you heard the comments from goldman's ceo david solomon.t market dependent on a more robust economic recovery going forward into 2022 and 2023 >> it is both of those things. it's robust. the recovery is robust but the recovery might be too robust, dom, because as you know and as you've reported, inflation is running at the highest clip that we've seen in years. and of kocourse this is engineee by the fed do they want as much as they've got? right now we're seeing, what, 5.4, 5.5% in that range inflation year over year that certainly says that there's demand out there and that people are spending that money. the question is whether or not that inflationary jump that we've seen in airlines, in used cars, new cars, in food prices, whether all of that changes the way the world looks at this particular recovery which has been, as you've said, very robust. >> jon, we're showing all the viewers and listeners a chart of the 10-year treasury note. we know massive amounts of central bank intervention are in many ways distorting what's happening with

wilfred, over to you david solomon is here in a few moments. we were discussing off-camera, the first in-person, live interview either of us are doing for quite some time. there's so much to cover being back in this office, and their approach to offices has been a story so closely. but also they had blowout earnings, yet the stock is down. we'll explore why. jpmorgan also reported today, we'll explore the themes throughout, particularly the sustainability of the strong capital markets' performance and asset management performance, also the didi ipo, and solomon's view on inflation earlier today, whether or not the fed is behand the curve. mike santoli is tracking all of today. what are you focused on? >> the inflation number you mentioned definitely has the market a bit unsubtled, unbalanced a handful of stocks are making the damages look less severe at the top line indecent down about 0.5% it comes after 10 of the last 12 sessions have seen a record high clearly any excuse to back off makes sense, but a lot of the cyclical areas are definitely

matter if we have very strong growth of course we'll get to discuss that and so much more with david solomon in just about an hour's time the inflation print, his view on whether these capital markets' activity can continue, his view on junior banker pay and overall market levels. i'm really interested to get to him on that because they sold down their investment portfolios during the quarter and a big question is why. does he think that market valuationis are too rich at the moment that and much more to come in just under an hour's time. >> wilfred frost reporting and he'll have the big interview with mr. solomon in an hour's time. >>> the food giants conagra and pepsi. conagra zippsinking and pepsi mg higher as soda sales at theaters, arenas, restaurants are expected to rebound. it is a narrative playing out around the market. surging consumer demand and spending colliding with rising inflation and rising input costs. but our next guest says the growth potential in the markets is underappreciated ahead of what he says is going to be a, quote, blowout second quarter earnings season. joining

bathsheba was david's favorite wife, and bathsheba used her influence to make sure that david named her son, solomonisrael. >> for david, this is a way of atoning to her for what he did. he took her husband away, but now he's going to make her the queen mother. her son is going to rule over israel. >> after 40 years ruling ancient israel, king david dies around 970 b.c., and solomon takes his place. >> if you want to talk about a coldhearted, calculating, manipulative, hard nosed individual, look no farther than solomon. >> solomon doesn't have david's charisma. that is one thing that is very, very clear from all of the accounts. he doesn't have the same ability to make everybody follow him through sheer force of personality. so you see political shrewdness, but unfortunately not a lot of personal integrity in solomon. >> king solomon was a very spoiled kid who grew up in a court of power and wealth, who was so consumed with his order as king that he tried to exploit it to his advantage. >> and he has to somehow make sure that he holds on to power. instead of doing what david would have done and mak

king solomon dies. king david was the king that israel fell in love with and his son solomon was the pretender. but he was strong enough to force these tribes to stay together. by the time solomon was gone, it all fell apart. >> the united kingdom was split. the northern kingdom of siisrae and the southern kingdom which is called juda. they each have their own monarch kings. when this united kingdom comes apart. it becomes israel and juda. that would later become sama ri ah and judah. when you study the history of jerusalem and you appreciate the symbolism and you think about what went wrong? what created this big fisfissur between the communities. >> it is largely tied to the way history gets exploited, politicians who would like to go back to the story of king david claimed that what happens in jewish history is a kind of deed that gives judaism and jews for that matter. so essentially what you see is biblical history not as history but as political pop began da. propaganda. jerusalem was not supposed to be all

david? >> rahel, thank you. rahel solomon.scussing what seemed to be quite strong numbers from jpmorgan and goldman sachs but both names as you can see are in the red fairly significantly. nothing from either one of the conference calls that would seem to be a reason for that decline. that will do it for us on "squawk on the street. "techcheck" starts now >>> happy tuesday. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa we're live outside the courthouse as elon musk's second day of testimony begins.

