they are jumping but there is this morning from citigroup that can our eye. stocks could come under significant pressure on negative economic data. investor positioning remains extended on the bullish side spite the past month's selloff. for more let's bring in callie cox. it is interesting. citigroup is pointing out this group of long positions still out there, checking the futures on the nasdaq. why are we still seeing these long that's? are they right to be at the moment? callie: sure. i think we agree with citigroup there. tech stocks have had a stellar year, minus the last month. with so many economic conditions changing, with the expectations for interest rates changing we think there could be volatility there, just because tech has been a victim of its own success. caroline: do people reposition? the magnificent seven, how do you reposition that? should you? callie: we are a big believer in tech. it is hard not to be, but we also believe in risk and managing a portfolio that helps you get from point a to point a. we have been talking about clients is r

citigroup cut five layers of middle-management and restructured their banking segment.is trying to restructure the banking segment to mimic citigroup and we spoke to the head of investment banking who said restructuring has paid off, it is becoming more lean. hsbc is looking to pivot to china, hong kong as well. we know they have ambition to build up on wealth management segments. they want to be the leading provider for the ultrarich, overtaking ubs, the market leader, trying to shift to areas of core business where they think it will maximize investor return. kriti: we thank you so much for walking us through the story, we will keep her eyes on. other stories making news, keir starmer is in germany for a meeting with olaf scholz to advance talks on a cooperation deal covering security, technology and clean energy. negotiations are unlikely before next year but an agreement is expected in the next few months. micro shares closed lower after hindenburg research disclosed a short position and accused them of red flags and sanctions failures. a spokesperson says the compa

when you look at jp morgan they are in line with citigroup.r a 50 basis group cut with one in september and in november and another maybe before september. kay: i need to clarify i am from jp morgan asset management and you are referring to michael rowley. that is not where we are. i was struck by austan goolsbee's comment because i never thought about the similarities of federal reserve manager and portfolio manager. the sell side and markets will react to what -- to every single data point. if you think about what chairman powell said or what austan goolsbee just said they are looking at the through line at the overall data and we are doing the same thing. we are trying to manage portfolios and generate alpha and outperform here is. we are trying to focus on what is today's action and how do we respond. sonali: how do you see the conundrum, when you think about the moves in the market not just today but frankly this whole week. how do you think the market has reacted and is it justified? steve: i think kay brings up great points. we like to

. >> you're echoing, eric, a note from citigroup out today, and i don't have it in front of me. i'm going off memory on it. but the summary of it was basically that most of the earnings growth so far was the mag 7, but the lag or whatever, 493, are starting to see their earnings growth grow again, and that citigroup seemed to be, i use the term happy, i guess, that there was some broadening out of corporate earnings inside the s&p 500 that had nothing to do with the seven stocks we talk about every day. >> well, i didn't see the citigroup notes, so i'm glad that at least somebody else agrees with me, but i'm actually looking at the data, which is just the aggregate data coming up from bloomberg on revisions, it's sort of funny, communications has had a negative revision, the second best performing sector, up over 23%, and you've seen i.t. revisions slow down dramatically, and that's the best performing sector, and this is within the s&p. so, just, you know, it's normal sentiment, if you will, when there's a lot of momentum and enthusiasm, you have all the programs talking up the

citigroup has a good portfolio. the customer is stable, and the quality is good. more aggressively in the second half as we integrate, so we are actually very positive on the consumer business with citi integration. paul: how is your appetite for more m&a? do you see more coming in the next few months? >> m&a will always be there. investment bankers always come in and offer deals, and i'm sure they will be more deals happening in the region, but for the time being, we really look at what we are acquiring. so far, there are none that fit our expectation. we want to grow organically. there is work to do to get our market on a bigger scale. on the wholesale side is where a lot of activities are. there are cross-border activities, and we know that the relocation of the supply chain, those are actually working to our favor. i think our potential coupled with our strategic investment over the past few years is now bearing fruits for us. we want to make sure we can leap right through the next part of the cycle to grow organically before we look for m&a opportunities. pau

