the bond market's

tom: i'm going to partition it out as citigroup and others do.e got g3, euro, yen and dollar and the new go to developed economies. also off of that is something that we have not spoken of and i think is off the radar and that is em dynamics. exceptionally fragile. it was sri lanka most visible. but in india as well, efforts in the last couple days. the em dynamic now something into july we are at risk of ignoring. jonathan: let's get an update from brussels. i want to get the european response to what took place about 25 minutes ago. maria: well, it's very muted. we really have not heard from any major leader reactor this. when you look at the european institutions, they've set in the past hour nothing in principle changes, we stick to our rules, which as we look at the details of the deal that we signed and we will continue to defend those. a lot of this is this idea that europeans like to play up, this is another day u.k. politics. it is very messy. brexit unleashed forces that have made the u.k. very unstable. and makes a bilateral relationsh

quarterly reports from financial titans jpmorgan, morgan stanley, citigroup, and wells fargo.s week. jpmorgan is going to be first on deck tomorrow morning. they are going to release that report second quarter. they are expected to hit earnings per share of $2.88. that be a 24% year-over-year drop. the stock, as you can see , is under pressure as we move into the close down about 1%. want to bring in one of the top banking analysts in the nation. odion capital group financial strategist dick bove. i'm going to be doing earnings tomorrow morning so you have to hold my hand through this. let's talk about jpmorgan. obviously, it's not just the numbers from the bank. it's the commentary that we get from jamie dimon himself and i think the question mark is going to be, how his forecast is going to line up with the inflation report and also what he's going to say about the fed. what are you looking for? >> well, i think as you just clearly indicated, the earnings are going to be very light for jpmorgan in the quarter, unless they pull some accounting trick out of their hat but this

import voices and industrial production and consumer sentiment and will get earnings reports from citigroup and wells fargo. >>> the nissan leaf is one of the first mainstream and cheapest electric vehicles could be on the chopping block. automotive news reports nissan does not plan to introduce a new version and may discontinue the line altogether. production of the current version is set to wind down by mid decade and it would be the latest smaller sized vehicle to fall victim to americans appetites are big trucks and suvs. the leaf is the only electric car nissan cells in the u.s. . >>> amazon has begun cutting the number of items it sells under its own brands as sales fall. the wall street journal reports amazon has discussed exiting the private-label business. the division has drawn scrutiny with european regulators charging amazon uses its size and data to push its own products and gains an unfair advantage over rival merchants but also use the platform but there are a quarter million different products that are labeled amazon private-label so winding that down you have to think is a

you can see citigroup up almost 5% this morning. obviously, helping bring up some of the other big banks with the exception being wells fargo. which is down about .7% currently on what i described to be a miss. a big decline for wells fargo by about almost 50% on net income during the quarter thanks in part to a big drop off in the home lending business. mortgage. they have been impacted by the raising mortgage rate environment. they guide up the interest income which is supported by rising interest rates. they said that will be 20% growth this year up from the teens where it was before. that is helping offset some of the disappointment. that stock has about 0.7% this morning. >> up 31. interesting. people are going back on gpm and saying return equity was up and car spending was up, the buyback suspension discovers the overall mood >> it really is emblematic of how we are viewing the overall economy and markets. last three months were okay. you are performing well and it seems as if there is not visible the stress in consumers with

citigroup searching 13%, the best day since march 2020. i still see that is $4.90. after posting a profit estimate that the j.p. morgan. to close more than 4% higher and the action comes as were ready for another big week for earnings. netflix, tesla and united some of the names getting ready to report. yesterday the rally or did we just see a short-term bounce. would anyone characterize this as coming out of nowhere? >> welcome, good to have you. it's great to have you and if you think about what we got this week in the market, we got the worst of the inflation. we think this is probably peak inflation and if you look at gas prices, they continue to make new lows and if you look at the market overall, you have this rally in the quarter end and then you rallied a little bit into july and we have been sideways and from the june 17 letter we are making higher lows. i'm not saying it's time to do cartwheels but i'm saying i will continue to point at semiconductors and those parts of the market that we actually do need to see a bottom end before we get to the bottom of