we have seen unapologetic comments from the likes of david solomon, saying that work from home is anorman they met a few are comparable going to a restaurant in new york, you should become double coming into the office. we are seeing a lot of these firms, including piti and jp morgan raising first-year salaries. you are not going to be able to retain junior talent. lilian: providing -- shery: providing peloton bikes as well. lots of perks to retain those talented individuals. haidi: we shall have to wait and see to see how that plays out because they certainly -- there certainly seems to be a lot of push for change. james frazier has been meeting to have boundaries between home and work life to get more of a worklife balance as well. coming up in the next hour of daybreak asia, we will be getting more markets inside from state street global macro strategist marvin loh, but that is it for "daybreak australia." "daybreak asia" is next and we are counting down to the start of trading this friday. this is bloomberg. ♪ haidi: hello, and welcome to "daybreak asia." sophie: i am sophie kama

haidi: jp dimon and david solomon speaking about their paying.st banks reporting second-quarter numbers. to discuss what is yet to come, we are joined by the head of wells fargo securities. it is. when you take a look at the numbers out of jp morgan and goldman, spectacular numbers. why are investors looking at all the things they think are wrong? >> look, we are between antoine and act two. act i has been the amazing performance by wall street and capital markets and you saw that today with both goldman sachs and jp morgan. act i is continuing, but act two is about main street banking and that has yet to pickup. those revenues are lower. we are not seeing the return of loan growth. it seems likely that loan growth will follow economic growth but it is not here yet. what we say is we are in intermission between act i and acts two and that intermission may take a little bit longer than people had expected. you have seen the decline in the 10-year treasury yield in the u.s. so that also hurts the traditional banking revenues but meanwhile, the deal

what you're seeing there is goldman sachs and jp morgan down in the red goldman sachs ceo david solomon discussing the results in an exclusive cnbc interview just a while ago on the "closing bell." take a listen. >> i think we're not going to see the level of activity we saw, for example, in the first quarter and that was clear by the two earnings reports you saw today. but i do think there are two things going on. one, i think that fundamentally activity levels given the environment, the size of the overall wallet was larger, and i think the large players are also a consideration. lower market share, 160 basic points we feel very good about the way we're positioned >> all right i mean, some would consider him, goldman sachs, a bellwheeather you said you didn't like this setup. >> i don't like the setup. i liked what they had to say, i liked what jamie diamond had to say because i always like what jamie diamond has to say, but i want to see what he felt about the economy. he was pretty optimistic on long growth, he was pretty optimistic on gdp growth. he thinks interest rates should be

ceo david solomon hinting at the fact that they will be competitive when it comes to pay , but not committingkind of pay raises as he faces some questions on junior bankers. david trainer, new constructs ceo, joins us. what was your biggest take away as the street looks at our yet peak trading profits, and we are just not seeing the loan demand that we may need to see at this point in the cycle? david: i think expectations are high all around, and we have been schooled in a lot of ways by several tech companies showing huge beats, but people forget that these firms like jp morgan and goldman sachs are huge cash flow generators. they've got strong businesses that are going to continue to be strong, and they are well-positioned for the economy going forward. it may not be sexy, but the low beta major of these stocks makes it comparable as some of these index funds like the sp y. you are going to get a lower beta here and possibly better upside then you're going to get across the diversification you get from the s&p 500 because these companies make real money, and the s&p has been tested to get

that idea of a more challenging environment for clients is something we want to hear more from david solomonthe call. tom: i'm just going to go back to it. you can do this on the bloomberg , the function is dvd because dividends matter. before the crisis, 2006 out to 2021, maybe you going to 2020 to come of the dividend from 0.35 two two dollars a share. it is a money machine. sonali: it is a money machine. the other thing, i sent this to you a little earlier, that value risk number side jp morgan, i don't want to ignore it. that going down to 42, there is a concern coming inside these banks and from their clients. the banks are not going to step in or are not stepping in times of stress. we have not seen that to a great degree yet, some forward-looking expectations, do they expect a 10% drawdown to the rest of the year, a 20% drawdown, or are we expecting things to be ok? if they are reaching hiccups, as everyone is in similar crowded trades, their clients are highly levered as well. who is there to step in if markets get rough in the second half of the year? jonathan: sonali, thank you. br

be sure to catch our exclusive interview with goldman sach's chairman and ceo david solomon on the bank's earning report that's tomorrow 3:00 p.m. eastern time a big exclusive coming fresh off the earnings report. a must watch interview coming p up >>> goldman sachs is reporting jpmorgan is out there. dan, i'm going to look to you first because you're sitting right next to me, physically speaking among those stocks an the two that come out the next day, it's money center or investment banks. two parts of the spectrum that are important. what's the favorite for you right now? >> goldman sachs will have a good report. i think carter laid it out good what is expected and how better, i think expectations across the whole group are up 100% year over year. expectations are really high i don't love the money centers i see some bad action in bank america and citigroup and wells fargo. i don't like any of them >> all right,sir taking over the nasdaq 100 going for its nineth straight week of gains. just a few minutes to break it ul down. disney ease plajic lighting up today on the back of some very

