goldman up 0.5%. sarcasm this morning, worth pointing out the intraday gains, up by more than 20% at jp morgan, a by more than 40% at goldman year to date. tom: in the case of jp morgan, they are going to come out of the conference calls and these guys are going to be grilled on the view forward. i don't know what that view is. jonathan: i'm with you, it is the forward look we want, and it is the forward look on loan growth that i think everybody wants to see. lisa: i personally think the moves are interesting even though they are not that significant, based on the year-to-date moves come over goldman sachs is already upper already a performed so significantly. lisa: the positive move has been in investment bank revenue. that has seen as expected could to continue. there's some really mixed signals, so jp morgan is more hinged to that. i think that is a big message. jonathan: this is why tom and i could never be the amazing columnist you are because you can take tuesday 50 basis points and turn it int

jp morgan and goldman shs beat estimates but results failed to impress wall street. and the white house is set to one american companies about the risk of doing business in hong kong, ramping up pressure on beijing. let's look at the trading session in wall street. you can see the s&p 500 with 39 record closes this year down today. the inflation report came in a much stronger than expected. the headline is nearly double the 0.5% people were looking for. jp morgan and trace reporting mixed results as the earnings season kicks off. a big story in bonds. that 10-year note is now up over 1.41. the 30 year bond option was the big mover today after declines. it did not go well. after a strong inflationary report, no surprise. crude hit a 2.5 year high today. there were warnings of a deepening supply crunch from iran and other major producers. what are you looking at? sophie: looking at a soft start for asian stocks. chinese tech joined the advance on tuesday. we do have the rbn policy decision. we have got to see

relative to what goldman printed? >> i thought they -- look, could have very easily said that there's a change, interesting income guide, and they did not i regarded that as positive. >> right, right. >> and jamie talking about the quarter benefitting from the significant reserve release, of course they don't get credit -- doesn't want credit. 3 over 3 billion, wasn't it? >> right. >> has the effect pushing earnings up revenues -- >> investment banking. >> oh! >> god -- >> is that what we do? >> when you -- >> never done this playground, like 40 years ago. >> exactly saying that i wish i came back -- the people at facebook and google may actually say, those guys are making money. >> right. >> so used to saying those eastern idiots no investment banking industry, very good. >> they are. trading seems, all of these firms tell you they've made market share gains and it does appear the trading business, to some extent, slowed from european banks we know -- >> pulled back thank you very much. >> and thank you very much and

goldman is what i own. b of a is what i own very comfortable owning them and they're extraordinarily cheap as i look out six months, a year with rising yields >> xlf highs of the day as well. all right, joe, so scott, you got to be -- you got to be a little selective, okay, when it comes to the kind of financial stock that you're going to buy -- >> yep >> it's more difficult, right? so why not just buy tech stocks? why not buy what's been leading? why go through trying to figure out which part of the financial complex is going to work for you? we have another record high for the nasdaq today you have a low rate environment. you have concerns about the delta variant. in other words, isn't this the perfect environment for tech to continue to work >> it certainly has been over the past several weeks and i don't think if you were to believe that yields are going to recover from this level and maybe push back towards 1.5 for a ten-year that you move away from the mega cap technology holdings because there's dura

. >> a bustling goldman sachs. very timely, wilfred frost, thank you into still to come, irwin simon jones us with the details on the integrate between the company's marijuana and beer division down 15% in the past month, but still seeing strong gains for the year. >>> shares of boeing weighing on the dow today. we'll talk about the latest headache, and an analyst who upgraded the stock today we'll be right back. young woman whispering: condoms father: condoms charlie. she wants to know if you brought any condoms. young man: yeah i brought some. ancr: eargo a vitually invisible hearing loss solution with high quality sound and lifetime support. eargo 5 is here. our latest device that allows you to personalize your hearing experience. get yours today. and if you're and active or retired federal employee you may qualify to get eargo at no cost to you. - [narrator] dearest noodle houses and hot pot hotshots, thank you for the stir fry that gets us all stirred up. whatever you can serve, we'll proudly deliver. (lively

jonathan: goldman sachs results 25 minutes away.rldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tuesday morning, equity futures unchanged at 4377. jake

you heard the comments from goldman's ceo david solomon.t market dependent on a more robust economic recovery going forward into 2022 and 2023 >> it is both of those things. it's robust. the recovery is robust but the recovery might be too robust, dom, because as you know and as you've reported, inflation is running at the highest clip that we've seen in years. and of kocourse this is engineee by the fed do they want as much as they've got? right now we're seeing, what, 5.4, 5.5% in that range inflation year over year that certainly says that there's demand out there and that people are spending that money. the question is whether or not that inflationary jump that we've seen in airlines, in used cars, new cars, in food prices, whether all of that changes the way the world looks at this particular recovery which has been, as you've said, very robust. >> jon, we're showing all the viewers and listeners a chart of the 10-year treasury note. we know massive amounts of central bank intervention are in many ways distorting what's happening with

