he has had a vital unit as citigroup. institutional client group makes up about 75% of citigroup's profit. citigroup has a plan to break up that unit now. the financial times was the first to report this, calling it the most significant shakeup of citigroup's structure in years. they would split the key division into three parts. investment and corporate banking, global markets and transaction services. a spouse spain -- a spokesman from citigroup has declined to comment. the ceo says this would allow her to simplify the company. that should not come as a surprise that becoming a leaner organization is a priority for me. a lot of changes both at goldman sachs and citigroup. paul: bloomberg's su keenan there. elmore -- more earnings from coles, the supermarket chain. a narrow miss. full-year supermarkets comparative sales up 5.8%. we do of course have a bit of a situation with inflation in australia. there shares have been down 10.5% over the past year, underperforming the broader asx. in terms of outlook, we are still wai

10% overall at bank of america versus a 7% jump at citigroup.eeping up with the giants. guy: for all of the people at bank of america working five days a week? is that the difference? alix: [laughter] in the office? guy: sorry, in the office? sonali: what is interesting about the office part of the story is if you look at a bank like bank of america or citigroup, they are hiring across the entire globe. bank of america and citigroup backed off, and therefore has to account for all of that. i think you are referring to another very popular story on the terminal, which is about goldman reiterating its five days a week back in the office. during the commercial break you and i were talking, hasn't this been known? of course it has been known they want people back every day. at the same time you are watching other banks keep a stronger handle on this. the irony right now i think is that we are at the end of august and many of the buy side clouds -- clients are not in the office. any of them, aries, howell, they have work from anywhere policies. you h

citigroup paid 200 $50 billion of cdo's. but value got hammered. we do not have something like that now. credit has been stronger for longer. this is definitely an opportunity in the short term to look out for the big reveals coming mid september about the impact of basel three and endgame. but as bloomberg reported today, at least as that relates to regional banks, extra regulations are not as bad as many had thought. sonali: switching gears to goldman, they are getting out of that united capital business. we also reported that that green scale is entering the home stretch. they are working on their best final offers and have sold this market loans. you look over at jeffrey's and they say that goldman is getting closer to being a more durable and profitable business. are you sold that the job is closer to done for david solomon and john walter? mike: over the last six or seven years, goldman sachs has gone from wall street for straight. ash main street. i never thought that was a good idea. they have lost $3 billion and now david solomon wants to

matt: thank you for joining us, tyler from citigroup. i am matt miller.s is bloomberg. ♪ it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> the bond market has spoken. live from new york, i'm romaine bostick. katie: kicking off to the closing bell, we are looking at a rally. last week was rough. on this monday, the s&p 500 is up. its worst week since march last week. it's now outperform a big tech over

it is the second worst performer behind citigroup. fargo is up on the year after a massive selloff in higher years -- prior years. golden like citigroup is facing massive transformational questions in the middle of a tough economic environment where both firms are seeing pressure in trading. there is another story on the terminal about how currency trading has just fallen off a cliff this year after booming the last couple of years. without those fees, you better hope for more microsoft-activisions down the corner. [laughter] matt: sonali basak, our wall street star, thanks for that. for amber kanwar, i matt miller, this is bloomberg. ♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ (jennifer) ♪ the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don

>> it is like the world changing over at citigroup.arra was one of the most trusted lieutenants when you come to the strategy changes at citigroup under jane frazier. he led all of the institutional businesses including one of the largest trading houses on wall street, certainly a giant in the space of fixed income, rates, currencies, commodities. rates, currencies across the globe, the most global bank in the u.s. also he ran and oversaw the security services business. this is the business that deals with payments across the globe for many corporations. fintech companies and other banks. this is one of the fastest growing parts of citigroup that they are trying to get investors to focus on. a week ago, this is what paco had to say to me. >> they are getting more challenging in england and parts of europe. they will get more challenging in certain industries in the u.s. that is how we think about the world in 24, 25. along with the evolution of how capital gets provided, certainly, the higher cost of capital in tougher financial condit

tom: veronica clark, citigroup with a statement on resiliency.n a higher rate view. citigroup simply will not give it up. lisa: a lot won't give it up. they had it right for a lot of the year. the question is, when the disinflation we are seeing now is transitory and we will end up with higher oil prices and wages that fuel gains elsewhere. how do you get disinflation and a strong consumer and a robust economy? tom: it will be interesting to see. i am better than i was last week thank you for the many notes. do you know what i am drinking? lisa: tang. tom: tart cherry juice is what they recommended. lisa: for what? tom: respiratory well being. lisa: do you like it? tom: i am getting used to it. on goldman sachs, it is about jeff currie leaving. it does are more on that. i want to go to a story from six days ago, goldman sachs family office partner to leave because maybe that is a bigger story. an expert on this joins us and reports this morning. there is something going on here. don't give me your we don't know, it is speculation. baloney, they a