. >> that's why i think david solomon is right david solomon, you know, going back and forth i want rigorousnt classes friday night. i want testing friday night. i want to put up the people who finish bottom. >> you might lose -- >> i'm told by this weekend, i met people from goldman, they said i was out of touch. out of touch >> yup i keep hearing the same. >> i found it embarrassing i said, yeah, out of touch we did pretty darn well. you want to measure? >> that's the question >> productivity, that would be the measure. >> interesting to see over the next three years if you can compare one organization that was more or less in the office every day versus one that isn't. who is going to succeed or not >> a lot of doors. you have next door you have glass door. people are rating you. >> yeah. >> they're rating you about how you are. >> as an employer. >> yeah. i would say, well, i guess if i was a talented computer scientist, i might jump from google to, you know, maybe jassy calls me now that he's running amazon. >> that's right. >> by the way, amazon breaking out. i thought that was interes

. >> a few years ago, you got to note that david solomon said if markets were silicon valley startup, people would be throwing money at them, but as john just mentioned, there has been a lot of competition that has come into the marketplace since then those savings rates aren't as attractive as they looked a few years ago. join ing us for more is the production board founder and ceo david friedberg. david has invested in sofi and among other fintech firms. david, thank you for being with us this morning. i think you were just listening to our conversation and you are on the fintech side of this. you think they will ultimately win out against the big banks? >> i think it is a classic innovator dilemma in the marketplace. a fintech company generally has a lower operating expense per customer, so they can make less profit per customer and build a great business they also have this issue where they're not going to have shareholders lambaste them for a decline in profit or revenue over a short period of time, a couple of quarters so they can make the investment to take a more aggressive ap

eastern time for exclusive interview with david solomon to further discuss those results and the outlook on the banking space. >>> the cuban government is cracking down after the mass protests the latest from the havana and the role the pandemic may have played >>> plus this commodity has given up all of its gains this year we'll tell you what it is and what's driving prices lower. stay with us >> announcer: this is "the exchange" on cnbc. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity

. >> david solomon on "the closing bell," today we're looking forward to that interview.s yours >> okay. it's up 30% year-to-date so, you answered your own question these stocks have been anticipating strong results all year now you get the strong results, they don't also get credit after. stocks are anticipatory. they're not worried about looking back the thing on goldman, goldman doesn't get a lot of credit for things like booms in asset management their asset management business was up huge year-over-year but they don't get credit for that by investors or by analysts on the street because everyone knows that was a once in a lifetime year-over-year situation. it ain't going to repeat next quarter, let alone this quarter next year. so, it's not as though you should expect outsized gains as a result of a windfall of government created money flooding its mutual funds. the last part of that where goldman really excelled way better than jpmorgan was in investment banking this ipo/spac plays right into goldman sachs. i think up 40% they got the benefit already, which is why y

had been blessed in many different ways, but the jewish people, abraham, isaac, jacob, king, david, king solomon, all the way to little daniel luria today in jerusalem is this one shy, and it's been blessed in a different way. the little land of israel, we have the covenant with god. we have returned home design is dream is being realized all the time. and as the indigenous people here, the world and especially the air world is going to have to understand that at some point in time, ah, in the me today, i live in ship cetera. but i live spiritually. if i may say so in the western part of the city, i wasn't born yet in 1948. but i, she led the deck, grounded in these ties are dogs, which i got from my father's house. actually, id processed the style when the house was put on sale and they were uprooting all the ties and all what is in the house. i chose to put them and document my history and my story. i would ultimate goal is actually to preserve cultural heritage and precisely palestinian cultural heritage into a slum knowing very well that on a daily level is an attempt to raise everything cau

