here's one fintech.me, financial technology is the most overvalued part of the market paypal, mastercard they're viewed as a sector, so what every time they get hit buyers come out of the woodwork want to go against fleet corps he's like -- i think he's still on i-95 getting run over by 18 wheelers big caps -- let's go over them this is important. amazon, yes, vulnerable. microsoft, after this run, vulnerable netflix, vulnerable. apple, potentially vulnerable. these are the big ones that could potentially get pummelled, especially if the trade war heats up against apple and gets caught in the cross fire however, i think the deal the president just made is a major win for these guys i wouldn't sell apple. still, when you look over the whole market, the idea that we're too bullish, it does not hold up under close scrutiny while there are some overvalued stocks, real people i think are descentable regardless of what polls say. bottom line, feel free to pull in your horns, because you think there's too much

we are investors in fintech too.e have invested in a couple companies that provide sme financing options which allow smes to improve the working capital, et cetera we invest in insurance companies because we think that that addresses a need of both enterprise and consumer. so as we think about our own financial services portfolio, that is also shifting the context of how banking services come into it so an interesting journey for everyone >> and bill winters also in an interview back in january highlighted that temasek is supportive of their chances. so i'm taking that you are also very supportive of what is happening at the business end to restructure things and get the business going once again. ed thyou had the buy back progrm possibly a leadership change >> bill has had a very difficult job and he knew what he was getting himself into we've always known that it was a multiyear program and the question is whether you can see the bank improving and in many situations we can see the bank improving yes they have had

i want to own that on the payment side of fintech.n the processing side, there's a company called genpact their ticker symbol, g congratulations for them for having it. $7 billion company, actionable, scott. we never talk about it >> all right thank you for that, joe. >> i didn't do it in my stephen a. voice or mr. rogers >> you didn't have to. >> dude, so unnecessary. >> comedic timing needs work final trades pete, you're up first. >> all right, so when i look around and i was looking at all this different unusual, when i see them hit more than one day in a row, boom, boom, boom, we continue to see it, summit the material space, talk about housing all the time keep an eye on this name >> carrie. american tower, amt. they're in a big space that is growing. they have a big motor on them because these are expensive towers to build. we go to 5g, there's more demands on the systems people use more surfaces, use moreidaty, and american tower is the leader in that field >> josh brown. >> twitter just snapped a downtrend that's been in force

europe is a great place for fintech companies.rtunity for them to most to the u.s. and it is a big market. but i don't think the u.s. will be the sole focus. we will think globally as well. francine: do you think worry about brexit -- the you worry about brexit? mattias: companies are dynamic. they will find the avenue that works best for them. i don't spend a lot of time thinking about brexit. is present becomes a problem finding divisional company, they will move, they will change, and they will deal without. it is part of being an entrepreneur. francine: do you want 10 investments in the next couple of years or is it a case-by-case? mattias: i think it is important to have consistency in terms of the scale of investments you are doing. volume is important in that space, too, so it is not his just a sharp shooting exercise. . francine: the european listing process, does that change the vc the factory have companies in the u.s. of that spin off does it change the way you see future investments? mattias: now. it is the basics of f

>> we put out the bali fintech agenda last year at our annual meetings in indonesia. it made a simple point we don't know how these new technologies will be adopted we think there's great opportunity for cost cutting for efficiencies, for financial inclusion. when you look at past innovations, sometimes it took years to figure out what were the best ways to use these technologies for example, edison invented the light bulb, but widespread uses of lelectricity in the united states took 20 years, 30 years to be put in place our view is let the innovations be adapted, let people try to figure out the best uses, protect against the risks. that's true of the stable coins, too. stable coins have the promise of doing for transactions what the internet did for information, which is to make it instant, secure and nearly free now, that could happen, that will come with all kinds of risks. the risks of risks of misuse oe data the risk of some countries with weak currencies that currency substitution will beyounderline monetary policy. rather than say no, this will not go forward

plus, while fintech is all the rage, there is nothing new about it. you how this trend has been going on for thousands of years. the f

