alix: and goldman sachs now out. trading come of the number we are watching, at just $1 billion, estimates for $1.3 billion. investing bank revenue, $2.14 billion, but the fixed number looking light. no loss was $5.51 a share, idea what that encapsulates yet in terms of tax reform right up. overall trading revenue with $2.37 billion. so, i do not know, aside from look like adoes messy quarter to take a look at the stock. up to tens of a percent -- up 2/10 of a percent. david: they look good in the investment banking. fixed misses estimates. they did report a loss of share, but that could be tighter taxes. alix: it is unclear. david: i've not seen the number yet on exactly what they will write off for taxes. alix: it looks like investment banking was really the strong thing for goldman sachs. now flat in premarket as well. we need to take a look at the report. alison, we are looking at the press release, anything jumping out? alison: a miss on fixed income trading, something people have been watching. and we did get t

but initially wall street likes goldman sachs numbers. the stock rallied. only after the conference that it took a nose dive. it was actually intracall that it was nose dive ceo marty chavez, he said the trading business and i quote continued to operate in low volatility low activity environment. second, everyone has been salivating over how much stock the banks can repurpose. chavez suggested it could come back at a slower pace. expecting to have a 24% tax rate this year. a lot of surprises here. many of them negative. the response to this confusing quarter, the analyst all over the map. they either raised or maintained the price target and jpmorgan cut theirs. kbw, bemocut them. what do these guys agree on? on the bullish side, oppenheimer argued it was -- interest rates start climbing again, that is happening the world over and going to be good for goldman, sooner or later bonds will be attractive deutsche bank boosted its makeup wells fargo argued that a term might be in the works. have gone well ten-days may not a quarter make, but positive they expect

emily: you used to work at goldman and i wonder how close you are to goldman alums and members of the and how influential that was in closing a deal like this. emily: -- ryan: we have a time of goldman dna at cadre. the presidents at goldman was one of my advisors. that familiarity made a big difference. and the other dynamic that made a big difference is, goldman invested in a couple of our earlier funding rounds. they had a front row seat. the beauty of our product itself and the power of our data team on the technology front, we got very fortunate that all the dots connected. we are excited for the future. would it be another partner in the future, or target? ryan: we have been surprised by the types of partners that have approached us. when cadre was started, i do not anticipate this velocity and the adoption of our business model. been private equity firms of all sorts and varieties that approached us. right now, we are primarily focused on channels for individual high net worth investors. such as other investment banks. my guess, if i were to make a bet, would be that we will co

text used to work at goldman and i wonder how close you are to goldman alums and members of the goldman network and how influential that was enclosing feel like this. >> we oftentimes -- we are fortunate to have the chairman of the investment committee lead investment banking globally who used to be the president. i worked at goldman sachs. one of our -- that familiarity made a big difference. coleman invested in a couple of earlier funding rounds so they had front row views into the performance of our company. the beauty of our project on the front. we got fortunate that all the dots connected and we are excited for the future. >> would tgv another partner in the future? >> three years ago, i do not really anticipate this type of velocity and the adoption of our business model. right now, we are primarily focused on channels for individual high net worth investors. my guess would be that we will continue to work with goldman and explore other partnerships as they arise. >> obviously, there has been a lot of uncertainty. tax reform just past. i'm just how that will impact the business.

david is the president of goldman sachs. the reporting we have from our legal reporters, he had a former assistant who was supposed to be charged with receiving his wine shipments and transporting them off to his wine cellar. this person, according to an unsealed indictment actually was taking that wine and reselling it, stealing from david solomon. shery: the indictment doesn't specify the vintage or anything else. but it says the person accused may have sold some of the wine for $133,000. >> i don't thick the indictment included exactly what price he was able to fetch for these allegely sold bottles of wine. but ones reported stolen, it seemed david solomon had paid around $130,000 for it. this was again paid to help oversee his wine collection was actually stealing from him according to this indictment. >> we don't have a comment from the ex-assistant or the attorneys, and this is all according to people familiar with the mat other? >> exactly. the assistant is no longer working for david solomon. >> thank you very much.

