citigroup coming up. a lot more questions around citigroup.ur to date, and when we talk to investors about where they see the opportunities, here is why. j.p. morgan shares up 11%. when you compare that to nvidia gains, you will say why they underperforming if they are continuing to deliver these results. wells fargo up 6%. do you start to see more investors rotate into financials because of the sheer revenue from the interest increases we have seen from the fed that they do not have to pass along to depositors? evidently depositors do not need to get paid. jonathan: you are very passionate about that. lisa: that is one of the key questions because this gap is taking money from depositors. jonathan: any other business we would be like they have to make money, but when it comes to banks we are like pass it on. lisa: it is personal. you think about these ballooning deposit accounts, you're giving them free money and they're making bank with it. tom: one of the first things i heard was from a banker of a tiny bank and i said why have emerged with

citigroup up 1.33%, wells fargo higher by 3.33%.n and goldman sachs and, remember, it has been a big quarter for the markets, and we will likely see capital markets activity picking up in those companies. also next week we'll get the june retail sales number on tuesday, housing starts and is building permits on wednesday. and don't forget to tune in to "sunday morning futures" this weekend, i will have an exclusive interview with former president donald trump. we'll cover corruption within the fbi allegations, bidenomics, the 2024 presidential race and, of course, how he is dealing with all of these lawsuits and two indictments in the face of running for president. rebecca, some final thoughts. kick us off. >> well, obviously, today the dow is up because of chase, jpmorgan, we know that is skewing that town identity side -- upside, but nasdaq has had the best first half of the year start in 40 years, and on what, maria? the fundamentals are so tight right now, i think we're still going to have some problems ahead, and we should prep

citigroup and now this big head to goldman sachs.igroup and now this big head to goldman sachs.— in citigroup and now this big head to goldman sachs. if you zoom out from all of — to goldman sachs. if you zoom out from all of this _ to goldman sachs. if you zoom out from all of this the _ to goldman sachs. if you zoom out from all of this the bank _ to goldman sachs. if you zoom out from all of this the bank ceos - to goldman sachs. if you zoom out from all of this the bank ceos are l from all of this the bank ceos are breathing a sigh of relief because in part by there may have been disappointing news within the numbers and resort trading revenues taking head because last year there was also taffy on the investment banking side as well, the big picture is relatively they have weathered the storm we saw affecting smaller banks pretty well. that doesn't mean they aren't focused on the future in the future regulation that might be coming their way as a result of requirements to hold more capital, that is a live discussion. but i think

lizzy: bank of america and citigroup said fast -- the fed's stress test got it wrong. city says it is too gloomy and bank of america says it is too rosy. yousef: look, when i think about what happened the bank stress test what stands out to me is this whole struggle with getting clarity and visibility on the health of the financial system in the united states. that story is far from over, and this debate between the fed and citigroup and bank of america needs to be sorted out asap in a year we have already had plenty of surprises right, christine? christine: absolutely and it is difficult for banks let alone policymakers trying to get a handle of how it will shape out for the next six months because at the start of this year, the narrative was that we will all end up in a recession across major economies by the end of the year. then temporarily we had a narrative of perhaps there will be immaculate disinflation that happens. a soft landing or no landing scenario. now we are back to contemplating a bit of an economic slowdown especially in the u.s. we are seeing signs o

matt: they say citigroup is still rightsizing the investment bank.'m sure a lot of managers across the street are looking at whose doing well in news not. what will we see in terms of headcount this year? >> going into next week with morgan stanley and goldman sachs, we will see some severance costs there as well. i think we are going to see some continued headcount reduction but keep in mind that headcounts stayed up through the pandemic. there is some natural rightsizing from there as well but we did see a pretty meaningful drop in investment banking and it's now 25% year-over-year for citibank. it was only down single for jp morgan. quite a bit about performance there. what we are seeing is june was one of the stronger months of the quarter and we are seeing announced m&a pickup quarter over quarter so we are seeing some green juice happening which may limit the downside in terms of letting people go but we expect that to be a theme this quarter. matt: thank you so much for joining us. the banks will kick off this earnings season. in the crypto wo

apart from citigroup, investors have got to be happy with these numbers.king about numbers after a period where we stop a banking crisis that we had not seen since 2008? it crisis that we had not seen since 2008? , , . ., 2008? it is such a diverging path we're are on- _ 2008? it is such a diverging path we're are on. three _ 2008? it is such a diverging path we're are on. three months - 2008? it is such a diverging path we're are on. three months we l 2008? it is such a diverging path - we're are on. three months we were waking _ we're are on. three months we were waking up _ we're are on. three months we were waking up to— we're are on. three months we were waking up to the possibility of a real thing. we are seeing these impressive numbers with the big banks, _ impressive numbers with the big banks, what will be interesting to see is— banks, what will be interesting to see is what happens on the regional side of— see is what happens on the regional side of things and may all the profits— side of things and may all the profits in— side of things and may