so whether legacy banks like ours or many of the people in the ecosystem of finteches competing with banks for customer business and changes the experience, it is all about convenience for the customer it is about access to your information, access to your assets doing things in one place. sometimes it is a la carte but you probably want it all on your phone i think increasingly the demands for personalization so that it is clear what your bank knows about you is brought to bear in how they respond to issues that you have, how they describe and promote value for you, that you never have to tell them something that they should already know and that they can anticipate where you are in your earning, in your spending, your saving for retirement, et cetera all of that is it part of the ganging experience and those are the areas that we're focused on. as it relates to the fintech charters, i will be interested to see how some of these companies who brate in a lightly regul -- operate in a lightry regulated environment manage through privacy as it becomes bigger issues on top of the consum

fintech isn't hard to spot payments are harder to identify than mastercard or visa or american express it's hard to identify if you cut the cord the bottom line, the top ten performers over the period rally from 2,000 to 3,000 aren't mysteries. we praised most of them repeatedly for invisilign, 250 years ago i went for braces and guess what in the selfie generation, it's time for a tuneup dan in new jersey, dan >> caller: boo-yah, jim. thank you for everything you do for us. >> absolutely. >> caller: all right my question is microsoft has a buy rating, shows it's somewhat over valued and at a 52-week high with the price target of 144. i was just wondering is now a good time or should i wait for a pull back? >> it's had a huge, huge run i said frankly, this has been monster good and i'm worried after this big run it will pull back even after it reports a great quarter and that is when you would pull the trigger, not ahead. all right. the stocks that led us higher since the s&p have been fueled by pure human ingenuity so don't just focus on the fed for heaven sake focus on the ceos and c

thomas: the big banks are some of the best fintech companies. we remember jordan wall struggling because they invested for years, and ag edwards, and on and on. say you don't have the technology to compete, as that 2022? thomas: these banks are not sleeping giants. the incumbent companies will not yield to take knology companies so they are working hard -- technology companies so they are working hard. sonali: does jamie dimon have more deals on his docket? tom: was not in the earnings? sonali: it is something we have been reporting on. nejra: i will pick it up and just the second. you have got to head to radio, but thank you for joining us. we still have thomas michaud with us. just to reset on some of these headlines, jp morgan interest income $15.75 billion. at saw at least 58 billion after cutting annual net interest income outlook. that is what we have been focusing on. second quarter equity trades and revenue -- let's carry on the conversation. on more deals potentially being on the table, earlier you were saying that is not in the cards f

there may be one over at fintech. i don't know.f the things we have to know and understand is what is it? kevin: what is it? rep. waters: what is it? is it a payment system? what do they do and how do they do it? and so you cannot even decide what regulator would oversee the m without understanding what it is. kevin: so what is the next step? that is what i get when reporting on this, people don't know what these digital currencies are or how they will use them. so what is the next step in this process? rep. waters: as you know, we have a lot of investigation to do. we have got to have more hearings. we're going to talk with the experts out there who know a lot about cryptocurrency and can tell us about the history of bitcoin, blockchain, and how it all worked, so we will be learning an awful lot. we will have more hearings, and it was requested today by one of our members that we get mr. zuckerberg here. kevin: you agree with that? rep. waters: absolutely. kevin: so you are calling on mark zuckerberg to talk about calibra and libr

so a lot of community banks, nasdaq, market structure, fintech companies go public on nasdaq.lth care and biotech, we win actually 97% of biotech companies, and that's been a very active market in terms of finding great investor interest in new technologies around health care. and then of course in the technology space, we compete every day with our competitor down the street, but we do very well in terms of bringing some amazing companies to nasdaq. though,hat do you make, we talk so often about private equity space. how much money is out there to really fund startup companies that enables them to stay private so much longer? how is that impacting you guys? what are you seeing as a result of that? adena: i do agree that there is a lot of private money out there, and companies have a lot of choice. they can choose to stay private longer. they can tap more investors than ever before in the private space. we actually have something called the nasdaq private market that helps companies manage their liquidity in a private context. but of course, we would much rather see companies

