let's get citigroup's local head of cbe strategy.ine then what does that mean for brazilian access. >> i get confirm summing that was partially priced in. intervention was spot on. it can be very important and were to get the final conclusion right now over the next 24 hours, what's going to be his cabinet. what's the shape of his cabinet given the fact he signaled a move to the centerleft. by allowing his running mate. it's can be very important because that would give us an indicator of what policies will be like. i think that's the major challenge here, we know there's a social bias and there's a fiscal challenge coming due and what's it's going to be like in terms of how market friendly can this government be given the promises and the natural bias. tom: is talked about the need to heal those divisions. reflected in those results. >> the makeup of his economic team as well. as an argument this will be a more centrist given the fact that he's hemmed in to some extent by the opposition in congress. >> there is a tendency to comprom

to a lesser extent for citigroup. the investment banking side has been from the.here are variations as well jpmorgan chase under 50% with citigroup is just over 60%. slight differences >> something i thought was interesting about jpmorgan chase. the ceo jamie dimon had an inn interview with cnbc. jpmorgan chase did not increase provisions to account for that how do you square the circle >> that was the question coming into the result. what would happen with the provisions i know they squared the circle they had provisions for bad scenarios. multiple scenarios in the assessment when they do the provisions they have been going to the down side they weighted more to the down side they are visiting recession with unemployment up 6% that is tucked away into the provisions i guess the main caveat it has is if we get to 6% unemployment in the middle of next year, this is a potential to go up to 8% that would be manageable the message was we are well provisioned. don't worry about the recession f.recession. to absorb, trust us as a large powerful bank. investors are happy

citigroup, jpmorgan, morgan stanley all gearing up for results after a rough year for the sector in the market up next, morgan stanley's global head of bank's research gives us her top buys and the name to avoid heading into those numbers. we've got a 59-point rally on the dow. kind of in the middle of the range of where we've been all day. you're watching "closing bell" on cnbc. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. millions 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

look at jpmorgan is up by 2.5%, wells fargo up 2.8% and citigroup up 1.2%. look at morgan stanley down almost 5% on an earnings report that went the opposite direction. leslie picker tells us why the divide, what the results tell us about the health of these banks and, i don't know, leslie, what does this say about the looming threat of recession? >> oh, yeah, the "r" word was on display today especially on the earnings calls, but as you mentioned, jpmorgan, citi and wells fargo, able to notch beats in the third quarter thanks in part to rate hikes driving boosts in so-called net interest income a profitability metric defined as revenue from loan making minus what banks pay out for deposits for the most part those ni, figures and guidance came in better than expected for firms more exposed to volatile markets and investment banking like morgan stanley the quarter was tougher because of their business mix morgan stanley posting a miss and declining top and bottom lines thanks in part to a slump in investment banking and muted equities trading in particular re

morgan down the -- morgan stanley done 20% and citigroup down nearly 30%. also today, september retail sales at 8:30 a.m., our consumer spending? it will be messing because what happened with the hurricane in florida. october sentiment index, it is mattering again. i expect this to be significant and i can see her face. jonathan: i'm just happy it's friday. lisa: i don't ever want to hear about the university of michigan survey again. i'm curious to see whether you see it rollover a little bit just based on what we are seeing with respect to gasoline prices tick up again. today we have a bunch of fed speak. jonathan: i care about that's become a first reaction to cpi. lisa: yep, kansas city fed president, fed governor, and fed governor, what you want to see? jonathan: it has been hawkish on the board, i think it has been outlier but a lot of people had to catch up with his view in d.c. and i wonder if he pushes it further. for me, yesterday was not about the november decision, it was about the conference with chairman powell. could he lay the groundwork for

citigroup reiterating its sell rating on tesla this morning, saying macro concerns are being front andms to agree, making a big bet for more downside. let's find out more about it with mike khouw, the "options action." >> tesla options right now implying a move of a little over 8% by the end of the week. that's greater than the 5.5% that the company has averaged after the last eight reported quarters, although last quarter it moved about 10% a lot of those bets are betting that the stock is going to move lower. the most active contracts for the october 220 puts we saw over 70,000 of those trading. buyers of those are betting that tesla is going to trade below that by at least $8.50 by 8% or more by the end of the week. >> all right, mike, thank you. for more "options action," be sure to tune in to the full show as always, friday at 5:30 p.m. eastern time >>> all right. coming up, is target a bulls-eye buy? why analysts are throwing this retailer in their cart >>> plus, coming up, a winner no matter what. amazon prime keeps climbing, even if the economy don' sest,o says your call of the

that has come through from bank of america and also from the citigroup earnings, jp morgan last weekthe consumer is holding up, he had an increase in credit card spending in the latest results for bank of america, 13% on the year. that was down to people spending more on traveling, entertainment and when you look at less wealthy consumers, they had five times more savings in their bank balances than they did at the start of the pandemic. the number of cars that the bank of america is repossessing is also halved. this is how the ceo spoke to us about the u.s. consumer. >> the credit quality in our consumer books is strong across the board. the payment and delinquencies are much lower. much lower than any average five best year-type period. they moved off of the floor but they are still much lower than they have been buried consumers are spending and they have money to employee and you see has on employment numbers and they have good credit. shery: the bank of america ceo there. investors have been waiting to see how consumers were holding up especially given we have surging prices. ag

