it is friday, april 12, 8:01 east coast we are waiting citigroup earnings this morning we are got jpmorgan, wells fargo stocks mixed, and bank earnings are certainly setting the tone for the broader averages dow industrials down 65 nasdaq down 70, citigroup earnings out to cheryl casone with numbers. cheryl: earnings per share not adjudicative a, youing 58 street looking for a buck 23, 21.1 billion street looking for 20.4 billion stock higher under a percent going into the number, still is, one of the first things that crossed, though headed count reduction 7,000 you has the to see that happening, you know they are closing out this quarter with head count reduction 7,000, credit card losses on loans, we talked about 21.8 billion, and then also, talk about the fact that they are looking at four year 2024 guidance, for revenue, 80 -- 81 billion, overall looks like a pretty decent report each big bank is throwing money into the fdic fund that got eaten by sell-off bank last year, citigroup itself putting this more than 200 billion dollars, into the fdic fund, 251 million dollars excuse me 251

you have seen citigroup, j.p.at stands out to you? ken: these banks are delivering, plenty of upside if we have a healthy economy, which we think we will. we are seeing pretty good loan activity. we are just at the beginning of the game in terms of investment banking. those beats in that area was really related to record debt underwriting. equity underwriting and m&a still have a way to go. we also saw lots of concern about net interest income. what also makes net interest income and opportunity is the flywheel of higher volumes, whether it is a loan for citi, trade and treasury activity. there are opportunities here particularly with the strong economy for these banks to surprise on the upside. i think the managements are being conservative. citi is holding firm on higher revenues this year in their guidance although net interest income is likely to be modestly lower but i think that may be a beat as we get later in the year. i think there are opportunities for the large banks to really be strong participants in

but you still like citigroup the best? >> citigroup is still my number one pick. >> why?watershed organizational restructuring. it took seven months, 200,000 employees. they delayered from 13 to 8 layers and eliminated committees. everybody said they're going to blow up and lose their good employees and revenue and friday they beat expectations on both the top and the bottom line. revenues came in better than expected. there's more of a clear path. they reiterated their target and the stock has sold off since friday. that's a great opportunity for investors and i think citigroup is a double over the next two years and three quarters. >> why is morgan stanley an outlier from a stock stand point year to date relative to the other banks we talked about and throw jpmorgan in the mix and still is that? >> you know, citigroup is my number one, number two, and top three picks. they're worst in class becoming less bad. morgan stanley has been best in class becoming less good. they have very difficult comps and eight consecutive quarters of outflows in investment management. we ne

the only two banks on the day that are up our citigroup and state street. citigroup had a turnaround story and state street positive when it came to interest income expectations, but goldman sachs the second worst performer on the day. goldman reports monday. joining me is sally bakewell with more. how do you read through what is going on? you would not think goldman would be down this much given the wall street businesses that did well? sally: perhaps a general malaise about the banking industry. given the results. there was an expectation would jp morgan particularly, but net interest income, the biggest source of its revenue, was going to steal the show. there was a lot of debate around a -- around jp morgan that they would revise upwards their guidance for this year. however, jp morgan kept its main figure stable, but it did boost its guidance for niix excluding markets, so it's taken a conservative approach. wells fargo missed estimates. i think the idea that banks will be big beneficiaries of rates highe for longer was undermined. sonali: last year, a

when you look at revenue from citigroup's cards, can it keep growing? are consumers tapping out on credit? stephen: well, most indicators would say yes except of the affluent spending level. most consumers continue to spend healthfully as compared to low income consumers who have had difficulty in the high inflation environment. the worry with credit cards -- banks have a lot of flexibility. they can go out and market aggressively. it is a very high interest rate for those customers. it is a great boost and income. the downside is the credit cost. right now we have 12-year highs in 30-day and beyond delinquencies for credit card customers. very much a double-edged sword when it comes to the credit card space. the consumer really has held up this economy, as most economists would say, and a big way and they will need to continue to spend like they are. for banks, the one major driver in terms of credit quality is employment. as long as the employment picture stays ok we will not get those delinquencies and charge-offs. customers generally feel good about

