guilty as charged goldman sachs is malaysians of sebree admits train charges of bribery it's possible a record settlement over the money laundering at the nation's state investment is also coming up the world is spending billions to shore up supplies of a possible culprit 19 vaccine will africa be left out. and this is not the time to go on holiday as europe recall it's more than 200000 new infections a day to. regions bracing for a tough winter ok. this is due to the business i want to get john's and then to have you with us now it is the 1st criminal settlement in goldman sachs's history as a public company the bank's malaysian subsidiary has pleaded guilty to bribery for its role in a major money laundering scandal at malaysia's state investment fund the guilty plea is part of a $2900000000.00 settlement with u.s. regulators who say goldman played a quote central role in the theft of money from the fund of knowledge ing institutional failures goldman's board of directors has decided to cost pay and bonuses for several executives including this man that is the current c.e.o. david s

regulators who say goldman played a central role in the theft of money from the fund of knowledge an institutional failure is goldman's board of directors has decided to cut pay and bonuses for several executives including this man the current c.e.o. david solomon those directly involved in the scandal will also have to pay back millions of dollars prosecutors in malaysia the u.s. a bond sales organized by goldman sachs and able to associates a former malaysian prime minister razak to steal billions of dollars from the one the m.t.d. fund that was supposed to support malaysia's economic growth so what are we to make of all of this let's leave financial correspondent yes cos he's at goldman sachs of global headquarters in new york hi ends just how badly has this scandal affected goldman sachs its reputation. in general it's a huge and costly scandal already in july goldman agreed to pay $2.00 and a half $1000000000.00 to the government of malaysia so now we have another almost $3000000000.00 on top of that interestingly enough the stock actually did trade to the upside on thursday and

guilty as charged goldman sachs is malaysian subsidiary admits charges of bribery it's part of a record settlement obama laundering at malaysia's state investment fund. also coming up the global workforce is automating faster than expected to displacing 85000000 jobs in the next 5 years as a result of a study by the world economic forum will talk to its energy director. and this is not the time to go on holiday as europe records more than 200000 new infections a day tourists in regions brace for a tough winter ahead. well welcome to the business i want to get johns have been good to have you with us. it's the 1st criminal settlement and goldman sachs is history as a public company now the bank's malaysian subsidiary has pleaded guilty to bribery for its role in a major money laundering scandal at malaysia's state investment fund the guilty plea is part of a $2900000000.00 settlement with u.s. regulators who say goldman plait a quote central role in the safety of money from the fund acknowledging institutional failures goldman's board of directors has decided to cut pay and bonuses for s

you saw a lower rise then we saw over at goldman sachs.ave questions about what kind of market share we think they are gaining, but right now, they are standing in between jp morgan and goldman sachs. jonathan: wrapping up earnings on wall street, morgan stanley unchanged in early trading. interview a timely of foreignister affairs. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. don't count on another pandemic stimulus package before the election. house speaker nancy pelosi told msnbc the two sides are far , school worker safety funding, and a strategic testing plan. meanwhile, treasury secretary steven mnuchin says democrats don't want to give president trump something he can brag about in the last weeks of the campaign. joe biden raked in a record $383 million last month. that broke the mark the campaign set in the month before. in france, president emmanuel macron has imposed a curfew in paris and other major cities. that extraordinary step is part of a series of new measures aimed at containing the spread of t

charge goldman sachs's malaysia the factory of miss.rges of bribery as part of a record settlement over money laundering and malaysia's state investment fund. also coming up hoarding toilet paper fears of a stricter dr germ and stocking up on supplies but consumer confidence is down and . i'm shaking things up and start ups are embracing the trend toward known alcoholic beverages. says you don't need business i'm paid ferguson welcome it's the 1st criminal settlement in goldman sachs as history as a public company today the bank's malaysian subsidiary has pleaded guilty to bribery for its role in a major money laundering scandal at malaysia's state investment fund the guilty plea is part of a $2900000000.00 settlement with u.s. regulators who say goldman played a central role in the theft of money from the fund acknowledging institutional failure is goldman's board of directors has decided to cut pay and bonuses for several executives including this man the current c.e.o. david solomon those directly involved in the scandal will also ha