bank of america kind of mixed, goldman sachs sees a plunge in trading. the ceo blankfein may call it a challenging environment. a new hot seat of a new look at the an coventry trust risk to big tech the biggest reversal for the dow since february of 16th the blue clip saw 380 points trading range after hitting 26,000 for the first time ever s&p 500 reaching 2800 before finishing lower. jim, you said this time yesterday, you don't like big opens and mid-morning you watched the transport starts to roll >> yes, it was surprising because really it was not anything happening there is nothing happening was yesterday based on unh being good it was anything that was reasonable oil going down and trades going in the wrong direction you have to base an opening on something other than gut and instinct it can turn against you. the market will come to you, there are people that want to sell there are people that want to sell right here. they're going to drill big and hope something underneath. they think these openings have little capital involvement i call them pa j

bank of america, goldman sachs before the bell this morning.ow markets react after seaside yesterday. meanwhile, giant fireball lighting up the night sky as seen from six states. scientists explain that a meteor was the reason for the extraordinary experience. got to see this. back in a minute. how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com start winning today. my name's dustinhey, dustin. grab a seat. woman: okay. moderator: nice to meet you. have you ever had car trouble in a place like this? (roaring of truck) yes and it was like the worst experience of my life. seven lanes of traffic and i was in the second lane. when i get into my car, i want to know that it's going to get me from point a to point b. well, then i have some good news. chevy is the only brand to receive j.d. power dependability awards for cars, trucks and suvs two years in a row. woman: wait! (lau

you're looking at goldman sachs.hink one should do here following earnings an following the stock going down? >> yeah, thanks, julie. you look at what they have, they had a mixed bag of news. a lot of good numbers, a will the of good things, revenue, income was great, discounchting what they're taking as a charge from the new tax law. consumer banking, investment banking, great numbers. huge share buyback. on the flip side, some metrics that weren't so great, investment banking was so low because of the low volatility in the marketplace here. and you know what could be significant is that the proposed credits that they're now going to get from the new tax laws, many analysts thought they'd be paying as little as 17% now 24%. stock is eing said, trading and trending a lot of volume. what i like here in gelledman sachs is not necessarily that the stock is going to bounce back or rebound in the near future. i love selling a foot spread here. if he stock goes down, i don't mind owning it. what i'm doing is selling next w

>> so goldman sachs is slipping for two reasons. the first is the tax bill hasn't delivered as big a benefit as some hoped this man faess as their effective tax rate only falling from 28% last year to 24% this year and the one off charge for q4 largely due to repatriation expenses impacting capital sufficiently that it will limit buybacks for 2018 the second reason is that trading was disappointing. much worse than peers. driven by fixed income commodities and currencies which was down 50% trading remains the most important part for the full year, it was 37% of revenues for context, this compares to 56% of revenue in 2010 that said, i've just got off the call with the cfo an he was as optimistic as you would hope given the numbers, that trading could turn around going forward. both for cyclical and structural reasons. now on investment banking, goldman sachs revenue u is stropg, but a smaller part of the pie. bank of america's numbers were solid. trading down 9%. decent loan growth shares slipped during the earnings call when brian

the biggest gap was goldman sachs.management business up 10%, margins a bit lower, but not a lot of drama. tomng up in the next hour, , friend of president trump, will join us. ♪ alix: knocked off its pedestal. morgan stanley climbs above goldman sachs for the first time since 2006. the wealth management fees hit a record. one step forward, two steps back. apple is repatriating millions of dollars in a win for president trump, but a government shutdown still looms. 2.6% forields above the first time since march. david: welcome to "bloomberg daybreak." i'm david westin mumbling alongside alix steel. alix: we had the nasdaq and the s&p closing at record levels yesterday and now futures are flat. euro-dollar in little bit stronger. the dollar weaker against most currencies. i'm watching the 10-year yield. 2.16 is how we print -- 2.61 is how we print. more on one of our top stories. morgan stanley's solid beat. the stock almost up 2%. allison williams is here to break it down. the highlight for morgan stanley. allison: all

goldman has not specifically said where the impact is in their numbers. some have pointed to steinhoff, others have not. you do see this type of thing late in the cycle. for credit costs, we've been at unsustainably low levels. how far and how fast it we get get normalization -- do we to a normalization? vonnie: allison williams, thank you. let's check the first word news. hill, housel republicans leaders are trying to come up with a stopgap spending plan that would prevent a government shutdown on friday. lawmakers and say the measure would also delay some obamacare taxes and provide money for children's health insurance. and new plan cannot pass unless it has democratic votes in the senate. is small sign of cooperation between north and south korea. the two korean delegations will march under one flag next month at the opening ceremony of the winter olympics. ae two countries will form joint women's hockey team. a former cia officer suspected of helping china identify u.s. buys has been arrested -- u.s. spies has been arrested. he's a suspect in a long-

