he's gary kelly. this is overheard. (moderately paced music) let's be honest. is this about the ability to learn, or is this about the experience of not having been taught properly. how have you avoided what has befallen other nations in africa? you can say that he made his own bed, but you caused him to sleep in it. you know you saw a problem, and over time, took it on. let's start with the sizzle before we get to the steak. are you gonna run for president? i think i just got an f from you actually. (crowd applauds) (crowd applauds) gary kelly, welcome. - thank you. - nice to be with you and congratulations on all your success. - well thank you. - the long and good record of putting big numbers up on the board. i was actually gonna come in here today and say, "boy, isn't it a challenging time to be in the airline business?" apparently not, the most revenue, the most profit, the most shareholder returns, the highest stock price. - the most customers. - the most customers. - the highest load factor. - you have more planes than ever. you've got more destinations

vonnie: gary kelly, chairman and ceo of southwest airlines. thank you and congratulations.european close. mark: this is bloomberg. ♪ mark: live from bloomberg headquarters in london and new york, i'm mark barton. this is "bloomberg markets." one hour until the close. one analyst called it the busiest earnings day he has experience in 20 years, and another one called it a day from hell. many -- as many of 85 of stoxx 600 reporting today. let's get to the earnings. shares of deutsche bank falling as much as 4.7%. biggest drop since march, reporting a 10% drop in second-quarter revenue. that missed earnings of the reorganization of the bank. the bank cautioned that revenues of its operating businesses will decline this year. earlier, we spoke to the chief executive, john cryan. john: the headcount will come to reduce cost, but we will continue to try to modernize the bank, distinguishing between running expenses and investing, but he wanted to but the investment because we do need to move all of the modernization program. .e have been focusing on costs now we have to focus on

gary kelly, because this is the worst stock. i'm dplad we have them because i've never seen southwest down this much >> yeah. >> stock got below 54 this morning. bounced right off 2900 -- >> that's not that bad for goodness sakes >> gary, good morning. >> i assume they are looking at unit revenue up 1-5, which is not what peers have posted, what do you tell them >> it was a great quarter. it was right in line with our expectations all quarter long going back to april. and we did 1.5 over last year, considering that we had a brand new reservation system which was a flawless execution i'm very proud of our people but, in addition to that, there was some drag from that new system that we'll get remedied here shortly, and you factor that in, and it was just a very solid performance and actually better than what we thought. in that regard and we're looking at a strong third quarter as well. >> they said the impact from the reservation hangover slightly greater than anticipated, but largely expected to be implemented by the end of the

southwest when it reports tomorrow, tune in tomorrow "squawk on the street" when we'll ask the ceo gary kellytell us what's really going on in this incredibly shrinking sector stick with cramer. >> sold facebook after hours >>> i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i will see tomorrow where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first up is carmen lindner, selling a delicious new twist on an old camping favorite. hi. my name is carmen lindner, and i am the founder and c.e.o. of gotta have s'more. i'm here seeking an investment of $75,000

>> send the love to gary kelly, like it very much. would not buy it at this level because it's had a big run all-time high today. if it pulls back below 60, i would pull the trigger you know, i've got time for another call so i'm going to go to mike in michigan. mike >> caller: jim, how are you doing. >> i'm doing real well, how about you, mike? >> caller: real good i'm smack dab in the middle of downtown detroit my question for you today is, or whatever you want to talk about, recently, i know you talk about it a lot, amd. great run. great year for them. but what's going on lately -- >> mike, you know, there was a spike in amd a spike in amd i was on a show and said, listen, i don't want anyone to chase it people were like, hold it, if you love it, why do you say that i said because they don't go down wait for a pullback. people were saying, he doesn't like it. other people were saying, wait a second here it is yesterday it was at $12 the other day. i like amd but let's not judge it by the minute, the hour, or the day, or the week, o

kelly? does gary cohen report to the president or john kelly? ultimately, that's going to be the test of whether did john kelly get those assurances going in? can he bring his own stafferers wi with him? that's also another thing we don't know. on paper this is the right potential call for him in order to turn the page but it will only work if he empowers him. >> i hate to boil it down too much. when you look at this week, did reince priebus lose or did anthony scaramucci win? >> i never figured out how reince priebus was ever going to win this any of these situations. the president was almost, my gosh there's, i'm sure you have been discussing this but there's been one source, the wall street journal was reporting that the president was disappointed that reince didn't fight back with scaramucci during this public feud. it's something that we know this president, he respects somebody and willing the fight back more than somebody who wants to sweep stuff under the rug. i guess you could say scaramucci won, but did he? i think he wanted to be chie