citigroup lowering combat -- corporate bond sales.e revised down of the predicted range of 1.2 trillion dollar contingent on more stable secondary market conditions toward year-end preventing a lock above the ig primary markets. i want to start with you, lotfi karoui, how much do you see the slowdown in the issuance market. with companies not needing to borrow and deciding not to lock in rates that are not conducive to business versus not able to access financing at all. >> it's all an interesting debate, does it reflect the unwillingness of companies to go to a primary market or reflect the inability to do so. we believe towards the former explanation, that this is by enlarging mobile response to higher funding costs, elliott -- elevated volatility, and the unwillingness of companies to go to the primary market because you don't need it. keep in mind we had two back-to-back record highs for years, 2020 and 2021 in terms of issuing volumes. the bulk of the proceeds from the debt raised back then is still sitting in the form of excessi

stocks are inching higher this morning and we are looking for more confirmation after citigroup and goldman sachs last week sparked a strong rally in stocks in financials and we are look ahead to another big week of earnings. take a look on what's on tap today, tesla reporting second quarter earnings after the bell tonight, beaten on earnings per share but losing fewer subscribers than anticipated. stocks finished up better than 2.4% on the day yesterday, continuing the hot streak after cv reporting last week. 50-day moving average for the first time since april 7th with big tech and growth driving the rally. dow industrials at the close up 754 points yesterday. the nasdaq up 353 and the s&p 500 higher by 105. we are talking about the month of 2022, so far more of the housing data out in a few hours, we are expecting existing home sales to see the lowest reading since march of 2020 at 10:00 a.m. eastern watch for those numbers. meanwhile president biden is making his way to massachusetts. his administration considering executive action now on the so-called climate change emergency as americ

credit suisse and citigroup will be raising funds with cars set to roll off the line by 2024. is arranging offshore securities to the tune of $2 billion. citigroup will act as an advisor with the minimum value of around the same amount and that will be going towards the development of the u.s. factory. on track to start the production of cars by 2024, and there have been ambitions, one million cars globally within five to six years. pretty ambitious. they said last month the target is still achievable. shery: let's turn to president biden. he will seek to salvage relations with saudi arabia as he travels to the middle east. he risks political embarrassment unless he is able to bring record gasoline prices down. anne-marie has this preview from jerusalem. reporter: president biden will be making his inaugural trip to the middle east as president of the united states, when it comes to breakthroughs, the israeli government collapsed. the caretaker prime minister will be meeting with the opposition leader, benjamin netanyahu. one key focus has been to normalize more our countries

that citigroup note earlier this week, dangerous economic recession for the u.k.. cut taxes and disrupt some business operation. finally focus on tech earning. 30% year-to-date. not just dealing with a gross company. a shut down and try not weighing on the factory in shanghai. look for the outlook on that in the second half to see the picture a little bit better. tom: they always pick the prime minister this way? jon: they pick the leader of the party this way. the conservative party. it just happens the leader of this party will become the prime minister. tom: can we do this in america? jon: you might be the idea we don't have these two year --. tom: every six -- every 60 days, someone is dropping out. goodbye. jon: we get down to a bec decision tomorrow. we have that strategy after tomorrow, am i trading in the ecb or north string tomorrow? >> it does feel like we got a lot of the clues coming altogether yesterday. suggesting north string will be -- north stream will be open. suggesting considering ecb, we are getting hands of what it might look like. for all the

ministry of finance of belarus said that it was forced to pay in rubles by its enemies, because citigroupitibank stopped working in belarus, all because of sanctions. well, these are already problems . let me remind you that russia has stopped the main line, so to speak, for repairs, but has not officially announced whether the gas pipeline will continue to work and when brussels is now concerned about this so does berlin, because the nord stream itself, the blue fuel is directly headed to germany, they are now preparing for the worst-case scenario , they even announced that they are resuming work for canned coal mines, we will find out the details after july 21, this is the official date of the end of the repair of the russian highway, if this repair is there at all, now russia began to lose its oil share in the markets of india and china, the blumber agency recorded that tanker transportation in recent weeks has fallen by almost 30% from the peak indicators in the spring experts point out that the work is still far away, it’s difficult to make general conclusions now, but it’s difficult