goldman down about 0.8% as well.ading revenue coming in a low but hotter at $2.8 billion. once again, it has been a struggle to get a read on fixed income trading. that is for sure. the analyst community has certainly struggled. just a very small downside surprise, but there's a trend for sure for much of this week. tom: i learned that from sanford bernstein ages ago. you get quarters that rms come over you can't figure out what is going on. i think there's too much acuity, too much over analysis on securities firms. these are beasts that go with the market and go with the economy, and sometimes things aren't clear, and that is ok. jonathan: the beast needs to get paid. wages, labor costs. these are the conversations you have spent the last six years having. tom: it is a conversation between salary and bonus, and the reality of living costs, and for those worldwide, i am sensing a titanic shift in the major cities towards we've got to pay people so they can live. jonathan: talent retention a huge issue. james bullard

a beat for goldman and a bumper second-quarter for deals. jp morgan investment bank posted their best quarter ever, the expense declined and loan growth -- though they experienced a decline in lung growth. sonali basak is with us -- in lung growth -- in loan growth. sonali basak is with us. sonali: when jp morgan addressed media earlier, they said it is the very end. it is also inflation that posed tail risk. is this as good as it gets? where else are we looking? we're looking at costs. jp morgan saying costs will be higher than analysts expect. they are competing head-to-head talent with goldman sachs. compensation is up 18% at goldman sachs, but costs when it comes to revenue and relationships is stable. so how are these banks going to get a handle on costs? looking ahead to bank of america tomorrow, the bar is very high, both in terms of trading and income. the other thing is the consumer banking business has a lot of headwinds when it comes to interest rates and the fact that people are not borrowing all that much. that home business tha

let's talk about goldman. "in the near term, a complete service sector recovery will likely overcome virus fears and return to work office patterns. both look likely to take longer than anticipated." both issue a downgrade to forecast growth. what is the view at the moment? michael: our view in investment management is that a slow down of some degree is not necessarily a terrible thing for the economy as a whole. we were growing very fast with almost double digit pace in the middle of this year. in terms of how much is inflationary, how much is permanent, modest downgrades in growth with a little bit longer time frame in terms of getting back to normal because of the rise of the delta variant and more uncertainty as to how people will behave with this uncertainty, and meaningfully in the near-term, with yields falling significantly from where they're worth -- where they were at the end of q1. tom: jon insisted i do some math to shut me up. i did a 20 year regression of the five-year real yield. i'm sorry, we h

, but goldman's a very different kind of place. goldman is all sophisticated investors who get it they know exactly the deal you get 1/10 of it and buy it in the after market david, that's not what's happening here. >> no, it's not. in fact, i'm getting texts right now. they're begging us to take robinhood shares >> that's what i'm afraid of >> large allocator of capital. >> that's what i was afraid of >> i said what do they got left? and he said lots. >> don't do that, david. >> why that's reporting but by the way, listen, something that adds into the uncertainty is how this is going to perform is of course the very large allocation for robinhood customers. >> that's what worries me. >> does it worry you i also heard you saying you never know does it get lumped in or included as another meme stock do they take out their anger over what occurred >> there can be that kind of braveheart, it's got to be done at the right level, and david, if they're still allocating, you know how you get a deal done you price it so that very big compa

why has goldman decided to move?ce: actually, it comes as no surprise to a lot of people in the industry because goldman is known for its steps with office work and a lot of offices around the world with the pandemic quieting down, returning jobs in such places like new york and hong kong. obviously, places like goldman are going back. they have been looking for a place to move for quite some time, and they decided to stick to japan and move to a new office. yvonne: tell us about the new area goldman sachs is moving to as well. >> yeah. the new area goldman is moving to is not far from the current area they are residing. it will be in a similar area. they will be moving to the 49-story-high building connecting to the station. juliette: is returning to office work common, or has the pandemic made remote work more popular? i know a lot of people like working from home. >> it is kind of a test of traditional firms, and i think this is evidence that goldman is a traditional firm and wants workers to return to office. tha

i like goldman sachs here.ials. >> david solomon on "the closing bell," today we're looking forward to that interview. josh brown, jpmorgan, again, stock down that's yours >> okay. it's up 30% year-to-date so, you answered your own question these stocks have been anticipating strong results all year now you get the strong results, they don't also get credit after. stocks are anticipatory. they're not worried about looking back the thing on goldman, goldman doesn't get a lot of credit for things like booms in asset management their asset management business was up huge year-over-year but they don't get credit for that by investors or by analysts on the street because everyone knows that was a once in a lifetime year-over-year situation. it ain't going to repeat next quarter, let alone this quarter next year. so, it's not as though you should expect outsized gains as a result of a windfall of government created money flooding its mutual funds. the last part of that where goldman really excelled way better than jp