citigroup's rose almost 1%.e difference between the biggest of the big and in the middle of the pack. lisa: just to put about on that, pnc financial sees third-quarter net interest income of 3% to 4%. so compare the two numbers, completely different ballpark. we are seeing the average loans in the third quarter were down about 1%. pnc was consider the most strong and best positioned of the regionals. what does this suggest of the smaller, less well-positioned firms? sonali: you see the small and medium-size lending and you have seen this in the fed data so it should not surprise anyone so watch. it is granular, bank by bank. loan demand is not looming on its own. the businesses we have been talking about, credit card businesses you see a lot of money being borrowed from the banks. it is not the texture of loan you see from a bank like pnc per se. lisa: what are you looking for? will it be cost of capital for some of these firms? will it be loan demand, or will it be a lack of competitiveness at a time when the b

are gearing up to report quarterly earnings today jpmorgan chase, citigroup, wells fargo and blackrockill release numbers before the bell with investors watching to see if lenders can sustain a record net interest income. expectations with low for the earnings season with analysts from refinitiv forecasting a 4% drop from the sa&p 500 companies philipi is joining us now. this is one where the banks say we reap the benefits for some time now, is this the last chance for them to make the higher rates >> yes, good morning we are nearing the peak in the net interest income. we see jpmorgan chase and citigroup announcing full year higher net interest income i think as the fed naturally slows down the pace of hikes and perhaps some people in the marketplace in july say this is the last time we need to see and that net interest income will eventually plateau and we peak for the cycle. >> they worked on tightening lending requirements loan losses are bound to increase in the period are we expecting those to really be achilles heel this time around the banks would have looked at the capital req

citigroup, not so much. we take a look at what is happening with the s&p 500, this is surprising.ast year's bear trend, some i thought we would see is a consolidation as we have seen. s&p 500 index officially breaking out of yet another rage, let's be fair. i think we could see consolidation. one reason for thinking that remains apple. apple is, despite the s&p 500 being higher in the week, apple is down .1%, down for the second week in a row. this is the biggest component to the s&p 500, almost the nasdaq, that is the worst losing streak or apple going back to january. >> interesting, apple is not playing ball. speaking of that, one of the things we are watching today is the nasdaq rebalance announcement. this got attention when we heard they would be balancing because of the weight of the magnificent seven. they are likely going to change the percentage of them. we find out what is today. like 24th, we get the actual figure of the actual change of when it happens. >> this is going to be around earnings season. getting a clean read is going to be tricky when it comes to the magni

citigroup is on the right course.stable or healthy economy, is a pre-good picture for banks. jonathan: that is the view of ken leon following earnings from jp morgan, wells fargo, and citigroup. tomorrow you'll hear from morgan stanley and bank of america. tons of regional banks you've never heard of that lisa abramowicz has talked about a few times. in the equity market a bit softer. not going anywhere. a quiet sure in the equity market. in the bond market we just resumed this move lower. the 10 year at 3.78. euro is positive against the u.s. dollar. 1.1236. over the last couple of days do highs for the year, new euro strength for 2023. tom: bloomberg surveillance committed to giving you the best of the earnings season. lisa driving forward our coverage. we are thrilled with our coverage friday of the big banks and we'll have more coverage tomorrow. jonathan: looking forward to it. tom: wednesday, big banks. then we are done. our guest understands this american banking system like no one we speak to. off the march sh

, morgan stanley and wells fargo, citigroup and j.p.rgo will be reporting the second quarter earnings before the opening bell. morgan stanley will report in the coming week. joining me chief equity market strategist phil orlando. it's a big day for the major banks reporting and usually sets the tone for markets, what he expected. >> the major banks are getting be in good shape our bank analyst think the money centers will be fine more broadly the regional banks may be struggling a little bit but taking a step back and look at the broader earnings picture we think it could be a tough earnings season. revenue is going to be down about 3 tons of 1% this year versus a 7.5% increase in the second quarter and year ago. this'll be the first to climb in revenues overall for the s&p 500 since the third quarter of 2020. on the earning side earnings are expected to be down seven and half% that is versus the seven and half% increase in the second quarter and year ago. this a be the third consecutive decline in earnings in the fifth consecutive decl

is 54 billion for the year for citigroup.ook value. jp just raised their net income growth for their full year, so did wells fargo, by the way. their core capital, the cet1, they have $1 trillion in securities and expenses in the quarter were much better than expected and jp, they execute in challenging times. wells fargo, their net interest income group 49% and their net income has been increased to 14% from 10. a tad higher on the full year on the guide there. overall very solid results from jpmorgan and wells fargo citigroup, eh, okay. >> as we see rates come back down a little bit, even though the banks are so diversified, they're not reliant per se solely on net income or where rates how high they go but they sort of trade like that. at what point do you start getting worried when you're seeing declines that we've seen just in the past week with yields in. >> well, i think you'll see net interest income go higher or maybe not as high as we just saw in terms of the revisions but i think they'll stay strong. net interest m