citigroup, jp morgan has had a strict three day a week policy for some time but also have been tryingrce this. jp morgan this summer put in a policy they must commute five days a week. citigroup went as far as to tell employees this summer that maybe pay will even be involved if they don't start to comply with the policies. paul: this reluctance in the banking industry is being mirrored elsewhere. can we quantify it? >> the return to office has been below 50% for some time now. it's not an august phenomenon. we've known this. an australian company called xy sense monitors through sensors various work points around the world. particularly big metropolitan areas. according to its data, more than a third of these work points are never occupied. we are talking about cubicles, desks, workstations, never anybody sitting there anymore. for those occupied, 14% of them were occupied for five or more hours in the day. the data shows meeting rooms r= -- meeting rooms or huddle spaces a being used. -- are being used. this perhaps a lesson for the future. at the moment, 80%, four out of five in te

citigroup also moving to the bullish category. morgan stanley, mike wilson, issue ma occult book, i do not know if they are for us or maybe they may not be for us, it is interesting to see one shock after the other. we are in august, we have a lot more months until the year, it will be fun to compare how they started off at how they are ending in december. haidi: never a dull moment. the latest on the markets are of course a big story we are following in politics, donald trump has been indicted on federal charges, accused of conspiring to overturn the 2020 presidential election result. jodi schneider twins us from washington. what is key about this indictment? what are the takeaways from these charges? >> first of all, as you know, this is the third criminal indictment we have seen of the former president. this one has to do with the 2020 election, it has significance beyond the indictment itself. as that was such a relief politically explosive event here in washington. these charges reflect that. they are conspiracy to defraud th

take, for example, citigroup over the last ten years, citigroup has a very appealing valuation. where has the stock gone the stock is nowhere the only return you have is on buybacks and dividends >> my pushback would be you have to accept a higher valuation you're already paying a higher valuation for a lot of those names. what degree of higher valuation are you willing to accept and pay? you're paying well above market multiple but does that mean you need to pay a higher multiple for those names? >> and that's back to positioning. if you believe that -- and we'll utilize apple, which is statistically at the upper end of its ten-year average on valuation, how do you know apple? do you own market cap weight ed it's about positioning i don't think you use valuation as the absolute guide whether you want to own something or not own something. the dynamics of what the economy is more important. if you think about the last 15 years, i would make the argument the overall market has trended higher with valuations being above their historical average, and that's because we're re-creatin

maria: we will see citigroup raising on s&p 500 expecting strong market to continue, to year-end market negative, on better-than-expected july adp numbers the july numbers for jobs from labor market out friday, stay we'll be right back. . ♪ ♪ oh, oh, ♪ ♪ waiting for tonight, oh, oh, i have dreamed so long ♪ ♪ . . . first, there's an idea and you do something about it for the first time with godaddy. then before you know it, (it is a life changer...) you make your first sale. small business first. never stopped coming. (we did it!) and you have a partner that always puts you first way. (no way!) start today at godaddy.com. goli, taste your goals. (no way!) maria: welcome back. futures equating a sell-off start of trading take a look dow industrials down 134 right now the nasdaq down 130, about under 1%, if itch rating downgraded u.s. credit rating through double a, plus to aaa status over concerns debt and deficits more than 32 trillion dollars in debt committee for responsible federal budget calls downgrade wake-up call to take u.s. financial situation was seriously 32 trillion dollars

i want to bring you a breaking line which is that citigroup has cut its china 2023 gdp growth forecast to 4.7%. if we just check in on these markets, you have currently got the hang seng index down 1.6%. it is headed for its lowest close since november. this after the pboc slashed its one-year prime rate by less than expected despite policymakers calling for more lending. if we look ahead at futures as well, you have got s&p e-minis and nasdaq futures pretty flat, though pointing toward a lower open. euro stoxx 50 futures are also flat. also checking in on oil, you have got brent currently trading above $85 a barrel. up next. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my l

they just go right to the companies, demand information and apparently jim jordan's writing to citigroup alleging that citi gave it up. >> what country are we living in? this is so insane. i can remember thinking to myself after january 6, thank goodness i wasn't in d.c., just coincidentally at that time because i realize that credit card statements and debit cards -- we have no privacy anymore. the technology makes that very difficult. but these -- i wouldn't do business with citi for doing this. i would never have an account there and i think americans are starting to really have a lot of distrust in these different corporations. i've never downloaded the tiktok app, because we have to at some point say we're not going to support these efforts to undermine our privacy and completely unnecessarily. it's just so egregious. i think jordan is saying that the doj has only thus far presented one document. oh, my goodness, i mean, the hubris continues. i really think there should be a poll on hubris for candidates and just see. it's just so nuts. maria: it's outrageous. it's outrageous and it