which is a valuation, stock underperformed, a third of this year, citigroup didn't put in a great reportt has been so cheap, that is why people are buying into it. morgan stanley and a bit of jpmorgan, but jpmorgan had an offset. stuart: what did you have on traveler? lauren: a travel recovery. have you looked at the stocks? delta called the by, as you heard yesterday, some are booming and should last, head into the final holiday, final travel season of the year. norwegian, also a yield play. stuart: you have been right on this. you have been right on this. cruise lines, airlines are recovering. susan: also on yields, and they look more cheap. stuart: crypto remains boring. susan: there was outperformance close to 20,000. when you have stocks down, crypto playing a hedge, they trade in tandem, that correlation slightly off today. stuart: a few people waiting for bitcoin to get back to 23,000. they are holding for a while. stuart: come back for friday feedback. new york city subway killings, 25 year high, despite ridership being down. joe borelli is a counsel minority leader. until it sto

weak dollar front of the clark citigroup global markets. economist, we thank you as always.time, your perspective. quick programing note that coming up at 3:30 p.m., new york time on bloomberg, my colleague kathleen hays speaking exclusively with saint louis fed president jim bullard this weekend. he left open the possibility that the federal reserve would raise interest rates by 75 basis points. not at the next meeting, but at the next two meetings. that interview is a must watch. be sure to tune in for that coming up on this show. tesla is set to report earnings after the bell. we're going to dive into what to expect that converse station. coming up next, when our resident expert ed ludlow joins us shortly. this is bloomberg. my first options trade. well, let's just say i did my homework. i love the courses, enjoyed the videos, studied all the strategies. but i still wanted someone to walk me through it. so i called up to ameritrade. that's when i met eva. she's an option specialist to talk me through the process and help me learn all the tools as i made my very first opti

leave me alone. -- joins us now, global market economist at citigroup.speak this morning. veronica, we get a good jobs report over 200,000, maybe 300,000 jobs. we are so far distant from a nonfarm payrolls, which is what the fed desires. do we get there abruptly? veronica: i do not think we get there yet. we will be watching for signs this year into next year. we start to see that slowing in job figures, we are expecting a to 65 k on friday, which is strong. still slowing. as we are getting into mid next her, i think that is when we see the negative prints that start to pop up. tom: our wage dynamics and the wage part of the friday jobs report signaling each inflation? veronica: we are a bit higher on average -- earnings. we are expecting a .4% month on month increase. expecting the unemployment rate to fall to 3.6%. both of those together is what the fed doesn't want to see, which is still a tight market. what the fed is looking for in all of the wage data, the job data, the inflation data, signs of a loosening labor market. i do not think we get that y

sonali: you have the stocks of jp morgan, citigroup higher on the day, two are up more than 4%, showingou the boost in net income is staving off a few worries given the you are seeing some provisioning for loan losses tick higher. jamie dimon said if the economic environment were to get worse, those provisions can also get bigger but all in all he is saying not only can they navigate the storm, they will remove -- give back to shareholders as well. they are worried about the classic investment banking businesses and also concerns around trading and the longevity of trading is misses as these firms -- trading businesses as these firms take on more risk and you see cracks form in clients around the world may be more constrained. jon: she is addressing some of the looming issues the banks are preparing for, coming into this year there was disbelief that higher interest rates would provide an opportunity for the banks. how did you feel about what you saw in the results today after the rate harks -- hikes we have seen? stephen: coming into the year it looks that way. the problem pivoted when

i don't know whether morgan stanley being slightly below citigroup.yesterday 1500 point. >> turn around i think there's still people wondering. >> right. >> whether the fed changes course i don't think the fed does how much of that was the u.k that was sort of in there a little bit of course, all the way to peak inflation. still a good question. >>> meantime, want to talk about pfizer and biontech's booster shot adopted for b.a. 4 and b.a. 5. it was well tolerated in testing according to new trial data. cdc saying 3.3 million people in the u.s. got updated booster shots in the past week only though about 15 million people have gotten them over the shots first six weeks. joining us to talk about this and what has now turned out to be a rising number of cases in europe, dr. scott gottleib, former fda commissioner, cnbc contributor. serves on the board to pfizer and illumina i got my flu shot. i need to get my booster shot. tell us what's happening we are starting to see more cases in europe, at least historically it seems that we have tracked europe oft

some mixed action today after reports from jpmorgan, citigroup, morgan stanley and wells fargo. morgan stanley is the loser today, down5%. wells fargo one of the winners, up 3%. we'll talk to the cfo in a first on cnbc interview in just a moment from now. also the man at the center of the big deal news. ceo rodney mcmullen is here to tell us about his $24.6 billion agreement to buy albertson let's break down the reversal in the markets are our senior markets commentator mike santoli and his dashboard. we're not giving back all the gains from yesterday. >> no. >> but still, it's an ugly turn. >> high compression and high emotion market and when you have the moves that shuttle from low to high in a hurry like we saw yesterday, it shows you it's kind of a quick money easy come and then, you know, kind of quick to discourse i'm not saying it's all mechanical and technical but that's a certain element of t.yesterday ehlo in the s&p 500 was 3500 so we're above 100 s&p points above where we were and 200 points from yesterday morning's low to this morning's high and now we've given back