and citigroup lowered down 1.8%. despite all of the banks beating estimates.rs are not as happy as they had been digging into the results. on the year of the stocks are underperforming. i do not think it will hold true anymore. it actually is. what we look at in purple, the kbw bank index, the regional banks in there on the year at 17%. and the xls is slightly higher 1.3%. jp morgan probably helping out there. the s&p 500 up nearly 18%. 14%. and -- the nasdaq 100 up 14%. and he asked the question we you see this rotation into the bank? it is hard to say. finally, if we go cross asset, look at the bloomberg dollar index. we have a bid after a five-day slide. we will see if it holds any importance. the two year yield helping the dire -- dollar go higher. the vix at 20. that of course is the nasdaq 100 mix and it is a good .6 point -- good six points higher. some investors are concerned about what could be ahead for big tech. dani: the two-year getting pummeled by those numbers. thank you, abigail doolittle. what she was talking about, earnings gets into the ques

citigroup saying we will raise this.ic here in terms of the bank saying we want to understand what's going on. they don't want to be in a position where they don't quite understand the stress tests at least till the fed is running the stress test. dani: citi still giving us payouts. in europe of great bloomberg story credit suisse wealth sent out a message to its staff saying get ready for this merger. it's my understanding that when the calling -- culling of credit suisse as it becomes ubs they want to keep wealth folks. what is that dynamic of integrating credit wealth into ubs? >> ubs are doing their best to keep as much as possible. various stories in the last few weeks about how they are trying to retain those managers. if you have a wealth business, the key are the people who have those ins into the richest people in the world in some cases. i found the story interesting. a lot about how the job cuts will be. this goes to show there's definitely opportunity to stay around, but again this memo was not perhaps sort o

>> citigroup is still a longer term turn around we have a whole rating on citigroup.he u.s. there was disappointment with the largest one in mexico, where they have to go the ipo route. so we do have a hold on citigroup. where we're optimistic is possibly the second quarter will be the trough of the investment banking cycle. so names like morgan stanley and goldman sachs, which have led, we think have upside opportunity later this year into 2024, which is why we have strong buys on goldman sachs and morgan stanley where it is down significantly in march when we upgraded the stocks. >> are those your favorite stocks at this point >> they are. just because i think there is a higher delta coming from the investment banking area, where they're ranked number one or two. >> all right, ken, thank you fo your time today. we appreciate seeing you. >> thank you >>> all right, this is here. >> the tip jar you think there is a moral duty to tip here at "squawk box" i have a moral duty at certain places where i -- >> i'm not sure. >> we get accused of -- >> this can be construed a

haidi: citigroup global market ceo paco speaking to bloomberg's sonali. you the latest from the corporate front. citadels first trading revenue slid from last year. sources say the firm generated 2.7 3 billion dollars in revenue in the first six months of the year after a record 4.2 billion dollars in the first half of 2022. citadels saw a volatility it fueled surge last year as rate and recession fears generated trading windfalls. ubs will pay about 387 million dollars in fines related to misconduct by credit suisse in its dealings. ubs has agreed to pay 268 point $5 million for the unsafe and unsound credit risk management practices at credit suisse and a consent order with the fed. u.k. regulators have find ubs a record penalty of $112 million. bloomberg learned apple is asking suppliers to produce around 85 million units of the iphone 15 this year, roughly in line with reduction orders in 2022. the company will hold shipments steady despite projections of a decline in the overall smartphone market. the tech giant is considering raising the price of it

import prices and a preliminary look at consumer sentiment earnings from jpmorgan chase and citigroupargo and blackrock out before the opening bell we have are a number of catalysts for the markets today with the s&p hovering at the 4,500 mark for the first time in a year for more if the markets grind higher and the trading day ahead, we have tiffany mcghee with pivotal advisers great to see you >> hi, frank. >> tiffany, can the markets grieb grind higher we have so much conflict data. rate hikes and inflation still relatively high. why do the markets continue to move higher? >> well, listen, right now, there is euphoria in the markets with the decrease in inflation we expect the fed is likely near the end of the tightening campaign the reality is we don't know we think about the fact the fed has the mandate and the wage growth is strong 4.4% right now it probably needs to be closer to 3.5% in order to support the fed's 2.2% inflation target. >> so with some of that mystery around the market, as you describe right now, what is the "wex word of the day" today? >> my wex word of the day