things like the diversification story, the focus on fintech. >> and there is also apple, you know >> but also the removal of a negative which is it's been over a year since that scandal really hit and now the market yoefrp e overreactsed in 2 018 and now goldman is powering through it >> so nobody is owning morgan stanley? >> there is nothing wrong with it, but we like goldman better is that not okay >> no, it is, but no one wants to buy morgan stanley? >> i own visa. >> i'm not telling you you have to own morgan be stanley, but everybody says goldman sachs >> quality company, quality management i think goldman sachs is doinget everybody says goldman sachs >> quality company, quality management i think goldman sachs is doing everybody says goldman sachs >> quality company, quality management i think goldman sachs is doingst everybody says goldman sachs >> quality company, quality management i think goldman sachs is doing other dimension stuff that is more creative. >> so going into earnings season for the banks, goldman sachs is the top pick, is that what you're telling me? >> i'll g

technology is changing so fast, even if you're amazing coder in python, a lot of fintech companies useeight months there is already tweaks. connell: right. >> a lot of companies, honestly it is cheaper if we invest in the employees we already have. connell: that part makes sense, lance, that part used to be, not used to be, recently as last week, people learn to code. that will be the answer to everything. deirdre is right, keeping up with this, you have to learn how to adjust, maybe you adapt with the company. maybe this is big investment or enough given how much automation we'll be facing over the next decade or next two decades, forget about it. there is a lot of jobs at risk here, right? >> they have a lot of factory workers, right? they have a lot of factories, tens of thousands of factory workers, only a fraction of the work is done by robots although they have a whole lot of robots. that will change over time, not having people out of work in the face of automation is retraining. this is exactly the right thing to do. any study i looked at how jobs and how the economy is impacte

annmarie: i am kicking it off with fin tech, up more than -- fintech, up more than 11%. -- seeking valuationsg to the downside, they are u.k. construction company that provides supplies to a lot of buildings. they said they saw a marked deterioration in u.k. construction, the stock is dropping the most since 2016. and basic resources, they are under pressure today. he sector alone is one of the biggest losers and they are really under pressure amidst of the second day of big pullbacks. it went through 1.1, it went china, a.2, and in steel industry group is asking the government for a probe into the rally. some say it is overdone. anna: annmarie hordern, tracking the miners in the session. we are a little weaker, weakening as we go. up next, battle of the charts. remember, bloomberg terminal users can see all of the charts we use. gtv go is the function to use. we will have more charts for you during battle of the charts, that is next. this is bloomberg. ♪ anna: aretha franklin rings out across the charleston river. the boston pops fireworks display for independence today. if you are wondering

. >> roger, i have a broad question i've been going to fintech conferences for years, and one thing thatlways comes up is when and if the big tech giants like facebook would become face bank and go into this very regulated sphere, as the years have gone by there's only been more scrutiny added particularly on facebook, why would they risk this now do they have to diversify the business is there any chance this gets pulled completely with this added scrutiny >> this is such an important question because i look around, and the financial services industry has prided itself on having great mathematicians to process data, but google and facebook, amazon and microsoft have the actual data as well as -- to process it, which is a huge advantage, and you can see amazon going into portions of the health care insurance market and presumably other insurance markets. you can see google making plays that suggest that they're starting to look at financial services obviously now we have facebook with its effort in libra, and i look at this and i think the financial services industry is incredibly vulner

you look at fintech, look at paypal, look at visa and mastercard, all part of the xlk as well. those are trading at 30-plus times earnings right now do they have enough growth really to support that it makes you wonder are we seeing certain areas where there's too much to the upside, too much excitement where they could pull back easily. >> i mention facebook is interesting to me because in early june the stock went down 10% in three days, i don't know if it was ten but it was reported they were going to look at them and possibly open up a case against them. what has it done since then? rallied 25%. if you think about that move in a little more than a month, you say to yourself, wait, think we are discounting what the unanswerable questions might be. i think it is important to remember that last year when they reported their q2 -- this is facebook -- and they guided down for the second half of the year, expectations for earnings growth at 20% in 2019 went to zero flat year over year. okay sales growth is still 24%, but who knows what the fines will be, how much they continue to

