morgan, citigroup and bank of america testified before the senate banking committee on how the companies handle consumer and social issues. watch coverage 9:30 eastern on c-span2. senate minority leader mitch mcconnell's book on the floor of the senate about inflation and the economy and discussed the disclose act of 2022 and urged members to vote no on that bill. first this morning i was deeply saddened to learn we lost a dedicated and long serving member of the senate family this week. officer william thomas of the united states p capitol police passed away after a battle with cancer. he was only 38 years young. officer thomas joined the forese nearly 14 years ago. he quickly became a familiar face to many of the senators and staff serving. by all accounts, his dedication and professionalism and service in the senate division and most recently in the communications division were a credit to the entire department and to our institutions. officer thomas in the close knit community of brave men and women to keep us safe here thee capital. the entire senate joins officer thomas as well as

fraser and citigroup. the conversation i'm going to have involves all of the panelists but i wanted to begin with her company and herself as based on our research it looks like citigroup. five times more in interest to its depositors than the rest of the individual sitting at the table. ms. fraser is the correct figure deposits are yielding .05% interest-rate? >> we believe well with a variety of different deposit plans to be competitive and fair. >> the information i have here on your count packages the .05% registry. >> we have a product like data that is correct. >> for the rest of the panel is it fair to say that my numbers are accurate that the remained or viewer seeing 0.10% on the deposit collects >> that isn't accurate. >> could you please clarify the figure? >> are basic is about the same as citigroup five basis points or so but we have many products that pay substantially more. and it varies but i don't know of any that pay zero. >> images clarify and go across-the-board from left to right and on

. >> here's something -- citigroup, we know it's cheap, very cheap, whether you look at it well belowgible book value, about 70% tangible book value or dividend yield. but i think the big question here is not so much the catalyst, dom, but what the market is saying about ceo jane frazer she's been in the hot seat now for a couple of years. first real year was 2021, the market frankly didn't give her any honeymoon what so ever, took the stock down it is starting to realize she has a plan here. she is shedding noncore international assets, she's modernizing the systems there, good shot in the arm last night when a $500 million erroneous payment is now being court ordered to be returned to citibank and i think you're seeing sentiment change on the name as well, particularly regarding jane frazer. let's hope and expect that it continues. >> shannon, the banks are something that you have been keying in on as well in recent days and weeks is there a trade you like there. is it citi, another money center bank, or is it the regional side of things given the interest rate outlook, take me thro

. >> ceo's of some of the largest banks including jp morgan, citigroup and bank of america testified before the senate banking committee how their customers handle consumer and social issues. watch our coverage 9:30 eastern on c-span2 and watch on our video app c-span now or online at c-span.org. >> c-span's campaign 2022 coverage is your front row seat to the midterm elections. watch it as it happens on the campaign trail. speeches, meet and greets, debates and other events during the senate, house and gubernatorial races and don't miss a single election moment because you can take us with you on the go with c-span now, a free mobile video app and visit c-span.org/campaign 2022. your website for all of our midterm election coverage on demand. when it's live and as well as state by state maps and charts to track results from every primary. c-span's campaign 2022, your unfiltered view of politics. >> ukrainian president volodymyr zelenskyy called on the united nations to create a special tribunal to pressure russia on ukraine. the remarks

citigroup is investing. jp morgan assets saying they are looking to add to longer term debt.s that chorus of investors grows and they start to buy, that does give you a chance if other things settle down for these yields to come a bit lower or at least stop climbing quite so rapidly. dani: fair enough. it goes back to the point that perhaps it's not tina anymore. there is an alternative now. thank you, garfield reynolds. citigroup met with top wall street executives to discuss the government's fiscal plan amid a plunging pound and surging bond yields. we got a statement from the treasury about what's happening so far. what are we expecting? what's going to happen behind closed doors? >> it's been a big week for the chancellor. he is slated to meet with executives from the top banks and those executives are going to have a very simple question. what happened? this was a government that was supposed to be pro-business. this was a budget announced on friday that was supposed to be pro the city. we have seen one of the most dramatic weeks on records -- on record in recent memory.