sonali: i want to point to a conversation earlier today with citigroup who weighed in on the bond movestake a listen. >> one of the things you can see now are record high levels of short positions and futures in 10-year note's and 2-year note. it's like where we were in the equity market at the beginning of the year. we see a lot of shorting a bonds right now. sonali: i want you to weigh in here on some of the futures positioning and how investors are set up for the potential future selloffs. is that the correct direction of travel? >> that's a great contrarian indicator. the positioning tends to go from student body left to student body right. the markets were pricing in a high probability of recession a few months ago and everybody was of long duration at that time. we actually got a little bit short thinking there are way too many fed rate cuts priced in way too soon. as the curve has backed up a lot and that we are moving back toward what is likely the higher end of the range on interest rates, everybody is no pricing in the soft landing scenario, a benign scenario in rates and cred

by the out of citigroup global markets there's plenty more ahead.is we'll get you a full market roundup of what's taking place. we're headed into the lunch break in a couple of minutes on the onshore markets. we're off by about a quarter of 1% on shcomp. this is bloomberg. oh, you got everything that i need? oh, oh, cause it's my sunday morning. it's my sunday morning. oh, we got it at we get the importance of clear communication and when your teams are spread out, that's not always easy. our experts can help by implementing poly audio and video solutions to keep you connected from headsets to collaboration tools. as poly solutions offers simple setup and eliminate distracting background noise. so the people you're talking to only hear you to collaborate with quality, trust poly and orchestration by wpp people who get it. you automate sales tax with avalara. you don't have to worry about things like changing tax rates or filing returns. avalara. i. i. i. for over 25 years, lovesac has been rewriting the rules of comfort. it's okay to change your sty

citigroup considering reshuffling its executive ranks.he sale of a personal-finance business it bought four years ago. su keenan joins us. start with goldman and its pivot away from the market. su: part of the massive undoing goldman had to moving towards consumer banking for the masses. it is the first big signature deal on dirt ceo david solomon. it was the deal to buy united capital in 2015. oldman saying "we are currently evaluating alternatives for that business as we determine where to invest our resources and where we see the greatest opportunity." the unit is a small part of its wealth offering it symbolized the earlier efforts by solomon to expand the firm's business lines which are now being unwound. the purchase gave goldman an instant foothold in the mass market. at the time united had 220 advisors. it now has $29 billion in assets. it tells you it did not grow that much. goldman stock has risen significantly under solomon. we have been reporting along with a lot of the financial media the internal discontent that husband expr

she would do when you step back, not a surprise with the reaction 40% tax on the banks looking at citigrouphis morning publishing a note this will equal 19% of bank's net profit in 2023 facing a substantial negative on the banks. >> i thought that note was interesting because it shows the banks that probably will get hit the most are the smaller banks like unicredit which has been a key part of the lending exposure to germany the smaller banks are the ones most geared to higher interest rates and growing quickly. if you look at the levy structured, it is different from the one posted which is a percentage of total net interest income over here, you have to cross a threshold in growth, and then that tax comes in. if you are growing on net interest income, you will be taxed more. >> getting back to the conversation with banks the last few weeks with guests, the analyst community was long peripheral banks that is why we see a pullback in the banking space. get in the peripheral banks and not passing it on to depositors. >> last thing, the distribution that you would have gotten from investing

we say good morning to andrew of citigroup.e cardinal believe, a lot of people are member this yield structure pre-post seven and it is new to people, 15 or 16 years. respond to a client saying to you we are all going to die because of high-yield. yet we have lived with high-yield before. andrew: if you look at the period, 2005 to 2007, it was a strong economy. it was producing 4%, 5% gdp growth, around 2% inflation. that was an economy that performed that way with 10 year yields around the level where they are no. you have to take a long enough historical lens when you look at this. if you just compare to the post 2008 period, 10 year yields look higher and 10 year real yields look quite high. we're looking at close to 2% 10 year yield. but if you look back to that period, in some ways a more normal one, we had a lot of strange things that happened after the financial crisis in the economy, it appeared when the economy was digging its way out from that deep hole it got into. it is not to say that 10 year yields will stay at th

. >> for more on the economics of the business, let's bring in jason over at citigroup. jason, the stock reaction maybe tells you what the verdict is. there is optimism. is there as much optimism over disney given what you heard last night as you should be >> i don't know if there is a lot of optimism out there. i would describe the sentiment on disney stock as the worst in 20 years it has to do with structure issues what is the future of hulu what is the future of espn there are concerns of circucyclical risks in the parks until we get clarity on the first two issues, we are muddling through quarter to quarter. the stock will react to earnings those are the two big elephants in the room. >> on the year-to-date basis, the stock is up 2% or 3% relatively flat. last night's call did give some semblance of positivity to the idea that the streaming business is a focus for profitability the loss has narrowed and trajectory might be right. is the price hike campaign one you think is right one for disney plus? >> it is the right one for disney plus it is right for the industry