goldman sachs second best ever quarterly investment banking revenue and more wilfred frost is at goldman sachs where he will soon interview the chairman and ceo david solomon. wilf, take it away. >> hey, tyler. goldman sachs as you said smashed their estimates for the second quarter jpmorgan beat but in large part due to a big reserve for lease of about $3 billion. capital markets was once again the key area for both banks. both saw fixed income trading down about 40% year over year, but that was expected. goldman had particularly strong performance in investment banking and suggested, by the way, on the call that m & a remains very strong. jpmorgan's equity trading performance stood out for them both overall were better than expected and showed the pandemic-induced party in terms of capital markets' activity has not altogether disappeared yet goldman's stellar numbers were also driven biasy asset managemt more than double what was expected in large part due to equity investments jpmorgan's net interest income did slightly disappoint but they were able to hold guidance in that area. on i

morgan and goldman sachs beat estimates. look at what is in store for bank of america, citi, and wells fargo. kathleen: breaking news. singapore's second-quarter gdp coming in close to estimates. the year-over-year number up 14.8%. it is comparing with a year ago, where the gdp fell 13.2%, the worst of the pandemic damage. the numbers being watched very closely, the quarterly numbers. in the second quarter, down 2%. a a little bit stronger than the forecast -- a little bit weaker, i should say. let's bring in bloomberg's chief asia economics correspondent to give us the details on what it says. we know there is some pandemic restriction dynamics buffeting these numbers. what is the real story? >> two things going on. it reflects where the pandemic was a year ago. there was always going to be a base effect. singapore's exports have been doing well. so the base effects were always going to drive up the year on year. the quarter on quarter is more interesting. that reflect what is going on, in terms of containing the virus. in

goldman sachs is now 150.low tangible value, jp morgan was 140, 150. when we're looking at this, again, the key statistic was revenue, 33 million last -- a quarter ago, a year ago, 32 million last quarter, 31 million. that trend is down. interest rates can go up. they're going to go up very modestly but relative to the book of business that they have, they're still repricing assets lower so there's this treading of water that's going to continue to kind of push those revenues lower. the only thing they can do to offset is as your analyst mentioned earlier, liquid assets can be deployed at higher interest rates and you can buy back shares. those are the only two things they have to combat the pricing pressures they're getting on the earning asset side right now. maria: really interesting. marty, great analysis as always. good to see you this morning. thank you, sir. we appreciate it. marty mosby joining us as we navigate a host of earnings this week. jp morgan is out. we're waiting on goldman sachs and the week

so this is goldman sachs being goldman sachs as much as ever and with the merger results tomorrow >>y of this going to matter, all of this good news, mike the ten-year deal down to 136, 137. what if it keeps flattening. is it going to move the stocks >> have your popcorn chill out for a few months i'll take -- if you want to take the over or the under for the ten-year yield, 1.37%, i'll take the over for that. our firm still thinks the ten-year yield goes to 2% by year end if you get a 2% ten-year by the end of the year, even expectations for pickup in loan growth going into next year and this all happens in a period banks are returning more capital, the earnings estimates are going higher and strength begets strength with stock price outperformance whether it's year to date or year over year you could have momentum players move in even if it might not be this week. >> that sounds great, though i know you didn't foresee rates going from 1.75 down to 1.30 in that sort of time frame. so how does that frame this overall conversation why should i even bother waiting when i have plenty of

goldman sachs, let us not count them out on m&a.et, at their stock is pushing $400 and a much different calculus then it was not too long ago at $200. have a stronger currency and i think that gives you more flexibility to do mna, and they have a lot of capital that they have built into the system. they were not buying back stocks, and as we were talking about a number of growth initiatives particularly in consumer and wealth that also with an active management, and i would expect goldman to be the equivalent, but that is the key thing. goldman has so many areas that are newer and starting from a smaller base, so that is why we are more optimistic over the next couple of years because these newburgh roshan -- growth initiatives are small but very significant. i think the student loan business over the next 10 years could be one third or more of their overall business. jonathan: you alluded to that stronger currency, the stock is up by more than 40%. talk to me about the way you think they would be buying specifically, where is the f