the ceo, david solomon, had called working from home and aberration, and this is just another move thatommitment to the office. they have got about 750 on bath in tokyo, and they are going to be expected to be coming into this office when goldman finally moved in there when it opens in 2023. shery: our asia finance reporter there. we will have plenty more to come on "daybreak asia." stay around. this is bloomberg. ♪ haidi: a quick check of the latest business flash headlines kid mgm resorts is selling two hotels to blackstone for $4 billion after acquiring half of the project. the sale to blackstone includes hotels which mgm will continue to manage. mgm has been selling real estate to raise cash for new construction opportunities and online betting investments. a new unicorn is born. it has raised $415 million from a group of investors including softbank's vision fund 2. they marks one of the largest funding rounds for the company. the ceo says the capital is now enough to seed global expansion. nissan says the global semiconductor shortage could ease before the end of this year. the ch

season kicks off with report from jpmorgan chase, pepsi and do not miss an exclusive interview with david solomonor february we put the states through 85 metrics. our tried and true formula is built for change not necessarily the kind och change we have seen in last 18 month. we have updated and tweaked formula a bit. >> like they should, good work for training they are pushing low taxes and incentives it's the cost of doing business. our most important category. follow closely by infrastructure not just roads and bridges anymore. they look at sustainability, broad band and reliability, power grid >> millions in texas still left in the cold and dark this evening from a failing power grid >> we have broaden our measure of quality of life, new category looking more closely at health care, including covid vaccination rates and inclusiveness including voting rights >> you can read more about our methodology at topstates.cnbc.com you'll see how your state stacks up after we reveal where i am. america's top state for business we have one more hint. it is one and done one and done is your last hint we'l

have, currently around will always because jamie dimon and you know, david solomon, i mean are two of the smartest financial managers on the face of the planet and i think other competitors in their space will quickly embrace what jamie and david are doing. neil: we shall see my friend, dick grasso, former new york stock exchange chairman and ceo. very good to see you, dick. >> good to be with you, neil. neil: developing out of texas, you heard that democrats, most of them flu out of town in texas deny the republicans a quorum what would be a new voting rights bill. they argue it is too tough after voting rights bill. they got two private planes. we're not sure who funded all of this. we're told house democrat initiative to help them out on this. of the bottom line they won't be in town for the big volt. the message has come, if you're not back and soon, you will be in trouble and then some. why the governor might be within his power to arrest them if and when they do come back, after this. ♪ ♪ ♪ with cutting-edge tech, world-class interiors, and peerless design... their only competit

goldman sachs scoring top and bottom line beats, helped by a profit don't miss an interview with david solomonhave nothing to do with effectiveness. the shots are incredibly effective, he says his comments come after biden administration met with representatives from pfizer on the booster shot question. here is dr. fauci with us last hour. >> the discussion about boosters is really an appropriate preparation on the part of the companies together with the nih and the cdc and others in being prepared in the eventuality that you might need a boost but when you translate that into we will need a boost, everyone is going to get a boost, that is not appropriate. it's not appropriate for the reasons that you just mentioned. we still haven't vaccinated enough people in the primary part of this. >> and some other vaccine news this morning sources tell "the wall street journal" thatjohnson & johnson and astrazeneca looking into modifying their vaccines may have reduced blood clots in association with the shots. >>> chief executives of paypal and chipotle will join us with their unique insights on reopen

staff a couple of weeks ago and of course david is the advisor and team lead and director of one of our major broker programs and supported them and henry solomon who worked with david on these important initiatives so thanks to the sponsors and the committee and our wonderful staff for putting this together and the consulting firms we hired to help us. one last important element of business to do today and it's among the important things we've heard today and how intriguing and challenging and important they all are there is a path and we would like to recognize right now that entails the great work of our former president and ceo. i don't know whether or not -- there she is. i'm hoping yourol resolution wil appear on the screen of our consulting firm can get that up. >> let me just paraphrase a little of this. we are going to post it on the websites of the friends and supporters can read it later in its entirety but to present this very special and deserving recognition to you you are recently retired as most of us know and most folks around washington and around the country know as president and ceo of mmtc. we are just delighted that you ha

is daniel davis who is our newest lawyer and of course david, the advisor in one of the major broker programs and he supported them with henry solomon who worked on this important initiative. thank you to the sponsors and with a consulting firm that we hired to help us. one last important element today how intriguing and challenging and important they all are to us going forward. it entails the great work of the former president and ceo. i don't know whether or not -- there she is. i am hoping that your resolution will appear on the screen if our consultant could get that done. you have the resolution -- let me paraphrase a little bit of this. we are going to post it on our website to our friends and supporters. it is my great pleasure to present this very special to you. you are recently retired and as president and ceo, we are just delighted that you have accepted the resolution and the honor and from beyond the resolution, you know how we feel about you as our former president and ceo but we cite some of this resolution, perhaps all of it in my own ways the audience can recognize the wonderful contributions. thank you so much. yo