companies keep getting bigger, particularly the tech-theme companies visa and mastercard, that's the fintech cisco as well. there are a few outliers like united health and home depot that have been big out performers that are not tech, but not many have moved the charts most consumer names, look at this, they're in the middle of the pack remember the s&p is up 50% pfizer, walmart, proctor gamble, coke is towards the bottom, only up 25% you see there not a lot of out performance here there's a few exceptions j.p. morgan and bank of america outperformed a little bit, but most of the banks have been notable underperformers. then there's the outright losers and two big groups dominated from 2,000 to 3,000 on the down side first, energy stocks no surprise. remember, oil was 100 bucks five years ago. it is $60 today even with the rally. the other big losing sector are retailers like macy's. so what does it mean that a handful of big cap tech stocks have come to completely dominate the stock market to me it means technology is where the growth is. that's the story growth is really hard to find arou

perhaps some will be able to transition to fintech, where their banking experience will be helpful, but it is difficult to see where all these people will land. shery: let's talk about asia. we saw employees packing up their bags. to be had any idea how the region would be affected? away from the epicenter of where the decisions are being made. asia areat staff in little bit upset and worried about the lack of nation from headquarters. there has been a decline in attendance in the asian offices. the real estate agents in hong kong i thinking about who to fill the space. staff,e bank reduces the who will take that place? reporter, thank you very much for joining us on the deutsche bank story. plenty more to come on daybreak asia. exclusively about the business strategy in the region. usry: senior economist joins to discuss the biggest data stories this week. this is bloomberg. ♪ paul: we will soon get an update on the state of the chinese economy and how it is weathering the trade war. the latest gdp measurement coming over the weekend. capital investors senior analyst joins us now. numb

chairman, i would also like to put into the record another record article from fintech , gotled "go slown libra payments." it makes the point some of us have been trying to make which is that the fed could do this now and really provide and relief and put millions of dollars back into the pockets of working people. i hope they will move forward. quickly. in the meantime, we will continue to push for our legislation. thank you. chairman crapo: thank you senator. senator tester. sen. tester: thank you chairman, thank you, ranking member braun, and thank you folks for testifying. dr. nelson, the first question for you is, do you believe that you agree that cryptocurrencies are leaving the u.s.? dr. nelson: sure. other jurisdictions are out ahead of the united states in trying to become cryptocurrency hubs. sen. tester: do you think they are leaving because they are looking for a safe haven to avoid regulation, or is there another reason? dr. nelson: some of the cryptocurrency hubs are using regulation as a way to attract cryptocurrencies to their borders. sen. tester: so increased regulatio

the payment system companies, fintech companies, mastercard and visa, have been absolute monsters this year visa did not close at a new high though and finally year to date on the vix, we're at a 12 handle. we did not quite close at a new low for the year, but we're within a quarter point of that that is a sign traders are anticipating a rather quiet august >> and tech stocks driving the nasdaq better thrtha coombs with the ds >> chips were the best performing sector, up about 3.5% but not driving this rally it is really a question of large cap tech and particularly the software names that is where we saw the record highs in those sectors, 137 of them here on the nasdaq, a lot of them in that software sector. microsoft closing at yet another all-time high close now north of a trillion dollars amazon is getting close to that market valuation and we also saw a number of consumer names t performers tod also seeing all-time highs so the sort of cyclical, consumer, software, tech, juggernaut that is moving things forward here >> and the fed has been very supportive of markets so far the foc

>> visa tomorrow visa will have to tell a horrible story to keep that stock down that's how much fintechs almost valued higher than every other area i keep waiting when will the bank stocks begin to take money from financial technology maybe tomorrow visa says something so we break the spell of buying. >> this is why the parlor game of whoever runs wells next should be a fin tech guy, person, as opposed to a banker. >> that would be genius. you'd spot wells five points on a fin tech guy it doesn't really matter who it is it could be a guy who just created like trade web or something. you pick the number seven guy at goldman who does fin tech. you've got to change everything that isn't fin tech does not do as well. i think that -- i struggled for the wells quarter. i went over the wells quarter and they need a ceo. i think it's imperative that they have one. you can you can't have a headless horseman they need to reach down into the bowels of -- john rainey, the cfo of paypal. >> also reporting this week. >> i would call him today. say after the quarter i will pay you $100 million to go t