i think goldman will be fine it will be higher.orning, jim >> cpi, pepsico and conag tell you food is about freight, which is about drivers they can't seem to find enough really, really tough costs they don't have the brands to be able to raise price the way pepsico can. we have to see who can take price and who can't. pe pepsico can clearly take price very exciting morning, though. kicking off earnings season. they're telling you that freight is really bad. by the way, boeing, can i just say bad set of facts there bad set of facts. >> what do you mean? >> i thinkwe are all looking a that company and saying what's really going on there? >> because of the additional questions? >> they're not making shampoo, right? they're not making shampoo. >> it's got to be right. >> but the dreamliner numbers aren't going to make it. pretty soon when we talk about the balance sheet. and if you talk about the balance sheet you're talking about equity offer ing, and talking about equity offering you say stay away until you get a better chance. >> c

morgan, goldman sachs, and morgan stanley.liver better than expected numbers, but most of their stocks sold off in response partially foreshadowing the grim action, and it only got worse, not better to potential buyers today. before we get into the quarters, let me set the scene for you going into earnings season, the major banks were up substantially for the year, which matters. wells fargo has been the best performer, even though it's the worst operator in the group. cheap stock. travel trust, you can follow by joining the plus.com i'll be talking about it at a conference call on wednesday goldman sachs and morgan stanley have had a nice year booming ipo and m and a businesses, even if trading divisions fall off in recent months morgan sanley could handle it. there's been a lot of variation. wells up 45 for the year, citigroup 11%, that's important. most of the banks sold off in response a couple managed to rally. we're going to take them in descending order, you have to start with wells fargo which jumped 4% wednesday. well

goldman sachs m&a revenue was up 83%.the biden administration is cracking down on competition more broadly, how hard is a repeat performance of that going to be? charles: i think this executive order that the president signed on friday certainly calls into question the future of m&a activity on a large scale. meaning every new large m&a transaction will face greater scrutiny, whether it is the banking sector or any other sector. that may put a damper on m&a activity. if you are in the c suite, and you are about to make a major transaction, you may have to think twice, vet it from a regulatory point of view to make sure it passes muster. kailey: when it comes to bank mergers specifically, how much do you anticipate activity will slow, especially for some of the regionals which had been combining like crazy? charles: what the regulators will want to look at is, will it stifle competition? crowd out competition and therefore hurt the consumer, especially communities that are either less served by banks or communities of colo

what you're seeing there is goldman sachs and jp morgan down in the red goldman sachs ceo david solomon discussing the results in an exclusive cnbc interview just a while ago on the "closing bell." take a listen. >> i think we're not going to see the level of activity we saw, for example, in the first quarter and that was clear by the two earnings reports you saw today. but i do think there are two things going on. one, i think that fundamentally activity levels given the environment, the size of the overall wallet was larger, and i think the large players are also a consideration. lower market share, 160 basic points we feel very good about the way we're positioned >> all right i mean, some would consider him, goldman sachs, a bellwheeather you said you didn't like this setup. >> i don't like the setup. i liked what they had to say, i liked what jamie diamond had to say because i always like what jamie diamond has to say, but i want to see what he felt about the economy. he was pretty optimistic on long growth, he was pretty optimistic on gdp growth. he thinks interest rates should be

jonathan: let's start with goldman. the implications for the growth outlook, through the role rebound -- for the full rebound, longer. what does that mean for this equity market? clearly this is a market trading on rate of change. did downgrade to the outlook reflect thing those fears. tom: between jan hatzius and ellen zentner, we can add 20 or 30 others into this debate. the street says buy. jonathan: but buy what? downgraded materials, this is the difference between economists and the market participants. the economists are still looking at followed levels of growth. market participants are focused on the rate of change from one quarter to the next, from one year to the next, from 22 out to 23. if goldman is talking about second half trend growth, 1.5% to 2% gdp, and a sharper deceleration, the economists might talk about really strong cumulative gains and strong levels of growth. it is not for me to say what the market should trade on. it is what it is trading on, and it is trading on rate of change and has been for

morgan and goldman sachs report today.or european lenders may be off the table. asia stocks power higher after fresh all-time highs on wall street. treasury yields a change and focus now turns to the u.s. cpi print later today. plus, the u.k. scientists warned the country could see 200 deaths per day. in france, macron says vaccines will be compulsory for health care workers. what caught my eye first thing coming in and overnight last night was the new york fed survey of inflation expectations at 4.8% for the next 12 months. a serious high through the data going back to 2013. not all respondents are created equal, are they? manus: no, it is a boomer thing. not that i am a baby boomer. it is from the new york fed, and it talks about people over 60 being most vexed about inflation. that is followed by 40-60, my age group. they remember rates at 15%. i remember a mortgage rate of 5.5% on my first mortgage. and then millennials, they don't care about inflation, it is not top of their list, is it? dani: it is really not, and i