we had numbers from goldman moments ago.ease this morning, here is bloomberg's sonali basak. sonali: the numbers are pretty clean across the board. fixed income coming in with a whopping 49% jump. but equities trading is a little bit light. there are going to be some questions about that. we saw them posting a return on equity that was through the roof , 17.5%. an this year said a -- this year set a goal to boost return on equity, showing that they can to get vantage during this time -- they can take advantage during this time. tom: i looked at expenses, and they still got headcount increased by 5% as well. the age-old question, is this really a bank? i don't buy it. they are not giving away toasters at christmas. sonali: we might see that headcount go down over the next couple of years, or goldman moving people to lower cost locations. we know some job cuts are already coming from goldman. we know they are trying to make their partner ranked much more exclusive. the cost-cutting story, expenses increase, but they also want

goldman is considered a bank it is not considered an investment bank. when we see morgan stanley, you know, james gorman will come on, i hope >> yeah. he might. >> i think we got a shot >> now i'm going publicly. >> he did come on last week. >> he's been on so much. he's overexposed. >> to your point, they have a very different complexion of morgan stanley and goldman sachs. goldman does versus wells fargo, yes, or bank of america. >> that's stagecoach needs a little work there. >> wells did not come in particularly well. >> the main thing i'm saying is that there is one day that we differentiation. now there isn't. citi was able to pull down everything the citi call was a not great call i don't know charlie sharp, media shy, what do you think will he be media shy if the senate goes democrat and elizabeth warren is head of the banking committee? what do you think he'll be like? >> i don't know. there he is. >> it will be awful. >> there is his -- >> it will be theater. >> a lot of interesting commentary on the trajectory of the race and how polling may

if you look at the biggest fines below goldman in the u.s., airbus, petrobras.is not just the banks. but these banks are getting much more global, and it shows you that they will have to answer to their global businesses in the united states. also, remember this is coming just weeks before a u.s. election. there is a great sense of relief of getting this done as quickly as possible before a new administration, where there is a lot of uncertainty on how the doj may crack down on these types of crimes. alix: that is an interesting point. i just want to reiterate that now we have the headline that we now have the headline that clement is recuperating pay for blankfein and solomon. i just wonder what kind of accountability we need to see sure goldman to reas that it was indeed one unit. sonali: a lot of the people there are no longer there, but there has been reporting about what this means for compliance. goldman's new guard will continue to prove that everything is different under this new guard, and they have that going for them. guy: thanks for the update. appre

that can be seen as a win for goldman's.s cannot do practices with firms with criminal convictions. we have financial sediments out of the way with hong kong, singapore and the u.k. giving their figures yesterday. reputational fallout is what goldman will have to deal with. it has had to claw back pay from executives, making them accountable. some of the most damaging pieces from what we learned our court documents. it includes executive discussing what they said looked like abu dhabi government officials asking for money to put in their side pocket. goldman responded, what is disturbing about that? it is nothing new. back to the u.s. election story. less than two weeks away and record early voter turnout. at 8 million people have cast their ballots early, with the majority registered after the democratic party. it is far from a straightforward process. our quick take reporter joins us now from new york. is early voting having? it will be difficult to compare early voting now with previous times because there are more incent

with goldman sachs we have been very focused on funding cdfi's.r today we made a commitment to the tune of $750 million to black ands who reach latino business owners and women business owners as well. joe: one of the details that strikes me as interesting as only 29% of black business owners with household income below 75,000 dollars received funding compared to 65% for white business owners. , in banks consider funding guess what type of, what are the justifications used? how do they explain these disparities and what other factors might they look for to justify such an extreme disparity and who gets money? asahi: i think they are not doing a couple of things that i think need to be looked at, which is a second look at the black applicant. because, as you said, your household income seems to matter more if you are a black small business owner your household income seems to matter more. 2/3 of white business owners are able to get the funding where is only 1/3 of black small business owners. additional bias training is really necessary as well. o

goldman, killer trading there. i am paying attention to the russell 2000 on track for its best month since two's -- 2017. still strong, up by .6%. the dollar is weaker. you have a slight bid into the bond market. if you think about it, your reflation trade is ok for now but you still have a lot of questions on stimulus and what it means for a blue wave. we will discuss that later on as we are deep in the earnings season. let's break those down even more. our wall street reporter joins us now. goldman sachs is underway. what was your biggest take away so far? >> the markets have been kind to goldman sachs. cap 49% increase is the biggest jump that -- that 49% increase is the biggest jump. on top of that, one point $4 billion worth of gains. that is more than double what you saw one year ago. on top of that, equity underwritings, huge gains. we will see how this keeps going on. they are seeing -- saying there priceline is strong. a different story than what we are seeing at the consumer banks that have seen many decl