morgan, citigroup and bank of america testified before the senate banking committee on how the companiesandle consumer and social issues. watch coverage 9:30 eastern on c-span2. senate minority leader mitch mcconnell's book on the floor of the senate about inflation and the economy and discussed the disclose act of 2022 and urged members to vote no on that bill. first this morning i was deeply saddened to learn we lost a dedicated and long serving member of the senate family this week. officer william thomas of the united states p capitol police passed away after a battle with

good morning and thank you for the opportunity to represent citigroup today.h citigroup convened with this committee last year we shared our bank to help the economy during the pandemic. while the worst of covid may be behind us the economic challenges we are facing are no less daunting. the reforms you put in place and the work we've done to assist -- since the financial crisis to strengthen our bank's foundation have enabled us to continue to serve as a source of stability. today i am a proud american citizen, as someone who grew up in the u.k. i can attest the banking system in the states are the envy of others. our financial institutions and financial markets. their essential to american competitors abroad and the reason why the u.s. is the top destination for foreign investment. its living expenses for americans increase and concerns about the economy grow, we remain focused on our role as a bank in jobs and wealth creation. through our extensive global network we partner with the most iconic american businesses as well as the federal government to help t

>> $700 million directly, a lot more indirectly. >> citigroup? >> same, almost $800 million. >> bank of america? >> roughly one billion dollars and a lot indirectly with our partners. >> truist? >> several hundred million dollars, directly ended directly. >> wells fargo? >> partly seven or $800 million. >> my time is better expired, thank you. >> thank you very much. the gentleman from texas, mr. gooden, is now recognized for five minutes. >> thank, you madam chair, i let to thank you all for being here. thank you, mr. scharf, the last amount of wells fargo ceo come before here didn't go well and you've done a tremendous job with your institution. i want to congratulate you, so thank you. i had some follow-up to a lot of the conversations we had on china earlier today. i'll start with you, miss fraser, citi former global head of investment banking praise the chinese communist party's belt and road initiative. in fact, he said, quote, citi the strategy is directly associated with 32 of the 69 countries, which is more than any other global institut

but an interesting item coming across from the financial times that citigroup is scaling back the amount it lends asset managers including private equity firms, to meet these new tough capital requirements, tougher is the rule of thumb here, not all the banks have to make onerous adjustments to prepare for this but it is scaling back. the reason i mention that, might sound arcane, the less money you give asset managers the less they put into the markets to keep them going or to buy stock, you can be short with that money by the way. that could be another wrinkle which one wrinkle we are watching is where is money going in this environment? it used to be almost nonsensical to go into the bond market where you are getting 0% returns and go for that over stocks, and easy trade to do better in the stock market and then treasury notes and bonds but now that you can get a 4 year or one year just about touching 4% and a 10 year, i had a 15 year high, you can start saying to your self sell it, lost a lot of principal, a lot of buying. i don't want to lose it. you can make that argument that in r

scrape -- citigroup talking 1.5 on cable.he numbers we are talking about , 100 70 billion pounds worth of relief to help energy and businesses and provide relief to consumers. that is about 5% of gdp. tom: absolutely. there is wonderful essay in the financial times driving this, people looking at the real income of fact. i will not give a course. the answer is they blow sterling through parity, which is unimaginable. jonathan: you and lisa were talking about that. we see both over the last month. yields at the front end up more than 100 basis points. the team a bloomberg breaking the numbers down. the biggest move through august. 3.15 on the two year. i believe the bank of england meeting is a year or so away. tom: thursdays ecb will not be a snooze fest. we will pause with the head of global economic research for jp morgan with so many things to talk about and frame where we are through the litmus paper of a system which is foreign-exchange. we harken back to all of the work over more than half a century, onto jacob frenkel

citigroup persuaded a u.s.ls court to force a group of creditors to return more than half $1 billion of -- the decision is a major victory. citibank's effort to redeem the embarrassing blunder. the transfer forced the bank to explain to regulators how to made the mistake. hong kong's largest developer has reported a 3.8% drop in full your profit, fears the cities tour of weekend. underlying earnings fell to about $3.7, below estimates. the company -- hong kong border controls short-term challenges. elon musk says spacex had talks with apple to use -- for ipod -- iphone satellite features. the comments given day after apple announced emergency satellites which allows iphone users to paying emergency services using satellite networks. it is unclear if the talks are ongoing shery: coming up, japan keeping guard on the yen, making its strongest intervention yet. this is bloomberg. ♪ paul: let's take a look at the japanese yen. pulling back some of the lows we saw earlier in the week. it almost touched 145. we heard