goldman sachs stocks too cheap to ignore. for months i have been waiting active vision blizzard to be activated. now the league is up and running. the business is on fire anywhere i can't tell you how many bullish club members just to understand the power it is finally happening and they are finally listening and coming together active vision blizzard stock. finally not long ago we got numbers. endless stories about how the people's republic were cracking down on atms you should buy wynn resorts and then to the company reports magnificent numbers. steve wynn talks about how he needs more capacity. if you listened to me, you caught a $30 gain in ten-days. it is not done they will take the stock up even as it is obvious anyone who watches the show we should be paid by them. the window is now closed tough to chase up 15 bucks unless it is netflix is it always this easy honestly, it is not easy at all. remember all of those dips, buy on dips, we are not getting a market dip you are getting moments, moments when certain stocks are

trading will be key for goldman sachs.l they be worse than the rest of the pack or better than the rest of the pack like bank of america has been just now. cost-cutting has been key for brian moynihan at bank of america. the efficiency ratio at 62%. a bit hoyer than they would have wanted albeit, expenses for the quarter, 313.3 billion, stays within the annual target of 52.3 billion. the loan growth numbers has been strong, given that others have been low single digit and bank of america has been cautious in this area. loans in consumer up 9%. loans in wealth management up about 7% in corporate up about 4% so their loan growth number looks impressive relative to recent past. overall a decent set of numbers for them guys >> all right wilf, thank you for that we look forward to spending more time with you sorting through these numbers and hearing from you on goldman sachs in a bit. >> you saw the stock up by 1%, then just below that so the street running through those numbers. >>> when we come back, much more on the bank of

goldman's was not positive.some of the other banks, this has really been the headline. they are getting a big benefit from tax overhaul. the new tax rate for bank of america is 20%. that was a big story coming out of banking. last week, a 7 billion combined windfall. they now have the problem of trying to figure out what to do with it. some of it may go back to investors but in any event, this has been a very big story for the other event -- banks, not for oldman. -- goldman. a $300 took about million hit. it is a south african retailer and it announced a counting scandal in october. take a look at the bad losses. the largest banks have had to. account for the biggest was of course citigroup. goldman was close to a $300 million loss. that was part of the result. you may see that translate again into the way that the stock trades on thursday's session. haidi: think is a much for that. coming up, we will be breaking the price out of china and watching for more clues as to whether the market is calling. markets in

goldman sachs stayed down. but i'm with you that's an interesting name i thought their earnings were spectacular. they missed in fit that's down 50%. i think we expect what is going to be bad. what's going to be good? when you shine the light on investment banking for goldman sachs, $2 billion. i know it's only 23% of what they do, but still there is something there. if that turns into thick if they actually returns, they have been wrong forever. goldman sachs has been killed in that trading world they have been wrong, wrong, wrong, in the commodity space. >> it seems what apple announced today reignited the belief that tax reform has more juice and financials -- we forgot that financials were going to be the biggest beneficiary but maybe there are other legs to this and apple also saying it's going to have $2500 in bonuses in the form of stock to its employees that's another leg of wealth effect the, right, for the consumer >> no question. >> i think it's front loaded that's why the airlines and autos are kick

goldman sachs is worth less than morgan stanley.e will talk about that and the barclays story later on. it is making changes as well. europe a less solid session. andet to the mliv team edits you on what is happening with the treasury market. it could be seen what is going on with the dollar as part of the ecb same as well as we work our way to word -- toward the ecb meeting. a lot to think about. the euro is the bulk of the index. the pound trading softer against the dollar. let's see what is happening in commodities. off, it was a windy night in the u.k., it is weather related. let's get a first word news update. juliette: china's economy has filled its first year acceleration since 2010. growth picked up six .9% from 6.7%. industrial production rose beating estimates but retail sales missed forecast and fixed asset investment climbed the least the century. sanders saidry trump will support the plan to temporary government funding ahead of the shutdown deadline. some cloutpaul ryan as he tries to bring a little -- reluctant conser

there was the security of goldman sachs. they came with a dog and watch this and i later found out it is just a bunch of kids outside. a bunch of kids with signs and they got bloomberg and wall street journal and the financial times, front page of 16 newspapers the next day and we humiliated goldman sachs by backing away from that. that is the power to say if you give money to these people these are the consequences. there is nothing illegal about the transaction. there is a great deal of power in raising consciousness of causality of the choices we make impacting the lives of others and this is called asymmetrical because i consulted with the asymmetrical warfare group. i was academic review for special operations command on counterinsurgency so i know a little bit about the subject. here we are spending all this money, sending all these kids into warfare to be blown up. i going later to reintegrate the fighters and kids get their legs blown up. you cut off the money. i have this concern about trying to cut off funding as a