jpmorgan chase, citigroup and wells fargo. for more on the week ahead, let's bring in dan varu at palisade management capital. >> good morning. >> we have market movers cpi and ppi and bank earnings. how do you tell your clients how to prepare >> we will have volatility, frank. in the pre-earnings period where companies can't say a lot about the conditions in businesses analysts are free to lower price targets and change earnings gui guidance i expect we're in the period, i call it the pre-earnings kabuki dance where stocks move around, and the reality is set in when the company actually reports and talk about the conditions in the respective industries and busi businesses >> we see forecasts for the third straight quarter of earnings declines. how do you see that playing out in the market with very important earnings with the big banks coming up this week and a sense of the credit situation in the market >> liquidity conditions are changing and changing rapidly. i don't know if the market fully appreciates what is happening s

that type of depends on the win is well, the cop, the americans are based in new zealand. citigroup stages which start next saturday, along with italy in portugal, they received the traditional mallory. welcome on the title. how does start the world kept campaign on july 22nd against tournament david tones vietnam across the tomsman sea in australia, the english squad is in brisbin as they begin that campaign to add. another major trophy to last year is european championship. tom, generally from dw sports, is that while australia, sunshine coast isn't necessarily leading up to, it's not even in terms of whether it's often noon. the facilities here at the sunshine coast stadium still leave nothing to be desired. now it was here last night that england faced fellow trophy, hurtful canada in a final pre tournament friendly, which ended in a new meal. joel, that is not a bad result for the line. this is who of course have traveled to these tournaments severely depleted by injuries. big names like best made annually a williamson. i'm missing from the squad and those 2 were of course instrumenta

the earnings front, it is reporting season for corporate america and major banks likejpmorgan and citigroup—quarter results on friday. analysts will be looking for signs of resilience after the recent collapse of smaller lenders like first republic and silicon valley bank. the sector's biggest crisis since 2008 has shaken investor trust as small banks struggle to survive against the aggressive rate hikes cycles. in march 2019, an aircraft with 157 people on board crashed minutes after takes off. the aircraft, a brand—new boeing 737 max, was equipped with control software that was fatally flawed. boeing has since admitted responsibility, but under a controversial $2.5 billion deal with the us government, it avoided prosecution. today, after many years of delay, an inquest will begin into the death of three of the british citizens who were aboard the plane. for their relatives, it is a landmark moment. that was the day he came to see you when you were born. do you remember bringing him? yeah. that was special, wasn't it? he was so chuffed that he had a little brother. old memories are bitters

matt: let's bring in citigroup global markets analyst itay michaeli.e joins us to talk about this lay. we should preface this by saying ford did much better than expected on the top and bottom of my -- bottom line as a whole. they will lose $4.5 billion on the ev line and we thought it was only three. why is that? itay: it was in the ford commercial and fleet but the big news was the setback in the model ev vision pair they widened the loss. . we have seen slowdown in u.s. ev adoption in the second order. with a part of that relates to slow regional dispersion of demand outside the strong coastal regions in the u.s.. some of the ford vehicles they swell in dealer inventory. it is still early days in the 40 ev. the late iteration isn't due out until next year -- in the ford ev division. the late iteration isn't due out until next year. within the company is trying to be strategic around company acquisition, increasing the f-150 lightning capacity. that relates to their desire to maintain a strong position in the pickup truck profit. matt: a number of ot

does citigroup look at this as a weak economy?s cycle is so different than some indicators of weakness. they are not working the way they have historically. one example jonathan was talking about before is manufacturing. manufacturing, ism, so the contraction is usually a good indicator. housing is usually a good indicator of recession. tom: in the continuum, as dominic constant mentioned from mazzulla, is the pandemic --dominic konstam from mizuho, is the pandemic part of this? and rico it is a common statement that central banks should focus on the demand and not the supply-side. you have to focus on where is the demand relative to these playset? fish the supply-side? a lot of these are structural and will be with us for some time. tom: -- jonathan: i am looking forward to bookmarking the address from chairman powell and jackson hold month with the address from last year, to comparing where unemployment is now. we are looking for this to come to 3.6%, where is basically where it was when they talked about causing pain. tom: this

citigroup lifting their target. alexandra: morgan stanley's mike wilson, one of the staunchest bears on wall street, appeared to be showing signs of capitulation. he is someone who sees the s&p 500 ending the year at 3900. a substantial drop from its current levels. and of course, he missed out on the rally we have seen in the first half of this year. you cannot overstate how significant it is for someone like mike wilson to change his outlook. he said today that he sees the u.s. stock market resembling the rally we saw in 2019 when the s&p 500 returned that to investors after a down year. he said the analogy implies more upside. he is someone who has continued to maintain his call for an earnings recession. he said that they ai you euphoria is unlikely to last. last week, he admitted he was wrong and is saying he sees more upside. that was followed by a change in citigroup's price target, scott krone revised his s&p 500 year-end target to 4600 from 4000 previously. last month, he said as enticing as it is to follow

