bank equity strategy, gerard cassidy. rd, good to see you, as always >> thank you, carl >> what do you make of that 1mdb defense? >> i think he did a very good job on the conference call he was sincere, passionate, and was obviously upset at what happened so i think david solomon, in his first earnings call with the street community did a very good job. >> does it -- does this ongoing coverage of the issue put a cap on the shares, over the next, i don't know, year or two? >> i think, carl, i think you're on to something, because there's certainly going to be a cloud overhanging goldman until this issue is resolved. we know there are investigations going on by the department of justice, the bank regulators are doing their investigations, so, obviously, we've got to get this resolved once that's resolved, that cloud will go away but, yes, i'm with you i think there is a cap that will be put on the stock, vis-a-vis, bank of america or jpmorgan or morgan stanley, who are going to benefit from stronger capital markets, like gol

we will dubai, hold, sell with gerard cassidy. gerard: the large-cap banks are a good place to be.loff was pretty hard. when the banks came into the beginning of 2018, we just had the tax reform act and regulatory measures put into place. the stoxx struggled last year -- stocks struggled last year. fed willstocks see the end raising rates this year. francine: we are just getting some breaking news out of alibaba. i believe revenue is up some 41% , the slowest growth in two years. what investors want to know is looking at the cloud and other relatively nascent areas, whether those will pick up from the slack over the longer-term. alibaba is huge. if you look at the strength in numbers, we did not see it with apple. this is a good litmus test of consumer sentiment. tom: thank you so much. we thank the gentleman today for this conversation. andjersey, gerard cassidy, mr. stanley holds court at amherst pierpont as well. we are optimistic that joe weisenthal have an important interview with the senator of massachusetts to decide how much to tax your wealth, my wealth, , anddy's wealth,

gerard cassidy is next.mberg surveillance" on brexit and the shutdown. we are on our way to davos next week. from portland, maine, gerard cassidy. morgan stanley out in a bit. do you expect to see cost rationalizations across the major banks after the trading shortfall? i don't think so because i believe you will see many of the senior management teams will see it as a rebound. as you know from some of the reports from goldman sachs and others who were seeing better equity trading. if it does not pick up, i am with you. i think there will be bodies out the door later this year. francine: talk to me about what you looking for. we may see a drop in investment banking and trading revenue. wealth management is pretty big. gerard: you bring up an interesting point. when you look at some of the wealth management numbers, whether from bank of america or wells fargo, both companies have lower numbers because of what quarter.in the fourth i would expect that to be the same for morgan stanley. we expect to see strong

non-banks is bank regulation >> all right, gerard, we'll leave it there thank you very much, gerard cassidytelli. sliding with equities and oil. >> exactly they've been shadow boxing yeec eac other not only today but going back to the 9th or 10th of january. if you overlay the 10 year note yields, they are tracking and the reason makes perfect sense if you have a flexible potentially fed and read the the market signals, well, the market signals and the stock market pricing seem to be kind of the same thing and the interest rate can following that how can we tell? it's always a parallel shift no curve implications. fives, tens and 30s because the fed is a bit on hold and when this starts to diverge, i think we can glean some information. open the chart up to early june. you can see this 280 mark is very key on the left from one direction on the right, lower to higher but it is definitely important and was halfway between a high and low yield for 2018 finally, a year-to-date chart of the dollar index you can see the treasuries took out the early high yield closes. everything did stocks did to

let's bring in gerard cassidy.ou expect in terms of trading and loan growth from the banks? how are they going to look >> i think what you are going to see, sara, on the trading froptd the numbers are not going to be very good. the management given guidance in december pointing out that trading rev lues are going to be down year over year and doesn't even include the late december volatility so i think what we should expect is on the congressional markets trading front numbers not very positive however, to your point about loans, fourth quarter we saw a real pickup in loan growth for the banking industry partly due to the fact that the capital markets area was not very conducive to raising capital. you might recall that in the month of december where there wasn't a single high yield debt issue completed and therefore there was a re-mediation into the banks. commercial loan growth should be very strong when they announce the numbers next week and on the margin we see flat to slightly up margins. >> jared, given that