citigroup down almost 1% bank of america is hardest hit down 1.5%. time for the check on the top corporate stories with silvana henao. silvana. >>> frank, shares of ring central sinking ahead of the open after the company said founder and ceo is stepping down this month to transition to executive chairman ring says it is naming board member as the new ceo who is a former cfo for hewlett-packard ring with earnings in line with the estimates from wall street >>> regulators in china plan to restrict business use of facial recognition technology in favor the non bio-metric measures. this could take effect in september. airports and hotels and stadiums and exhibition halls and other business establishments shall not using facial recognition platforms. >>> and creating a data base of 1,600 structures for meta abandoning blue sky research in favor of a.i. projects to generate revenue. >> interesting shares of meta down .50% silvana, thank you >>> now turning attention to a mega cap name apple. it has been a few rough days since friday, the stock is down 6.4

what we are hearing from the likes of citigroup for instance is this could be a good thing.t they are calling is the recent moves and orderly pullback and they have reduced the risk of not only the chaotic selloff, but also some of the short-term positioning risk and markets. these had been quite significant concerns to investors. they are saying that essentially, markets are in good shape not only for the upside but also where the negative news or shocks over the coming weeks. what stocks are facing is the recent dollar strength we continue to see, the consolidation over the past three weeks or so. dollar strength could be something that continues if you take technicals as a guide, but we so the bloomberg dollar gauge hitting its highest since march 15 of this year. perhaps a flight to safety also pointing to other concerns for investors things like the moody's bank downgrade, china's economic health and other factors. something that could keep u.s. stocks under pressure for quite some time. >> deutsche bank also sing upsides. >> over the course of this year, they are sayin

lauren: citigroup, they expected turnaround to be slow stock is down 1% in urban outfitters reports next big board, five and a half minutes worth of business and were up 20 points, 35300 on the no's check out the dow winners, whose at the top of the list. rather unknown, boeing, merck, j&j, walmart, honeywell. we know all the names up a little, s&p 500 winners, i cannot read that. the steel company u.s. steel is way up, also beauty, bath and body works, big time winners. comcast, micron, electronic arts, all on the upside and that's the nasdaq winners. check the ten year treasury for 19 is the price and the two year yield getting close to 5%. the price of gold $1937. bitcoin 29 and small change. 293. oil $82 per barrel and not gas it does not move that much, still 279 but you have to watch gas, the average price for a gallon of gas is $3.85 up another set but watch diesel the national average is $4.31 that is up 46 cents in one month, that hurts if you are a trucker. 2024 vivek ramaswamy believes the ukraine war is a repayment for bidens bribery scheme. watch the. >> i'm on record going

i always ask myself little questions, why is citigroup at a new yearly closing low from one silicon valleycle hit so i'm worried about the banks in here, something is up. we know commercial real estate is an issue it may be these interest rates continue to spike. it will hit them hard so financials keep doing what they are doing, i would stay worried about the market though i have pockets of strength in this market. stuart: should i sell my microsoft? >> not here. three weeks ago i told you microsoft would stop. i'm a believer in reactions to earnings. it is one of the top 5 companies ever created, the ceo is magnificent and when you get over this it is higher down the road. microsoft doesn't usually -- they announce what sales will be a few years down the road with a i and if those numbers come through, look out, the spot will be higher down the road. stuart: thanks for bailing me out on microsoft. appreciate it, see you again soon. 15 seconds to go and we open this market. i see green on the screen, looks like we are open a little higher but we will do the selling yesterday. three second

you see citigroup at number seven on the m and day lead to tables which is much worse than where youy see them standing at. they've also fallen in share in investment banking for investment-grade deals and high yield deals. there is a bit of work to be done in terms of gaining share even when the market has been quite soft. guy: another headline from goldman sachs. the united capital business on the block. how does this fit in. put this in the context of what we've seen. sonali: we are weeks away and they're trying to show changes in the consumer business. agreed to for $750 million and now to potentially seek an exit of that follows them trying to sell green sky as well. united capital was only about $25 billion in assets. this is not a business that's growing very meaningfully. the part of the strategy was to align with aco which is where they serve high net worth individuals and corporations. the idea was they got closer to the investment banking business through the corporations and now they bring those wealth management services to those businesses as well. it's not something th

we bring in richard zogheb head of markets at citigroup.n i want to talk to you so badly as we have seen debt capital markets open up. it was like all clear, no more recession, everything is fine, borrowing costs are peaking, and now you have this. how does this change the story? richard: i think it only has a marginal impact. i don't think it changes the story dramatically. i don't think this is a complete surprise to anyone. i think fixed head actually signal they were thinking about doing this earlier this year when we had the standoff about debt ceiling, so obviously it has an impact on treasuries, i don't know it is 100% related to this, the fact the treasury came out and said they were increasing the size of the auction had any impact as well. i do not think this is completely surprised. it is clearly a little hick up, people will have to process it, it clearly takes borrowing costs up, but there is so much liquidity out there, there is a real sense that markets continue to be attractive, inflation is under control, that the type of r