citigroup is suggesting it will cut by 50 basis points in september.n others like goldman sachs are predicting. they are calling for a 25 point cut. expect a lot of volatility between now and the 18th. michelle fleury life is in wall street. joining us now is the head of foreign exchange strategy at the dutch bank rabobank, jane foley. jane, are we in freefall, or are there measures you're seeing emerge that could prevent further falls this week? if you look at the smp 500 which is the biggest stock industry in the us, we are off those lows. it is still down one point 26 on the day but it is often low. if we look at us deals they have also moved away from their worst level. the reason they did that is because we have had some us data this afternoon. another forward—looking purchase managers' index,in forward—looking purchase managers' index, in contrast to the survey we had last thursday which did trigger a lot of this anxiety. this was on the services sector and the data has been better than expected. that has brought a touch of come here but everybod

citigroup raising its price group on dell shares from 155 to 160. brian? >> was i wrong?at the best named company in america, mongodb? >> it's the best performer is that what you said? >> best named company. any company named mongo. >> got it. it's definitely up there. >> it's got to be. great wordle starting word. mongo. don't want to give it away. wouldn't have worked out this morning, though. throwing that out there. what is your wordle starting word and what movers are we seeing in biotech today? >> alnylam could be a wordle world. a lot of moves going after companies called attr cardiomyopathy. releasing the results of its drug and looked like the company had a lock on this market when they shared high-level data this summer. remember that data's stock went up 30%, but today's closer look suggesting it might not be the grand slam that alnylam made it seem. bridgebio's drug under fda review and that decision is expected in november. now alnylam is still confident in these results and they plan to file regulatory applications by the end of this year. these questions ar

and what they are doing is narrowing what their rivals are doing and citigroup is doing as we head intonomies around the world. >> this is bloomberg. note. sm welcome back to bloomberg markets asia a yeah. markets are in a wait and watch move. and maybe a bit of caution and earnings, but really it is the investors sitting on the sidelines on the world's most influential stock dropping, heidi. >> on the subject of a.i. and investors looking to see delivery on efficiencies. and we have seen the impact of artificial intelligence on jobs. the phillipines. and takes us through the rapid transition and what it could mean for white collar workers worldwide. it's a vital part of the philippine. it accounts for 1.7 million jobs and 8% of g. d. p. that could soon change as they introduce a.i. tools. >> these processes will be on human machine led. >> consulting firm said up to 300,000 context roles could vanish in the phillipines as a result of a.i. technology. the head of the labor association representing b.p.o. and seeing changes. switching to a.i. has displaced workers. one company has remove

stuart: citigroup, what are they doing? lauren: city is down 7%, $59. morgan stanley is down 5%.ls fargo came out and cut. look at the financials. stuart: we've got one winner. apple. why is it up? lauren: the iphone sales fell less than expected. customers starting to upgrade to the newest phone that allows artificial intelligence. dan ives increasing his price target, 285, called this the opening act to the main event. stuart: he is an apple guy. the jobs report, 114,000 jobs added in july. edward lawrence, you spoke to julie su. how does she explain these numbers? >> reporter: look at the overall trend. a shocker for the overall number and the employment rate. last time the economy traded 14,000 jobs was last april, last time the economy had an unemployment rate of 4.3% was october 2021. this is why the federal reserve chairman jay powell made the pivot to jobsite risks. >> i have been through the data already. what we are seeing is a normalizing of the labor market and we are watching carefully to see if it is more than that. we are well-positioned to respond. >> reporter: ma

neil: to spending money but less than first thought and citigroup pleased by that, calling it christmas august. they upgraded this to a by and giving it $230 price target. stuart: a couple retailers, tell me more. lauren: alter beauty is cheaper and after target which is 13%, tjx reported solid numbers. the bottom line is customers want value. we've been preconditioned to because the economy is slowing, paycheck isn't growing as much to seek a deal and these names offered compared to macy's. stuart: thanks very much. with no policies on her website voters are waiting to hear more on kamala harris's economic proposals as a report shows regulation from the biden harris administration cost the average family $50,000. hillary vaughan has that coming up. second gentlemen doug emhoff called his wife someone who rises to the occasion. liz peek response next. ♪ ♪ dad: i'm gonna clean the fence. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot

and citigroup supporis upgradin hormel to a buy. >>> time for the global briefing.5 closing 3% higher today erasing the losses from last week. tokyo and rakuten were some of the biggest gainers boosted by shifter endment sentiment. >>> u.s. officials warn on the iranian attack on israel is likely. the u.s. is preparing for a significant set of attacks after deploying more forces to the middle east and geopolitical risks weighing on the sovereign debt outlook with fitch downgrading from an "a" to an "a" plus. >>> and global funds have been pairing back exposure to china in recent years due to the weakening economy and failed stimulus measures. investors are finding other opportunities like india which is now neck and neck with china. >>> and still ahead on the show, the one word that every investor needs to know today and plagued by technical grlitches. the live event on x with elon musk and donald trump marred by issues. steve kovach will have the latest when we come back. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college,

huge move backing from some of wall street's major companies including jpmorgan, bank of america citigroup2 million dollars near 26% stake in fmx tell us about the. >> bgc a public and then exchange for everything that us do ent trade if you sat next to me dinner party people say why are don't you open exchange here week futures exchange, opening in at the present time by the way, end of august so september not far away, all biggest banks backing us biggests banks backing us, we are going to compete with, the exchange has a monopoly in america 99 point some percent all futures in america starting with u.s. interest rates, sold for future like interest rate twapz people who have floating rate mortgage no one knows what interest rate swap is if you have a floating rate mortgage that is interest rate swap you say a floating rate against what? right how do banks like deal with that call it interest rate wap so go doing those back mortgages going to do futures against u.s. treasurys two biggest futures products in the world all banks behind us we are going to open for business and it is going t

by the way, citigroup navigates yet one more industry issue like this, that could help their revaluationat's my number one pick with a caveat of short term we have a bit more caution about the whole group. i think there's an issue with lower rates. be careful what you wish for. everyone said, let's get lower rates, so with the fed cuts, you get a rally, but the net interest margin will go higher for the banks, but probably not as high as you thought before. if you're reinvestments the securing maturities 70 basis points lower than a metropolitan ago, the inflection is not as great as it was before. >> great. nice to have you here, thanks. >>> rich saperstein is back. we'll talk about his latest positioning as well. we'll do it next. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf.

sources say it has picked citigroup as the lead bank and it is targeting a listing in the second halfhave been tracking this one. it is interesting. let's start with the basis -- basics of what we know. >> the timing is going to be in early october. that would be the group of ipos that is going to list and go for an offering after labor day. right now the ipo window has slightly shot after the july slew of ipo's. the next winter is going to be september, before everything is probably going to slow down because of election volatility. ed: it is an interesting decision to make. the reason sarah brass is interesting is what it does. it is very on-brand for what is en vogue at the moment. with the make of that? and it's salability in this market? amy: people are talking about whether ai does produce money, right? but because there has been quite a lot of ai-adjacent place, like reddit, sarah brass is right smack in the middle of it. it produces chips. it makes the largest tip on the market. it is much bigger than the others. if you think normal chips are the size of a postal stamp, this m

lauren: thought they would be down at the strike authorization vote by the flight attendants but citigroups if the fed does cut rate it will boost travel demand for the airlines, calls it stimulative for consumers and the airlines. stuart: airlines are not my favorite industry group. i want to get back to nvidia, down 3.4%. it's been down about that level most of the morning. you studies this company. it's now selling up to $121 a share. are you buying it at one hundred 20 one dollars and if one and if so, why? >> we are by recommendation, the target is one hundred $39. i was a the biggest reason we are buying it is this forthcoming black will cycle which right now is delayed, has been pushed, the expectation was we would see revenue in september or october, it will get pushed to the end of this year but the type of cash flow we expect this company to generate by next year will approach one hundred billion dollars in annualized free cash flow. only one other company in the world generates that and that is apple. typically the best predictor of future returns in the market is cash flow. our