rex tillerson, wilbur ross, general kelly, general mcmaster, general mattis, steve mnuchin, gary cohn. probably the best cabinet formed in the last 20 years. >> the administration, what grade would you give it so far? >> i wouldn't give it a grade yet. realistically, if you take your metrics, you are right on the metrics. if you said, look, let's be real, is there a health care bill? is there a tax bill? where are we on foreign policy? we have made a lot of chips into things and we are doing a great job, but it is too early to bring in a report card. i would give an a for saying what they wanted -- intended to do is to turn things upside down for us. it wasn't the status quo. we can't stand the status quo. we can't live with the status quo. so i would take a sabbatical from the grades. i would say let's look at it in a year and approach the midterms and give him a chance. it is too early to evaluate any of it. >> thank you, tom. fantastic. [applause] whoooo. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if there was a singl

including dena peril, who is deputy national security adviser, chief economic adviser gary cohn and campaign adviser. but kelly, blake, this is a bombshell on friday night. what else are you hearing? >> well, yeah, gary cohn was the name that had been floated. gary cohn is also a name that gets floated to be the next head of the federal reserve. the president, you know, they talked possibly about kohn in that spot, though, also hasn't said one way or another what he may or may not do. but you're right. john kelly, this kind of came, his name, at least, out of nowhere. but now he is the new right hand, the new top aid here at the white house next to president trump. liz: thank you, blake burman. let's take you back to mark steyn. john kelly is a star. he came -- he enlisted in the marines in 1970, grew up in brighton, boston. he ran the operations in the iraq theater during the height of tensions there in 2008. the president has full faith in john kelly, given his performance in border security. >> yeah. he has actually had a pretty good six months at homeland security, which is more than you can say for reince

kelly. that's coming up in three minutes. because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open. so you can get business done. there's nothing more than my vacation.me so when i need to book a hotel room, i want someone that makes it easy to find what i want. booking.com gets it. and with their price match, i know i'm getting the best price every time. now i can start relaxing even before the vacation begins. your vacation is very important. that's why booking.com makes finding the right hotel for the right price easy. visit booking.com now to find out why we're booking.yeah! >>> the thing that general kelly should do is not try to change donald trump. as you know, i've said you have to let trump be trump. that is what made him successful over the last 30 years and anybody who thinks they're going to chan

john kelly had been rumored as a candidate for the job. so had other people, including gary cohn, the former goldman sachs executive. deena powell, also formerly from goldman sachs. the real question is what does this mean? how does it change the functioning of the white house? most things from the trump administration have revolved around the president personally, not his aides, but we'll see whether general kelly can bring a greater amount of discipline. >> what more -- what changes, other changes, might be possible? for instance, mr. bannon was targeted recently by mr. scaramucci. what do you see ahead, john? >> it is very difficult to predict this administration to say the le most conspicuous potential change that has been signaled is the departure of the attorney general jeff sessions. now i don't know if that's actually going to happen. the president has suggested as much. i had a -- someone close to trump tell me today they expected bannon to stay. but i don't think you could make a heavy bet on any of this. one thing i think is interesting, though, i was talking to a

graceful exit for him we'll have to see how the appointment of kelly to this position of chief of staff shax up that power dynamic. but right now gary cohn has a large staff. he is considered the expert on things -- all things economic. so, we'll find out whether or not that continues and how secure he feels in his position. >> ylan, it has been a crazy week sean spicer, robert short, and now reince priebus ylan, thank you very much. appreciate it. >> sure. >> so, yeah, guys, we saw sean spicer, robert short, a little bit less visible, but high level, now reince priebus out, possibly more coming when we rook at this, we're listening. it's political intrigue, but i bring it back to the markets and money, should something at home say, okay, let's trim our stock -- let's sell. i'm nervous now, d.c.'s a mess or -- >> i get very nervous when the fed is politicized and therefore , if we're talking about some presumptions, we're lacking at the tea leaves, but janet yellen has been groomed for that job her entire career and say what you want about fed policy and how dovish it's been and too dovish, the federal reserve has remained independe

kelly. there's that. sanctions just handed down in the last 40 minutes to venezuela. not to mention, we have some news on tax reform. garycohn said this morning to a listening tour of real estate experts that he says they have gotten through the major parts of tax reform, and they're just basically tweaking the rest of it tomorrow. during this hour, i need you guys to join me once again because the president has a tax reform speech during this hour. right now, the markets seem to like much of the news up 84 points. but before we wait at the moment to hear from sarah huckabee sanders, let me get to our democratic strategist cristy and our republican strategist kevin paul scott. cristy, since we didn't hear from you the last go around, let me ask. what do you think will be the first question out of the press core's mouth? which subject and how will they phrase it? >> yeah. no question the first question is going to be about scaramucci and whether this signals a new beginning with general kelly. or whether this is, again, just evidence of more chaos and confusion out of the white house that is right with it. and i will say