striking at wells fargo because the mix of their deposits is geared to the consumer, whereas the citigroupnd has more wholesale deposits so they didn't benefit on the margin expansion as somebody at wells fargo did so what we have been recommending to investors is to look at the banks with the high concentration of consumer deposits because the margin expansion for those banks will be better and we saw that again in wells, so in today's names, p nc is the name we recommend investors look at, because of their high concentration of consumer deposits but also commercial loans on the asset side of the balance sheet. liz: well, i get that and then i would think a name like keybanc looks pretty good if you're thinking with that logic as well >> liz, right on. i would totally agree with you for next week, when key corp. reports very strong consumer deposits one of the best of the regional banks and they had one of the highest levels of commercial and industrial loans and what we saw today from the banks was the c & i loans as we refer to. we saw double-digit loan growth on a year-over-year basis

great to see you, the citigroup global markets head of asia trading strategy. mohammed apabhai.aybreak: asia." ♪ this is bloomberg. ♪ >> bargain hunters piled on. let's get a preview of today's training with asia stocks managing editor -- with the asia stocks managing editor. is this all a part of the party congress? >> we did see a large buying force yesterday. that reversed the loss by 2%. whether this is genuine investor buying or national team buying, that remains unclear. a lot of traders were actually speculating that the national team came in to stabilize the market, leading into the party congress. but for dip buyers, there were good reasons to buy. if you look at the performance of the csi 300 and the last three months, leading into this event, the index lost 10%. and that is the worst showing heading into such an event. since the inception of this index in 2005. >> shutting down schools and bars, with another flareup of covid cases, how vulnerable is the market with this kind of development? >> yeah, it is kind of obvious the shanghai government really wanted to avoid

citigroup's christian schulz joins us.s market dysfunction you might expect from an emerging market. christian schulz this is a government -- christian: this is a government that wants to support the economy. normally, it wouldn't get a positive reaction that the government is supporting growth, but you get the opposite. the bank of england came in to buy them time. time is now running out. there is a message that andrew bailey gave, either change course or find a different way of funding this rate or there's going to be trouble. haidi: how do they right the path? i guess we will know by the end of the month. christian: indeed, we need to know what this is going to cost us. we need to know what this is going to cost the government. the office of budget responsibility needs to publish its numbers. we also need to fund this somehow. we touched on this earlier in the week. the policy institute came up with 60 billion in spending cuts the u.k. government would have to do to fund this. that is a very challenging number because

even tilting them to recession as economists in citigroup are?, korea is highly, globally integrated, as i said. they are very significant economic drivers. korean exports have slowed but they have remained resilient and certain sectors, in car manufacturing and in certain markets. i think there is something to be said about that because it speaks to the korean exporters' ability to shift two different markets. our projection for 2023 incorporates global slowdowns and the fact that korea is very integrated. so, we don't -- we see a slowdown but we don't see a recession in our scenario. we recognize that it there is high uncertainty -- that there is high uncertainty and if it materializes in the global economy korea will suffer. rishaad: martin, thank you so much for joining us. martin kaufman from the international monetary fund, with kathleen hays. this, from the bank of korea governors saying the rate was really based on fx. yvonne: just goes to show how much of a big factor the fed is. central banks are thinking about this. our first word news

we've got citigroup, j.p.n, the giants that reported today, the set of earnings heavily scrutinized as to the direction of where we go towards the end of the year. let's take it to the cio for greenwood capital, the lens is what has it in theory. but we will have not such a soft landing according to jamie dimon, talk me through the net interest income, and how important that is and where we are with wall street banks. walter, good morning. walter: good early morning. there is going to be a couple of dynamics at play with bank earnings. on the one hand, net interest margins, and the traditional banking business taking deposits is going to be really strong because interest rates have added up much more aggressively than people anticipated. and we have banks that haven't really had to raise their deposit rates so that spread will be significant. you are going to see big beats i believe on that metric for a lot of these banks. everything outside of that traditional business is kind of in the tank right now. you lo

whether they pull that off or not, it is citigroup.optimistic over the long run and some parts of tech can handle the storm. we will see if that happens. emily: ed ludlow, i know you will be across it all next week. that does it for this edition of bloomberg technology. on monday, we talk about meta's new advertising strategy with brad erickson and we will dive into the broader trends we're seeing in social media and turmoil as well given what we are talking about when it comes to snap, twitter, google, and more. and don't forget to check out our podcast wherever you get your podcasts. i'm emily chang in san francisco. have a wonderful weekend, everyone. this is bloomberg. ♪ 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 to $500 a year. and it's only a