i think citigroup was talking about it overnight as well. china has huge holdings of u.s.reasuries and if it wants to weaken the dollar relatively to the yuan it could offload some of those and use it to support the currency. there has been sort of this conversation about has china already been easing back on its holding of u.s. treasuries? it is true but not to bring money home but more to keep it in agencies or other parts of the u.s. fixed income market that has a higher yield better return. i think the idea that we would see anything pronounced would have to be visible in the market and that is still pretty unlikely at this point. the other thing to bear in mind is china is sitting on probably some paper losses that would be extreme just as everybody else's and the treasuries market because of the selloff in the last two years. and this month as well. lizzy: thanks to paul dobson, bloomberg's executive editor for asian markets. coming up, walmart raised its outlook again but strikes a cautious tone on american consumers and the economy. we had a wrap up of this week's

citigroup among those saying that these are really the results that wall street had been waiting for.change on, take a look at the market reaction that came through to this. we saw alibaba up near 5% at the close in the wall street session. we will be watching how shares trade in hong kong today. something that lifted sentiment for the golden dragon index especially on a day that we saw stocks and traders pretty much range bound given that inflation print that came through from the hang seng futures are still high, china weaker. other factors we have been discussing, particularly the weakness in the property sector. kathleen: what analysts saying about the six we split? annabelle: this is one of the interesting parts of the alibaba earnings call as well, six analysts put forward questions and not one of those questions was related to the plans for that six-way split. we are waiting for more details on the spinoff plans for the logistics division, the for delivery division, the cloud division as well. we didn't get more details really coming through from that. but how investors are int

it is faster, newport so you can charge it faster and more memory storage, reading a report from citigroupthe high end model belch will be $1600 on the 14th to increase by $100-$200. does that mean $200 in the cards? stuart: sounds like it. stuart: does that justify $1,800? you have to convince people like me because i own a 10. a museum piece essentially. i don't need to spend a lot of money for these gizmos. nor should i. lauren: iphone sales down 3 quarters in a row and 2 thirds of apple's overall revenue, the iphone is half of it, so they are pivoting, expect a new smartwatch to be announced. the air pods are super popular, expensive, not one thousand dollars. if you lose when you can purchase a new pair. stuart: apple? would you purchase at 185? would you purchase more of it? >> i would purchase more, my dollar cost averaging model. stuart: nvidia, not sure of the pronunciation, another record close yesterday. this morning it just opened up another one. 4%. %. lauren: it is $1.2 trillion company. here's the news. the ceo was at the google aie event yesterday and he said nvidia's chips

citigroup is estimating it could dent their profits by 19%. >>. >> the banks could not get out of the way of that news. it was moody's, the italians and surveys about investment banker comp down 25, probably stuck there for a while. >> i'm thinking about what meredith is saying these banks being treated as utilities. now taxing wind fall profits the european banks were quick to announce buybacks and dividends and i guess this is the punishment. >>> let's get a news update with pippen stevens. >>> thousands of los angeles city workers walked off the job today as contract talks break down with the city they are picturing for 24 hours outside of city hall along with l.a.x. and other locations accusing the city of unfair labor practices. it includes sanitation workers, mechanics, traffic officers and engineers. l.a. mayor karen bass has promised the strike won't shut down the city. >>> at least two people died and thousands of flights were canceled or delayed as severe storms whipped through the eastern united states last night. the national weather service issued tornado watches and warn

you were at citigroup then. what lesson did you learn from that?forward. >> well i certainly did not see that housing crisis. i was thinking about a lot of different things and i thought there were a lot of excesses and i didn't think of housing as one them. i should have. i don't think it would have made in the difference at citi because i was a senior counselor but not in a decision-making position. look under the hood and have a question mindset and almost nobody including the fed and analysts and bank regulators and i mean some did but few did but people saw the excess and nobody saw it coming together the way it did so i think you have to include in your decision making that something will happen and nobody has thought of or at least you haven't thought of. >> when you look at the u.s. economy, it does look like inflation is coming down, unemployment is not going up, we might get that soft landing or are you skeptical? >> i think looking at the long-term, we have ear normous strengths and i would rather do investment here and than any other ma

citigroup and jp morgan have been tracking attendant and asking managers to enforce a three-day in officeicy. coming up, huawei is building a secret network of chip plant in china. we will bring you the details of that scoop next. this is bloomberg. ♪ wow, you get to watch all your favorite stuff. it's to die for. and it's all right here. streaming was never this easy, you know. this is the way. you really went all out didn't you? um, it's called commitment. could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network. (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i starte

were in a nascent rally off the lows from silicon valley, they're croaking again to the point where citigroup is now at the lows of when it was during the silicon valley debacle. so call me wary, call me worried. whatever numbers have come out now, i think the market looks forward, and i think there's something going on, and i think we're going to find out in the next two or three months. ashley: all right. we have been warned, gary. dutch, let me bring you in. you say that it's 2022 all over again. oil, you say, the only sector that wants to go up. everything else is a short. is so what breaks that pattern? >> well, i hope that what we see is the s&p 500 retakes that 4500 level and holds. and if it does, then maybe we've got a shot and this is really just a pullback in a new bull market. that's a, that's a big hope and there's a ways to go to make that happen. [laughter] i looked at the charts, i look at the charts and i see a lot of stocks that are, have ripped off the bottom and then have retraced 50%. generally speaking, that's kind of a time to start to see whether they can hold and whet