of goldman goldman sachs tweeted this after trump's speech yesterday he said give truck credit for campaigning where there are no electoral votes his message at davos promoting america's interests doesn't mean withdrawing from the world agreed now can we stick with international commitments on environment trade and defense so there's actually currently thirty according to the world trade organization thirty five new bilateral and regional trade pacts that are under consideration the u.s. is only in on one of them so the world is moving forward regardless of the new positioning that donald trump is trying to get for the u.s. can you just jump in and out of these agreements when you want to michel. no you cannot but as a new president you can stop or let's say and do everything that was done before if you don't agree with those policies and then start resigning one by one of course other countries have been air share from previous policy they may have not changed in the last year but trump. approach is a whatever was done before could be wrong or maybe it is maybe it is into so let's stop it let

matt miller with the chief economist at goldman sachs.ng conversation about what is driving u.s. growth. we will bring you more from the conference later in the day. jeff curry will be joining the bloomberg team at 11:30 a.m. u.k. time. a bit of breaking news. we got emmanuel macron, the french president, in china at the moment. a lot of focus on the airbus story and whether they are going to be able to sell aircraft there. macron said they will finalize that order very soon. those planes, we hear, will be delivered in 2019-2020. he said the orders are for 13 different airlines. as soon as we get confirmation, we will bring that to you. manus: we've had a little bit of inflation data. softer inflation data gives the pboc chance to focus on debt. consumer prices at the lowest level since 2017. kit juckes is with us from societe generale. you take the past 24 hours from china. it happened just after an a and i came off. the chinese are getting peeved that they've got such a strong yuan. they have got a strong yuan. what does this do to the

goldman sachs could be just below that level, in the high teens.or goldman sachs, the key thing is trading the last couple quarters they significantly underperformed their peers. looking at down mid teen percent year on year based on what some others have reported if goldman sachs does worse than that, it's a continuation of that recent theme. it's about 37% of their total ree revenue, and costs will be important for both on the bank of america side, we look for deposit beaters you kind of look at things that could derail that positivity, one is looking to pay that big consumer base more money in terms of deposits. so far deposit beaters have been low. we'll look to see whether that continues or not bank of america the clear out-performer, and goldman sachs one of the clear underperformers. be interesting to see if they can turn around. >> 6:45, bank of america i forget when goldman sachs is, after that >>> shares of juno therapeutics soaring on deal talk landon dowdy has more on that. >>> shares of juno therapeutics moving higher. reports that cel

goldman scenario is good for investors.n during the whole of 2017. directionally, our forecast went into the right way, we are just not optimistic enough to read all of that happened in a but -- in an environment of very low volatility, which is somewhat detrimental, but for a good reason namely markets performed extremely well, which is good for investors. matt: people are at least making money. wendy you expect of the trading lull to kind of let off and when will people start acting again? joerg: it's not easy to forecast because while volatilities are at record lows, there have been periods in time where markets for entire decades have been quite slow moving in terms of realized volatility. in that sense, as long as central banks stay on course and interest banks relate -- rates remain low and the -- overall macro economic environment is optimistic -- i would not rule of the gradual nudging up markets to continue for a while. that is our base case scenario. matt: -- expects the fed to raise rates four times this year, wh

bottom line on seven point eight three billion dollars in revenue the bottom line for goldman a one point nine three billion dollars loss and bank of america also share the temporary pain from from the tax bill change two point nine billion dollars worth in q four the fourth quarter and bank of a big bank of america rather still posted a profit of two point three seven billion even given that loss and they take it as a sign from analysts that the bank has gotten past a fairly rough period. ten. market watchers are buzzing over news that general electric's leadership is considering a breakup of the iconic u.s. mega-corporation c.e.o. john flannery had floated the idea before and said tuesday that g.e. is quote looking aggressively at many permutations the story is big if true and as they say we'll keep an eye on it but to give you a sense of how big it is archie's ashley banks joins us to explain what a breakup of this mega corporation would mean and how all these pieces of the puzzle could be put together or apart actually well barred wall street is now scrambling to evaluate the st

ben: well, goldman sachs has an awfully smart people. i'm probably not the right person to ask about this because i've criticized them very severe ly over a many number of years but i don't see anything wrong with getting the smartest possible people to work in your administration whether they have goldman sachs on their resume or not. i want smart people. i don't care where they come from. i don't care where they come from the projects or they come from park avenue. if they're smart, hard working capable well informed and are patriots above all i want them to be working for us and by the way, i have nothing against corporations making lots of money. that goes into people's retirement accounts and college endowments, hospital endowments. that money does not come from buying yachts for people to have wild parties on and bringing out party girls and dancers and strippers and so forth. it goes to pay for people's educations and retirement. there's nothing wrong with having a rise in the stock market and nothing wrong with people that can pr