look at texas intermediate and you may see why citigroup because of this concern is now predicting we could see boutros fall to $65 a barrel by the end of the year of the u.s. falls in recession and demand is hurt. you are looking at the bloomberg were recession crimps oil prices, the shop -- sharp drop during the recession. it shut up during the invasion, russian invasion of ukraine. it appears to be driving a sentiment. west texas intermediate was down as much as 10% in the tuesday session. shanghai has launched a massive testing for covid in nine regions and this concerned about demand recovery in the biggest consumer of oil. we have retail prices starting to taper off. shery: all of those concerns leading to dollar strength which is pressuring emerging-markets. jp morgan sx index showing the lowest level going back to 2010 and the biggest one-day loss since 2020. the height of the pandemic. what happens to risk assets in this uncertain environment? >> i think the volatility we are seeing everywhere is going to be hitting risk assets in spades. you have a situation where a lot of a

we talk about citigroup, the consumer spending remains resilient. markets are pricing in a lot of the bad news. heidi: this is wait and see mode, we saw trading volumes while all of the 20 day moving average. gdp information is coming out of korea. we are expecting a slowdown from the first quarter. you mentioned the earnings actually in europe, it is the biggest we get. take a look at european stocks, we are on track for the best week since december. there key technical levels we are watching as well. we have the 100 day moving average we are keeping a focus on and the downtrend that has been in place since january. this is a bullish signal, there is a lot of risk on the horizon. heidi: one of them has to be the top risk of energy. we count down to the key wonder demand months. we saw the respondent as we saw the presumption of the passive gas -- pass of gas. nord stream is a 20%, gazprom saying that turbine issues are behind the reduction. we have the pipeline operating on a limited rate after maintenance efforts. this is coming as we have no way

francine: it was interesting, citigroup saying the problem if they do not do 25 and do 50, is it puts in question their resolve with the anti-fragmentation tools. is it the italian anticrisis tool, and how does that complicate things for the ecb? dani: i almost have to call it that. it certainly complicates things. we see at the moment this morning spreads widening because of the political turmoil because of what is happening in rome. if the ecb steps in with an anti-fragmentation tool, it might look optically not great, they are stepping in and intervening in italian politics. the other risk is what comes afterwards? what does the italian government look like? if it is more populous, it might be someone who will not comply with what we are expecting from an anti-fragmentation tool. and it is likely to face german constitutional court. will traders test the tool if they know it will face legal challenges? francine: it is so rough to know what they will do. if they put the bar so high no one can access the anti-fragmentation tool, you wonder what the point of it is. dani burger joining

vasileios gkionakis of citigroup. a drip feed resignations from the british government. when you listen to people in the fx market, they emphasize the economy edited problems the bank of england has got over the problems in westminster. kailey: problems keep coming for the prime minister. you now have john glenn resigning. in the resignation letter says "i can no longer reconcile my commitment to the world with the complete lack of confidence i have in your leadership of our country." how long can boris johnson holland? jonathan: you assume there will be others. the team has been promoting this all morning. in about 50 minutes, we get from the minister's questions -- we get prime minister's questions. it will be interesting to see about how the prime minister response to it. tom: how do prime minister's resign? jonathan: i don't think that is a dumb question. for this prime minister, i have no idea. if you asked me about anyone else, i would say the clock is ticking. with this prime minister, it seems every time we are in this situation, he clings on. the papers will tel

we are out of 4% at citigroup. there is a huge, huge differential. what do you say to people that are convinced it is just going to keep going and going? what would be the damage to the portfolios, steve? steve: a very famous economist once said everybody has a plan until they get punched in the face. right now, we haven't seen the downside on the economy. labor markets look ok. we think that that pickup is coming. and when it comes, the pressures on the fed are going to be different, and the fed itself responding to the shift in the political climate. it means that demand promotes supply and every model they have tells them that that means inflation comes down a little bit quicker and a little bit slower. but it means that they sort of got themselves on the track that they want to be. having gotten on that track, why keep pushing it? if you have the central banks, it is not what the mutual rate of interest is because they don't have a clue. the big uncertainty is how fast the economy is responding to the tightening of monetary conditions, how fast i

this just out citigroup.mate that the euro-dollar could slide below 95 if the supply of gas is shut off. that is if nord stream goes off for maintenance. the big question they are trying to answer is what happened euro-dollar if it does not turn back on? tom: you have some serious relations, but i would look at the double digit inflation, as you mentioned earlier. the persistent come into september. i do not think we are looking out to august. jonathan: most people will down to 50 by the time you get to september and potentially coming back down. there is april -- there is a belief out there that it might be the last basis point height, but things have changed and changed quickly over the last few months. lisa: we will get the inflation expectations with sentiment survey. the report was confusing to me because you had that stronger than expected headline number, but they came in disappointing. how do you parse out how much strength there is when there is a lagging indicator and a different reality than those