nvidia, tesla, citigroup there. that's an amazing drop of citigroup.e before you see citi down 6% in a single day. big cap tech same thing. everything was opening down the -- in the 4 to 5% range. off of the lows here with apple, amazon, meta and alphabet still down big as you see. defensive sectors are doing better here. so staples, utilities, health care down 1 to 2%. some of the consumer staple stocks are flat to slightly up a little bit as you can see here. david was talking about mars in talks to buy kellanova might help a little bit. these stocks are faring a lot better. considerable damage to the tech landscape. i want to show you what some of the big cap tech stars are off their 52-week highs, amazon 22% off, alphabet 17, microsoft 16, apple 14%. semiconductors are worse, of course, led by amd down 44. that is not a typo there. micron 45. intel. nvidia down 33%. i want to comment on the vix. you've been talking about it, guys. we're in -- vix is normally in contango. the front month normally lower than contracts farther out. and this is not wor

president, eisenhower was president of columbia university but they do not know he was running a citigroupat the council after the announcement of the marshall plan on what else u.s. should do to support your. in the history of council study groups, it was an abject failure. the group rarely met and could not reach consensus, he was a terrible leader of the study group, as it turns out. the one recommendation that came out was to create a military alliance that became nato. truman appointed him the first supreme allied leader. the question, nato has been a victim of its own success, such a successful deterrence alliance, so much so that ukraine insists on becoming a member. how do you convince the ukrainians anything short of full membership in nato is sufficient to protect their security on the borders of russia? gen. gavoli: obviously that is a tough question, and one that i have to be a little deferential about policymaker space in answering. this is something you can see, the alliance is working out with ukraine. even as we speak. i think in the meantime while it is being worked out, u

lauren: citigroup is down 4.5%. are lower interest rates good or bad for the banks?consumer is slowing down because the economy is slowing down ark that's the question. many people are saying, yes, i know, hindsight or foresight, maybe jay powell and co. should have cut a few days ago a, but they didn'tings, and now there's a 65% chance of the first rate hike of this cycle in september will be half a point. stuart: let's go back to big tech. it's a mixed picture, but we have one winner, apple, up 50 cents -- lauren: can we drill into apple for a second? this is a company with $153 billion in cash. do investors care how much or how little they spend on artificial intelligence when they have that much in the bank? if their iphone ceals fell but not as much as expected. many people are upgrading their phones to the iphone 15 pro, that's what you need, plus the new pone to get their apple intelligence which is coming next month. apple being higher is very good news in a sharply lower market. stuart: amazon down9.8%. mark mahaney maintaining his call that the it goes back

morgan, gotman, citigroup, morgan stanley up, bofa down just a fraction. how about the cryptos?0,000. etherium, 25 -- 2570. both down a little. ken golden is back with iconic memorabilia. ken, welcome back. gotta start with the baseball bat used by babe ruth sitting right there. >> sure. so this one is from9 1928. in that year the yankees won the world series. ruth hit 54 home runs, and and this is what they call a ruthian bat, it is a 40-plus ounce bat, 35 inches, great use. and this one is part of our best auction of the year which is called the golden 100 which is why we have so many different genres here, because it's the best items of various categories of collectibles. stuart: value? >> the value on this is probably about $175,000. stuart: 175 grand, okay. moving on to the a barcelona olympics gold medal. from whom? >> yes. stuart: who won it? >> so this is very special. this is a dream team gold medal. it is the only one that has ever come up for auction. s it is clyde drexler's personal medal that he was given for winning the olympics in 19932. the dream team, to me, is