let's bring in tyler radke, the cohead of the software department at citigroup.hat a time to be a holder of microsoft shares. the stock performed phenomenally . would it do as well felt the positive developments in the activision blizzard takeover saga? does it matter to shareholders? tyler: the largest deal in microsoft history almost doesn't matter. the driver of the stock has been opportunity around generative ai. you saw product announcements and new pricing, specifically on copilot which is responsible for sending the stock up five or 6%. they are more focused on the enterprise piece of the business, the extent activision closes, take that uncertainty out of the way and it creates a cleaner set up for the stock. bottom line, folks are excited about ai and opportunities and particularly to their 365 business. amber: what percent of microsoft's huge base could beat migrating over to the ai platform and how much of it comes from new customers altogether? tyler: if you look at the office 365, the productivity, it is 300 million monthly active users on various fo

on the earnings rate, it is reporting season for corporate america and major banks, jpmorgan and citigroup friday. analysts will be looking for signs of resilience after the recent collapse of smaller lenders like first republic and silicon valley bank. the sector's biggest crisis since 2008 has shaken investor trust as a small banks struggle to survive against aggressive rate hikes cycles. an aircraft with 157 people on board crashed minutes after takes off. the aircraft, a brand—new boeing 737 max, was equipped with control software that was fatally flawed. boeing has since admitted responsibility but under a controversial $2.5 billion deal with the government it avoided prosecution but after many years of delay and inquest will begin into the death of three of the british citizens who were aboard the plane. for their relatives, it is a landmark moment. . ., , landmark moment. that was the date he came — landmark moment. that was the date he came to _ landmark moment. that was the date he came to see _ landmark moment. that was the date he came to see you - landmark moment. that was the

citigroup is calling receivers in south korea. receiver rates profit when market rates are falling.s profit on this whole view of easing inflation, easing rates moving forward, we see the long-duration calls. bonds for mexico, brazil, czechoslovakia, as well as south korea. shery: when it comes to southeast asia, you think they are doing better than expected and things are not as fragile. what does that mean in terms of the rate trajectory for some of the central banks? >> in line with our forecast, southeast asia equity markets have, you could say, gone down by 4% in the first half, marginally underperforming the global equity markets. in terms of asean or asian central banks, they never hike as much as there em counterparts, even more benign. there are also fewer cuts. fed has taken a pause in the june meeting. based on that, we are seeing a pause from the majority of the asean and asia central banks. in case there is a comeback, there could be a risk. right now, asean central bank remains towards the end of the second half. haidi: rajiv, what do you see as the impact of china? tr

and your viewers in the reports what jpmorgan has to say about the regional banking system, what citigroupt the regional banking system, because despite the fact that i sold it, i actually want that to perform well i mean if you're long the stock market, particularly in cyclicals, you don't want a repeat of the regional banking crisis for march. >> jpmorgan, josh, yours is the best year to date up 9.5%. citi is up 2 goldman, morgan stanley, bank of america, all down. year to date jpmorgan not. >> i think investors in this sector have prioritized quality and safety more so than they've been excited about any particular banks like world story. this is definitely not a year for people to want to take a lot of risks with this space given how quickly interest rateses have risen, s the scare in marc. what's the risk to a jpmorgan or any other banks like what are do you worry about? if we get a meaningful uptick in delinquencies in credit cards and auto loans that's the thing that gives these stocks a haircut. but it hasn't materialized yet i know a lot of people have been expecting it, and again

degree you saw at those institutions >> one other thing you brought up last week was a long-term citigroupppened. i don't know if we have the chart from last week that we ran, but there was a 1-for-10 split. that's still a $4.80 stock there were two guys. one guy was named chuck, one guy was named jamie before and true wrote his book what was the difference between chuck and jamie? >> i think it goes back to your initial question it's risk management you saw prior to the financial crisis was citigroup take on a loss of risk, subprime mortgages and completely mismanaged the balance sheet. it can wreck a financial institution. in the case of jpmorgan, didn't take on concentration risk, managed appropriately and sailed through the crisis and you're seeing those with stronger management teams are outperforming those that don't have the same -- >> okay, who is sitting on a lot of commercial real estate that could be a major problem >> we focus on the top-20 banks which by and large are not focused in commercial real estate it's a select few. we we're as you go down the spectrums, there's a lot