goldman sachs any substantive moves come january.ome breaking lines or the order book of the eu social bonds. they are said to have exceeded 150 billion euros. this is the eu's first social bond sale. that is kicking up a wider sustainable debt bonanza. to reconfirm the order book set to exceed 150 billion euros. talking about an offering of 10 year debt, six basis points over missed the initial price guidance. we will get more reaction later in the program. let's get the first word news with leigh-ann gerrans. leigh-ann: the u.k. is holding out concessions from the eu before restarting brexit talks freedom the chief negotiator says he's willing to intensify talks and begin work on the legal text of an accord but that was not enough for prime minister boris johnson who says a trade deal looks unlikely. still his office feels talks were constructive. india has already seen a peak in the number of new coronavirus infections, according to a government panel of scientists that think the nation may be able to contain the world's second-la

anyway, goldman, pretty good numbers.n wells fargo >> what's that >> very good i think that may have been the one number -- >> the what? the 2.59. >> 2.5 billion, yes. >> right okay andrew >> we'll talk a lot more about goldman's earnings along with the other earnings reports that we've been hearing about all morning. we'll get wells of course, wells fargo, that is, in the next hour meanwhile, while thousands of airline workers have been laid off, tonight in a new cnbc documentary about the air travel industry struggle with the pandemic, shepard smith talks to a pilot who's still waiting to hear here's a preview >> reporter: laura woods is a pilot for a major carrier. she and her husband max, who flies for another airline, live in denver with their daughter mollen they're expecting another baby in december. for laura and max, getting here has been a journey. >> flight school typically takes about a year or two. it usually takes a few years to get up to 1500 hours, which is required to go to a regional airline. >> reporter

joining me is jeff currie from goldman sachs. rattle off all the commodities you think stand to benefit here. >> well, when you look at the inventories across the entire commodity complex, it's easier to give you the number that are not bullish. coffee, cocoa and iron ore are the only not in a deficit. that's rare given where we were in the current cycle we were in the trough of a recession six months ago yet we have every market in a deficit with the exception of the three i just ragtsttled off, which underscores the structural supply we have as you mentioned, demand across most of these markets is tepid, even oil is tepid, which underscores supply is really the driving source here. >> that's interesting. i should give you a hat tip because back in spring when oil went to minus 30 a barrel there was a big debate whether it would keep going you came on the program and you said, no, you thought the supply and demand situation would push us back into positive territory, into the 30s ultimately, and that's exactly what happened stic

it is option that could be available to goldman.o you think goldman hasn't gone in that direction? stanleyn: again, morgan somewhat fares more strategically. your management team less in the way of x ability. so i do think they are somewhat behind strategically to morgan stanley. you need to know where you want to go first and be very clear of your direction before you go out and do deals. what i do think they will be in the conversation for acquisitions. they are beginning to build capital now, and they have always spoken to wealth management, asset management, and digital consumer banking as areas that would benefit from scale acquisitions, so i do think goldman will be in the conversation for acquisitions going forward. jonathan: looking forward to getting you back on the show soon. christian bolu, autonomous research senior analyst on the banks. ,organ stanley tomorrow morning 7:30 eastern. that is when we round up the big bank earnings. tom: the last five or six days have been amazing, talking about thebanks into this, and in p

goldman will pay more than $2 billion. that is broadly and nine with analyst's reserves and

coming up, goldman's record finds.treet lender ace is the biggest ever foreign bribery penalty in the united states over their role in 1mdb. those details next. this is bloomberg. ♪ 6:25 in the city of london. goldman sachs has admitted its role in the biggest form bribery case in u.s. history. it has reached several international settlements, paying more than $5 billion. it marks the end of probes into goldman's fundraising for the malaysian fund 1mdb. dani burger is here to digest it. $5 billion. how big of a deal is that figure? massive. fine is within that $5 billion, the u.s. ingartment of justice fin $3.23 million -- billion dollars. it's really remarkable if you look at the other finds that have been even close to this size. not even in the top five will you find another bank. this is a very unique and large rebuke for goldman sachs. it has admitted its role in spreading about $1.6 billion of illicit payments across malaysia and the middle east. its malaysian unit has admitted guilt. very key, goldman as a paren

it has outperformed goldman sachs 15% on a two-year chart. it takes away regulatory pressure, takes away the balance sheet requirements this is around 4 1/2 trillion dollars of assets. it's massive i think they deserve a premium over others. >> karen, do you think there is another deal in the works when it comes to as set managers? >> yes i think we will see one. invesco, you are already under scrutiny there this adds to it. i don't know who it will be, but i do not think this will be the first and only one we see. >> come on, let's play matchmaker guys, play this game with me >> do you want me to sing? >> not really. you can't unhear things. >> you brought it up i don't think citi will do anything they have their own problems goldman sachs is trying to get away from the way they were 15 or 20 years ago when i was there. i think wells fargo has too many issues so you have to ask yourself who is the next bank to step up. it comes down to goldman sachs or bank of america i have no idea who they pick >> i think maybe they are looking at etf comp