than the fact that public markets have been in decline and citigroup found generally when it comes tope market lacks by 1 to 2/4, we could be on a downtrend. why is kim kardashian doing this? like it or not she is a savvy marketer, savvy businesswoman, she launched her own companies and we've seen this trend over a decade of celebrities saying i don't want to just to be a spokesperson and appear in a commercial, i want to own part of a complete, on some of the equity in the profit. not saying you should rush into it, i don't know if she will be successful but it is not a down move on her part. jack: we should not make fun of her business savvy but the private equity markets you don't know how the market is until the next round and then we will find out. let's talk about two good opportunities in public markets. al: pool pork, easy ticker, pool. some concern it will hit revenue earnings in 23. anytime there is a housing downturn it has been a great time to pick up shares. this is third-best performing stock over the last 30 years. jack: what is your answer? ben: football is back, the s

that doesn't mean it is over. >> citigroup? >> we've not seen any united states. >> bank of america? >> we haven't seen a major increase but the question is what happens next. >> truest? >> we cannot seen a major increase. >> wells fargo? >> same answer. >> just curious, what is the size of your budget for cybersecurity in each of your banks? pnc? >> i don't know off the top of my head. i would assume it is close to the size of u.s. bank's. >> jpmorgan? >> $700 million directly. a lot more directly. >> the group? >> reporter: the same, $800 million. >> bank of america? >> roughly $1 billion in direct with our partners. >> truest? >> several hundred million dollars directly. >> wells fargo? >> 7 to $800 million. >> my time is about to expire, thank you. >> thank you very much. the gentleman from texas is recognized for five minutes. >> i want to start by thanking you all for being here. last time i was at wells fargo it didn't go well and you've done a tremendous job with your institution, i want to congratulate you. thank you.

let me go on to citigroup. have you cut your ties?> reclaiming my time -- >> the gentle man from california. >> you can do a press conference afterwards, not only my time. have you cut your ties? >> we have been locking down exposures and russia -- >> so you haven't cut your ties yet. a number of the banks here said for the investments on the coal-fired electric plants the question is are you going to fifinance crypto mining that creates electricity that doesn't keep anybody's lights on cook anybody's food. finally, capital markets we have limits on the margin lending designed to protect the lender that is you and your systemically important. to protect the capital markets that's why with investments we allow one to one margin but the total default swap is a loophole that allowed them to get 921. can you commit to follow the rule that we provide or do you want to use loopholes where the lenders lost over $5 million? >> we have no relationship with that. >> do you use these two of the weight of the margin limit requirements? >> the gen

evaluations, then you also have the fact that public markets have obviously been in decline, and citigroupfound that generally when it comes to public markets, the market lags by about 1 to 2 quarters so we could be on a downtrend there. but you've got to ask. why is kim kardashian doing this? and like it or not? she is a savvy marketer. a savvy businesswoman. she has launched some of her own companies, and we have seen this trend over a decade of celebrities saying, hey, i don't want to just be a spokesperson get a few million for appearing in your commercial. i want to own part of the company. i want some of the equity. i want some of the profits. i'm not saying you should rush into her fund. i don't know if she will be successful, but it is not a dumb move on her part. we shouldn't make fun of kardashians business savvy, but i will say it's interesting with a private equity markets. you don't really know how the market is battling them until their next round, and then we'll find out so it could take a hit. let's talk about two good opportunities in the public markets. al, you've got an

wells fargo, bank of america, citigroup, with a 4+ percent gain. yields on the two year today, hitting their highest levels since november 2007, but is the rally in financials too good to be true? karen, i know you will say no. >> i feel like it is still a nightmare. they were much higher earlier in the year. obviously, i like the banks through good and bad. i have been long on the banks. i think it is a nice bounce. i wish there was one more trading day to the week. i still think the evaluations are really compelling here. the bear case for the money center banks is that all of their investment banking business and capital markets business is down. all that is true. remember, half their business is net interest, right? that is really doing well. we always look at the two year, 10 year, that is not how they make their money. it is much shorter than that. short-term rates are higher. that is great for them. the evaluations are really compelling. j.p. morgan, obviously, i love jamie. 3.4% dividend yield. 11 times earnings, actually, a little cheaper

citigroup has 13 banks across the country.illions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. vonnie: this is "daybreak: asia." protests broke out in russia after president putin declared a partial mobilization of as many as 200,000 military reservists for the war in ukraine. around 1200 people were arrested in cities including moscow and st. petersburg. putin also renewed hints of a nuclear threat, vowing to use all means to protect russia and its people. president riding is calling on the world to maintain support for ukraine following putin's threat and the kremlin's military