so citigroup is saying it's a clear sign of softening in the labor market and tightness in consumer budgetsend customers is greater than the trade down benefit, in other words rich people eat big mac's but poor customers can't. whirlpool says the us housing market hurting big ticket items. visa says a moderation in lower spending income, coke said the same thing, wendy's same thing, low income consumer reducing frequency, disney says low income consumers spending less at the parks, i'm surprised any low end consumers could afford to get through the front gate. let's talk to ceo strategist danielle dimartino booth. danielle, why do businesses see this? i mean, these businesses for the most part have locations in every single state, 40 or 50,000 people. this is the best real life survey i can think of, but economists for the most part 95% the federal reserve they don't see the same thing. >> well, then they're choosing to not see the same thing, because what you just -- the list you just went through is across the entire economy, as you said, across the entire country, and if you're not seein

surprisingly in technology, we then tiananmen square happened because of the issue you just raised the citigroup situation room. duty officers actually ran down the street near the there's a there was an old map store in, farragut north, which is about a block from the white. and they actually ran the map store and got a map of beijing. so they could answer the president's questions about what was happening in tiananmen square. of course, now we'd all just pull out our phones. it was fascinating to think about that level of detail. and i have to say, the chapter on the bin laden raid was in a coffee shop, and i'm sure they thought there was something wrong. even though i know how the story ends, i had to get up and just walk around hearing the perspective so tense. the situation room. yeah, i mean, this was months and months obviously of planning in the highest secrecy, only handful of people knew about it. first they were bringing in one, one or two people along every couple of weeks, but it was very, very closely held up until the final the final moments. but what by the time the decision had

economists at jpmorgan and citigroup. >> they're predicting a 50 basis point cut at not just the september meeting, but the november meeting as well. >> center or elizabeth warren? barney fears credit of jerome powell. she went on social media to say that powell made a serious mistake. he needs to cancel his summer vacation and cut interest trades now, not wait until september of course, the problem we're doing an emergency rate cut is that could just undermine confidence on the market and on main street, even further so the fed is going to probably have to wait and see how the economy evolves before deciding whether or not to cut rates in september. and by how much danny and amara it's not easy being the fed chair matt egan, thanks so much. >> the olympics slett everyone. >> let's everyone be fans, even athletes and yes, that's team usa. great. as we all know, who do i need to say his name, but i will show you what had them on the edge of a sea late last night that. was. >> a murder i shall not seek and i will not accept the nomination of my party for another term as your friend, 1968, to

jonathan: citigroup downgrading bumble to neutral, citing the company's disappointing outlook.ing on the stock. elsewhere fellow drugmaker getting in the premarket thanks to shares of weight loss therapy. shelly banjo joins us for more. walk us through what is working over at lily? shelly: this is a moment in time to say eli lilly might be pulling ahead to get these drugs out there. novo was first. you can be first but not necessarily best. you could be second and come from behind and that seems to be the case now. eli lilly is starting to see supply issues easily bit. we had a scoop saying we will come up shortage soon. that will reduce these.gov drugs that are not generic but not brand and get more people onto those branded drugs. dani: this i find so strange. all you have to do is watch commercials and you see people advertising for not eli lilly, not novo nordisk, something that is weird. is there not regulation. our people not in danger of using these drugs. it is regulated by state pharmacy boards and it is perfectly legal at the moment. as long as these branded drugs are

advising her as well as people from the business community, someone who is a high up executive at citigroup for a very long time named ray maguire. he's a major donor as well. so she's getting a lot of input from a wide array of voices but what exactly the common theme of those conversations is still not clear it's fascinating to me as a hearing kayla layout that the vice president wants to help out the little guy, but also be pro-business it's some of what we heard at the rnc when j.d. vance was talking about going after corporations. so it seems like both parties are trying to walk a tight rope of sorts on an economy that to your point seems to be doing ok with the exception of the stock market today. but a lot of americans don't feel that way. >> yeah unlike the other thing is that we do not know how voters will translate this into the desert the decisions are making november and we don't know of course what will happen between now november, including on the economy. >> but part of what democrats around harris and on the campaign are thinking about is when you look at what happened in 20

