we have gerard cassidy of rbc. let's get to our morning brief.dam johnson. >> a lot happened overnight. japan's industrial output falls unexpectedly. china's manufacturing covers and european inflation just .3%. meanwhile in the u.s., we have three key items. case schiller home prices at 9:00, consumer confidence at 10:00, earnings one of note, walgreens at 7:30. we will bring that to you. indian prime minister modi of stateecretary stat carry in washington. mark soft introduces windows 9. >> this is breaking news, scarlet. >> a huge deal, something activist investors have really pushed for. ebay will be supporting ebay and paypal into two separate public independent company starting in 2015. they will be separately traded. they will be public and independent of one another, so giving in to what activist investors have been pushing for. >> and we have the right guy with us. >> exactly of nyu stern school of business. >> this is a juggernaut. ebay is one of those conglomerates. investors will find the least attractive business and a sign that valu

rbc's gerard cassidy is here to give us his take. >> thank you. >> it is amazing because when you talk about bank earnings, you have to talk about the spreads and with all the volatility that we've seen in yields right now we're seeing this spread between the 5 and 30-year, the smallest it's been since '09. seems like we are right back where we started the beginning of the quarter. >> that's true, spreads have come in. i think what we're going to see in some these banks it's been a long growth. weekly federal reserve data has been showing decent year over year loan growth, around 6%, 7%. not just commercial, consumer loan growth has finally for the first time in over five years starting to move higher. one of the up side surprises could be citigroup. the reason being is their capital markets business like all the capital markets players has been under pressure. i don't think the expectations are very high for any of the capital markets in particular in the citi. >> bank of america on the loan growth? >> bank of america has paid almost $65 billion in penalties over the last five years.

also, gerard cassidy will join us. we will get a look at the end of the third quarter.ican banks. >> end of the quarter and one of the big standout stories has orn the decline in the euro the strength of the euro. concern is there amongst u.s. corporate it's that this is going to have a meaningful impact? >> a well-timed question. less of a concern than most described. stronger dollar. that does affect corporate earnings. the u.s. is a more closed economy than a lot of europe. nowhere near the effect in the united dates of a 160 euro. that affect on germany would be greater. >> thank you. looking forward to the show. "surveillance" shortly. protestingufthansa that they are not going to get the kind of pension benefits they want. frankfurt is being affected. the long haul flights. we are covering this story. i am going to stop calling you an aviation or order and start calling you a striker order. walk us through the details. the strike is happening. bodies thatg wide are being affected. >> they will be able to handle a little over half of their intercontinental long hau