know, that for the other companies reporting, you know, this would be a good trading result for citigroupatively speaking, news for goldman sachs as well >> you have buys on moth of these stocks what are you missing, or what is the market missing that you seek >> i mean, especially when it comes to citigroup, b of a, jpmorgan, those names are because -- scaled because of bottom line, and continue -- if the environment gets better, they're very leveraged to the economy. i think it's a good place to be. before the economic concerns and inflation started to kick in, i was much more optimistic and confident, but the large-cap banks are the place you want to be going forward. >> jeff, appreciate it thank you. >> good to be on thank. >>> of course, the banks are dragging down the broader market s&p on pace for the fifth negative session the treasury secretary warning that bringing down prices will be washington's top priority let's bring in citi's u.s. equity strategist scott groaner, and cheryl paye. good to see you both a lot of discussion about yesterday's print how it didn't incorporate the

goldman and other big lenders including morgan stanley, jp morgan and citigroup reported substantiallyger workforces in the second quarter. that is your bloomberg business flash. tom? tom: coming up, more on big tech. we will dig into news from apple and softbank next. question marks over arms ipo in the uk. plenty more coming up. this is bloomberg. ♪ tom: welcome back to the open. 30 minutes into the european trading day. as prom declares force majeure -- gazprom declares force majeure on some european buyers. apple joins its fellow tech trains in scaling back headcount plans. goldman sachs will bring back its annual employee cull. and extreme temperatures ravage europe. let's check in on these markets. a sweltering day in the city of london. the european stoxx 600 down. stateside is where you saw losses especially after the announcement from apple that they would reducing their headcount growth. that sent the s&p down almost 1%. the dax is lower by 0.6%. jobs numbers look pretty good in the u.k. basic resources are a drag but jobs numbers coming in well above the estimates pointing t

citigroup sank this is a positive.next guest says china's recovery will be a dominant theme for the second half of the year. joining me is a ahead of equity research. you are constructive on china, a big shift in your strategy, but how much downside risk is covid zero? >> covid zero as been a stop-ago situation as far as china's policy is concerned. it would remain a concern. we do not expect a full lockdown, the kind of situation that revealed during the march to may period, because we think there are concerns about the unemployment rate reaching a historic high. it is prominent, front and center in policymakers' radar. we think gradual reopening in a calibrated fashion and more economic stimulus through fiscal and monetary measures would be the focus of policymaking in the second half of this year. haidi: what sectors in particular do you think would hedge against the stop-start nature of covid zero and the impact on the economy? >> two major themes we are playing in china are policy beneficiaries, high-end manufactu

citigroup warns that oil could collapse to six he five dollars a barrel by the end of the year.nalysts say could slumped to $45 by the middle of 2023 if a recession hits. that is based on -- by the opec-plus cartel, and a decline in oil investments. scandinavian airlines have filed for bankruptcy protection to deal with their debt for the second time in two years. -- raise additional equity. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta, how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. >> we are working right now very actively to di

then, citigroup. they are a total conundrum. the book value is much higher than the stock prices. that means nothing at all to prospective buyers. a lot of you have asked me how could i not want to endorse this one but, until i see actual earnings i will not go positive. we also get results from -- i could not believe when i saw negative analyst chatter about this great company. i think they are a terrific court holding that rarely come in. clearly defined vision of -- he is a technology fiend. they have the best -- finally, united health. a fantastic, consistent health organization that should have a good quarter simply because covid-19 is not as threatening to the public as flew in terms of fatality and length of time in the hospital. the business has cyclicality, a lot of layoffs. but we haven't seen it yet. otherwise, you have my blessing, just keep buying. that said, we prefer you man up for the travel trust, much cheaper than united health. although lately we have been -- giant run. bottom line, everybody is scrambling to get out of the market ahead of everybody else. at thi

one is the trading, a citigroup executive told us that volatility is our friend and it was this quartere other side is the net interest income, you mentioned rates going higher. that makes consumer and corporate loans that much more profitable for a bank like citi. wells fargo relies less on investment banking. it has been slow for mergers and ipos as well as new debt issuance, so it has been easier for banks like citi and wells fargo to prosper in this environment. dani: jamie dimon reiterating this whole hurricane thing but still sounded optimistic. what is for since we got for the outlook among the banking sector? >> on the one hand there is some caution. several banks including citi and jp morgan are pausing share buybacks. that tells you they want to reserve a little cash perhaps for capital ratios or so they can increase loan provisions. but more upbeat than many expected. you heard dimon saying if we get into recession, the consumer is in much better shape than the or. - than before. they don't think we will have a deep recession. it is a sanguine outlook for many of the big bank