citigroup today looking for 150000 and unemployment to get the four point 2%.as the story changed in a couple of weeks? >> incredibly quickly. it's amazing. i'm stunned. consensus is moving so fast jonathan:, i'm actually stunned. does it make sense that it has -- so fast, i'm actually stunned. jonathan: does it make sense? based on the information coming in? mohamed el-erian: it has overshot where i am, it, when i heard people say 50 in september, i thought that's really difficult for the fed to start a cutting cycle with 50 basis points, but that is where the narrative is going. annmarie: you think that if they cut 50 in september, it's a mistake? mohamed: absolutely. they should have started cutting in july. having said that, i think they need to be careful to handle the start of the cycle. it does impact behaviors. we haven't talked about this but the major issue is behavioral. our people feeling more insecure and are they cutting down on the income now? that will be the major question. jonathan: they have certainly cut down on spending based on what we hea

one of those is andrew hollenhorst at citigroup.said "the continued contraction of manufacturing, falling housing starts, the rise in unemployment rates are telltale signs the economy is poised to tip into recession." that is the latest from citi, still looking for 50. lisa: this goes back to the theme of jackson hole. how much can a 50 basis point cut ameliorate the situation in housing and how much is housing divorced from the other fundamentals of the u.s. economy? deep questions and i'm excited for the philosophical debates on friday. jonathan: i'm keenan lisa abramowicz talking housing on friday -- tom keene and lisa abramowicz talking housing on friday. here is dani burger. dani: hurricane ernesto has strengthened into a category one impacting the u.s. east coast in the canadian atlantic coast. life-threatening surf and rip current conditions are likely. it is expected to weaken tomorrow. mary daly told ft she has more confidence inflation is under control. even so she our greed for a patient approach to policy saying graduali

lisa: and the trajectory of where these numbers are going, we heard from citigroup who believes this. morgan stanley very much in the soft landing camp. this comes at a time when you are hearing from dollar general but also getting annualized gdp that was revised to around 3% from the previous 2.8%, hearing from companies same profit margins are expanding, not typically a time while they will start cutting jobs in a more significant way. it is that data that every deal he about that always happens on turning points, but this is the reason why i think people are kind of feeling frustrated. give us a signal on where it is headed. jonathan: welcome to the program. let's get a snapshot of price action, negative futures positive by 4%. on the 10-year, 3.8557, on the two year, 3.90. the dollar index having one of its worst months of the year so far, but over the last week, actually, the first week of strength since mid july, we have had a string of dollar weakness, weekly dollar weakness. that has got a weaker strength. lisa: after weaker than expected jobs data that really triggered expec

coming up, drew pettit of citigroup as stocks fall following nvidia earnings, heidi crebo-rediker, and. after failing to live up to skyhigh expectations, drew writes the following, "i am quite growth expectations of the long run estimates create a high bar for results, essentially you need to eat and raise that translates into out year street numbers moving higher as well as to justify current prices." through, do think the bar is too high for the nvidia's of this world? drew: i think it has been that way for the better part of the year. before we had our summer squall in the pullback we had, we talked about taking profits on the high flyers. the market reset expectations were set lower but then bounced right back, so we were basically back where we started heading into the nvidia report. you look at the results, yeah, you have had an ok beat, talking about current year expectations, but the bar is pretty high for the stock. a little bit of a pullback seems healthy right now. jonathan: we spoke to northwestern mutual earlier this week, making a point that many people don't own nvidia.

jonathan: andrew hollenhorst of citigroup and stephen stanley of santander.ot equities. bonds here, yields are lower 20 basis points. we have a two year before the 10 year for the first time since the summer of 2022. as we talk about bonds, equities are near low, down nearly 4% on the s&p. if you thought that was over on friday you're waking up this morning scratching your head and you have a big headache. dani: during the asian trade people were waiting for europe to come online and then the u.s. to come online. instead you've got a 12% drop in japanese equities, the biggest since 1987. we are grappling with the side effects of that, how may trade stacked on top of each other, how many trades were. it just keeps leading through. jonathan: the fed is not ready to step in based on the officials we've heard from. we heard from austin goolsby. mike mckee sat down with austin goolsby. he said give me more data. there is none of the tannic and their voices compared to the panic we are seeing in the bond market. dani: you have a market pricing in an emergency cut.