so we remember the good old days but the kids with whom i protested in front of goldman sachs are now 20 years old. they don't remember the good old days the way we do at all and they still reject it unilaterally which is amazing to me. there was the security of goldman sachs and the game with the dog with just a bunch of kids outside. they got bloomberg and they got "wall street journal" and they got the financial times. it was for a page of the paper the next day and we humiliated goldman sachs so that's the power to say if you give money to these people these are the consequences. so really, and there's nothing illegal about it. really there's a great deal of power and raising consciousness of causality of how the choices we make impact the lives of others and i go into this because i used to -- with the asymmetric warfare counsel and i was the academic reviewer on counterinsurgency for columbia so i know a little bit about the subject. and you know i thought here we are spending all this money sending all these kids out to be alone up and i go in later and and -- the irony is you

two, goldman sachs saying now the shareholders about to benefit.t's like wages and marshall plan, shareholders that's why you keep getting a second leg and third leg to this rally. >> goldman sachs actually disappointed investors in terms of the buyback yesterday. >> that was -- that was a little counter intuitive because they were saying because regulatory concerns. >> there was an assumption it would be larger than what he guided towards on the call. >> at the same time, i went over the call because of what you said, which is that marty, he basically laid it out, we're not doing that well. we don't have enough regular capital but we got a lot of things in the works. that's why i think -- goldman and ten times earnings becomes the biggest bargain in the group. i really absolute him. on his call, he did not dodge that there were divisions that were underperforming i did feel having worked at goldman i was in one of those divisions underperforming, i didn't have a good feel if i worked there that wasn't like al capone in the untouchables with the ba

quarter and goldman's shares just keep barreling toward new heights. david: all the banks are coming out with reports they are going to take a big hit. you say it's the fourth quarter and that cleans up the balance sheet going forward and they will be in better shape presumably next year. marty: it looks like it and all sides point to continued economic strength globally and a concerted global economic rebound that has got to help the banks. alix: marty schenker, great to see you, thank you very much. coming up, we are joined by david o in. we will -- david owen. we will discuss more on theresa may's cabinet shakeup. this is bloomberg. ♪ ♪ emma: this is "bloomberg daybreak." i am emma chandra with your bloomberg business flash. saudi aramco is ready to name goldman sachs and citigroup to help names -- according to people familiar with the matter, j.p. morgan chase and -- hsbc, and morgan stanley are expected to be name as global coordinators. aramco has said the offering is still on track to take place this year. has offered tor buy -- for $3.1 billion

as you know, simpson was acquitted of the murders of ex-wife nicole simpson and her friend ron goldmanble for their deaths. "the daily mail" reports that simpson has now complained he's being dragged into court every time the goldman family, quote, hears a rumor that he's making money. his lawyers say simpson is living off his nfl pension and social security. >>> a veterans group claims it's being censored after the nfl rejected its ad for the upcoming super bowl program. the ad contains the hashtag, please stand. the group said it's exercising its right to free speech the same way players do when they kneel during the national anthem. the league says the super bowl anthem is not a place for ads that might be considered political statements. >>> this didn't take long, three nfl head coaching jobs have already been filled. the giants hired former vikings offensive coordinator pat shurmur despite his big loss sunday. the cardinals have hired steve wilks, and mike vrabel gets the top job in tennessee, the former player there. >>> we have an update on the eagles fan who was trying to rally

you love this idea that goldman sachs -- what goldman conjures up, but them together, what do you havehat do you make of this? considering the plans for cryptocurrency? >> i think what we are seeing is you can do its cryptocurrencies is putting into these notions of ico's, some of them are very odd, some are ridiculous. the idea that companies need lending of a small term basis for cryptocurrencies to start to turn a profit with an interesting idea suggests that he believes as a business model that might generate free cash for small businesses, they would not need to go all the way through to raise money for public markets, even as he uses public markets to raise my to do that can of thing. this comment has been repeated over and over by us and others. what time also said is that blockchain israel. this is born of more than just the fact that he has made a ton of money buying and selling cryptocurrencies, he too believes that blockchain, the underlying codes to all cryptocurrencies has the power to transform finance and reshape it. now that is kind of dreamy but that is sort of what di