david kostin of goldman sachs joining us.oming up, zoom wants to make sure it keeps growing as workers go back to work and kids go back to school. more on that strategy, coming up next. this is bloomberg. ♪ alix: just breaking for you, the s&p is extending its decline past 2%. most of the subsectors are in the red, and the flipside is you're seeing the money continued to move into the bond market. yields down by almost 11 basis points in the u.s. and in the ok it is going to be eighth -- and in the u.k. it is going to be a super ugly day. it just depends on how bad we get and how bad we close. in terms of the business flash, we want to dig a look at the business stories in the news right now. we will go to leigh-ann gerrans. leigh-ann: robin hood hopes to raise up to $2.3 billion in an ipo. the trading app company at the center of this year's meme stock frenzy says it will still more than 55 million shares. robinhood expects the ipo to price between $30 to $42. at the top of that range, the come but he would have a market val

it is planning a partnership with goldman on a buying now-pay later service.ave to say, amid all these bank earnings, the thing that stands out is that huge deposit growth -- 23% at j.p. morgan. we have consumers who are not spending as much as they can. how long does inflation last? people can pump more money into the economy at the moment. manus: absolutely. a red-hot rating on cpi, the highest since 1991. it was vicious, but there was a fairly muted reaction from the bond market. you have climate deniers, we saw what happened with the climate. earlier i made a faux pas, will jay powell join the transitorians, but will he evangelize the transitory nature of inflation? he is in the hot seat. the risk is the bond market is desperately ill prepared, under positioned, and showing utter contempt for the inflation story. that is perhaps the bigger risk, unprepared and denying any risk from inflation. that is the bigger risk. dani: certainly. we see this imposition constantly when you have big washouts in the bond market, that positioning is still short despite all

he looks back at them to come in goldman sachs and fixed income.y fell short of expectations, well short of expectations. they will be questions about whether there were market share losses given that they felt so short. equities did come in all right. all in all, very mixed results. as you guys have been talking about, mixed is not going to cut it. jonathan: the cfo said total loan balances grew for the first time since the first quarter 2020. that will be a big part of the story. what are we learning from jp morgan and bank of america? sonali: that loan balance question is a big thing. credit cards not growing, that is a tough thing for jp morgan must certainly for citi group. for bank of america as well, we are going to want to watch the mortgage business as well. home loans rising. that was also challenged at jp morgan as well. again, a mixed bag. it is not enough to appease investors. bank of america has promised it will be shipping more towards e -based businesses. even goldman sachs, that was a big promise. more predictable revenue. that has

goldman reiterating the buy on the stock. this morning, down 1%.house where elon musk is testifying. he's in the building you're about to see on the screen, somewhere, got it? we'll show you when we get back. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. workday. the finance, hr and planning this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers spending potential that's built for his changing business needs. he used hi

goldman sachs today.ways seems to win do you think their fixed income commodities trading will be huge what will you look at with goldman sachs which has doubled in a year on >> all of the banks, brian, have run up 40% or 50%. we wells, i think was the best. based on the expectation of income and dividends would go back to normal goldman should have a great report they are in the same business in terms of the transactional side. the bank side, it is not much for any of the names rates are falling and spreads are falling. it is about spreads, not rates for banks, lending is flat there really aren't a lot of opportunities to build or retain assets right now i think goldman should have a great quarter. this is their environment. they like this environment change, dynamic, volatility. that's what they do. >> we showed jefferys. they are a unique model. is jefferys one of the bank or broker dealer we must watch closely? it doesn't get a lot of press sdppress. >> if you want to know how investment banking is do

goldman sachs is getting bullish on live nation as concerts return in a big way. we are tuning into that call next. at gplus, our chart of the week. wh'soing on in one south america country? we'll break it down next when "fast money" returns it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buil

stock is up higher, goldman is up. stuart: that is the big winner at the moment, goldman sachs.ring in mike murphy who covers the market on a daily basis. blowout earnings from those two banks, those spectacular earnings are built into the market already, are they not? >> you see goldman sachs up 45% you today, jpmorgan up 25% year-to-date, great reports from each of these companies but stock price anticipating them, that is why you see a muted reaction. stuart: you have to keep going with terrific earnings before you see big-name stocks keep going up. >> let's differentiate. it is right for the big banks, unless they have a way to innovate, we see a lot of them and a activities but is there enough rope to expand the multiples, to hit fresh new all time highs, we see big bounces on earnings because there's not enough to tell a new growth story. it comes from both of these banks to acquire private companies because that is where the real disruption is. if this is as good as it gets i would stay away from them but to acquire some real growth, some real disruptive businesses then t