. >>> citigroup meantime is expanding lending to people without credit scores.journal" reports that citi will launch two pilot programs early next year with the federal government. one will issue credit cards to people without credit scores, and the other will make it easier for small business-owned minorities -- businesses, rather, owned by minorities, women, and veterans to get access to credit. some 50 million americans lack that additional credit scores. that's a big -- really a big problem for people as they try to move ahead and maybe try to buy a home or try to buy a car. really need to build up that credit score. >> yeah. it's nice to get the credit. but we'll talk about the interest rates. that -- that is a big deal, too. all right. thank you. >>> 4:44 this morning. tracking dangerous deadly floods ahead on "today in the bay." the damage done after strong storms moved through northeast georgia. georgia. >>> plus -- mornings are our time, and i couldn't let stiff joints slow me down. so i started taking osteo bi-flex every day because it has joint shield

good morning and thank you for the opportunity to represent citigroup today. when a similar group convened with this committee last year, we shared how our bank supported the economy during the global pandemic. today, well the worst of covid may be behind, assess the economic challenges we are facing are no less daunting. the reforms you put in place and the work we've done since the financial crisis to strengthen our banks financial foundation have enabled us to continue to serve as a source of stability. well today i am a proud american citizen, as someone who grew up in the uk, i can attest that the banking system and the capital markets in the states are the envy of others. our financial institutions and our financial markets are essential to american competitors abroad, and they are reason why the u.s. is the top destination for foreign investment. as living expenses for americans increase and concerns about the economy grow, we remain very focused on our role as a bank in job and in both creation. through cities extensive global network and footprint, we

citigroup has also warned trading revenue will likely drop in the third quarter in line with the slowdownting wall street. the ceo said overall market revenue was likely to drop by a percentage in the mid to high single digits with investors banking on revenue likely to decline 50%. david: shares still low for the day here. rishaad: donda block trades here, the retail group hitting record low. sold off at 20 hong kong cents a share, an xfinity rewards special offer. xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit xfinity.com/rewards. >> we continue to see the selloff continue. again watch, things have stabilized after we heard from the ministry of finance talking about fx moves. not ruling out options. david: we will see what they said, the commentary stronger and stronger. we will see what happens. rishaad: let's have a look at the first word headlines. the european union is moving towards capping energy company profits. it includes a levy on excess profits as well as a mandatory co

federal appeals court to force a group to return more than $500,000, a major victory for citigroup'snking effort. the accidental transfer forced the bank to look into how it made the mistake. rishaad: we are seeing the hang seng index at the moment in hong kong moving up, over 2%, but was leading the charge. this is really down to more support coming through jumping off reports from at least an xfinity rewards special offer. xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit xfinity.com/rewards. an xfinity rewards ecl offer. xfinity customers join xfinity rewards and get an early access code to play the open beta. early access begins september 16th, first on playstation. visit xfinity.com/rewards. rishaad: 11:29 in shanghai. we had offer that 90-minute-long lunch break and we look at the news coming. chinese properties stock gauge now seeing gains in excess of 4%, the biggest gains we have seen since june or thereabouts. we have been looking at inflation out of china as well. that

head of foreign exchange strategies at - of foreign exchange strategies at citigroup. has �*spooked the markets' with a �*reckless gamble' on tax cuts paid for by increased borrowing. in the last hour, the shadow chancellor rachel reeves has been setting out labour's economic vision at the party's conference in liverpool. she said a labour government would bring back the 45p top rate of income tax and use the funds to boost nhs staffing numbers. our political correspondent, ione wells, reports from liverpool. who would want to be the chancellor right now? she does. thank you! things are looking choppy. the pound reached a record low against the dollar, inflation is high, interest rates are up, and energy prices soaring. rachel reeves claims the chancellor has fanned the flames of the fall in the pound by suggesting more tax cuts are coming. on friday the chancellor had an opportunity to set out a serious response to the cost of living crisis. and he failed. what did we get instead? a tax cut for the wealthiest 1%. the message from financial markets was clear on friday.

jp morgan, bank of america and citigroup up about 2% or even more. guy: thank you very much indeed.eturn to the fed. jay powell repeated the hawkish stance and remarks earlier today in washington paired let's take a listen. >> history cautions strongly against prematurely loosening policy. i can assure you my colleagues and i are strongly committed to this project and we will keep at it until the job is done. >> joining us for analysis, of the former federal reserve governor the university of chicago. let's talk about this. ecb just gone 75. we on track for another 75 from the fed? >> i think it's very likely. a similar message given a jackson hole. other fed speakers, out saying they would be comfortable with 75 obviously this can be some more data between now and the meeting, but i think they are on track for likely 75 rated alix: if that's the question is -- is the right question to be what happens in october and november. what do you think? >> that's exactly right. the thing to do is look at the past where they will get to because that's where they will hold for a while. the oth