citigroup, wells fargo and jp morgan kicking up the earnings story. when we talk about the rate cycle potentially ending, does that mean peak margins for a lot of banks? but coming up on this program, we talked geopolitics. joe biden vows to back japan and the philippines among growing chinese influence in the south china sea. more on the joint summit next and why you should care as an investor. ben bernanke set to unveil his review of the boe's forecasting models today. michael saunders weighs in, the former member of the boe monetary policy committee, coming up at 6:45 a.m. london time. an interview you do not want to miss. this is bloomberg. ♪ kriti: welcome back to "bloomberg daybreak: europe." i'm kriti gupta in london. the u.s., japan and philippines say they are committed to free and open indo-pacific. the statement after a summit between the three countries' leaders following chinese actions in disputed waters. isabel, this is a story we have been watching as the leaders of japan and of united states meet, now bringing in the philippines. can

>> well, citigroup is dominant number one pick. let's go citigroup reorg take 13. take 13. 13th restructuring. >> lucky 13, is what you're saying >> for citigroup everything is a little upside-down this time, it's different for citigroup. finished seven months of what they call a cyclicification. people say implode, lose revenue, crusustomers and best first quarter. beating expectations by one-third. top line, bottom line and going really well. maintain the best of industry guidance for 2024. guess what next three years, earnings doubling. >> right. >> goldman sachs, upped 70%. no other bank up 50%. >> stock, call it $62 for now. you think 12 months from now at the rate they're going, call it 24 months from now, given your long-term outlook for the company, it's what >> we have earnings going from $5 a share last year to $10 a share in 2026. over double-digit return on equity haven't seen that for a while. gets them to tangible book value, which means a double in citigroup stock somewhere around $ 110 to $120. >> by end of when? >>

citigroup's profit was better-than-expected. let's bring our finance editor. j.p.is that set expectations for? >> it was an excuse to take money off the table. softness had been the expectation, that things would have to soften. he saw that in the share price decline but it does not mean expectations drop off. if you look at the way the u.s. economy is developing, it is fitting with the way things are progressing. one key outcome is rates staying higher for longer than you might have thought. over at citigroup, slightly different story. there talking about 7000 jobs being removed. some of that has to play out, so there are catalysts worth watching. this week the big ones are goldman and bank of america. whether we see this commentary from ceos on how they see the economy whether repricing from market is affecting just the way they position, but all banks are well structured for a benign environment. investors are pricing that highly so you expect bank stocks to do well. haidi: as you said, given changing expectations around the fed, you think stocks remain favorabl

morgan, wells fargo, citigroup among the major banks. coming up. joining me now wealth advisor founder president mark avallone. great to see you. what he expectation for the first quarter earnings season. >> were looking for the megabanks, the big banks to do quite well. we think they're benefiting from a relative lower cost of deposits than the smaller and regional banks which received an outflow, the bigger and stronger banks don't have to pay much for their core product which are deposits and they have a wider net interest margin. we think a j.p. morgan will be at the top. wells has been improving and they were looking at the strong equity market that we've had. both are becoming bigger asset management machines in the profit on that will rise with the market. two tailwinds there and we think the overcome many headwinds from commercial real estate which does not impact the larger banks as much as it does the community and regional banks. maria: you have to believe that the capital market business is doing better as well we saw a handf

chipmaker -- has picked citigroup as the lien bank on the initial public offering.pany chose the lender of the holding discussions with potential advisors on a u.s. listing. cerebras is targeting that in the second half of the year. evaluation over $4 billion. during the phone call between president biden and president xi they are said to have discussed tiktok. john kirby told reporters biden reiterated to xi concerns about chinese ownership of the popular video sharing app. he said it was not about a ban of the application but rather u.s. interests and divestiture. caroline: let's talk about a previous president donald trump who is suing two cofounders of trump media and technology saying they said if the company improperly issued not get any stock in it. this comes amid wild swings in shares of the recently public company. they went there a spac. we will talk about it with bailey lipschultz. talk about the issues the co-founder have of true social with trump. bailey: there was an initial lawsuit from the two co-founder saying they were going to be diluted out of t