more room to run and energy a similar situation wa chevron and banks e a similar situation with citigroup chevron is closely tied to the price of oil. >> 100%. thank you very much kristen let's talk about the fun stuff, zuckerberg versus musk. a lot of missteps by elon musk on twitter. i'm not sure threads was ready for prime time but meda says we have to launch now. >> zuckerberg came out swinging with the launch. it was actually threads downloaded in the 24 hours by 30 million people that is a record. it is up to 70 million now. elon musk does not like this, he is accused meta of stealing trade secrets, this is something that meta definitely has denied but the back-and-forth is on. jack: no question about it when we look at threads we should explain for those who have not seen it looks like twitter. ask differently but visually. >> it is a twitter clone and no one is denying that. i think zuckerberg has big aspirations potentially he said if we can get a billion people on this app we can really monetize this. that would be almost three times as many people on twitter so i think the bar

one thing he disagreed with james gorman, he thinks certain parts of citigroup could be impacted in re-thinktheir business and light of the standards. there will be years for this to be implemented but executives are starting to think about what might makes sense of this new capital regime. a lot of banks would might have to get out of certain businesses because of these new game rules. dani: i can't help with that project. so sorry, thank you for keeping us on top of the wall street b. with 30 minutes to go and cash equity trading. the driver for this is china. if you look underneath the service -- surface. the macro impact of friendly language coming from the public period has sent metals and commodities higher. when it comes to the euro, it is slower. the consumer data dropping lower than ever. that is troubling. you would usually expect a rise in bonds but the selloff has been pushed. you may not want to take too much of a position before a fed decision or an ecb decision. coming up, we will be speaking with peter chatwell from mazzulla international. that's coming up, this is bloomberg.

morgan, citigroup. is this putting strain on any of the infrastructure? something we will see more of? >> well, as a whole, the continent has done well. you have paris, amsterdam, dublin, frankfurt. all of us, i think all the financial places in europe have done well after brexit. for obvious reasons. clients are on the continent and it is easy to operate from the continent and to show the clients in -- serve the clients in the continent. that is why most of the staff has shifted staff and skills to the continent. bnp paribas is leading this which is positive for my point of view for various reasons. it will continue. you have raised a very important question which is the quality of financial infrastructure in the euro zone. we should never forget that since the decision was made on brexit, the competitiveness of the continent, the work has been delivered. in the continent, people are working hard to build up better, stronger, and faster financial infrastructure. time is running away, and with this, we see increased competitiveness. i know this is a debat

look at the banks, we been reporting yesterday and today, bank of america, citigroup, goldman on the j.p. morgan turned around and now is slightly on the downside. anything more? >> on the banks, no. soft landing is certainly possible, bank of america survey 68% of those surveyed say they will likely have this economic slowdown without recession and there's that subdued optimism of the. stuart: optimism and subdued, that's right. let's look at apple, my question here is close to a record high, 193. are there iphones selling well? >> up double digits year over year, is estimated 6 million iphones this year. for percent of every iphone sold around the world. number five behind the u.s. number one, top for market, china, japan and uk. now obviously supply chains to india to make the iphones closer to billions of consumers starting to buy them. stuart: apple 193. aaa, i know they've expanded to europe and i think canada, they go to the middle east? >> this is the first ever franchise partner for aaa, 3200 restaurants in the u.s. and they own all of them. it will be different when they go

citigroup saying beijing's official target set in march around 5% is now at risk. u.s.janet yellen telling us exclusively that china slowing growth could have ripple effects across the global economy. >> maybe countries depend on strong chinese growth to promote growth in their own economies. particularly countries in asia and slow growth in china. it can have negative spillover. for the united states growth is slowed but our labor market continues to be quite strong. i don't expect a recession. >> joining us from singapore, the ceo of global fixed income at blackrock. you are of the opinion the u.s. does not have to fall into recession. how does the worse than expected slowdown in china play? in previous economic cycles china has made the cyclical force of growth. >> thank you for having me on. when you try and assess your calculus for global growth, china throws a real curveball into your calculus. not only the growth dynamics, you look at inflation dynamics at the central banks, the developed market central banks are fighting. those inflation reports, cpi at 0% year

morgan, wells fargo, citigroup, concerns of a weighed bank stocks as they come online in asia.s down to the china data dump we are getting later this morning. there is a monthly activity numbers, second-quarter gdp figure, mlf decision that is due as well, at a broadly we are expecting it is going to be that distortion due to those effects from the shanghai lockdowns that was lifted, but bloomberg economics team saying expect further weakness and the need perhaps support for their support measures to come through from policymakers in china. shery: we are also watching policymakers at the federal reserve, market seeing whether a hike this month will be the central bank's last of this tightening cycle. let's bring in richard, a global economic advisor at pimco who previously served as vice chair at the federal reserve. great to have you with us. >> good morning. shery: what we are expecting from the fed, it seems like the july rate hike is already baked in, but how carefully will you be watching the port guidance, and what will you be looking out for? >> i agree with your assessm