he went out to california and without their to drum up business for goldman sachs but then formed his own firm, doing his own business, but increasingly he got into documentaries, making his own conservative filmmaking. initially made one about reagan in 2004 and in 2008 started making other documentaries related to the tea party and conservative movement. how the elite especially got off scott free in the crash. to the establishment -- >> host: that was the head of goldman sachs, former head, let's lehman brothers go because he couldn't stand them. fair and balanced so to speak. hank paulson targeted them. he was out there and got into the moviemaking business. where did he get the title generation 0? >> guest: you talk about generation x and generation y, the generations may have nothing less, the debt continues to build, to meander along and her president obama we see a revival but there is as you know. a great parallel out there in that $20 trillion in debt and when you look at entitlements, something like $70 trillion that is owed, conservative maybe, maybe it is more than. that

goldman didn't say the same thing but they have a little capital issue as well.they were going to trim there. do you think that's -- >> i think that's exactly why the stock is down. you lower guidance or guidance coming in below where people are expecting, obviously the stock will react, knee-jerk down let the dust settle. this is a good quarter a new ceo. branded partnerships happening they're doing a lot of good things consumers and businesses are spending there's a lot of good stuff. that said the stock is up 34% last year alone. it's not nearly as cheap as it was last year at this time which it was a dog of the dow last year it worked. it was up 34%. i've been taking some gains because i felt the expectations were high and maybe there would be this misunderstanding about the buyback program. this is a capital situation. it's like goldman. they'll come back to the market in a buyback stock as a temporary thing. if it pulls back, maybe you get an opportunity to buy. >> $2.6 billion charge in the quarter, too. >> this is the accounting noise that is resulting fr

how much promise does that hold for a firm like goldman?ilked one of our through the fixed income floor. in his memory, there was noise and screaming back and forth. you could hear a pin drop but it's not just the way people are committing prices. prices are being made electronically. they are distributed that way algorithmically. it's tremendous but let me tell you -- tremendous means less likely to make errors. erik: less than humans? >> less expensive to run. it may displace a certain number of humans but the importance of good humans at the fulcrum of that lever become even more important. the definition of who is making -- once upon a time, the trader was sitting there exercising intuition. intuitionave that built into an algorithm and somebody is making that algorithm. in some cases, it's the software designer, it's the programmer that really is what the trader has been using because they are anticipating all the impulses that would go into the information and they are designing it into the system. things are moving around but at the

and then we humiliated goldman sachs.at's the power to say if you give money to these people, these are the consequences. so really -- and there's nothing illegal about that transaction. so really there's a great deal of power in raising consciousness of causality, of how the choices we make impact the lives of others. and i backed sort of into this, and -- my country, i used to consult with the asymmetric warfare group which is counterunurgency. i actually was the act -- counterinsurgency. of i know a little bit about the subject. and, you know, i thought, you know, here we are spending all sending all these kids out into warfare to be blown up, and then i go in later to reintegrate the fighter and deal with the kids with their legs blown up. i said, you know, the irony is you could cut off the money. so i always had this concern about trying to cut off, cutting off the funding as an effective counterterrorism tactic. and then i realized it was a much bigger problem that is everywhere. and i talk about how your neighborh

mark: on goldman sachs and bank of america tomorrow, what's the outlook?> we just saw the headline earlier today that their commodities trading is going to be the worst ever in their public history. that shouldn't be a surprise. it has been trending all year. the fourth quarter tends to be the weakest for fixed income trading. they talked about inventory losses that had contributed to that over the year. i think people are going to look at the broader strategy. how are they doing across different clients. citigroup give a little bit of detail on that. also from goldman we have the potential to get a surprise from their investing and lending gains. with the strength we have had an asset prices especially equity aices i think that's potential for the upside and theyully that will offset are also expected to take a big charge. what we are going to be listening to from goldman and bank of america what is the ongoing tax rate. citigroup and 25% is a little better than analysts had thought. jpmorgan came in 19% on the bullish side of things. that's really what i

next week, evan, we're going to hear from a new more including citi, goldman, "b" of "a" and ibm. >>a weird thing. given the tax bill and given that rates have been so low for so long, you would expect the banks to be in a very good position but i still -- you know, mike and i were talking about the yield curve, banks do better with a steeper yield curve you have a very flat yield curve right now. you're at the point, which is interesting, you can basically have a money market account paying you 1.5% now and could buy a ten-year bond that's 100 basis points away. michael always tells me these things are irrelevant. at some point they become quite relevant. >> are you at all excited about the little move higher in rates we've seen on the ten year this week or no >> it's been relative to the short end, they've been -- they've been small moves >> yeah. >> you lost money if you're a bondholder since the beginning of this year bonds are down across the board. but you really lost money over the last six months if you were in the kind of two to the five-year range. you've lost, i would say,