as an investor, does this impact the outlook for goldman?when you look at the stock in new york today, it was up, it was up more than the broader index. analystsinvestors and had been expecting fines. the company was not going to take a guilty plea, which usually means that there would not be any crippling restrictions. so from an investor point of view, you expected this to be the case. you needed some sort of closure and you effectively got that today. he is our reporter in new york. let's get the latest on the business flash headlines. after the world's largest casino operator has had its strongest month since the coronavirus struck. this month has been the first time since january that they gainseen -- there biggest since august 10. huawei has spent months -- to supply chinese carriers with a $170 billion rollout of 5g through next year. we were told about the output in late 2019, eventually shipping more than 2 million units ahead of the unit sanctioned cut off last month. aviation regulators in china project that the return of the boei

goldman sox hihighlighting it yesterday.s what to watch for on another big day for bank results. but first, since the beginning of the pandemic, something we just talked about, the airline industry has gone to great lengths to convince passengers it is safe to fly. but what about parts that can't be wiped down? part of a new documentary, shepard smith takes a closer look at you how clean that cabin air really is. >> probably cleaner than the air at home. >> here is why the air is a combination of fresh are and filtered air that flows through the vents in the ceiling and floor. half of it is passed to the outside while the other half goes through hepa or high efficiency particulate air filters. this filtereded air is combined with new outside air before making its way back into the cabin. >> so you have an exchange of new air every two to four minutes. these are the same filters they use in hospitals >> made even more effective by wearing a mask a requirement of every major u.s. airline, but not federal law. >> tonight shep t

goldman is doing the same thing.doing it somewhat differently and they are in an earlier stage than that. tom: i saw james gorman at whole foods last night and we refining over avocados. i'm kidding. but if i saw him at whole foods, i would ask him what is next with e*trade and the continued relation of morgan stanley taking gorman best practices internationally. is that feasible? devin: internationally i think they already are international. and so the opportunities to take the network that they have built , internationally, the distribution capabilities and connect more into that -- i think that is a big part of it, with a terrific presence in the u.s. they are going to move some of that product injure international clients, so there is this cross-selling opportunity. probablyhat word is overused, cross-selling, but that is really the game here, to acquire new customers, be able to serve them with existing products that you have, leverage and a lot of things like technology. 10 years ago there was not technology av

justice department has filed criminal charges against 2 former goldman sachs bankers u.s.d malaysian authorities are seeking malaysian finance though take. was accused of having played a central role in the fraud florence 0. for the 1st time since records began 40 years ago a key source of siberian sea ice has yet to stop freezing the sea is known as the birth place of ice this is the latest it's ever gone without starting to freeze scientists believe it's because of a record breaking heat wave in the region and changing waters in the atlantic ocean they worry the lack of ice will cause chain reactions across the arctic jason vox's an ice climatologist he says a drop in temperature could lead to all the problems in the region. this sea ice has in the last 40 years lost half of its mass half of its that miss and half of its area and this year after extremely persistent heat wave that affected siberia since since britain time that we've the fires are across northern siberia this part of the arctic is especially warm and so we see the sea ice effectively reacting to this extr

i've got goldman, not up much.ch more citi and jpmorgan crush the earnings, crushed them in fact, stocks aren't up more which says a lot more about the markets. >> appreciate it everybody "the exchange" is now. >> thank you, scott. here is what's ahead on "the exchange." alphabet soup. why some investors are missing the signs and two setbacks in one week in the battle to find a covid-19 treatment should investors rethink the leaders in health care and who they are betting on? we'll discuss. >>> and hackers exploiting robinhood, walmart redefines black friday, and some ports are busier than ever that's all ahead today, but let's start with the markets this hour. dom u

justice department has filed criminal charges against 2 former goldman sachs bank it's us and malaysian authorities are seeking malaysian finance though take joe known as joe was accused of having played a central role in the fraud florence italy al-jazeera. conservationists in namibia and raising concerns after the death of thousands of seals nearly $7000.00 cape seal pups and fetuses of washed up along the coastline this month actually unclear what's causing it but there are fears the death could affect breeding cycles of the animal for years to come. and yet another warning about the health of the arctic for the 1st time since records began 40 years ago a key source of siberian ice has yet to stop freezing this is on the lot to say known as the birthplace of ice the latest well this is the latest it has ever gone without starting to freeze over scientists believe it's because of a record breaking heat wave in the region and changing waters in the atlantic ocean and why the lack of ice will cause chain reactions across the arctic here's more from jason box who's a climatologist and a