citigroup has a round of job cuts in the investment last week.y, media and telecom were among the coverage areas hit hardest with senior bankers and junior roles effected and comes as citigroup said it concluded the major actions around its reorganization plan. mckenzie is offering nine months pay and career coaching services to some u.k. staff who would like to leave and the move comes after the firm earlier wants some -- warned some u.s. consultants they were running out of time to win promotions and they slowed the pace of hiring over the past year as demand from clients declines. and you can get a roundup of stories you need to know to get your day going in today's edition of "daybreak." terminal subscribers can go to dayb go and customize your settings so you're only getting news on the industry and assets you care about. this is bloomberg. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. ♪ haidi: we h

we will hear from citigroup this morning at 8:00 a.m. eastern. is seeing. we'll hear next week from goldman sachs, morgan stanley, bank of america which will set the tone for markets. chris, what's your reaction to the earnings so far. what are you expecting this season? >> we're seeing it, there's a disturbance in the force, how do we have a double beat from jp morgan, the stock goes down. there's a general concern about real estate and bond portfolio, even the strongest banks. what we're seeing is an over-reaction. people are so concerned about, particularly the regional banks, they're projecting concerns on the bank industry as a wheel. with these interest rates, where they are, some of the big banks, b of a and jp morgan are going to be able to weather this thing and make quite a bit of money. thend of the day, we're hopeful that earnings season and the banks should be okay and we're seeing great numbers from jp morgan. across the broader markets we're going to see good earnings season and i think we're hopeful that this is nothing more than

the cuts come as citigroup has said it included the major actions around its reorganization plan.ie is offering nine months pay and career coaching services to some u.k. staff who would like to leave. the move comes after the firm earlier warned some u.s. consultants they were running out of time to win promotions. mackenzie and its peers have trimmed headcount and slow the pace of hiring over the past year as demand from clients decline. nippon steel has made a commitment to suspending jobs to the steelworkers union. as well as a promise of no layoffs before 2026. the new president has pledged to pressure ahead -- to press ahead with a new takeover. president biden says u.s. steel should be american-owned. be sure to tune in to bloomberg radio to hear more from the big newsmakers and get in depth analysis from the daybreak team. broadcasting live from our studio in hong kong, you can listen in via the app that is radio plus or bloomberg whittier.com. more ahead. -- bloombergradio.com. this is bloomberg. ♪ haidi: counting down to the market opens in mainland china and hong kong. o

citigroup cut its recommendation to sell from neutral saying the company's 44% gain this year is tiedhich poses a risk if bitcoin were to suffer a correction. we are also watching shares of apple and hedge funds. jp morgan says apple is drawing interest from hedge fund investors because of a.i. linked upgrades to its iphones and a slump in shares that has boasted its stock value and valuation premium. we will talk about apple's moves and turned to isabel lee, who will talk about what is drawing hedge funds to the stop. >> apple is trading at about 22 times forward earnings, lower than its mega cap tech peers like microsoft. shares have faltered due to many reasons. one is the weaker sales in china. and also because the justice department has been accusing apple of violating the trust loss. this is not necessarily bad news, because hedge funds are attracted to apple because of its cheaper valuations. but also because of the a.i. upgrades to its iphone. apple is a little late in the game when it comes to capitalizing on the huge a.i. boom compared to its mega tack cap peers. -- mega tec

citigroup. >> dan? >> you want to protect your citigroup, xlf puts. >> guy?ve time. >> yeah, we do. >> ranger game with his daughter, that's beautiful. >> we're going to have fun. >> all dressed up. >> alcoa, aa. >> thank you for >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. mad money starts now. >>> hey, i'm cramer. welcome to mad money. welcome to cramerica. my job is not just to educate but to teach. call me, 1-800-743-cnbc or tweet me. everybody wants to play the silly game of trying to figure

analysts at citigroup adding a positive catalyst watch on the chip maker ahead of earnings next week.nearly 28% this year. >>> boeing lower again today that stock on an 11-day losing streak, tying its longest downside streak on record. it still has not had an up day in april bowing's senate safety hearing scheduled for this wednesday. >>> shares of trump's made ya stock sinking 18% today. the company filing to issue millions of additional shares of stock. djt now down more than 57% this month. you have been following this -- >> i have, just because it's the most ridiculous thing, the whole structure. they filed to register shares to -- they're going to call the warrant soon they can do it as early as tuesday, so you -- if you own a warrant, you put up your 1150, you get a share of stock they registered those shares, plus, registering the shares of trump, everyone else anyone else who lent them money, who is getting shares, they just want to clear the deck for everyone to be able to sell as soon as they can it would seem. now, we would need to find out if trump gets a waiver, but they'