on friday, we did hear from jpmorgan chase morgan stanley and wells fargo and citigroup. the themes, less than stellar outlook for the u.s. economy. specifically from jamie dimon. joining us now is director of equity research. ken, your take on what we heard from the major banks >> good morning. br banks are a good barometer where we are in the economy barring investment banking looking out to next year and recession, we're just not seeing it in the numbers across all of the banks that reported friday or bank of america whether it is consumer lending and health in terms of credit card or rif or loss exposure or commercial banking where there isn't a distressed industry. those are tea leaves of recession coming it is a tale of two markets. >> the ipo market has dried up, ken. we have seen a rise in m&a kroger putting in an offer for albertsons that should help the banks which banks benefit the most >> so, you know, the voice was weak with the strong investment banking pipeline for the fourth quarter which is one of the biggest quarters for underwriting underwriting with ip

citigroup said u.s.ity surprise most for a recession but we are not priced yet for the recession we need to be priced for. where'd you put your money and that kind of scenario? >> any stork episodes, when we have fed hiking, is not a great time to be in the market generally. for most people we speak with, we have split the investments into two parts. one is very macro sensitive. even during the winter months, we are still in high asian and low growth. it's two thirds defenses in one third energy. stocks retract in stagflation. sorry. we are in london. i think to their defense and one third energy is good for economic cycle in the short-term. something that has happened in the u.s., the idea of inflation reduction. there are tensions between the u.s. and china and it has only led to 350 billion dollars off of u.s. investments. these are global company saying they want to invest in the u.s. so who benefits? it's all the reassuring stocks, domestic u.s. industrials. secular story is favoring domestic u.s. i

differently in the future after criticism of james bullard came after speaking at a private event for citigroups appearance could be seen as a violation of fed rules to avoid dividing any advantage to market participants. sources say that the u.s. are looking into export controls to limit china's access to emerging technologies. this is focused on the still developing field of artificial intelligence software. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom, francine? francine: thank you so much. coming up, we will have a full round of inflation and we will be eking with the l'oreal chief executive officer. ♪ francine: welcome back to the open. 30 minutes into european trading day. we start at westminster. liz truss -- tom, you take over. tom: liz truss resigned. we have a few connections that bring technical issues to live tv. rishi sunak leads the pack but some mp's call for the return of former leader boris johnson. european stocks fall as u.s. yields spike and swaps price in

we have citigroup earnings those numbers as well, citi 1.63 earnings per share a big beat on estimate of 1.42, 18.5 billion revenue, estimate was 18 1/4 so, so far across the board jpmorgan very strong, citi very strong mixed when it came to morgan stanley we are going to talk about banks earnings all morning long going to set tone what is interesting dow up over 100 points futures indicated higher now turned negative here so we are going to dig into that a little bit more as we get this morning, going into 8:00 hour, of course, jpmorgan with double beat earnings per share revenue, wells fargo bacteria revenue missing on earnings, morgan stanley beating on earnings per share missing on revenue so a lot going on joining me now, chief financial strategist dick beauvais, dagen mcdowell was here, to ring the bell, i have jo, john by my side your reaction to mixed bag of earnings we've seen why you think futures turned negative on this last report. >> i think pretty clear that if you look at two critical numbers most important numbers you should be looking at banks earnings terribly negati

also have to mention this, citigroup flagged how there was a large trader at 11 a.m. the suggested there were portfolio level short coverings. >> does this really open the gates wide for the direction of the u.s. dollar? most analysts are now saying there is no way the fed could go less than 75 basis points and we could be in for another cycle of higher price pressures going into the end of the year. >> the dollar strength that is tied into the federal reserve and how they are aggressively hiking during this time, especially when you're trying to figure out where you put your money when you're looking the other currencies, investors are putting it toward the dollar but we did see the dollar easing today. that's important especially will missile yields spiking, we sought the market turn higher. when we talk about put options and technicals and short covering, yields easing and the dollar easing that had a big part in the market taking a breather. looking at what's happening with the bank earnings tomorrow, that's going to be a big sign. what does that mean for corporat

strategist at citigroup are overweight global technologies.he other school thought, if we have a recession, what technology -- what sectors fare better? many corners of the tech market have entrenched market positions coming to think of apple, amazon, microsoft have a very strong balance sheet weather that storm. it is a mix feeling, the consensus feeling -- that the fed will continue, we have moved away from the idea of a fed pivot where we see the fed dial down its rate increases and eventually start to cut rates. it is been a tough week i like to end things on the positive note, we were on the red friday, on the week the s&p 500 and had good weeks. >> of course we had to talk about chips, the market rattled by what amd had to say and samsung had to say. wrap it up. >> amd gave sales numbers that came in $1 billion below expectations blaming slowdown the consumer market. samsung this was the first drop in market since 2019, they are the biggest player in memory chips. we are going hard in the idea that they chip sector would have multiple ye