what is the distinction between morgan stanley and goldman sachs?is: actually, i would put them together, more together than apart in the sense that, compared to the ordinary commercial banks, they have a very small loan portfolio. what is interesting about those companies is that they are benefiting from the very active capital markets and capital raising, so trading this quarter and for each of the first three quarters, trading was up about 20% year on year. for the banks, i think the banks are oversold and people are overly worried about the credit portfolios,r loan but however you feel about that, basically goldman and morgan stanley are going to miss that party for the most part because goldman and morgan stanley have a loan portfolio that is between one and 1.5 times tangible book, whereas most banks have a loan portfolio that is 6, 7, eight times their tangible capital. on top of that, if you are going to compare morgan stanley and goldman, they don't have a lot of credit cards. they don't have any small business lending. goldman sachs and mo

we own goldman for my charitable trust.would buy a big slug of morgan stanley the ceo systematically derisked the system while buying e*trade. it's an asset gathering machine and that's a consistent secular growth sticking business as for the big money center banks, let's start with jpmorgan, the best of the bunch. largely better than expected quarter on tuesday morning the company gave you strong top and bottom line beat fueled in part by much -- millions have lost their jobs. we know that, right? wall street expected jpmorgan to take a $2.54 billion hit on loan loss provisions. turns out they merely took $611 million so people were pretty excited. and the stock rallied in response to the earnings release. you're never safe until it's over when it comes to these stocks, especially with jpmorgan turns out they're seeing lower than expected credit losses because they've given many borrowers extensions to get their finances in order or get bailed out by the government it's more that they've postponed the reckoning on bad loan

goldman as you can see, expectations are for nothing testimony it will be easy for goldman to beat >>> disney all day. same kind of relative valuation argument netflix, you've got a 60 to 70 times earnings expectation you've got huge expect tags exp they added 2, thought they would add 3. and victim of its own success and the law of large numbers is catching up with some of the big high flyers. >> let's end on a hard one gm and its electric hummer or tesla. >> well, again, i'll go with gm all day long i you will itly made a twiactua with jim cramer on this, i don't think he knows, i bet him on an ice cream cone but i'm winning on the tesla versus gm bet that is pure valuation too tesla trading at like 500 times or 1,000 times you have gm dirt cheap if you look out to future earnings, they are not that far off. i meant earnings growth. >> i like it we're lifting the other 5:00 p.m. he shows ideas. shout out to them. thanks for being on the show and that does it for us on a busy wednesday futures are flat "squawk box" and the gang ckg erhi unext ♪ you can go your own way it's time you m

to a certain extent goldman sachs. i think dan will talk about morgan stanley the sleeper is a name like black stone that reports at the end of the month. not exactly the same, but you talk about a company with significant earnings and reasonable valuation and has traded reasonably well >> the action at wells fargo today was interesting. prior to the conference call it was down 3 1/2%. as the conference call went on it ticked lower and lower, finally down 6%. would you rather, to karen, would you rather citigroup or wells fargo at this point? >> at this point i would rather wells fargo. yesterday we talked about citibank having a different problem than wells fargo, but wells fargo is 2 1/2 years into their problem. one of the things disappointing about today was expenses i think expenses is something they will be able to control i would rather have wells fargo than citi. but i would rather, rather have jamie dimon. >> obviously wells fargo, you mentioned expenses that was one of the problems going no the pandemic. goin

i've got goldman, not up much. should be up much more citi and jpmorgan crush the earnings, crushed them in fact, stocks aren't up more which says a lot more about the markets. >> appreciate it everybody "the exchange" is now. >> thank you, scott. here is what's ahead on "the exchange." alphabet soup. why some investors are missing the signs and two setbacks in one week in the battle to find a covid-19 treatment should investors rethink the leaders in health care and who they are betting on? we'll discuss. >>> and hackers exploiting robinhood, walmart redefines black friday, and some ports are busier than ever that's all ahead today, but let's start with the markets this hour. dom chu has more for us. dom? >> reporter: we've gone from modest gains to piece ent decent-sized losses in the span of an hour or so, coming on the heels of treasury secretary mnuchin basically cold a little bit of cold water on the deal of a stimulus package before the election we were down 31 at the lows so you can see cheating towards the