names included citigroup, amex, and gx so.ales are doing well amid higher rates. >> when you think about some of the deals that have gotten done this year, i think investment grade has done incredibly well. we have seen a huge amount of deal flow. i think so far even with rates staying elevated, we are getting deals done and good execution. i think so far, concerns on the primary market side are not there. sonali: let's bring in our credit roundtable. when you think about just the impact of higher for longer yields, how do you think this is going to start to feed into the market? >> it has been a solid year in terms of issuance so far. we are running at a pace will be in estimates. we are at $650 billion so far. tight spreads have been the name of the game in investment-grade and high-yield and demand is pushing them tighter. for obvious reasons with inflation so stubborn, we still see a reluctance for people to go further on the curve. sonali: what's interesting is how far you see the corporate market starting to slow down an

boeing >> karen >> citigroup and congrats to my sister running the boston marathon again >> oh, congrats, stacy >> dan >> if unh disown a lot tomorrow, thanks for watching ". "mad money" starts right now >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people make friends. i'm just trying to make you a little money my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc newsom or tweet me @jimcramer. the stock market isn't always a friendly place it can be volatile it can be painful and just downright difficult. [ booing ] there are tons of big picture problems that can derail any rally. problems you might not have any idea about until they hit us smack in the face. that's why i'm so adamant about trying to make you a better investor i want to teach the tricks of the trade so that when the market gets negative, which it always does, when it b

bank earnings kicked off this past week with jpmorgan, citigroup and wells fargo reporting.er in the week ceo jamie dimon made headlines with his big, long letter the shareholders -- jack: very long. >> yeah. he said, you know, among other things that market apartments were a little too optimistic on prospects for a soft landing. he also said the bank was preparing for interest rates anywhere from 2% to 8% plus which is a heck of a range. now, when jpmorgan reported, it lowered its forecast on net interest income which is a key profit driver for banks and, of course, that didn't make the market happy. shares fell. and wells fargo, on the other hand, maintained its guidance for net interest income. citi group beat earnings estimates, you know, the turn-around story connell -- continues. it's one of the best performing bank stocks of the year: and ceo jane frazier has been reorganizing things, and it seems hike that might be having an impact. jack: real estate was a concern on banks' commercial real estate not doing well, should we worry about that, or is that kind of a one-of

but the a major banks -- wells fargo, jpmorgan and citigroup -- blew out expectations. first quarter earnings season with double beats on friday. joining me now is slatestone wealth chief market strategist kenny polcari. kenny, thank you so much for being here. assess the week for us. you had hotter than expected inflation data, then you had good news for the banks and they still traded down initially. >> right. [laughter] so i think the inflation data, i don't think, should be a surprise to anyone. of we've been talking about it, we've been seeing it remains sticky. we saw the last two months the cpi and ppi both elevated. while one month doesn't make a trend, two months and three months begins to make a trend, and that's exactly what we saw. while we saw markets pull back, the minute they take it down 2.5 to nearly 3%, all the buy the dip orers jump in because they think this is the opportunity which is actually, as you and i both know, not really the buy the dip opportunity. that's when we see the market back off 8 or 10%, that's really buy the dip opportunity. but i

bloomberg expecting modest results from jp morgan and citigroup.'s bring back chief aipac economist alicia. i believe alicia has taken a leave briefly. it is interesting looking back on those decisions, there's a whole heap of them. new zealand is in a recession, not doing anything. india with declining inflation not doing anything. you get the sense that they're waiting for the central bank. haidi: rbnz was at the forefront of the cycle, so there is extra attention being paid. idiosyncrasies with the australian economy extends to new zealand. different picture when you look at the other economies, japan and china. not expecting massive policy shift as we get improvement in indicators, credit numbers and producer price inflation this week. on japan the expectation is they will take longer to get to the point where there is momentum. paul: currency is a big part of the story. you get the sense maybe japan has bought breathing room. not a great deal of movement in the yen, around 150. interesting week to see if we get intervention. we've got alicia h