citigroup's analysts said it is not 2008.ill notice a lot of concerns that do include the spike in credit defaults. many such as -- tweeted out take a deep breath guys. being compared to deutsche bank, very different. the spread was twice as wide in 2011, both deutsche bank and morgan stanley came through eventually find. the big question is how the bank is going to pay for restructuring. there's a big restructuring strategy announced for later this month. analysts say it's going to take $4 billion. the bank is playing to sell off different units. they are still deciding which ones and how but many analysts are concerned it may not reach the $4 billion needed to write the ship and -- right the ship and put it on the path forward. how the stock opens will be very telling indeed. david: we will find out. su keenan out of new york. the uid surging to a fresh record year -- byd surging to a fresh record year. this is bloomberg. ♪ rishaad: we are looking at the moment, byd, seven consecutive monthly sales record for electric and h

this comes after criticism of jim bullard for speaking last week at an event hosted by citigroup.uld be seen as a violation. indonesia's central bank has raised borrowing costs by 50 basis points to stop the slide of the currency. most analysts had protected the increased. the currency has slipped since the september ratemaking -- rate meeting. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. shery: sources are telling us that the biden administration is exploring the possibility of new export controls that would limit china's access to emerging computing technologies. our reporter has the story. we saw sweeping action from beijing about semiconductors. what would this action be? >> we are hearing there is an effort to find and explore and find ways to limit china's access to quantum computing as well as artificial intelligence technology and software. this is really, regulators looking to stay ahead of the curve in terms of what is china or an adversary tryi

you've seen other firms to get step back in its own relationship with citigroup but apple was diving when it comes to its relationship with goldman sachs at a time when there've been a lot of questions around the consumer business in the face of a tougher economic environment. alix: is this how you rescue marcus? sonali: initially when they started marcus there were a lot of ambitions pray diversify the bank, make it more stable in terms of her earnings and then he saw the pandemic happened and the investment bank was the star of the show. consumer aspirations have been relatively muted but you have to ask yourself is goldman trying to be jp morgan in the first place. so you see marcus stepping along. the next rendition will be interesting. they already have more competitive saving rates than others but about $100 billion worth of funds in their savings accounts. it comes at an expense. want this to be profitable more than they wanted to be big and i think that's the big question how they do that. >> we get earnings out from goldman monday paid were learning about this now. we know m

officials and private events after jim bullard was criticized for speaking at a private event hosted by citigroupit could be seen as a violation on rules that avoid providing a profit-making firm with any advantage. 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. this is bloomberg. ♪ yvonne: coming up on "bloomberg markets: asia," traders expecting weaker renminbi after the party congress this weekend. rishaad: also having a look at the politburo standing committee by monday -- by sunday at what that could mean for president xi 's likely third term. this is bloomberg. ♪ yvonne: china's 20th party congress wraps up this weekend in beijing with a big mystery revealed -- who will president xi jinping place in key roles? for at least five years? rishaad: we are joined by chief north asia correspondent stephen engle. stephen: we can kind of predict how it is going to go because xi jinping has amassed what some would say is absolute power. he changed the constitution five years ago, abolishing term limits for

bank of america driven in large part to better results in its bond trading unit jpmorgan chase, citigroup, all take a sympathy bit higher and in the stock moving the day right now, now an s&p company, but roblox, the online virtual reality video game/augmented reality creation platform, if you will, tech company is up about 20 period of time after it reported user metrics that came in much better than expected over the same time last year, however booked by customers and users, also up about 16% 44% of its value to a bigupsid move in context for you at $43, significantly below where it was a year ago, and it's been fairly range bound for the better part of the last couple months. >> almost meta-esque it is m-- >> it is meta-esque. >>> our next guest says there's real value and, believe it o not, some of that value may actually be in europe. jason brady, president and ceo of thornburg investment management i saw value and europe in the same sentence that i thought, it's too early to be drinking. you're like on mountain time how are you finding value in europe when all they're dealing with

the rising interest rates and the dollar on corporate earnings results from pepsi and delta and citigroup and wells fargo. the kick noveoff to earnings sen let's talk about this with kamal bhatia kamal, the big question right now is markets have seemingly tried to price in all of the negativity right now it doesn't seem to be stopping what will stop it? is it cpi or ppi or corporate earnings that come in, maybe, better than expected >> dominic, good to be with you. i think the biggest change is the issue of inflation it is stubborn and permeated the economy. until inflation gets to a manageable level, it will be an issue for the markets. they are looking for more down side here with the cpi the last time until that adjusts, there will be pressure on market returns. we have seen the multiples adjusted this year we will await for the earnings given the pressure on the bond markets, it will be lower earnings than higher earnings going forward. >> this is the general consensus right now. it will be no price. surprise. it will be the only thing we have talked about for months the economic slow

private events, after criticism of james bullard for speaking last week at a private event hosted by citigroupllard's appearance could be seen as a violation of federal rules to avoid providing advantage to any market participants. adidas issued a profit warning as good pileup in china and western markets. the german sportswear maker expects an operating margin of 4%, down from 7%. the ceo has announced he will step down next year. 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. dani: jules, thank you so much. we are going to take another look at the runners and riders in the race to follow liz truss as prime minister. could boris johnson be making a comeback? we will also dive back into the european earnings story. this is bloomberg. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projec