goldman will be the one handling that as well. emily: if you have an iphone, i am sure you have noticed, it is increasingly easier to just use apple pay with zero friction really. i'm wondering what some of these other companies will have to say about it? mark: this will definitely be a new layer. if you use any credit card you have in apple pay already. you do not have to use an apple card, a credit card. he did not have to use a new credit application. it will be so seamlessly integrated, so i am not sure why an iphone user with apple pay would not use this service over the competitors like affirm, paypal. emily: with some of the services, you do get an additional credit check, which sometimes can impact your credit score. it is great that apple is making this easier for users but i find it interesting that they are doing this in the midst of this antitrust scrutiny on how they run the app store and google play in particular. mark: the interesting thing to me in reporting this, that apple's terms are essentially identical to aff

right now, we know that and that's going to not be anything until next month we got a report from goldman sachs this morning cutting growth forecasts, so in terms of -- liz: let me jump in there. >> yes? liz: but scott, last friday, we had david kelly, one of the best economists over at jpmorgan. he said 10% gdp for the quarter. that's the print he is looking at, so you know, you got dualing choices here, and we know what the economy is doing. it is roaring ahead, is it not? >> it absolutely is. they can print 8%, they can print 10%. the way the market is trading, it's going to take it in stride in my opinion. again, for the short run, for this week next week, it is those four heavyweights maybe a couple other names that sarge had mentioned as well. going forward, yes. interest rate policy, infrastructure, gdp economic reports, absolutely. that's what's going to drive us to the rest of the third and fourth quarter. for the immediate term especially for that trader, those are the names you gotta watch. liz: sarge, what do you hate here? i always like to hear that. go ahead. >> what do i ha

katie koch of goldman sachs will be with us. this is bloomberg. ♪ >> i think you are seeing a lot of volatility in the market, and i think the market is trying to digest what is going on with the delta variant. >> i think a lot of other strategists expected a pullback was in the cards. >> this kind of pulled forward, the cyclical recovery, a lot of that has been priced into trading. >> certainly the delta variant news was out there in the headlines. >> now we want to think of what will do well in a decelerating economy. >> there's probably more to go here on the downside. it is not fatal. it is just taking some of the froth out of this market and unwinding some of those trades that were overworked. i still think we have a ways to go on the cyclical recovery here. >> we are still very much on the side of cyclicals is the place to be, and pullbacks like this -- and use pullbacks like this to add. >> we are very much fans of small-cap stocks. those who are looking for a place to put money, you can put money to work really quickly i

goldman has a basket of these companies. if you compare high and low pricing powers, height pricing powers will beat the low pricing power stocks for the most since 2020. there is some form of inflation anxiety but it is focused on the companies that have to deal with it. caroline: goldman getting a little bit of love in this chat. it is a complete conundrum as to what yields are going down and inflation is up higher. please don't tell me that is technicals. reporter: i won't say that. i will draw your attention to real yields. if you look at 10 year real yields, they are down 45 basis points from their peak in february. that is what is dragging down the nominal yield that we are paying attention to. i've had a lot of conversations about why is the u.s. growth outlook so bad? it does not feel that bad. the answer is you are basically getting growth priced into the treasury market europe there is a lot of concerns about the delta variant and reopening plans across the world. romaine: explain why it mattered's the divergence b

goldman sachs with some enthusiasm.ave a soggy and rapid downturn from this boom economy or will it sustain longer than we can imagine? steven: it will continue to be above trend in 2022. our estimate will be three point 5% friday for 2022. by the time we get to 2023 we be back down to the 2.25% area for growth. we will not be able to sustain this unless we get a bounce of fiscal policy. this is one of the reasons the federal reserve will be late to the party as opposed early in the party, allowing this to continue to run as hot as it can for as long as it can. jonathan: what you make of the argument conditions we are facing could overcome the recovery and shorten the duration of the cycle. what you make of that? steven: business cycles in the world of global excess supply are not driven by elation, they are driven by credit quality. when you look at the underlying credit quality of household sector and the nonfinancial corporate sector, they are all extremely healthy. this is going to be a long expansion. it may not be

morgan and goldman sachs sent mixed signals in yesterday's session.ll the fate of wells fargo, bank and citi b. this is bloomberg. ♪ ♪ anna: welcome back to "bloomberg markets: european open." european equity market futures pointing increasingly to the downside for major markets. one of the things we have been dealing with yesterday in the u.s. and this morning in europe, inflation prints that comment above estimates. that is certainly a feature of this morning. we have the u.k. number. you have been thinking a lot about the reaction we saw to u.s. print yesterday. mark: yes. you might be able to guess that i am getting a little bit excited about this topic. i basically think that those who have dismissed the inflation threat have zero credibility now. for the past four months, whether it is cpi month on month, core cpi month on month, the headline year on year, the core year on year, it has pete consensus -- it has beat consensus estimates. we saw the highest month on month number since 2008. this is the last 10 years. it is a monster number. the red