we're going to get citigroup's numbers in a little bit as well. but when we return, a well known investor announcing a new akste in openai. we'll bring you that story and more and the earnings reports. "squawk box" returns after this on a friday morning. at corient, wealth management begins and ends with you. we believe the more personal the solution, the more powerful the result. we never lose focus on the life you want to build. it's time for wealth solutions as sophisticated as you are. it's time for corient. >>> we are approaching 7:00 a.m. on the east coast. you're watching "squawk" on cnbc. i'm andrew ross sorkin with becky quick on this friday morning. got a number of big stories to tell you about on this friday morning. "wall street journal" saying that federal regulators are investigating morgan stanley's wealth division over how it vets clients for at risk of laundering money. the stock dropping yesterday and is down now again this morning. >>> china said to be directing its largest telecom carriers to phase out foreign processors that a

the american bank citigroup though is warning that if there is more direct conflict between the two,rices could soar above $100 a barrel. and it's likely that all of this will dominate the agenda for central bankers and finance ministers who are gathering this week in washington dc for the annual international montary fund and world bank meetings. ahead of that, the head of the imf — kristalina georgieva — has been warning the global economy faces "a sluggish and disappointing decade" amid all the uncertainty. any impact, as small as it might be, is not desirable in an economy with high uncertainty. and inflation still not being brought down to target, very simple, oil prices go up, inflation goes up, so what can be done to bring down uncertainty is, of course, for others, for those in politics, the military, from an economic standpoint, the more we reduce uncertainty, the better. the view of the head of the imf but there is a lot of uncertainty around. our middle east business correspondent sameer hashmi is in riyadh for us and he told me more about the market reaction. over the wee

more than one dozen traders have shifted from morgan stanley and citigroup as well as megabanks and movedfunds that are trying to get a piece of the action in japan. think of japan had a yield curve control policy for years as part of it stimulus that put a lid on government bond yields. now it created volatility that funds can make money off of. some are active in hiring like millennium. paul: so it anecdotally, what are we hearing from people hiring traders? what is it meeting for salaries? lisa: competitive landscape was very competitive because the talent pool is limited because of the yield curve control. this has been a sleepy corner in japan and it was basically the talent pipeline is limited. headhunters and recruiters estimate less than 100 traders that can be hired and a portion would have risk appetite to shift from a stable job to work at hedge fund. because this is the financial industry, they are not shy about incentives. many are boosting bonuses for traders even though it has not been a great year for them while at the same time hedge funds guarantee a bigger payout of pro

the cfpb argued that even though the case before judge willett didn't involve citigroup, he hadded to recuse himself in case it affected the value of that stock. in other words, after a judge ruled against them, the cfpb identified vague, new parties at interest to ensnare the judge through his son's college savings account. what a tangled web they weave at the cfpb. to its credit, the judicial conference code of conduct committee didn't buy this absurd contention. they unanimously ruled that judge willette was not required to recuse himself. but this is what judge shopping looks like. wait for a ruling against you and then argue late for sweeping recusal rules designed to target the judge you don't like and remove him. under my shop act, this kind of behavior could result in severe discipline for lawyers who engage in it. if any of my democratic colleagues are interested in actually solving the problem of judge shopping, i hope they'll join me as cosponsors. i suggest the absence of a quorum. the presiding officer: the clerk will call the roll. quorum call: the clerk: ms. baldwin. so

it is a 2.5% gain at a 15 month high, citigroup, get ready for explosive price upside over the next threeears. bank of america raising freeport mcnamara into a 3. 9 price target. copper supply crisis. why? copper is used in the wind turbine, the generators, the components the power green energy, we don't have enough of them. it is a winning issue. stuart: a cannabis company. lauren: quarterly revenue disappointing. with free cash flow this year, look at this, raising 21%, taking the other cannabis down too. stuart: the black market is killing legalized weed. lauren: looking at earnings report, you see the confused alcohol drinks, that market is doing very well. the weed is hurting. stuart: jewish faculty at ucla feeling after freshman medical students were forced to sit through a structural racism course led by a pro-hamas speaker. william, what happened during this class? >> reporter: an embarrassment for the university. ucla employs a handful of activists in residents who lecture students on social justice issues, this particular one says medicine is white science killing black and brow