the banks served are bank of america, citigroup, goldman sachs, j.p.organ, wells fargo and morgan stanley. leading this investigation is missouri attorney general eric schmitt who says the un's environmental social governance policies, esg, require banks to set carbon dioxide reduction in investment portfolios. that is all very subjective. joining us now is the missouri attorney general and missouri senate candidate eric schmitt. mr. attorney general, your state has already divested your state pension funds from places like black rock over these esg concerns, which is fantastic. explain how this move today represents the next step? >> missouri is leading that investigation with 18 other states into the six largest financial institutions in the world for this net zero banking alliance. it is in partnership with the united nations, with the stated goal of having a carbon neutral portfolio by 2050. that might sound good to the coastal elites. and might sound good on some term paper at harvard or some white paper roll at a liberal think tank. for the rest

in late 2007 and sunday night, chuck prince got booted from citigroup, the guy from aig, mark sullivanmeal got booted from merrill lynch, this is when we had a credit crunch and not a financial crisis, every one thought it was the end of it. the stock market, dow jones traded up to then historic high. then it plateaued and as soon as january came around, bond insurers, guaranteed the risky stuff, books and banks imploding, you then had bear stearns, tore the cover off, it went under because they underwrote all this garbage they couldn't sell enough of it and is now worthless as the housing crisis continued so the market missed all this and every bank is infused in the same stuff. it is a tsunami. this is different. what we have now is a wicked bubble in the stock market, risky stocks. neil: that bubble still exists. charles: it is just a matter of time. neil: they tell you what hasn't popped enough. charles: then you have inflation. according to my sources, i talked to fred watchers to watch what is happening, before the cpi, that is alarmingly high, saying two more hikes and in januar

citigroup is a perennial value trap and wells fargo you have to know more about their regulatory issueso i stay clear of it. i also want to make a comment. i see the goldman sachs is downgraded. i'm actually long that for myself, for some of my clients. i think people aredown grading some of these brokerage firms far too much. goldman would be my favorite. i would say think forward and remember in another year or so, these mortgage rates will have to come down, the fed will have to get their foot off this gas pedal and we'll see better times but market will price that in months before it happens. cheryl: with goldman sachs in particular, the thinking goes in particular with goldman, it is investment banking revenue, it is commodities, it is fixed income trading. all of that, it is not going to be a good quarter, not going to be a good year but for any of them. in particular goldman is a little more sensitive to that. as far as jpmorgan chase, i see your point. look jamie dimon is still running that bank and his comments about the economy, he has been very clear. the one thing i'm curiou

citigroup is calling it a 300-dollar stock. morgan stanley is saying 360 for home depot. bit of upside, right? mortgage rates at 70% mortgage demand is multidecade lows and housing demand is down sharply. stuart: i would thought that would cut into home depot's business, buying fewer homes, renovating fewer homes i thought that would hurt them. big tech on friday? susan: apple had the best day in two years. that news coming from china weighing on apple shares. meta coming off the worst week in history. you were talking with keith fitz meta might get to $50. it is dangerous to short meta at these levels. sub 100, that is price to earning ratio that is single digits. strip out what they're spending on metaverse and oculus, the prime business turns out a lot of cash flow. stuart: i never seen the collapse of such a huge company, stock price so rapidly. they lost 70% of the value. susan: when you're betting $60 billion on moon bet like meta and oculus in these higher rate environments that is dangerous. stuart: have we got a self-driving car in the news? susan: this is a inte

we are waiting on jp morgan, wells fargo, citigroup, morgan stanley reporting for the window into the sector and the consumer, on tap september retail sales are out this morning, 8:30 a.m. along with import-export prices. the dow seeing best day since november 2020 with dow industrials move up 821, nasdaq was up 232, s&p 500 higher by 92 reversing all of an earlier selloff. mean while president biden oblivious to worse than inflation report yesterday in los angeles and instead touting his own spending which got us to 40 year highs in inflation. >> a lot of people are hurting these days. today's report show progress and overall inflation was 2% over the last 3 months. that's down from 11% over the prior 3 months. that's progress. inflation up year over year. take a look at price of oil pulling back 93.91 and 88.39 on price of crude oil. european markets right now are trading this way, the ftse 100 is up 68, cac up 66 and dax index higher by 84, british pound, bank of england prepares to end emergency bond-buying program, the pound right now at $1.239 and green across the board, althoug

minutes the big banks reporting earnings tomorrow, we are er going the hear from wells fargo jpmorgan citigroupning us piper sandler chief investment strategist michael kantrowitz your segment of third-quarter earnings season. >> finally seeing earnings estimates next year decelerate more rapid paiz, surprising q2 on the ground resilient a lot of was inflation remaining high global data that correlates best with how many beat on kwrl basis number of manufacturing pmis around the world 35 countries we look at mkz indices. >> how many below 50 q 2 only 14% very low in contraction, fast forward through september as of last month 57% of those global manufacturing pii's below 50 weaker guidance deterioration in earnings we think getting worse as each quarter goes by lag effects tightening spillover from weakened housing hit o domestically and global. >> they have to come way down peaked 251 next year down to 240 dollars earnings below 200 so we've got a ways having to, and scary thing everything fed has done hasn't shown up yet in pmis, hasn't shown up in earnings no o i don't think priced in, certa