derivatives, you lose their intent -- attention, but you talk about food and the change in transportation, fintecho life and makes it real. that is having a positive level of engagement with clients. we are seeing money moving in this direction. a fund in the u.s. around next-generation technologies was just raised, $4.6 billion. with the are coming up one-year anniversary in september so the track record is building. this momentum of money is exciting. esg andr factor is the we are seeing a heavy flow. tom: what are you seeing on profit neutrality or profit pickup from esg? evy: that is the biggest change we have seen when it comes to esg expectations in the last few years. you go back a few years before that, clients would assume that by investing around esg and choosing to go in that direction , they would be sacrificing an element of return. ,ow the expectation has shifted if you are investing in this way , surely the companies being run along the esg parameters well do the best in time because they have the opportunity to grow their business against companies that are not following those poli

there is technological pressure from competitors like fintech and capital market pressure.united states so the market will have and develop and take out some business from the banks. for what is the opportunity e.u. banking? do they leave deutsche bank alone or by off pieces of it? fabrizio: at will depend on how the plan pans out. if it is successful, deutsche bank could become the largest commercial bank in germany and stay that for a while. out, there't work are more fundamental issues which have to be asked. the banking union has to be completed from a regulative point of view, but that will not be enough. important to do all the steps that are necessary, but more important for the european banking unit is consolidation. thank you so much. kasman --t our, bruce hour, bruce kasman and chris grisanti. ♪ ♪ tom: this morning, powell testifies with a vengeance. markets adjust. the federal reserve to the summer of 2020. can you buy in july and stay? resistance, chris grisanti will translate the markets for us. speaker pelosi, the debt ceiling , and the ever-growing deficit. "

far and away fintech, visa, master cards of the world have moved the markets forward including the s&the 1,000 points the dow moved in. almost 40% of the points number two, microsoft, 325 of the 1,000 points from microsoft. disney was a surprise to me when i ran these numbers, that disney was number three, 250 of the points little bit of a surprise was american express, generally the banks and financials have not done that well american express is an exception. the losers, ones on the other side that actually dragged the dow down here we have cater pilar, of course, that hit a high back way back in january 2018 that was the high. 3m hit a high in early part of 2018 the biggest decliner responsible for 500 points on the downside goldman got clobbered at the end of 2018 on concerns about the global slow down and you can see here that was also a weight on the dow. back to you. >> thank you >>> tech the best performing sector since the market's last major milestone and josh lipton has the details on that for us >> so, wilf, tech is front and center in the run from 26,000. microsoft, you h

there may be another committee over at fintech. i don't know. the things we have to know and understand is, what is it? >> what is it? is it aers: what is it? payment system? what do they do and how do they do it? you can't even decide what regulator would oversee them without understanding what it really is. >> so what is the next step? that is the number one question i get when reporting on this, people don't know what these digital currencies are or how they will use them. so,, you as chairwoman of this committee what is the next step? rep. waters: as you know, we have a lot of investigation to do. with are going to have more hearings. we will talk with all the experts out there who know a lot about cryptocurrency and can tell us about the history of bitcoin and blockchain, and how it all works. we will be learning and having more hearings. it was requested today by one of our members that we get mark zuckerberg here. >> so you are calling on mark zuckerberg to come and talk about libra and kylcalibra? rep. waters: he has to do it. it is a bi

. >> this is one of the great fintech stories of the era guggenheim takes it to a sell.ast week, i have to admit, paypal was a little -- i'll use a term i typically don't with dan shulman -- it seemed like they were a little cavalier because they lowered 2019 guidance. i am a huge believer -- and i think this is another one we're talking about. i picked this apropos of what you're saying, which is, isn't it discipline, given the fact that they lowered numbers, that you say sell the stock i think the stock has room to go down but in the end, if you look at what facebook wants to do with libra, well, what you really want to do is you want to buy square or paypal and say, look, these already have an established way to be able to move dollars around the world. we'd like to add another currency so, before you sell paypal, remember, this is a franchise that cannot be duplicated. they have problems with this -- just talk about venmo not making a lot of money they talk about brexit they talk about how this is the ebay separation of paypal. i talk about dan shulman being a genius