in march 2009, citigroup traded the same price in the 1970's. the system was set to deal with the bankruptcy of the global financial system. will it be able to do so again? this market wants the question answered. this market is going to go deep sea diving without air and go to a depth below the surface. and then it's going to wait and save the fed what are you going to do. it's what the fed is doing now which is a concern because they are not listening, the asian philosopher said treat the world as you find it. don't interfere with it, except it. i mean bubbles are fine. they are kind of sustainable as long as there's no zero financing but the fed has become aggravated and it's changing carrie paid mortgage rates have doubled to over 6%. we are seeing various credit blowing out. we are seeing drama in italy, drama and the foreign exchange market. unsuspecting places slipped like sand into the sea. why? because the fed is tampering and calling upon the spirit from the 1970's. why could that be catastrophically wrong? the 1970's was 40 years afte

bank of america, citigroup, j.p. morgan, and morgan stanley. news reports they're going to ask for them not to bet against the pound. is that really true? is that it being poured out? what does that mean in terms of the bank's willingness to do this, and the desperation in an administration that is going to do it does? >> to be fair, that has been denied. but test balloons often get loaded. and, i wouldn't like to necessarily suggest that was the case. there been a number of headlines over the last few days. they've been running them, but they are being pointed as a fingerprint there is significant criticism for betting against the pound. the u.k. has a long memory of george soros and the chaos that was caused by the exit from the erm, and the history that is fairly fresh with the recent anniversary of that event. if these are disorderly markets, then you could point the finger and say we need to stabilize them by any means necessary, but the moment we are struggling to figure out how to do that with, as john says, there is an incredibly strong

that is according to macro strategist at citigroup. they have a downturn of shareholder value since the global financial crisis made the dollar the only play this year. joining us now is virginie maisonneuve, global cio of equity at allianz. also with us is kristine aquino. this is a market that is looking for another catalyst. >> it is an environment of a stronger dollar, higher yields, weaker stocks and it is a classic sort of risk off and it is telling that we are seeing this coming into that pivotal fed meeting next week. the point is between 75 or 100 basis points next week, but either way, it will be a jumbo rate hike. it will be a third in a row 75 basis rate hike or a historic 100 basis points rate hike at that next meeting. francine: virginie, when you look at some of the market dynamics, has the dollar shifted form -- from here? virginie: the dollar is the exception to what is going on. it is also showing a more clear path in the u.s. than in europe. when you think of the dollar and when you think of peak rates and inflation,

lenders say the penalty includes bank of america, citigroup and goldman sachs. the exchange commission saying they failed to maintain trust by requiring them to use official communication channels and maintaining and preserving that institute. that is a look at the first word headlines. yvonne: still ahead on bluebird markets asia, hong kong lawmaker robert lee joins us and has insights on the financial sector. next, dramatic escalations and moscow's energy war with europe and a winter without russian gas looming. this is bluebird. -- this is bloomberg. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. yvonne: some of our big stories here this morning as well, russia's energy conflict with europe has escalated dramatically with three gas pipelines damaged by suspected sabotage. the last remaining route to western europe is at risk. energy editor of asia joining us now. r

>> bank of america face the largest fine, citigroup, j.p. morgan was fined in december.has been a sprawling months long investigation. investigators focused on management, and talked about how some managers sent thousands of messages on unapproved apps. even sending them to employees charged with compliance. francine: how will banks handle these messaging platforms going forward? >> this is a new era, at a low level some banks are saying to use more official channels. at a high level, we have seen some house things and resignation -- oustings and r esignations. banks will have to deal with managing convenience and compliance. tom: charlie walking us through the implications. three nord stream pipelines damaged by suspected sabotage as europe's energy crisis goes from bad to worse. we will speak to the chief economist at the european bank for reconstruction and development on the implications. this is bloomberg. ♪ francine: welcome back to the open, 44 minutes into the european trading day. the dollar soaring to a record after the white house talk to down currency agreeme