you already seen this already been pricing with fedex and nike and even mcdonald's citigroup boarding any company with dollar exposure to the global economy is either warning or the streets telling you they're gonna warn the bottom line. earnings are going to come from that, say 2 35. down to 200 to 2 or five. that's a big hit, and that's why over the next year, stocks eventually move lower. okay hold on a second. so you just think then this rally that you're looking at based on the fed breaking is a bear market rally. things go back down next year is what you just said. yes because remember the baby boomers right now, maria, all your audience right now they've got about 74 trillion of wealth right? the millennials only have about six or seven trade. so it's 74 trillion of wealth. they you know they get hit by lehman. they get hit by covid. now the fed really doesn't have their back because inflation is hanging around. so even when, even when the fed backs away a little bit net net. a lot of those people want to get even and get out. so it's the market rallies and you can get, you kno

27 the s&p s&p up 35 nasdaq 78 banks earnings kicking off tomorrow, await jpmorgan wells fargo, citigroup of the consumer, in environment where we are seeing. >> crossmark chief investment officer bob doll great to see you. thanks very much for being here your take on earnings season for third quarter as really all year we've been looking for, evidence that we're seeing inflation cut into profits a profits recession what are you expecting? >> i think earnings estimates have come down, more than any quarter in recent memory, so people braced for somewhat worse news i still think going to have more disappointments, a lot of preconfections, as you know, price prirs give away to lower margins, raising prices only so far pepsi good number on that volumes weren't greatest pricing there you see more of that perhaps quarter okay but i think some erosion of profit margins therefor profit disciplines. >> at the same time, amatt lower bob consumer price index out 15 minutes' time expecting increase 2/10 of a percent month-over-month 8.1% year-over-year, of course, that is after the producer price in

citigroup saying the nation's biggest bank could be by at least $.30 from rising rates. j.p.of new york on the conviction buys. jeff, what do you think of the call? >> it is a name that has underperformed. the stock probably will pop. generally, i am not so hopeful about that if you are looking at a quarter. i think we put this chart together but just very quickly, banks tend to outperform when rates rise. we have this massive spike that we have had some outperformance but not as much as you may expect. my guess is once you see long- term yields peak, which i think they are close to doing, the economy starts. i think you lose that support for banks through the higher rates narrative that is propping them up and pulling up in the relative performance goes away. i would not be chasing out this performance. >> on your op domestic. that is all blown out of the water. >> the stocks traded a two-year low on a 104 and change. i think it can continue to rally in earnings without question. in terms of valuation it is probably the cheapest it has been since the financial crisis. i was

citigroup cutting the price target from $30 down to 27, intel is at 28.38, the bank did maintain a neutralng on it. and checking our chip makers, marvel, invid is bl, nxp, down anywhere from 2% to 3%. >>> so much for elon musk's soothing promise to advertisers. advertisers fleeing at this hour from twitter after a weekend of elon ownership unleashes a hellscape of racial epithets and a retweet by musk even he had to censor. yes, he censored his own tweet. what must the new twitter do to lure back ford, mazda, dyson and the growing list of brands that flew away this weekend alone? we're going to explore that straight ahead with a top advertising martty pants, barry frye of dpaa. closing bell ringing in 29 minutes. we are coming right back. ♪ ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. sometimes you're so busy taking care of everyone else you don't do enough for yourself, or your mouth. but eventually, it will rem

and i ask add to that, citigroup cut its estimates on macau -- stuart: what is with china and this zeroolicy? lauren: i know. i wonder after the weekend if they start to loosen up a little bit. maybe they just immediate to get to that and then they can loosing up and meet the world where the world is because this is hitting their economy. stuart: it sure is. rivian, they're down sharply now. lauren: they've recalled nearly all of their vehicles, let's say 13,000. at issue is a steering fastener. the rivian could essentially lose control. they're not saying don't drive it, but this is definitely a pr problem, a recall for this many vehicles. stuart: okay. i see carnival is on the list. i'm not particularly interested in this -- no, or wait a minute. [laughter] i don't know why it's down so sharply, but i know you're going to tell us about them fining unruly customers. lauren: i just always like to give you a cruise line story. it's down 6.6%. that's pretty massive. stuart: that's got nothing to do with fining -- lauren: we've covered all of them, all those fights on all of their ships. e

as you know over the weekend and today a slew of analyst reports and jopmorgan and citigroup are saying essentially we view their capital, credit suisse's capital as healthy, you know, as leslie g just alluded to. now, i'd be remiss if i didn't mention the great majority really, the other analysts looking at the jeffries and kbq say to a certain extent, you know, perception bleeds into reality, at least as it goes into the cds, which is flashing warning signals here, and they do believe that, you know, the bank will be forced to come up with capital as part of their restructuring plan as we know is supposed to be released october 27th f it takes that long. one of the issues they talk about -- or specifically in terms of the size of the amount that they'd have to raise, up to 6 billion in credit, you know, in swiss franks according to kbw. >> what was it about credit suisse's portfolio or their investment tactics -- whoever wants to take it, raise your hand -- where did they get into trouble? >> with credit suisse there's two specific stories there's the credit suisse story when you have