gary cohen is in charge of policy. this may empower mcmaster more. i think general kelly has a deep respect for general mcmaster.cerned that there isn't enough republicans? >> i think there are a number of concerns here. the chief of staff has been somebody who either as ann was saying had close ties to the president or had some legislative or political experience, had good ties with members on capitol hill. this is the second chief of staff in a row who doesn't have any one of those characteristics, any of those traditional qualifications. then there's the question of what's the management flow. what is the structure of command in this white house. does scaramucci still report directly to the president or is he going to report through the chief of staff. >> how about jared kushner? it's trickier than scaramuccsca. >> everyone in the white house has that problem. who are you to kushner? who is kushner to you? that isn't going to be different for kelly. their portfolios might overlap less in some ways than before. >> quite a -- just another friday in washington. this is one where he abided by the rules of washing

kelly and impact he can have . steven is shaking his head. let's give him the benefit of the doubt. talk to me about tax because we have garyohn saying the house is going to come up with something on tax after the august recess. you're still shaking your head on this one. what we have seen in the last few days is the border adjustable text die. can we take some positive from that and that it was a bit of give-and-take going on within the gop and they perhaps can come up with something or are we more looking likely at a tax cut rather than tax reform if they can do something this year? think the border adjustable tax was effectively dead months ago and the senate. last week was the week that paul ryan sort of gave up the ghost and acknowledged reality, which was there was not close to 50 republican votes. they have to try something else. they don't have an agreement on really the shape of what tax or for is going to look like. -- reform is going to look like. you have sort of six guys in the room. even if they all agree on something among themselves, what we have seen this past week on health care is that when you cook somet

, jim vandehei, axios co-founder i mean, gary cohen came out today, said trump is committed to getting tax reform done by the end of the year, with general kelly in maybe that's more likely. >> not his 100% we're worried about. we're worried about the division in the republican party. >> this doesn't help, though. >> i wish i shared jim's optimism. >> other than clearing the slate, what does it do >> well, to the extent that some of the theatrics going on have made some of the republicans really uncomfortable -- >> you think that's why -- some think the repeal and replace didn't go far enough some want to answer to their constituents i don't think it has anything to do with theatrics. >> priebus certainly had a fair amount of support within the rnc, obviously, right? so if you think about how people are very concerned about how he was being treated, whether that was right or wrong, to say that having -- speaking with one voice, staying within the family, showing law and order, i mean, this is exactly what the mo white house -- >> your original statement i think is accurate. he was popular amongst the republicans for obvious reasons. and he sti

this didn't come up during the news conference, but he did, as kelly was pointing out, tell "the wall street journal" that gary conhn and janet yellen are still in the running to be fed chair. that's an issue that will come up later this year we're all sort of handicapping it ahead of time, aren't we? >> reporter: what i've been hearing it really depends on what some of the dynamics within the white house are. does gary cohn feel empowered with the administration to get things done, like tax reform i can tell you that gary cohn was here in the front row listening to president trump's remarks with the prime minister just a few moments ago, so he has been here in the white house and clearly he could bein the running for some other positions as well. >> i want to go back to health care for one more, ylan, and in his speech, it was interesting, john mccain of the current health care bill, i think he referring to bcra, a shell of a bill now and got applause when had the health and education committees should people together and even though they granted the move to move the bill forward, he hardly gave support for t

with some of the highlights >> kelly, this could be yellen's last two days of testimony on the hill her term ends early next year. and politico reporting that nec director gary cone is the front runner for her job when pressed by lawmakers on this question, yellen trying to deflect them. >> i absolutely intend to serve out my term. i'm very focussed on trying to achieve our congressionally mandated objectives, and i really haven't had to give further thought at this point to this question. >> you know, whoever is sitting in that seat early next year will have to grapple with a question of inflation and why it's remained so low, even though the labor market has strengthened yel nl said today she believes these factors are temporary and that the fed will be able to get in one more rate hike this year. >> most of my colleagues were at least the median anticipated that one further increase in the federal funds rate would likely be appropriate this year, but as it say, we constantly watch the economy, the evolution of inflation in the labor market, and we'll make decisions on the basis of our evaluation of that information. >> yellen also defended the fed's proce