goldman sachs is outlining a november roadmap for european investors. bloomberg. ♪ annmarie: just over an hour ahead into the european market open. on easingve steady fear over donald trump's health and optimism over stimulus, but the president's prognosis remains a risk, according to strategists. joining us is dani burger. view therategists state of play, given the president is in the hospital? dani: i would say the current sentiment i'm seeing is one of cautious optimism. the idea being that he looks like he might leave the possible that hospital today and that could help sentiment in markets. dealer says if he is released from the hospital monday, you could expect the rally in risk markets like equities to continue, but if not, he expects further volatility. the other bucket of strategist commentary is one surrounding the dollar. goldman sachs and brown brothers say a democratic win would be weaker for the u.s. dollar. fact wets out the haven't seen any bid toward the haven the past couple of days from the friday news means markets are starting to pr

shooting higher on mega merger news how to play it >>> plus our call of the day goldman sachs says buy general electric see if our traders agree >>> and later on, pack your bags because we are riding the rails. why now could be the perfect time to get on board with the train stocks stocks pushed higher again today on renewed hopes that a stimulus deal will finally be on the way. they closed out their best week since early july the strength was broad-based semiconductors, home builders, retail, transportation stocks. all of those hitting record highs in today's session but we are about to kick off earning season as well let's pose this question to you, steve grasso how are you positioned heading into a week, few weeks and maybe a couple of months full of micro economic catalysts >> i was a little toerlz staeart the rotation into value tech now that we see chances of a biden win are increasing, you don't want to be in an inflationary environment you don't want to be in tech with a biden regulation because there is a regulatory risk you will have inflationary risk and cap gains taxes are

another fine for goldman sachs -- another fine for goldman sachs.s time regulars in hong kong have find goldman $350 billion. they accuse the firm of failures regarding bond offerings. earlier this week, the u.s. find $1 billion in the imdb case. -- the one and be the case. launching, jeffrey katzenberg raised millions for investors. but it never attracted enough viewers. that is your latest bloomberg business flash. ritika gupta with your business flash. back to data and we have equity markets under pressure, .7%, down for a fourth day in a row. over contested election concerns, probability concerns perhaps for european business, although that was a highlight come and really ongoing virus concerns around europe. data, buttle bit of also an incredibly important headline. they have said that they have done what they said they were going to do. can you imagine if they would do that towards four dollars a shot or five dollars, whatever? that is a really important headline in this pandemic, and we say good morning to peter hotez of baylor in texas, who

i have another one here from goldman. a democratic sweep would likely lead to a significant boost to disposable income however this would most directly benefit the unemployed and lower-income households who are less likely to be in the market for homeownership suggesting a fairly modest boost to housing john, what do you think about those two notes? >> i think those two notes along with what mike wilson said about breaking out is hard to do, i love that part of his note, i think that we're likely to see some stimulus. we both know that the longer it takes the worst it is going to be for exactly that cohort you just described, scott. the folks that are not upper middle class, but that are in the middle and/or beneath that, they really need the stimulus now. i don't know that the stimulus is as necessary for the rest of those above that line, whatever that line is, scott. whether that's upper middle class or whether that's middle class. i think that the real issue here is that if we see cases which, for instance, wisconsin

goldman sachs came out with a double beat and that move alone in goldman stock is adding 35 points toeans without goldman, the market would be lower. yesterday of course the stocks were somewhat sluggish over weak quarterly earnings and halted covid vaccine trials, the dow industrials were down 157, nasdaq was down 12, s&p was lower by 22. european markets look like this. you have pressure underway, fq100 is down 10, cac is down 8, the dax index lower by 15. a mixed story overnight in asia as chinese president xi jinping is calling for young people living in hong kong to move to mainland china. he said this during a speech. apple unveiling the new iphone 112 lineup yesterday, the first line of apple phones to have access to the high speed of of 5g. joining me right now with the breakdown of the new iphone is the cyber guy, kurt knutsson. kurt, it's good to see you. thank you for being here. you how is it? >> maria, good to see you. good morning. 5g wasn't going to gain traction in the u.s. until apple added the fastest wireless tech into their hardware and a that is what apple has don

goldman sachs, you know, you speak to steve scherer, the cfo, it is a rather remarkable quarter. one thing people have to recognize is the amount of -- the amount of business that is being done with zoom is incredible no face to face. just zoom to zoom. and it is working. it is not supposed to. the expense structure is better, simply because people don't go anywhere >> i do want to get to that bernstein call on zoom later, jim. they go to 611 on their target way below where it is now. but zoom minutes year on year, shouldn't be surprising, but it is still astounding, up 30x, that's a reflection of our daily lives, of course, what happened over the last eight months >> look, zoom is a remarkable company. there was competition. webex, cisco, competition. they didn't work because zoom is business to business, and business to consumer that's highly unusual. he is a 24/7 soul who is thinking every minute about how to make zoom into something even bigger how about this how about what he did with do docusign you can watch zoom and sign a deal we'll start seeing things that make it so zo