in other news, citigroup is said to have implemented a fresh round of job cuts in its u.s.k -- investment bank. technology, media and telecom were among the areas hit hardest . with senior bankers in junior roles affected. they have now concluded their planned changes. the owner of the ship that rammed into a bridge in baltimore is seeking to limit its liability to $44 million. in a joint petition, grace ocean says the collapse was not due to any fault or neglect, so it shouldn't be held liable. the disaster killed six people and severely disrupted the eastern u.s. transport network. here in the u.k., inflation dropped to its lowest level in more than two years last month. markets competing to lure shoppers. the rate of price rises slowed to 1.3%, sharply down from 2.5%. food price inflation eased for the 10th month in a row, its lowest since april 2022. those are some of your top stories this morning, now we can take a quick look at what else is happening this week. on tuesday we get germany cpi. we have fed speakers. on wednesday, nato's foreign ministers meet. there is a

citigroup beat profit estimates here and we saw an earlier gain. the market is lower on the day but some of the declines that you are seeing are quite stark. jp morgan for example intraday is having its worst day since march of 2023. we know that times are very different. ed, we have jp morgan coming up for six consecutive years of record revenue. the question is, when analysts expected them to raise the bar on net interest income, are they being conservative when they haven't done so, or are we seeing a consumer that is starting to come if not tapped out, starting to slow down a little bit in the way that they're starting to borrow and spend on those credit card businesses in particular? some positive news for anyone watching "bloomberg technology" in particular is that you see an uptick in the underwriting businesses. ipos are back, baby. you're seeing it in the big banks. certainly, you don't see the advisory fees jumping back just as strong yet, but they are pretty optimistic over there at jp morgan on what things are starting to look like an i

>> we saw jpmorgan come out and citigroup and i thought it was encouraging. jpmorgan in particular had a good earnings report. i don't know why the markets are punishing jpmorgan the way they are. that was a set of earnings across the board. the big banks in particular are looking very solid and in good shape. stuart: the problem with jpmorgan is the ceo jamie dimon, on the call he warned about head wents like persistent inflation, possible wars and the federal reserve, he says they could all hurt the strong economy. not the bank operations itself but the way the bank ceo, powerful guy, sees the future. what do you say? >> maybe the markets believe what jamie dimon is saying about the overall environment but we all swim in the same water so i don't see why those forecasts would hit jpmorgan more than others. you might argue that jamie dimon is incorrectly going to prepare jpmorgan for a serious downturn but he said things things like this in the past. 18 months ago he was talking about an economic hurricane hitting the economy which never came to fruition but

. >>> citigroup carrying out a fresh round of job cuts according to bloomberg.ilings show they plan to cut 430 positions in the tech, media and telecommunication units. the cuts come in what citi is calling the major actions of the h massive reorganization plan. >>> shares of insurers are getting hit after the medicare finalizes the prescription drug coverage. this rate of 3.7% is unchanged from january's proposed rate. disappointing analysts which expected between 50 and 100 basis points of improvement. frank. >> humana shares down 9%. silvana, thank you. >>> we have more to come here on "worldwide exchange," including one financial adviser's best picks for the second quarter. >>> first, a trump slump. shares of the former president's media company are set to get hit again today after getting clob be bered in yesterday's session. >>> and at&t's breaching is an issue with the latest guest saying these hacks are falling on deaf ears. >>> we hahave a very busy hour when "worldwide exchange" returns. stay with us. dude, you gotta work on your trash talk. i'd rather

in tokyo ramping up research services, getting analysts out in front of clients, so we are seeing citigroupdwide, giving research analysts out there to share information they have on the market. we also have morgan stanley's joint venture going on the road as well. they are really wrapping up this activity, ramping up their marketing of their research, just to tighten up clients with there is just this enormous excitement. >> are we getting an indication of what the next leg will be for investors? there are some concerns around the edges as to what would be the downsides. >> yeah, certainly, there seems to be a bit of an inflection point since the boj raised interest rates. a lot of markets and external forces with the fed as well. one of the key factors is the upcoming earnings season. there seems to be a lot of optimism among investors that because inflation is becoming more sustainable that that will help companies in terms of profits, basically. there's also optimism that there's momentum for corporate governance, performance, and companies paying more attention to shareholder value. if