citigroup has been trimming its workforce and demand continues in the housing sector. u.s.ail bankers have $1.2 billion in mortgages and is down 15% compared with a year ago. haidi: coming up, the biden administration allowing pump era tariffs to continue on chinese imports while he continues to weigh the options. we have the details ahead. this is bloomberg. ♪ >> eu ministers are said to discuss measures to rein in surging energy costs. this involves a gas price caps and derivative trading. it will be considered on friday. gazprom's decision to keep the pipeline shot is real urgency in europe. -- shut is reviving urgency in europe. a chinese city will intensify lockdowns and extend control measures for at least three days. as a lockdown asserted on thursday, to other parts of china are under covid lockdown, nationwide, 1700 cases were reported before saturday. indonesia raised money to ease the burden. the most use gasoline is increasing by more than 30%. the president says state funds must be used wisely worried most of these subsidies are going to the wealthier people wh

he is set to appear in washington alongside teeth from bank of america, wells fargo, and citigroup.s prepared remarks, he touts the role jp morgan plays in the global economy, warning of harm from arbitrary increases in capital requirements. 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'm su keenan. this is bloomberg. shery: malaysia's largest public services pension fund says it is embracing market volatility as an opportunity to buy. a ceo told us exclusively about the fund's plan to diversify its international investment base. >> indeed, it is a perfect storm that we are facing now. the interconnectivity that we have is -- in terms of supply chain. inflation is not everywhere. everyone is facing the same issue. our intention, we have a vision 2025 that we have the intention to expand and diversify our investments, international footprint from 20% currently to 30% to 2025. so right now, we are already in over 40 countries in terms of our investments. we want to go from $8 million to

we're seeing from citigroup, from our strategic partnerships, suggest you will see more m&a in areasike the back office. i think there is room for valuations to move, but there is room for incredible innovation to come in areas that see the most difficult -- crypto is a great example. there is an interesting future ahead after this latest downturn. emily: just how long is the downturn going to last? we have guests predicting millions of layoffs. does that jive with your thinking? sheila: it is entirely possible. i am probably more optimistic than that, because i see some positive trends in what is going on as well. for example, a recent survey suggests cfos and hro's in the financial and hr space are pulling back. a lot of what we focus on his core areas like enterprise. at the same time, they're going for more difficult circumstances. recessionary environment is not necessarily the worst environment for the business. emily: you're investing in companies taking on big tech, or trying to challenge big tech. we have been following a big piece of legislation working its way through cong

citigroup has trimmed its mortgage workforce as rising interest rates continue to weigh on demand forsing. the bank originated $7.2 billion in mortgages in the first six months of the year, down 15% compared with a year ago. tom: let's check in on your markets. you are seeing losses across the benchmark of 1.7% or thereabouts, less bad and the future suggested but significant downside. the most acute selling being felt in germany, down 2.9% led by autos, that sector down 3.4%. the cut off of russian gas is the central factor there. the central currency under pressure, down .4%. francine: a quote is sticking in my mind, no growth -- just for europe means no growth. you could see a 75 basis point hike from the ecb going into severe slowdown because of gas prices. tom: at a time when you are looking at potential blackouts. as gazprom reverses plans to reverse flows through the nord stream pipeline, european leaders prepare for an emergency meeting. we have more on that story next. this is bloomberg. ♪ - [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it ta

. ♪ >> citigroup has persuaded u.s.eral appeals court to commence creditors to return billions of dollars it accidentally sent them. it is a victory in an effort to redeem the embarrassing blunder. hong kong's largest developer has reported a 3.8% drop in profit as the market weakens underlying earnings fell in the year ended june 30 which was low estimates. the company pointed to covert controls. comments came today after apple announced emergency sos via satellite. it is unclear if talks are still going. >> tech a look at how currencies are trading. we are now seeing the daughter holding steady. we have a little bit of strength today as treasury yields jumped especially with the policy sensitive 2-year note. we have plenty of fed speak to digest including jay powell reprising his hawkish views from the jackson -- jackson hole conference. we have been watching the british pound of course. we are continuing to watch country in morning with the passing of elizabeth but also the euro, the ecb hiking rates by 75 basis poin

america and citigroup were among those fined. let's go back to the beginning.is the activity and what are we talking about? >> we call it the whatsapp fine, we are really talking about something that is not whatsapp. regulators want banks to ensure they are monitoring all these messaging apps. they do not want unauthorized use of these apps. he could be signal, could be telegram. these acts of gotten so popular in recent years. all the communications with banks and clients have gravitated to these platforms. their archiving -- they need to make sure their archiving these chats and complying with the technology rules. the pandemic is an accelerator for sure. but i think it's also a technology story. you have just gotten used to the idea that people are more comfortable using these apps to communicate. you are more likely to send someone a message then pick up the phone and call them or email them. that is why there is so much focus on these apps. of course the pandemic played a role, because you had a situation where everyone left their offices. and when you are