for goldman, sachs, it related to the tax bill. cfo says the 2018 effective tax rate would be 24%, higher than forecast and higher than some rivals like jpmorgan and bank of america at 20% chavez said the write down of $4.4 billion relating to the tax bill would impact and lower buy backs in 2018 and investors should expect 5 to 6 billion in buy backs this year. within earnings, goldman, sachs trading performance was down 34%, but chavez was in fact optimistic on the call about the fact that trading could turn around structurally as they gain more corporate clients and cyclically >> most definitely very early and ten days into the quarter so i would not extrapolate anything but i would say market conditions can change and turn rapidly and they have. and it has been a strong start to the year. definitely if you ask me this time last year, this time this year, i take this time this year all day. >> bank of america results were solid, strong trading relative to bids. good expense management and improving loan growth. on the call, the

>> goldman sachs and jpmorgan will be leading this deal.s toaking fill the rest of the book. goldman sachs and jpmorgan have extended credit to this company in the past. jpmorgan led a $6 billion credit line last year. goldman sachs has been involved in the credit and helping the company raise as a private company. you will start to see this jockeying start to happen among the firms to get a name on these bigger deals, especially as the rest of these 10 billion plus evaluation private tech company start to move closer to the public market. mark: we had spotify last weekend dropbox today. what does this tell us about the timing? >> people on the street .2 2017 2017great year -- point to is a great year. the quantity was one we hadn't seen for years. now, with spotify and dropbox, adt looking to raise more than seemslion in its ipo, it there's a lot of momentum from these tech companies to actually get public. which hasn't been the case since 2014. inhave seen a big lull u.s. companies deciding to get their cash from the public market. vonnie

of ron goldman and nicole brown simpson. the family has been trying to get the money for years, but this morning a los angeles judge requested the family's request for autograph profits saying the goldman family can't identify who exactly is paying simp ton, who was acquitted of those murders. >>> president trump now has five days to decide if the public can see a one secret memo that targets the fbi's hajsdzing of the ongoing investigation into russian tampering during the 2016 election. house republicans voted to unseal the memo yesterday, claiming it will expose political bias inside the fbi and the justice department. some observers believe president trump favors releasing the memo to the public. >> what we want is all of this information to come out so that transparency can reign supreme and accountability can occur. >> this committee voted to put the president's personal interest, perhaps their own political interest above the national interest. >> the justice department opposes releasing the memo and some officials wa

simpson once the goldman family to leave him alone.ired of ron goldman's grieving father dragging him to court every time it looks like simpson is making a little bit of money. the disgraced former football star still owes the goldman family $71 million after he was found liable for the death of nicole brown simpson and ron goldman. that wraps up this hour of "fox and friends" first, i will see you tomorrow, "fox and friends" first continues now. goodbye. heather: is tuesday, january 23rd, no stone left unturned, the shocking message just uncovered and the probe just launched by attorney general jeff sessions after months of missing fbi texts. >> we will vote today to reopen the government. >> the strategy to shut down the government over the issue of illegal immigration is something the american people didn't understand. >> the 69 our government shutdown over as democrats cave in the immigration fight, donald trump signed a bill to fund

goldman is indexed to a certain market, what you mean by that?w he is that before, but there is a certain opportunity set. >> is it with the clients? oil stays thee of same or energy stays the same, how much are you going to spend to hedge your energy risk if you think tomorrow you are going to wake up and the price is going to be the same? >> less. volatility, of people do less business. scarlet: that was goldman sachs ceo interviewed earlier today from davos. coming up, rippled wants to help banks move cash from point a to point b faster using blockchain technology, but white major banks are balking at that new tech. joe: you can get involved in the conversation. ask ae a tweet and question that you want to hear. i will check it out. this is bloomberg. ♪ scarlet: whopping $76 billion in payments -- ripple is a tech company in san francisco that wants to help banks move that money faster and cheaply, but rippled wants to do that by utilizing a digital token called x rp. joining us from los angeles is met lysing, who authored a businessweek piece