jamie dimon of jpmorgan chase, larry fink of black rock and jane frazier of citigroup are among those more firefighting planes and helicopter are being sent to greece to help fight the biggest wildfires ever recorded in the eu. strong winds and hot dry summer conditions fueled flames in the northeast informforest region. at least 19 people have been killed and an area larger than new york city seems scorched. seems like everywhere we look on the globe we see events like this. >>> so we are learning new details about the suspect police say shot and killed a faculty member at unc chapel hill. he is a 34-year-old doctoral student who has been charged with first-degree murder. the shooting in a chemistry lab sent students scrambling for safety. video captured students jumps out of classroom windows during the lockdown. the campus was only in its send w oig week of classes of the fall semester. nick valencia has the latest on the investigation. and the suspect just made his first court appearance. police have just identified the victim. what can you tell us? remember the that's right. tie

closely and i know we talk about the market but to me this 200 sectors that i follow, if you own citigrouphat is back below the silicon valley bank debacle low. you don't want to own that but if you own things that acted really well off of earnings or thes and have good accelerating earnings and sales i think you with will be in good stead as we move forward. at usual most of the time it is selective technology stocks. charles: for the broad market, i brought up this, 4300 could be a support point. 4200 i think would be really important. do you have a number on the downside that you know could be a make-or-break moment for the market? >> i bought the breakout on the s&p right around 4210, 4220. if it breaks below that, that violates everything. i think it would take a lot to take that out. they really have to smear all these big technology names which have come in. i'm not so worried about that. i think we're in a little corrective work. even today with the nasdaq, nasdaq 100 up strong, advance declines are bad and nyse and economically sensitive areas of the markets are all down. so you g

you were at citigroup then. what lesson did you learn from that?lessons going forward? >> i certainly did not see that as a crisis. i was thinking about a lot of different things and i think there were a lot of excesses and i used to give speeches about it, actually and obviously, i should have. i don't think it would have made a difference in the city, particularly because i was a senior counselor and not in a decision making position, and i think -- and i wrote about this in the book because there is a lesson, look under the hood and have a questioning mindset because almost nobody including the fed and analysts and bank regulators and a few did, but very, very few. people saw the excess and nobody saw it together the way it did, and so you always have to include in your decision making the possibility that something will happen and nobody thought -- or at least you haven't thought of. >> when you look at the u.s. economy today it does look like inflation is coming down and unemployment is not coming up and we might get that perfect, soft landing

citigroup is raising the year end target for the s&p 500, they're now to 4.6 thousand points on higheris market year-to-date and whether or not we see a repeat second half. >> where we stand right now with the s&p up 20%, the nasdaq up over 37%, horrible way -- you know who is taking notice? retail investors. the same investors that had cash sitting on the sidelines or parked in short-term cds are looking to go back into the market again. that could push the markets higher. to me, for the markets to move higher from this point, we need the fed to stop ra raising intet rates. we need confirmation that a soft landing has been achieved. maria: expectations have been going higher on the macko story, people -- macro story. people feeling maybe the u.s. will be able to avoid a recession. but we don't know. the question's out there. >> it's been happening very quickly, the transition from thinking oh, my gosh recession is inevitable, to thinking maybe we're okay, to actually no. the fact that all of the voting members on the fomc a week ago we learned from the fomc minutes from the previous m

>> well you showed the citigroup economic surprise index.t has been coming down somewhat over the past few days. i think some of the, some of the action we're seeing in the labor market indicators sulks that things are so-called rebalancing in that marketplace. they're normalizing which means we'll probably see something like 150 to 200,000 payroll employment when the data comes out tomorrow. we should continue to see the wage inflation is moderating. we are seeing a job openings are coming down. so it's not a recession. it's not, the kind of a labor markets tightening we saw over the past couple of years. charles: right. >> things are back to normal. charles: right. i got a chart here for the audience, the economic surprise index. obviously for the most part it has been trending significantly higher. to your point more recently it started to come down just a little bit here. i want to ask you about the bond market with respect to everything else because the bond market, it has come in a little bit a little bit but i still feel like if i, i'

andres garcia amaia is the founder and ceo of zoe financial and nathan sheets is chief economist at citigroup great to have you both here. nathan, let me start with you. you recently made some changes to your gdp forecast if i'm not mistaken how do things look globally? are we the only house in town at this point >> our sense is that the united states continues to look pretty resilient. and we've maintained a call for a first half recession in the united states but let me tell you, we're feeling increasingly anxious about that call as the economy continues to show momentum and the consumer looks pretty strong. but in contrast when we look abroad we're seeing a fair amount of weakness in two other major economies. and specifically in china the consumer is looking very weak. after the reopening in early 2023, early this year, consumer spend for a few months, but since then confidence and spending has fallen off. and similar ly germany is lookin very weak as was reinforced this morning with some of the pmi data where it looks like manufacturing which has been soft is now starting to drag down se