it involves citigroup, one of the most global banks in the world.d, these are all companies that deal a lot with the safety and security of assets around the world. it could be potential to operate critical infrastructure simply with how messaging and communications work across institutions across the world. emily: so how long will this pilot be running? and if it works, could we see a potential change in the underlying technology? >> the reason i brought up the russia issue as well is when they were really cut off and certain institutions were cut off from swift, there was a lot of concerned about russia, china really developing their own type of swift or rival to swift. by means of technology and other infrastructure to really start to communicate. and you do see some traces of that and acceleration of that this year. the idea of using blockchain to really strengthen infrastructure among the swift system itself, is there potential? absolutely. when you think about blockchain itself, there is a huge debate in the fintech community, in the banking c

. >> we cut out some of the -- >> i wish you would cut all the ties to them and let me go on to citigroupth luke oil? >> i have one other thing. >> not on my time you can't. reclaiming my time! >> the time belongs to the gentleman from california. >> can you do a press conference afterwards and comment as you like. not on my time. >> the bank's ceos were asked about relationship with china doing business in china and russia. and they said they don't do entities -- don't do business with any entities that are engaging in human rights abuses but then when pressed about their relationship with various governments around the world, said they defer to government guidance on those issues. >> i used to cover capitol hill. so i know where just seven weeks from the midterm elections and some of this is political for these members, trying to get their moment in the sun. i do wonder what does it mean, what does this hearing mean for legislative action? is anybody talking about changing anything? >> well, in terms of legislative action, not necessarily. but it does have a big macro component. what do

citigroup has warned of the trading revenue will likely drop in the third quarter in line with the partwdown hitting wall street. the cfo says that sales are likely to drop. investment banking revenue is likely to fall 50% as a client sales hit the sidelines. twitter shareholders have approved the $44 billion buyout, paving the way for a trial next month to decide its fate. elon musk is trying to scrub the offer he made in april saying what he said about bought accounts. -- bot accounts. regulators are following a response to a whistleblower testimony. he says at the company had outdated software and had personal user data and a nuclear security policy would he emphasize what he is always ineffective enforcement from the ftc. taking a look at the to head for australia and new zealand, we have the balance for the second quarter, the first quarter, just over 6 billion kiwi dollars. the volvo group to supply responsibly resource to low carbon products and the financial view reporting that the equity raise was 3.1 billion aussie dollars. it should have a chicago skyway deal. inflationary pr

it is jane fraser of citigroup, brian monahan of banc of america.have truist, wells fargo, u.s. bancorp, pnc also there tomorrow. not there are the larger investment banks. you see a very strong focus on community banking and lending into a very tough environment. guy: what about by now, pay later? this has been hugely contentious. it is one of your favorite subjects, i know. we're going into an economic downturn at some point soon. we have never seen this go through a cycle. the banks have been piling in. i'm really curious about this non-bank lending and how this is going to feature in this next cycle. sonali: and remember, we are talking about what jamie dimon is telegraphing to lawmakers. jamie dimon has been concerned not necessarily about buy now, pay later, but the private lenders who have stepped up to fill the void without regulation. something so interesting in that cfpb report released last week was this idea that more people are using buy now, pay later to pay for things like gas and groceries, and you are seeing more consumers return wh

citigroup weighed in on a similar call.y is good for trading revenues, but i wonder if there is about to be a lot of depressed m&a volume because of the jitters around markets that could dent some of the profitability in the investment banking business. manus: this goes back to a story yesterday. if the fees are down and you are not producing the money, then there is no honey. if there's no honey, you might not have a seat at the party. there is only one market story, i mean, it is the ransacking of risk which happened yesterday. the bond there's gripped the short end of the curve by the neck. you are looking at the belly of the curve since 2008. dollar-yen moving off to the 1.45 level. do you have active verbal intervention from the finance minister in japan? that has dollar-yen down. i am surprised it is not more but you need perhaps a g4 intervention to really reprice dollar-yen. dani: we were just talking to mark mobius, who says the fed has a game plan. their game plan is to push rates higher than inflation, so his cal

and critics, including the head of the markets at citigroup, who say essentially, if you do that, the that avoids the sanctions efforts and creates broader issues. aren't those concerns about the strategy? >> the russians have to discount heavily on their oil. i think this will mean the market can function more efficiently. why do i say that? i'm sure you can understand, whoever is buying russian oil has to transport it. the big oil tankers require insurance. if the insurance feels like they will come up with sanctions, they will be more reluctant to insure. what we're working on is a practical way of making sure the oil, as you rightly pointed out, will continue to flow. but that putin doesn't make extraordinary profits on high oil prices and protect all of the economies from oil shocks next year. it's an important moment. we're doing a lot of work on this. we're in lockstep with the united states on this. i'm sure we will have a positive meeting tomorrow. i hope we can bring other countries onboard, as well. >> that's the big question. how much cooperation will you get? i apologize,