wes, army veteran, rhodes scholar, finance person working at citigroup. ceo of robinhood.o experience already. neil: what do you look at, don? i know we promised we would talk about the midterms, we are, but you do have a knack for this. and i, i just wonder what you see or what you look for? >> the future. who is looking forward. who has new ideas. i mean clinton was all about new ideas and looking forward. neil: yeah. >> who would be moderate to be able to cast a wider net and a bigger tent. and who has the personal charisma. who can be likeable. who can be inspiring. that would -- neil: how do you split that hair, let's say in a race like pennsylvania? >> i think in pennsylvania you have other circumstances happening. one it is a swing state to begin with. neil: right. >> two, the democratic nominee had a stroke. he is has not weared well in the recovery during the campaign. you have trump's overwhelming influence with dr. oz in that race. if it wasn't for that, and oz was a bit more moderate he would be running away with this. ultimately i think he is a likely candidat

you got jpmorgan, you got citigroup, morgan stanley, wells fargo all reporting before the opening bellrs are bracing themselves for less than positive results amid mounting economic macro worries. with jpmorgan's ceo jamie dimon telling cnbc just this past week that a u.s. recession is likely to come within the next six to nine months. all four banks, by the way, that are reporting this morning are down between 11 and 30%, just so far this year to date. for more on what to expect now, let's bring in steven bigger, the director of financial institutions research at argas research thank you very much for joining us this morning. this is a very big kickoff to big bank season. i remember the days when it was maybe just jpmorgan and/or wells fargo that would kick things off but now we have four of them what are you looking for this morning? >> yeah, good morning, dominic it is going to be a big day for bank earnings, just the way the calendar works we have a lot of big banks coming out today the headline results i think are going to be pretty scary, down, you know, as little as 10% for a na

we're waiting on morgan stanley and citigroup earnings out later this hour. how important are the bank earnings to the broader markets. >> i think they're very important. yesterday was a big day in the markets. a lot of people were like did anything change, is there anything new? you know what was new, european banks were ripping and that to he me stood out. if european banks which you are some of the worst companies, the worst stocks on the planet, if they can even knock them down and regional banks opinion in the united states showing relative strength, i think financials in general are a place we want to be going into the end of the year. maria: the market is down year-to-date, but you say we're in a bull market. >> the first thing stocks need to do before they the can go up is to stop going down. in june, stocks stopped going down. the lows list peaked. a altogether had of the worst stocks and sectors bottomed. financials are above their june lows. consumer discretionaries are above june lows, healthcare, a lot of stocks and sectors are above the june low

then for banks, which actually did quite well in earnings last week, citigroup, that's your pick? in their heyday right now because what they're doing is you're depositing your money. they're taking your money and they're loaning it for 7% and that is what is called net interest income. jpmorgan made $17 billion net income, the difference between what they pay for deposits and what you pay -- liz: not buying it at the high. it is down 25% year-to-date. >> yes. liz: jeff, we got to run because it looks like the dow jones will close above 32,000. so they have retaken that. i know it's a round number but with a gain of 195 points off the session highs but still making it five in a row for the blue-chips. [closing bell rings] there you go, dow 32,000 that does it for "the claman countdown." friday we have a big day on the "countdown." be sure to join us. larry: hello, folks, welcome

earnings driving those stocks higher and helping trim losses in the broader market wells fargo, citigroupstimates morgan stanley is bucking that trend. it had top and bottom line misses driven by weakness in its global wealth and investment management business. >>> kroger is buying rival supermarket chain albertson's in a $25 billion deal that deal combines the company's two largest stand alone grocery companies. the merged firms will still be number two to walmart's grocery operations. >>> consumer sentiment is up this month and well above expectations, even as inflation expectations worsen. september retail sales were shy of estimates they came in flat as higher prices for rent and food limited the money available for other things >>> and british prime minister liz truss has abandoned a plan to cut corporate taxes she also fired her treasury chief but said she has no intention of stepping down herself. the british pound is down against the dollar for a second day in a row guys, carl, send it back to you. >> contessa, thanks very much. amid these up and down markets, our next guest says

now, the bank served our bank of america, citigroup, goldman sachs, jp morgan, wells fargo,ag and morgan stanley. now, leading this investigation is missouri attorney general eric schmitt, who says the un's environmental social governancer policies require banks to set carbon dioxide emission reduction targets in portfolios. >> but of course, that's all very subjective. ating us now is in missouri, attorney general and missouri senate candidate eric schmitt. mr. attorney general, your state's already divestedpe your state pension funds. over these esg concerns, which is fantastic. explain how this move today represents the next step. >> so missouri's leading that investigation, as you said, laura , with 18 other states into the into the six of the largest financialncial in institutions in the world for this net zero bankinstn theg al, which is in partnership with the united nations, with the stated goal par of havo a carbon neutral portfolio by twentn neutray fifty .d to and that might sound good to the coastal elites. it might sound good on som. e a term paper at harvard or maybe even s