federal reserve minutes today from june meeting -- the side into rate pause, from last month bofa citigroupith the bank your reaction. >> i am miss fooifd as i said they sat on sidelined silicon valley bank bank didn't regulate now applying pressure to some banks in good shape i think the fed says they paused because of debt ceiling, that is concern they face but i couldn't ins how they were raising rates in the face of banking default, problems that we have in march, so, i am speechless. joolt rare for you nancy tengler thank you for the being here this morning, morning mover, up almost 5% premarket electric car company reporting over 12600 deliveries neck quarter up 59% from last quarter expectations amazon doing to deploy 300 vans to germany next few weeks as part of 100,000 vehicle frommed 2019 the stock down 7% over last year. >> coming up, no rest for the 2024 hopefuls candidates campaigning in iowa, new hampshire one big name did not join them we've got a big name former arkansas governor presidential candidate mike huckabee going to break it all down for us, he is coming up next on

major banks like citigroup reported they are setting aside more money to cover to link one sees.ion rate for auto loans rose to 14.2%, the highest level since this data was first collected. rejection rates for credit cards jumped to 20 one. 5%. there you go. one in five or thereabouts being rejected. they are stingy with the money. stuart: here is another one. some stores are taking drastic measures to deter shoplifting. show me the chains. ashley: can you believe it? shoplifting has become so bad in san francisco that some stores are pad locking freezers and tying metal chains to make sure the doors remain closed overnight. robberies up 15% in san francisco. a target store in the bay area estimates it has been shoplifted every ten minutes. even lower value items like toothpaste and tissues are now kept under lock and key. workers have reported a problem with thieves coming into the store, as many as 20 times a day to fill their bags full of products. not surprisingly people are moving out. retail giant nordstrom closing all their locations in the city, joins a long line of retai

over the next few days we will get the answers to many unknowns with jp morgan, citigroup and wells fargoking off. joining me now is jan patrick in frankfurt. good to have you with us. what is running through my mind is so much of the bullish narrative was interest income but now you have to pay to fund this situation. how important is today on nii? >> absolutely important. it always is but it comes with a double-edged sword for bengs because the benefits of having higher interest income is feeding into the other side of things and that is higher expenses on the interest side. especially with the situation we had in march regarding the deposit outflows an increase in competition around the retail money and in keeping deposits in their place. it is going to be interesting to hear from executives rather than the numbers how deposits are behaving and how the interest rates fight with competitors are going along. are they over or do they expect them to go further and lean into the earnings for the banks. manus: i think there are two other big areas, one is about the capital that is needed to

one of citigroup said recently it is an open question as to what exactly will be impacted.en question for the smaller regional banks because michael barr has said he wants this to impact banks from $100 billion in assets up and that includes banks like huntington, keycorp. then after that, it will take about a year for it to be implemented but you can bet something is going to be implemented that will erase the $121 billion built up. >> the latest on the capital rules. we have more related to banking. jp morgan will by $1.8 billion worth of mortgages to facilitate bank of california's purchase of pac west. sources say jp morgan has entered into an agreement to buy the single-family residential loans at a discount. it is not immediately clear if it plans to keep the loans or sell them to other investors. blackrock is making another attempt to enter india's asset management industry this time with the help of a billionaire conglomerate. a deal with the financial services unit will form geo blackrock. the two companies are targeting initial investments of $115 million each. bl

kathleen hayes is with us and citigroup says the slump in investment banking revenue is beginning to. we were told about the outlook for the banks trading operations. >> trading businesses are still good. if you compare industry revenues to what they were in 2020 or 2019, the numbers are higher. it is not bad. they look worse when you compare them to the past two years. they are still healthy. what drove the health is still around. we still have uncertainty about the economic situation. there is a lot of trading and readjustment of portfolios that has to happen. i don't think we have reasons to be negative about trade revenues in the coming quarters but the truth is, i don't know. >> some businesses say commodities have faced a falloff. how much of a structural headwind is that to the industry? we have a new economic regime. >> this is a positive part of the story because we have to remember we have had many years with zero rates. rates almost dead, little uncertainty about rates. we come back with uncertainty about the rates, we didn't have a rate to play with before. rates will con

ed morris, citigroup global head of commodities it's good to see you this morning, ed. welcome.ow about that we led the show yesterday, i said this we have never done before, with wheat, with wheat prices. we're a business network we don't do as much on commodities maybe as in the past on the good old '70s when we weren't around they're back in vogue. you picked the right job >> well, they're back in vogue, but we'll see how long that lasts. we did expect that the russians would stall on renewal of the grain deal they're looking for getting more access to their cash they're looking for some way to get paid through the swift system, and, you know, those negotiations are ongoing they can't really afford the reputational risk or the market risk that they have with their customers since developing countries largely in north africa including egypt so we think this is going to be a very short-term little battle that the russians are having in the agreement with ukraine >> i guess we do talk obviously -- we talk about oil every day. we put up that board we talk about stock futures, we