trading helping goldman sachs this quarter jumped more than anyone else, more than jp morgan or citigrouppercentage jump. equities trading beating expectations. where did we fall short of little bit? you said investment banking overall but the art of the business that still one out is advisory. that is where goldman sachs is the rainmaker. the king of wall street. that business, $1.2 billion, bringing in advisory revenue and a quarter like this is stunning but you were talking about investment banking and where they fall, that's underwriting fees and when they project ahead you are looking at them project a tighter pipeline, a decreased pipeline here when it comes to both net and equities underwriting moving forward with ramifications for these lower asset values. you are seeing the quiet -- declines in the value of their equity portfolio. jonathan: consumer banking, mr. solomon has some form of reaffirmation and victory lap. i know you haven't really had time to look at it, but certainly it is not gloomy. it's consumer banking, business starting, giving up posters? sonali: it's a part of

reports the twitter deal might not go through and sea world down 4%, not a great quarter -- excuse me, citigrouput the sea world, this on six flags, actually, no sea world, actually. i'm playing this live on poor performance in june and upstart holdings two negative sales preannouncements in a row. guy: thank you very much, indeed. let's look at what we've got on the week ahead. it's a busy week, monday keep an eye on what's happening with nord stream and tuesday biden leaving for the middle east, wednesday c.p.i. from the united states. that is the one you really want to pay attention to. coming up, "balance of power." have a great weekend, everybody. this is bloomberg. ♪ >> people might want to switch. millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a

citigroup talking about this, seeing we could be entering a new era of infrastructure investment. manus: thank you very much, as sally tory morning in terms of the flow of money. we knew it was a heavy bitty war -- bidding war for deutsche telekom as its but we understand they are going to sell the telecom towers for a 10.7 billion euros cash. this was a tussle between the beasts of yield hunters, wasn't it? dani: it was brookfield and digital bridge beating out kkr. another company dropped out and there was a lot of back-and-forth, but finally cementing that deal with deutsche telekom a 40% stake. manus: when you see brookfield coming in, doing the big pipeline deals, this is where they tussle, it is guaranteed yield and oil and gas in the pipes. these are infrastructure deals which deliver substantial returns. deutsche telekom will keep a portion of this deal. they are 40% but kkr and global input structures are probably a little disappointed. let's take a look at the agenda for the day. 7:00 a.m., we will be long gone, we will get swedish cpi and unemployment. dani: we will als

citigroup was warning oil may collapse to 65 a barrel.hat do you say? >> it's probably somewhere in the middle. citigroup are the bearers in the market. they could be right. but on the other side of the equation what the other group is saying if we lose russian oil, there's no viable replacement and the prices can take off. before we hit the higher price level we will see a slowdown in demand. i don't think we will get that high. make no mistake about it, the global oil market is in a perilous situation. we need the u.s. energy producers to stand up -- stand up against the administration and do what they do best and get prices back under control. cheryl: phil, obviously, in particularly with gas price and inflation that we are seeing and attacks on the small gas stations across the country. the administration does seem really misguided and jeff bezos said it best when he said the president basically need to understand economics and he probably does not. great to have you on the show. all right, next hour of mornings with maria start right

and bank of america reporting before the opening bell today investors are hoping they will follow citigroupt week shares popped better than 13% on friday joining me now is david konrad at kbw which is a stiffel company. what exactly was it about the investor attitude that sent shares moving? >> it was driven by the treasury business that is unique on the street that is part of the global franchise that moves pliend the world. it is a low pbar for citi it had big impact on the rally on friday. >> what would have to happen with results from bank of america and goldman sachs today? you could argue that both banks might have a bigger influence on the sentiment or sectortrade what needs to happen for those results to get the same kind of reaction we saw in investor enthusiasm for citi? >> i think that would be a bit challenging for today because of the investor sentiment going in. you know, bank of america is a popular name we think they will have solid results. if you look at jpmorgan chase results, the chase business was strong yet, the investment banking business was weak. we will see strong