they're saying we may downgrade big banks in the united keeping morgan, citigroup and wells fargo because it does look like there's a spending slowdown in credit card defaults in situations along those lines. that's bad news. if a bank, it's downgraded. means they're borrowing. costs are higher. make less money. i know we don't like the banks, but we want them making their money. so they glenn doss at a cheaper before you move beyond banks. i do have a question. i did mileage ahead of time. you know, the viewers are supposed to >> but is it true? so let's say because you brought a bank's, let's say at because of what's going on with the banks right? >> and people get nervous. is it true that let's say you wanted to take out everything like let's say you had $50,000. get that tomorrow or they're going to say no, you can't get your money for like a month because it is my money. >> you can do it in 2 minutes or champ. jump on line 5 quick later. and you have your money. you transfer to another bank or you know, a ch it to a scenario. >> so that like wives tale that's going on right now, peop

, and so being able to look at some of your bigger diverse find, your consumer lenders like your citigroupjpmorgans, they're getting hit today in the stock market, and today is the kind of e day where you might want to take those as a buying opportunity because they do have a very different type of structure than the type of stocks that were downgraded by moody's. cheryl: erin, i'm glad you mentioned inflation. scott, looking ahead to cpi coming out on thursday and ppi on friday, the one thing we have seen is energy prices -- and this would be the headline number, obviously -- have been rising over the past three monthses. gasoline, jet fuel, wholesale, diesel. and and why you can say food and energy, that count count for core inflation, my argument is that it could down the line because that's going to filter out into the system, into the consumer goods space, and that is where, you know, that's when the market, i have a feeling, is going to start to get really nervous. we've seen these really intense, scott, reactions to cpi, in particular more so than we used to. is that what you're exp

we've got bac down 2.33%, goldman sachs down 2%, citigroup down 1.7%. and doesn't mean to say that the only sector targeted by the bears at this hour is the banks. look at the point process on the transports. so what we've got here is down 90 points. it eclipses yesterday's 76-point gain. of course, the transports include the truckers, airlines, railroads and package delivery names. ups actually had been much lower, look at it right now, till down about 1 is %, but at one point the shares had dropped to $176 a share at session lows, back up to about $180 at the moment is and change. this after the company, seen as a bellwether for the economy, reported weaker than expected revenue knew and lowered full-year revenue forecast. a a lot of parts that are moving at the moment, so joining me now, adviser group's chief market strategist, phil man cat toe and -- blancato and all things banking star chris whalen. chris, if you look at the dow heat map, the the laggard is pretty much aping the story of the day. it is goldman sachs, as you see. the financials, all

gas prices rising to a 10-month high $3.88 per gallon according to aaa and now hurricane season citigroup. shores with the potential to disrupt supplies for an extended period with the wild weather across the country, i'm kind of surprised they're only predicting two. >> yeah. there's one thing that people judge inflation by, and that is gas. of all things. >> always. >> it's the one thing that they -- you know, maybe it's not part of the core inflation rate but it is core to people's budgets. >> people always know the price of gas it seems. >> we talked to mary barra yesterday. the automakers in the uaw facing the possibility of a strike by 150,000 workers that could cost the economy $5 billion in just ten days according to a study by the anderson economic group. we shall see what happens there. i believe phil asked mary barra yesterday the union asking for a very substantial price wage increase. >> we've seen a lot of union strikes and discords recently it does seem, so i wonder how this one is going to play out. >> ups settled ahead of the strike. >> look at the writers and actors they

an important interview, veronica clark, economist at citigroup.o the chase, are you recommitting to the past to higher interest rates? >> we do. we expect one last rate hike. we expect the fed is going to follow through on the last hike. we get the hike in november. one more to go, a bit higher. tom: what will it do with the american economy? and ambiguity, a high rates signal, vibrancy, an economy that gets used to those rates. you by the benevolent story? >> we thought the economy would be reactive, another 25 basis points not necessarily going to do much to that. at some point as businesses and households reset, will feel the bite of higher rates. but everyone has been surprised we have been so resilient up until this point. kailey: are we going to see a more signs of the bite kicking in? when you expecting starting today and through the remainder of the week? veronica: i don't know that we will see that yet. it probably looks like the ideal slowing of the labor market, 130 jobs, softer wage growth, the average earnings. back and look ideal. th