first goldman and his team had to. develop a code to translate the ones north of digital data into a ts and g.'s the four letters that correspond to the basic elements of d.n.a. . and they have to break them up into manageable chunks of d.n.a. . a machine a d.n.a. synthesis machine then actually builds them before items were translated and transferred into artificially created strands of d.n.a. a biological hard drive. is very very small so you can store a lot of information in a tiny volume of space. another interesting advantage is there will always be a reader for d.n.a. the machine to read it the specific machine to read it will change we invent new machines every few years for reading d.n.a. but because of the implications for human health there's always going to be a machine to read it. the next step in the experiment was to see if somebody else with the right equipment could decode read the d.n.a. files and translate them back into the originals production of the high quality stuff. and the recipient was bloody

prone to fail and degrade goldman has harnessed d.n.a. for a test of his new system he chose for documents. a photo of the institute. a classic text about genetics. an excerpt from martin luther king's famous speech. and the text of one hundred and fifty four shakespeare's sonnets. the idea was born in a hotel bar in hamburg in germany where i had been a to meeting all day with my colleague you and me where we had actually been discussing how our institute would store genetic information on computers and the cost of doing that and at the end of the day with german beer we were talking about other ways maybe you could store information and the inspiration initially was to think of a way that would be less expensive. and between ourselves the joke was that we realized that you could use d.n.a. itself as a storage medium as well as the source of the information we wanted to store. it's an amazing idea to engineer d.n.a. to store data. first goldman and his team had to develop a code to translate the ones a north of digital data into a ts and

however, goldman's trading business was down 34% year after year 50%. revenue up by 14%. still the strength in investment banking, lending and investment management mar marty chavez, i like this guy. buying the week in trading might not be temporary doesn't sound like they are getting benefit from the tax cut. even worse, they say the accounting losses have reduced their capital ratio which limits their ability to pass on the ratings. this is goldman sachs i am talking about, 10.7 earning investment retired 16% of the share counts in the last four years today's weakness is buying opportunity. goldman people get paid in a lot of cash but also a lot of stock they have to do selling here you know, my preference, jp morgue gan for best of breed, citi for value this group is the cheapest growth stock group in the entire stock market bill in new york. >> caller: hi, jim, how are you? i appreciate your thoughts on cme group. >> it is a winner. incredibly well managed. i am calling it a buy, buy, buy. larry from florida. >> caller: booyah. great show wonderful staff. congratulati

and the goldman sachs chief economist. autonomous cars may be on the markets sooner than you think. >> i would say 2021, 2022. abigail: coming up, more of the week's top business headlines. a bitcoin champion unveils a plan to build the goldman sachs of cryptocurrency. >> as far as his crypto net worth is concerned, he is all in. abigail: this is bloomberg. ♪ ♪ abigail: this is "bloomberg best." i'm abigail doolittle. let's continue our global tour of the week's top business stories in asia, where north and south korea held their first formal talks in more than two years. >> north korea said it will send athletes and a high-level delegation to the winter olympics in south korea next month and wants to resolve issues through dialogue and negotiations. delegates said south korea wants both nations to march together at the games. the two sides are holding talk s in the village along the heavily fortified border. >> overall, a positive mood, because both sides have a lot to gain, at least on the olympic issue. the south korean

he was the chief information officer of goldman sachs. he left in 2002 after 17 years and formed doing capital -- dune capital. he also was involved in the business.ent he financed a number of movies including avatar, mad max, and movies like that. meer that occurred, he told that a dinner once that he would become the campaign finance chairman for donald trump. i said you will never be heard from again because -- [laughter] >> that is correct. >> but my predictions are usually wrong. it worked out well for you. you became -- >> and for the president. became secretary of the treasury and were confirmed february 2017. have you talk to your accountant about your own taxes? are they going up or down? [laughter] >> well i am definitely making a lot less money in this job. but my rate is going up. given california and new york, my rate is going up. mr. rubenstein: are your friends still your friends because their rates are going up? i think people understand the economic impact that this is having. i think even for people in new york and calif

investment bank goldman sachs said the tax reform will cut its twenty seven thousand profit by about five billion dollars while other companies including german company heidelberg cement are also affected negatively by the changes to the u.s. tax code once these charges are booked however companies have a lot to look forward to in the long run but all profit from paying less corporate taxes in the us. on this let's go over to our man on wall street a quarter yes so it seems that companies will have to step in line to reap the rewards of this reform what will that mean for them. well it's probably a one time event and if we talk about those deferred tax s. it said the company would have paid those anyway just later in the future and as we've just heard in the mid and long term especially companies from the financial industry from the energy industry it will probably in the long run profit from the new tech system and we've also seen seen it on the stock market those stocks have not been highly damaged by those a one time payments all right we've got some new highs on the nasdaq and th