election and goldman sachs saying this sell us $1.05 silver investor should look into selling the u.s. dollar they say and buying silver into the election according to 2 reports from goldman sachs there is a growing risk that the u.s. dollar will plunge to its 2018 lows as democratic candidate joe biden continues to extend his lead in the polls prior to november 3rd so they see that a fight and win would be bad for the da. dollar i guess they assume a resumption of the china relationship joe biden was quite instrumental in the whole w t o bringing them into the. opening trade relations with air and you know allegedly his son also has big dealings with china so they just see a more favorable relationship with china and therefore a continuing decline in u.s. manufacturing and expansion of the deficit and perhaps m.m.t. in more money printing sort of situation for a role don't blame the pin for the bubble right so there was a bubble building in the u.s. economy the global economy for years now and the virus current virus is potentially the pin anything could have been the pin beginning o

goldman sachs looking forward now. >>> all right.hough the actual embezzlement did happen between 2009 and 2013, the lid fully blew off the scandal in 2015, when a journalist in london and the "wall street journal" were tipped off to fraud. you can see what goldman has done since 2015. the peak was about 2018. so then you've got covid and a bunch of other drama. goldman fighting back. >>> to some better news here in the markets at this hour. let's get to lauren simonetti for today's fox business brief. hello, lauren. lauren: happy friday. let's start with this. btig upgrading the auto research and shopping site to a buy, pointing to both its cheap valuation and the potential for a pop in automobile demand when a stimulus deal is finally reached on capitol hill. >>> let's take a look at shake shack mixing it up coming into the close. oppenheimer going bullish on the burger chain, predicting a full recovery from the pandemic by 2022. shake shack up 3.2%. >>> the iphone 12 hitting store shelves today but reports from around the world sa

morgan, morgan stanley and goldman sachs holding up better. we go get back to that theme again.id: thanks so much. coming up we will talk about the imf, they are saying we need more stimulus. bloomberg senior editor for economic stephanie flanders is here to talk about the state of the global economy and how much we can take on. ons is "balance of power" bloomberg television and radio. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. david: this is "balance of power" on bloomberg television and radio. i'm david westin. for bloomberg first word news, we go to mark crumpton. mark: the head of the world health organization's europe office says the exponential surge of coronavirus cases across the

goldman sachs, bank of america reporting today. we will discuss the results and what they say about wall street and the health of the consumer. the rates for a virus cure hits reality. johnson & johnson vaccine study was paused after a volunteer got sick. eli lilly's antibody study holds an enrollment over a safety concern. the fda is saying that it is all part of the process. we will discuss with dr. jeremy faust of bregman and women's hospital. we will discuss why one electric truck start off is pulling off on many despite the need for millions of daughters to start -- dollars to start producing vehicles. stocks are weak today. we are seeing tach accelerating to the downside as we go along. concern about the stimulus package are heightened after secretary mnuchin said hopes for a deal before november 3 might be overly optimistic. you can see s&p 500 down .8%. there is the nasdaq down more than 1%. energy and industrials are doing well on the broad u.s. market, despite the warning from the iea that we may be heading toward peak oi

money into b of a and/or goldman sachs? >> you know, i may do it monday. i may have to get there before b of a i'd like to see the economy improve. and really what my trigger is. st if if the economy is improving to jim's point, you'll see the ten year, you'll see the curve steepen. and that's what you really need for the banks to make money. >> yeah. of. >> and right now we'll get -- we're not seeing that. as a matter of fact, the economy is retrenching a little bit. if you get stimulus though, and i think to michael farr's comments, if you get a biden victory, forget the tax consequences look at the massive stimulus you'll get fiscal stimulus and infrastructure that would increase the economic growth so that's what i'm looking for >> the time frame, too, and it's no accident that you're talking about monday trying to get ahead of the bank earnings which start flowing heavily next week. i totally get the point you're trying to make what about this idea of what energy has done this week, jenny? best week for wti since june

proprietary to goldman sachs .n stanley does not have to lean on that in a big way. guy: in terms of what the long-term trajectory is -- one of the articles i read this morning talked about this is a time when we are working the bigs. a bunch of factors are coming together which means you should probably ignore what is happening, look ahead to next year. is that how analysts are looking at this? credit you know the losses will go well into next year. the uncertain economy is making everyone nervous. you see steep declines in the consumer business and even the strongest banks at j.p. morgan. citigroup also had a steep decline. we will see what is to come. alix: thanks a lot. busy week for you. power,"p on "balance of david westin. not miss that. more tops on stimulus. this is bloomberg. -- more talks on stimulus. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable inte