on that same note, goldman sachs did lower its forecast for u.s.dp in the third and fourth quarter, and it says that recovery in the service sector spending could take longer than previously anticipated. david kostin said in a note, "the new strain should not pose a major market risk." we recommend tactical positions in virus exposed cyclicals alongside longer-term investment in high-quality, secular growth stocks. let's get more on this growth trade and the trade our next guest wants to be in. that is david lebovitz, j.p. morgan strategist. would you may making -- would you be making a tactical allocation to cyclicals right now? david: you don't want to completely abandon the cyclical trade. we come into the year with the view that cyclicality was going to outperform quality. obviously that has been put on ice as growth concerns have percolated and interest rates have come back down. but it does feel like the rates market is priced given our outlook for the economy. i would agree with the guys at goldman that the recovery is going to be more uneve

the second stock created by gold m -- goldman sachs. years ago, long before the spac attack, goldman raised the acquisition. formally the ceo of honey well it was created in 2018 and they took their time finding a deal but after a year and a half of searching in december of 2019 they americaned with an interesting industrial company that makes power, thermal and information technology infrastructure solutions the vertiv got hammered by covid, they put up great numbers and the stocks spent the last 15 months from 13 to 27 and change. it wasn't a bogus get rich quick scheme just like the origin, they took their time searching for a deal and less than a month ago, they found one. they announced a merger with mirion technologies that makes equipment for radiation detection, measuring, monitoring and analysis they are buying mirion from a private equity firm. larry kingsly. really smart guy the number one player in the vast amount of categories he participates another 40% coming from the nuclear industry the rest from various markets. it is

haidi: in the meantime, goldman is getting a new home in japan.t say about what the post-pandemic work culture looks like at that firm? nabila: this is goldman sachs basically doubling down on the office. as you know, they are one of the more aggressive banks when it comes to return to office on wall street. the ceo, david solomon, had called working from home and aberration, and this is just another move that shows their commitment to the office. they have got about 750 on bath in tokyo, and they are going to be expected to be coming into this office when goldman finally moved in there when it opens in 2023. shery: our asia finance reporter there. we will have plenty more to come on "daybreak asia." stay around. this is bloomberg. ♪ haidi: a quick check of the latest business flash headlines kid mgm resorts is selling two hotels to blackstone for $4 billion after acquiring half of the project. the sale to blackstone includes hotels which mgm will continue to manage. mgm has been selling real estate to raise cash for new construction opportunities

yesterday we had good numbers it would have appeared, certainly from goldman sachs without a doubt. 33 billion in revenue, that used to be a year, 12 billion of profit that used to be a year in fact, that would rank as their seventh best profitable year at goldman for a year instead of being a half a year. >> and yet, they were humble. >> and yet the stock didn't do anything >> the stock is up like 150 bucks from the last time they really focused on it you're looking at david myopically you're a myopic person what mattered is not the 47 minutes of how it did yesterday. it's a continuum it's a journey. >> it's a journey. carl, it's a journey >> it's a journey. did you see him yesterday with the food trucks? all he did is say everything's fabulous this is fabulous that's great this is fabulous it was fabulous. >> he did talk about the chinese perhaps delaying some ipos back here, which we're going to talk more about later on this morning. >> look, i think that goldman should be much higher. i saw some price increases to 400, makes sense can we accept the fact that jpmorgan was so great t

we had an investment banking, very strong with goldman sachs with ip also with new companies that are coming to the stock market says that there was maybe one little disappointment and that was a trading revenue. and so that dropped in comparison to last year. but then again, that was also not a big surprise because with all the volatility that we saw last year, that was to be expected. that trading volumes would be a bit lower. so they're very good start into earning season from the big bang them on wednesday. by the way, we will get the numbers from citigroup on bank of america. maybe one final word thanks actually did trade to the downside, but not because the numbers disappointed i would say that the stock's up the big banks are up quite a bit so far this year. so that was mostly profit taking what we saw on wall street on tuesday. okay, and thank you again. it's quarter in new york for 11 and now and work has begun in bay route on one of the 1st large scale clean up operations. in last august catastrophic explosion. the chemical blast killed more than 200 people, and helped plung