annabelle: time for monitoring calls ahead of the asian trading day economist at citigroup going outlimb by wagering that everyone on walls is wrong about the get andrew holland the clark art therefore cap for five this year. they say policymakers are eager signs of economic. traders in the interest rate futures market are piling into a contrarian bid, happening in the futures on the secured overnight financing rate. it evolves the disc -- involves buying the contract while selling the one that is due in 2025. the scenarios in which that trade stands to gain include the fed front loading rate cuts before the presidential election in november and more aggressively easing than is currently priced into markets. haidi: of course, so much debate going on in terms of the noise around fed expectations and whether by signaling a pivot to rate cuts towards the end of last year that perhaps this is part of the reason we are seeing that stickiness and stubbornness when it comes to inflation. of course, we continue to monitor that. we are seeing upside there going into the open and a half hour.

the group was founded in 1993 when it was spun out of citigroup.t has 186 billion euro of assets with more than 125 companies within their portfolio. the group counts luxury watch maker like breitling and cosmetics chain douglas as its investments. it has taken an increased investment in sports buying the media rights for laliga and the six nations and premiership rugby group. the bullish note was struck on the european listing landscape >> i think the worst is over we have a big pipeline we have a dynamic domestic and eu companies and international companies. any international company that looks at the listing now looks at the market. this is the single liquidity pool platform. they look at euronext as a place to raise equity. last year, we had the companies coming to euronext we have an aggressive plan. >>> private equity firm thoma bravo is buying darktrace for $5.3 billion that is a premium of $20 of the closing price on friday and 44% premium of the 44-month average. shareholders will receive $7.75 per share. >>> anglo american has rejektd the

happens is it fundamental or will we just run out of buyers, and we will see in a week and a half when citigroup and that jpmorgan reports, and you don't want to hear about a trading loss or foreign currency devaluation that knocks earnings down, and you just want execution. i think you are likely to get it. from all the macro indicators we are seeing, i don't see a reason to worry about credit, and either on the corporate level or consumer level, jamie dimon will say something like, hey, balance sheets are in great shape but watch out, and he says that every quarter. >> the capital markets are coming back in the narrative for some of the -- >> i feel comfortable saying some of the green chutes are there. >> we traded at or near one times book as long as we have been talking about book. >> that's not exactly true, and they have traded higher than that but the expectations are -- people are so skeptical about financials because you have not made a ton of money in the sector, especially in the last year, but i think the valuations are supportive and bank of america preannounced in the beginning of

citigroup posted revenue that beat wall street expectations, but profits declined 27% from the year befored higher expenses and credit costs. looking ahead to european bank earnings, our next guest says a year after the collapse of svb and credit suisse, there is a divergence with key players in the banking sector. christian edelman is with us. good morning. good to have you here. let's look at what we are looking to hear from yoeuropean banks. the message was not that positive looking at the net interest income. what does that paint for european banks when they start reporting? >> let's be clear. it is day one. today is day two. we will see more. i think what the americans have seen is trading held up well. ibd and dsm came up above expectations. the consumer side is holding up well. cre losses have not materialized to the extent people would have expected at this stage of the journey. still lots of good thus. expectations are high. you need to consider the net interest income. discussing the q4 earnings, the average expectation probably is still worth six rate cuts in the u.s. inflation

>> you want to protect your citigroup, xlf puts. >> guy? >> we do have time. >> yeah, we do. >> ranger game with his daughter, that's beautiful. >> we're going to have fun. >> all dressed up. >> alcoa, aa. >> thank you for >>> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. mad money starts now. >>> hey, i'm cramer. welcome to mad money. welcome to cramerica. my job is not just to educate but to teach. call me, 1-800-743-cnbc or tweet me. everybody wants to play the silly game of trying to figure out what inning it is in. what inning are we with the weight loss drugs or electric vehicles? we are clearing the final inning of the nelson proxy fight for board seat. it is dizzy because he did not get the votes but he could pick up a full million in profit. that inning game that bothers me the most is, what inning are we in the artificial intelligence whom? for the last few days we've seen everybody coming down in the ai spac