at 8:30 the jobs report, the estimate looks like this, 200,000. 290,000 at citigroup, j.p., and morgan stanley, 190,000. all of that still ahead. lisa: a lot of people will be focusing on the underpinnings, the wage factor, how much people are starting to lose some of that power in the wage negotiations we were talking about earlier this morning. what i'm curious about is what if the market does not respond? what if the market is looking at this and saying we cannot draw serious conclusions, we will go back to the treasury story and bypass this. that will be the tail we see. tom: i would liken it to the gdp at the gas of 2023 which is doom and gloom on recession and the idea of a vibrancy of gdp, vibrancy of good jobs growth, granted if we get a three-month moving average of 170,000 i will change my tune. i look at the eci which is wages and benefits of doom and gloom. it is rolled over ever so slightly. on a trend basis it is miles from normal. lisa: lisa mentioned -- jonathan: lisa mentioned two themes. this story. united auto workers union asking for 40% pay raise from t

haslinda: citigroup saying india about move to cut gas prices could soften inflation ahead of key electionsion. we have had prices of vegetables cool off, specifically tomato, but they continue to be a concern on account of the typhoon in india. the government has responded with multiple steps. we are heading into election season. several states going for key elections. the government has put in supply restrictions on food, grain and vegetables. they cut the prices of cooking gas and now there is expectation that it may cut prices of fuel, that is diesel and gasoline, in an effort to bring down inflation, giving the reserve bank of india has some degree of comfort. the bank has been on hold for the past few policy decisions. that may change. rishaad: please stay with us. growth figures coming out later on today. this upcoming gdp reading, about 7.8% growth in the last quarter. thank you for joining us. tell us about what is propelling this growth and whether it has legs as well because it looks like it will be a blowout number. >> our estimate is able to close even higher. we are expecting

sony has been raised at citigroup.de, they have raised the target to 13,000 yen apiece come up from 12,000. profits will grow gradually and be reflected in the share price. that is another stock we are keeping an eye on. paul: still to come, rare protests in beijing as one of china's biggest shadow banks skips payments on several investment products. new worries about the financial sector there next. this is bloomberg. ♪ health customers surd reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market up

morgan, but there are 10 second-tier underwriters, citigroup, deutsche bank and jeffries. and a lot of securities firms have dial-up, hsbc holdings, and this as well. we don't have direct comments, but we are counting down to that ipo -- ipo leave to be happening towards the end of the year happening to eight to $10 billion. that will be the year's biggest ipo. 28 banks now lined up for that. plenty more to come on "daybreak asia". this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. 76% of 23andme health customers surveyed reported taking healthier actions. constant contact. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. shery: take a look at how currencies are trading at the moment after we saw that dollar really hold that climb five days that we saw this week, still around the 200 moving

it was interesting because citigroup had a note this morning assessing the chinese companies exposure to this and the conclusion they got is the exposure is manageable and not scary but nonetheless it could lead to investors leaving the sector because there's so much concern about systematic risk. opacity in the investment portfolio is reflective of a lot of things. the actual risk you need to assess and exposure might not be that big but investor sentiment is taking a hit. david: it reminds me of the days when you do get we are probably in that now where you get periods of market stress. in the afternoon they tend to rally up the bottom. are we seeing more of that these days? charlotte: for this week, i think not that much but we are looking at -- everyday this week or the 1%. the northbound has had eight days of net flows which is longest stretch since march 2022. it is looking pre-bad. yvonne: just -- is looking pretty bad. yvonne: we are getting lines from morgan stanley cut indochina 2023 growth forecast from 5% to 4.7% joining the likes of j.p. morgan also cutting the 2024 forec

although citigroup analysts have come out and said they are not seeing any real policy reforms that could avoid some sort of japanification of china, some slowdown, dramatic slowdown in growth. and honestly, that's a lot of the commentary that i've been reading this morning. this is no bazooka. it's clear that they haven't really prepared something more comprehensive. so where is the appetite, right, to do something that could really salvage the economy from really decelerating massively? you mentioned youth unemployment. would you like the official reason for that? it's ridiculous. national bureau of statistics over in china, they said the labor statistics need, quote, further optimization and more research needs to be done on, quote, whether students looking for a job before graduation should be counted in the labor statistics. so no youth unemployment statistic, but we know what kind of level that was at it was pretty elevated. it was incredibly elevated. i believe north of 20% at one point. and for them to say, okay, we need to reassess exactly how we're going to massage the numbers t

but i think a lot of people are starting to watch the citigroup economic surprise index again, which measures where the data points come in relative to where wall street expects them and they're down as -- here's the payroll forecast, morgan stanley even weaker at 155 on private payrolls, but as far as the economic surprise index, vital knowledge points out it's now down 50% in the last month with a slew of data points signaling momentum market seems okay ifwe're seeing a loss in economic momentum, as long as we're not seeing a recession and then again -- then you wonder, how does it fit in with bank of america saying this is the trough in earnings and she likes what she's seeing on guidance and capital spending, on margins in particular this quarter? >> savita had a treasure-trove of information this morning about corporate sentiment getting better, one of the biggest bounces in several quarters they do think this is trough earnings good guidance on capex because there's so much reshoring going on years of underinvestment, lots of incentives in place really, the only area where she