>> they've been larabsent from large acquisition for a while, goldman. and moving into consumers like buying portfolios and partners with some in the credit card space. it's a bit of a different strategy historically the banks had been more kind of tied at the hip with respect to the prospects and largely that would ebb and flow with capital markets but each is carving out their own niche, it would seem to me, with the type of acquisitions they're doing. >> yep steve, you think the election is a risk for the banks or a catalyst or does it depend on the outcome? >> i think it is a risk in some aspect you know, over the last six months the banks have really had a perfect storm of rock bottom interest rates, which has really killed lending margins you've got a lot of concern about credit quality given the high unemployment rates and business and foreclosures and the like of course, the fed has put a hold on dividend increases and buyback, so it's removed a big catalyst for bank stocks the election -- of course, the pendulum has swung very much in favor of b

omits x has reached a longer way with the justice department -- goldman sachs has reached a long awaited deal with the justice

goldman sachs says that could pull forward a federal reserve rate increase.t you're looking at is fed fund futures which indicate that rates will stay on hold until at least late 2021. in september, the central bank made clear that it will keep rates lower longer and would tolerate inflation above 2% to ensure more robust employment. goldman sachs says if you look further out, overnight index spread swaps, should show that there is pricing in of a fed lift off in late 2024. the strategists at goldman says if fed rate hikes were to happen before then, it wouldn't affect the front end of the yield curve but you could see volatility ran the five year mark. that part of the curve captures a big part of the hiking cycle. as a result, goldman recommends investors use longer dated options onswaptions. as for the u.s. dollar, that depends on where the federal reserve goes. there isn't much impetus for the dollar to rise in the near term. over the last couple of days and weeks, the dollar hasn't gone anywhere, not giving much of an indication of who was going to win t

fine,: it may be a record but for a company like goldman, it is a slap on the risk -- wrist.taking back some pay from executives, so what is that message that they are sending internally? sonali: it's a significant amount of money. 31 million dollars for current executives. almost two or three times that for people that have left the firm. they are holding people personally accountable for this, with or without any guilt involved here. you have also in the statement that they put out today, a presentation on how they have changed their compliance, how they are looking for red flags among their businesses around the world. wes is unique, very rare, have not seen something of this magnitude for a bank. but it is a day where they can start to put these issues behind them. vonnie: investors are telling them that very thing. stock is up 1.5 percent, rising since the opening bell. thank you, sonali basak. interesting tidbits around that story. i would urge everyone to go to the bloomberg.com to have a look at that. from new york and toronto, this is bloomberg. ♪ mark: i am mark cru

and goldman sachs, two investment banks that are almost in the red as we approach the close.oldman giving up so much of the gains of the last two days headed back to the broader indexes, we are down two-thirds of one percent. >> got a little tick lower into the close. >>> welcome back to "closing bell." i'm sara eisen with wilfred frost and mike santoli take a look at how we finished up the day on wall street. those gains went away pretty quickly. closed down 165 on the dow united health care was the biggest drive on the dow some of the winners were at the bottom of the pack like salesforce, home depot, disney and walmart. s&p down .6% technology, which had shined earlier this week, was on the back burner today. strength in groups like energy and materials and industrials. .8%, russell 2000 closing lower on the day by almost a percent financials not a help there. weaker after their results, which continues the trend pretty much that we've seen so far this week investors are ready for earnings from united airlines, which will report results in a few minute, instant analysis fo

the goldman sachs strategist said that if that rate hike were to happen before them, it would not be for the front because theuncker first type would be further out past that but you can see higher volatility around the five-year mark and that is because the belly of the part of the yield curve that captures a big part of that hiking cycle. as a result it is more sensitive to changing perceptions around interest rates and as well, the implied volatility is currently at or near record lows. goldman sachs recommends investors use longer options on swaps to position for potential fed rate hikes. of course, all that depends on this conviction that you are going to get massive fiscal stimulus that am point. i struggle to believe that many people can see beyond the end of their nose right now given what is happening in terms of the virus story and hopefully the economic response to it, but good to mention the upcoming election. thank you very much, indeed. let's talk more about what is happening in the week for central banks. bloomberg's chief economic and policy correspondent joining us n