lisa: citigroup put this out this morning. a soft landing most likely in the u.s..ve to tighten conditions enough to lower the equity market. the fed is confirming that view and saying that is part of it and they are not backing away from a slow down may cause. jonathan: that is the objective right now. in the equity markets we are up .2 5%. yields are still lower by eight basis points, 3.7% is your guilt. tom: crowds in moscow, this is mr. putin walking through gold doors and he is speaking to the assembled on the annexation of ukraine. an expert for us with great experience annmarie horton. he was behind him on this? is it the military behind him or is it a nostalgia for a new soviet union. annmarie: it is him, he is making all these decisions. he is surrounded by officials and the government. this is all putin. this is something he dreamed of doing. many thought he would never do this because of the repercussions and blowback. especially given the fact that they spent 20 years trying to integrate themselves into those global financial markets. he then went for it

financials and technology, citigroup had a new low, regional -- super regionals like u.s. bank corp and credit cards, mastercard, visa visa is about to crack 180 visa was 206 about two weeks ago. we're talking 12 or 13% down in visa in just the last 12, 13 days the other big group is big cap tech hitting new lows. intel is almost every day. advance micro, service now, meta, adobe, oracle. the list is getting longer here, similar to what happened on friday one group that's been sitting in the new low list for weeks now is the transports on the fedex news a couple of weeks ago u.p.s., southwest, norfolk southern, csx at 52-week lows. any bright spots out there the mortal words of john bea belushi, i'd start drinking heavily. keurig up, starbucks up, constellation, that's jack daniels. >> the two-year is trading at its highest level since 2007, near 4.3% yield at this point. the ten-year yield, look at this, session high right now of 3.9%, it has not closed at 4% or more since october 2008. oil closing just up 2% for the year it was up 70% year-to-date in march. the cnbc comm

citigroup with a sell, a $6 price target.say they're going down, there's just no clear path to profitability. stu stuart listen to this one, a nostradamus book, whatever that is, predicted the queen's death, so they say, and this book is flying off the shelves. >>> new study shows all the people who have had covid may be at significantly higher risk of developing alzheimer's. we've got the doctor on that. and the u.s. is promising, quote, catastrophic consequences if russia uses nukes in ukraine. our report comes to us from kyiv, and it's next. ♪ then i got the dexcom g6. i just glance at my phone, and there's my glucose number. wow. my a1c has dropped over 2 points to 7.2. that's a huge victory. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up

morgan chase, wells fargo, citigroup and some of the mega-cap, money center bank and if you look at one of the reasons why interest rates could play into part of that story and we are seeing movement out of the yield curve and say for the ten-year treasury note or other parts of the curve have been drifting to the upside if you look at those bank stocks that could be one of the big driving forces behind that trade and the two-year note yield higher, nearly 3.5%, and the ten-year note yield just drifting higher. so if you look at the overall picture, tyler, very much a focus right now on what's happening and not just with rates, but the overall impact on the markets and the bank stocks in particular and think, tech and communication services because of the valuation side. what higher rates would do to the valuations of some of those companies and we'll continue to watch that as we head toward the closing bell >> dom, thank you very much. i'm sure we'll see you again on the remaining minutes of "power lunch. earlier today jerome powell said the central bank would do anything it takes to k

. >> citigroup says this is an opportunity, fedex is falling back and ups has managed better to gain market share but they are still down 5%. %. b1 that is a big drop. how about roblox. lauren: they are cautious on the scale and profit. runway. not good for a company who wants kids to buy their games. we when cautious about the future, the thing goes down. shopif dagen:. lauren: they are hanging compensation practices on letting their staff decide how much of their paycheck will be cash versus equity, they want them to invest more in the company, stock is down 75%, that is a big bet and if you make it they give you an extra bonus. >> thanks very much. president biden announced a new push to strip big tech platforms of their in the unity. didn't trump try to do that when he was in office? >> he did. the question is how. it is about section 230. speaking about it for years, the 1996 law that offers big tech a free pass for posting this information and not be responsible for it but most democrats and most are public and say it has got to go. how do you do that and what happens when you