morgan and goldman sachs stocks hit despite a blowing away analyst estimates.ond quarter revenue of jp morgan shows opportunity bounce with consumers emerging from pandemic lockdowns. >> house values are up your stock values are up. incomes are out. savings are up. the pandemic is in the rearview mirror. hopefully nothing gets worse. home prices, auto agencies, they could be much higher if supplies constraints go down. yvonne: it doesn't seem like the market, not as optimistic as jamie dimon himself. >> investors looking beyond this latest quarter which jamie dimon pointed out was the best quarter ever for jp morgan. similar to goldman, which had it second-biggest call, both benefited from these extreme flurry of deals that offset the decline in trading. both banks saw the decline in currencies, fixed income, commodities, a decline of 45% from a year ago to the big boom to the bottom line from the pandemic-inspired trading frenzy is now over. loan growth is flat. let's listen to what jamie dimon said. that is inflation is here to stay. he says it is not transit

this is goldman doubling down on the offer.one of the more aggressive banks when it comes to getting people back into the office. it's just another move that shows how permissive they are to the physical office. they've got 800 staff in the country, japan. they will be expected to get back into the office. it's an interesting move given tokyo offers vacancies have for -- sword during the pandemic. this 39 story tower that goldman will be moving to won't be ready for another two years. let's hope that by then, covid will be but a distant memory for all of us. dani: something we are all definitely hoping for. thanks for staying on top of this for us. let's get a quick look at what your day is doing. we are trading in a pretty tight range when it comes to the u.s. 10 year yield. oil basically flat. let's stick on that oil story. coming up, we discuss opec-plus, the oil deal hanging in the balance. a key member now rebelling, the uae. discuss all things oil up next. this is bloomberg. ♪ >> good morning, everyone, from bloomberg's e

meena flynn of goldman sachs plus bloomberg sonali basak. let's stick with earnings.ll break down how the world's largest cigarette maker is dumping out the old business model -- is snuffing out the old business model. the ceo jacek olczak will join us. this is bloomberg. ♪ alix: this is "the european close." coming up, scott minerd, global cio for guggenheim partners at 3:30 in new york, april and 30 in london. this is bloomberg. -- and 8:30 in london. this is bloomberg. phillip morris out with earnings. abigail doolittle is with the report. down about 2% today. now just up 1%. abigail: up just a little bit. they beat by a penny. the bigger story has to do with the forecast. back in february, the estimate was 5.95. it was been fully raised to 602. that is a positive and it has to do with cigarette volume shipment. served at volume shipment rising as the reopening happens. the big driver is heated tobacco, up 30.2%. cigarette shipments up 3.2%. when you put it together, up 6.1%. when you look at how shares of philip morris have done relative to competitors, outperform

>> goldman sachs will have a good report. i think carter laid it out good what is expected and how better, i think expectations across the whole group are up 100% year over year. expectations are really high i don't love the money centers i see some bad action in bank america and citigroup and wells fargo. i don't like any of them >> all right,sir taking over the nasdaq 100 going for its nineth straight week of gains. just a few minutes to break it ul down. disney ease plajic lighting up today on the back of some very strong box office results. the best since the pandemic stard.te fast money returns after this. there's an america we build and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l i'm evie's best camper badge. but even i'm not as memorable as eating introducing the wildly civilized turkey hill chocolate chip cookie dough creamy premium ice cream and chasi

goldman sachs hopes to have 70 percent of london staff back in when restrictions lift on monday. we have been very clear, the centre of our gravity of the workforce will be in the buildings in london, it will be this building. uncovering tensions. england drops its legal requirement for masks from monday, but many businesses will continue to insist on them. financial revolut—ion. the banking app becomes britain's most valuable start up ever, with a price tag of $33 billion. plus — dna detectives. how the boom in genealogy websites is helping police solve cold cases, and raising privacy concerns. we start with coronavirus restrictions here in the uk because as of monday staff in england will no longer be asked by the government to work from home. while some companies will continue to offer flexible working, many are anxious to get people off zoom and back in the office. investment giant goldman sachs spent a billion pounds on its new london headquarters two years ago. it wants the vast majority of staff back at their desks on monday morning. goldman's global chief executive has be

so they did through goldman. then he went from from goldman to the bank of italy to the e. c. b. and now he's a prime minister of italy, so they keep getting the same people are like bad pennies to keep appearing so until they can get fresh ideas. and this corruption cycle, we're not going to get out of this loop until it explodes. and then i hope they don't bring larry summers back to, to dallas out of this. you know, this is what happens. you just get you, you definition of insanity. when you keep doing the same thing over and over and expect to achieve a different result. we're just getting deeper and deeper in investors keep getting bigger and we're not creating manufacturing. we're not creating organic growth, which is what drives the economy, not financial ization. so we've been on the wrong track for at least 30 years here . and to turn the train around panic around on a dime is not going to happen. it's going to happen with the next crisis. it, we're going to see substantial change. the banks will probably get blamed. and what they'll probably do is try to have some sort