we will catch up with steve of citigroup. former house eric cantor on the u.s. deficit and the brilliant mandeep singh after an earthquake strikes taiwan. we begin with our top story. the record highs taking a breather as rate cut expectations fade. steven wieting saying this. the combination of lower policy interest rates, inflation slowing, uninterrupted growth and rising profits is as close to an ideal setting for financial markets. steve joins us for more. let me go through that again. lower policy rates, slowing inflation, on a -- inflation, uninterrupted economic growth and rising corporate profits is ideal. is that what's going on? >> yes. that's what we want everyone to bear in mind. we have had this strong run with low volatility. we have checked the boxes on that whole list. naturally there's some more doubt. we can zoom out a little bit, but it's a little bit more natural now for us to develop doubts about this path. >> how does that doubt get expressed in your view if you think that ultimately we do see a strong backdrop and ultimately this perfect l

citigroup implementing a fresh round of job cuts playing off just laying off employees as it undergoeslanned restructuring. this reorganization is designed to streamline the bank's operations by eliminating 20,000 roles as announced by ceo jane fraser. finally we have petco in the doghouse with bank of america getting a double downgrade to underperform. also a price target/. bank of america saying the company has lost much of its competitive bite. coming up we will be speaking with jim rowley, the ceo of crunch fitness. this is bloomberg. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth managem

your second quarter playbook with citigroup u.s.tegist downgraded tech and other sefctors today. >> a key crucial moment for disney. the proxy battle with trian is coming to a head with the annual meeting. carolyn everson will join us at post nine. >> record highs for the stock market with record wealth for households. we'll get some of those staggering stats, although we have turned lower. s&p 5249. "squawk on the street" is back after this. encore energy, america's clean energy company, now in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one si

lauren: they are higher because citigroup in pre-sing, pulte going to 137, lennar to 198 and told, 138e%. of the one how about in phase lauren: downgrading to neutral off 6%. they see a slower pace of inventory reduction meaning not much demand for solar equipment. stuart: back to the economic news of the day, the jobs report. 330,000 jobs added to the economy in the month of march, the employment rate did come down to 3. 8%. grady trimble at the white house, what they had ministrations saying? i assume they like it. >> reporter: we move to the labor department and we get president biden's statement when this is a sign that is economic plan is working. he didn't use the phrase bidenomics. bile accounts this was a strong jobs report and beat wall street expectations. look at the sectors that are seeing the biggest gain starting with healthcare leading with 72,000 jobs added. government right behind, 71,000 jobs added, leisure and hospitality is notable because it is back to pre-pandemic levels up 49,000 jobs in march, manufacturing was flat from the previous months. i asked julie sue if

the big banks are kicking off the first quarter earnings season this week, jp morgan, citigroup, wellsriday. once we get through the cpi number on wednesday, which is really the main event this week, then we're going to take a look at the major banks having added more net new brick and a mortar branches in 2023 for the first time in a decade. the journal writes the earnings season will test the stock market rally. matt, let's get ahead of it. what are you expecting from the first quarter reporting season? >> maria, i've been optimistic on where earnings are going to go this year. i think we're going to continue to see a trend of positive earnings growth. so ultimately this bull market that we've been having really since october of last year. >,earnings are going to be ultimate arbiter of whether or not the bull market continues and i think we're going to see that, so we get the financials, i think what's most important for financials this week, maria, is listening to what the management teams actually have to say about the state of their consumers, the state of the small businesses tha

side 2.1 times contrast that to the lower valuations on a price to tangible book basis here look at citigrouphich maided a discount to their book value. 70 cents on the dollar there citizens financial and goldman tasachs at 1.4 as well one of the measures traders and investors look for right now it seems there is an interesting development here with a tale of two banks happening. courtney, back over to you. >> thank you so much, don. everybody on the committee had some financials ownership. let's start with you what do you like here? why do you like it >> goldman number one, first and foremost, look, look at what the stock has done stocks hit a new high. it is trading great. but the palace intrigue about david solomon faded into the distant because he's done a great job. you can't disassociate stock performance with the ceo and this is all without the equity markets being really open for ipos this is without mna resuming the record uphill, you know, in penetration because of more and more deals as companies are flush with cash in your balance sheets so when rates come down, that's when you st