citigroup down 2.5%. jpmorgan, what have we learned today? beats, if you count their acquisition, so a pretty strong quarter for jpmorgan >> best in breed is exactly that rewarded for staying high up in quality. that's the right approach looking at the banks and financial institution that is will had be reporting. the reaction today is very interesting. clearly citi is not being rewarded for what we heard from them i think there was a lot of concern with the consumer at citi, large card balances being carried, much higher rates, somewhat of a little bit of a challenging environment. trading revenue down 13% two things from wells. the reaction so-so, muted. you have to have concern about them citing office real estate being week and then charlie scharf talking about the tightening even further. not unexpected what we got in terms of the reaction. jpmorgan is the quality name i think is where you're seeing the best performance i think what's important is to look at the trust banks today. northern trust down 5% and bank of new york around 7%. fe

there was one thing i want to ask joe about concerning citigroup's numbers.t of it annoyed by credit cards. ♪ ♪ there are some things that go better... together. like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you be better prepared for unexpected events. voya. well planned. well invested. well protected. this is american infrastructure, a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪ salonpas lidocaine flex. a super thin, flexible patch with maximum otc strength lidocaine that contours to the body to relieve pain right where it hurts. and did we mention, it really, really sticks? salonpas, it's good medicine. moving this summer? join the 6 million families who discovered a smarter, more flexible way to move, with pods. and now you can save up to 30% off until july 17th. whether you're moving across town or across the country. save up to 30% at pods.com today. i got into debt in

have a bank on the margin that has problems will this change dramatically the return for jpmorgan, citigroup, wells fargo i doubt it on the margins a little bit. put simply, these stocks are very cheap right now >> you're making some trim in the financial space. >> trim is really in jefferies because of a price move, a valuation we've seen 50% over the last seven weeks it's woken up recently and moved to one of the best franchises in the space. we're going to continue to own it the stress test should not bother these banks the two banks, wells and jp were among the best performers in the sp space, it was barely impacted in a severe downturn scenario you have that margin of safety and this pickup. they're able to pay less for deposits they hold all the cards, these banks. >> josh, the last word you own jpmorgan as well >> it funds itself cheaply, the difference between a handful of these larger banks we talk about and everyone else. i don't think that changes anytime soon i'm in berkshire hathaway. it's eight or nine points away from an all-time high set in march of 2022. obviously energy sto

i still believe in what jenny said the cyclicals, i still have a healthy holding in jpmorgan and citigroup will do well over the long run to joe's comments about the third quarter, i totally agree this is when air pockets form. >> can we throw up an intraday on apple that is moving on headlines i see on ai-related reports that apple is apparently building a large language model ai framework, that it's created an internal chat gpt style as well you can see the move in the stock as anything related to ai developments is sending any stock that delivers that kind of news higher and what we're witnessing here. almost $200 a share for apple which is up 2% we'll continue to get more on that as we have it i didn't want to wait any longer to bring you a headline that was moving the biggest stock by market cap in the marketplace and what we're really going to get going in the next few days >> i'm watching and it turns nvidia positive on the day as well there's optimism surrounding the financially strongest global companies in the world that are funding this innovation, this advancement from artifici

jpmorgan, citigroup wells fargo set to worth quarterly numbers friday could be market he movers president biden in uk this morning, meeting with king charles iii right now also met with uk prime minister sunak, all ahead of tomorrow's nato summit we are following the president, this morning. china ppi down better than expected, this after janet yellen went to china where she bowed to you communist officials, while doing so also did not rule out an impending u.s. recession. back at home we are about a month and a half away from first gop primary debate here is contender florida governor ron desantis with me yesterday with his plans on economic growth on "sunday morning futures." watch. >> way need to stop spending so much money, you have to open up american domestic energy production you also have to bring this administrative state to heel we need a president to come in and really, really clean house. maria: we are following it all this morning, all morning longing "mornings with maria" is live right now. . meanwhile, doj officials may delay hunter biden's plea hearing after explosive whis

the enablers of generative a.i., but we have gone a step further across the radius sector across citigroup> one of the adopters you say is financials. big earnings are coming up jpmorgan chase and bank of america as adopters specifically how do we see a.i. on financials and the rate hikes we expect change your thesis >> it is very interesting question i would say banks are looking at this as much more than a one or a two or three-to-five year trend. it is bigger and broader and strategic in stage if you look at the generative a.i. and use cases across various segments within the banking industry, it is quite significant. i do not necessarily believe the rates might influence the trajectory of generative a.i. adoption it is strategic. i think it will manifest itself across multiple use cases with banking and regional banking we talk about some of the use cases within the financials and fintech section. >> detailed note i want to get to the details in it you list a number of u.s. and international stocks with a transformational opportunity with a.i your definition meaning more than 20% of sa