goldman sachs, my favorite report, an uncharacteristic dud, that's what evercore said about goldman'sd about the higher expenses, the higher provisions for loan losses there. i want to show you other things. the global economy is starting to look a little bit better, and the players in the global economy have been doing better this year. i noted last week how the strong performances we have seen this year in caterpillar, in general electric, in cummings, deere, these are all at or near 52-week highs last week and the same situation now. they're outperforming. we lookatogen so far, and we see this is not a bull market, but it's starting to approach one. let me show you why. we're up 4% for the year half of the s&p 500 is above its 200-day moving average that means they're generally in an up trend. metals and mining, global s signifiers of growth, up 12% the global markets are starting to look a little better. how many years have we seen underperformance in emerging markets and europe, yet not this year the hang sang is one of the better performers of the year. the stock 600 is up 6% th

that's one of the reasons why goldman had such a tough quarter. >> yeah, for sure. today on apple adding the tech giant to its tactical outperform list saying there's a compelling buying opportunity ahead of the december quarter earnings which should serve as a positive catalyst. more about that now. i guess the call here is that the iphone -- disappointing iphone sales in the december quarter are not gone forever and that we're going to see evidence that they are coming back? >> yeah. actually, you know, i think there's a myth that it's fully embedded in expectation already. again, the call would be this is more a production issue than demand issue and there's 658 million iphone units that did not get shipped in december. would you argue that's not the destruction of demand. march guidance is going to be much better because i think the units will catch up in the march quarter. estimates to me are going to go higher, not lower, and if that happens, the stock keeps going higher from here. >> now, i guess the bigger question, in addition to the pace of iphone sales ha

morgan stanley and goldman sachs from goldman sachs -- biggest banks taking a hit from investment banking. it is day two at the world economic forum. we will have more blockbuster interviews that include cbs ceo and opec secretary-general. later today, doma are exclusive with german chancellor olaf scholz. davos gets underway for the second day. markets are quiet. the big risk event is a boj. that has the potential to shake things up. until that, let me take you to equities market because there are declines. some consolidation given the strong your today declines we had. china gdp out but that data is backward looking. the markets not paying too much attention to it. lunar new year starts his weekend so perhaps some proffered -- profit taking of that. s&p had a holiday yesterday. european stocks in the cash session ended the highest since april a little bit softer this morning. we see some risk appetite to start this morning coming through was in bitcoin appeared we will see whether that is continuing as soon as the boards change. we are up just 1/10 of 1%. it is back above 21,000 there t

goldman has laid off more 3,000 people. >> goldman has gone through a process of remaking themselvesith respect to the bank said of the business i said for many years it would be a good idea for them to buy a bank get people in there to run the bank side of the business. their performance in terms of funding cost which are high and credit costs on the loan book which are high are just not impressive, brian. they need to get their act together i think the way you do that is go buy core deposits if you look at morgan stanley, he has achieved stability because of the big book of fun funding. he has assets to manage and he has the investment bank which is the cream on the top >> chris, are you talking about buying a big regional bank or mid major? i'll not ask you to speculate. like a pnc or u.s. bank? a smaller player >> i used names. smaller is key the reason i love key is it is 100 billion in main street core deposits i think that fits very well with goldman. it is not too big to dilute. if you talk about a merger with a bigger bank, it will d disappear. they will have to rework the i

goldman seeing its biggest miss in a decade. morgan topping estimates we'll break down all the headlines and look at how to position plus, china's growing pains from a slowing economy to a slowing population, and a resurgence of covid cases. we've got the latest and what means for the china investing pieces and united airlines on deck to report we've got the action, the story, and the trade on all three ahead in the earnings exchange but we begin today with the markets and dom chu with the numbers. hey, dom >> melissa, markets were mixed earlier in the day, but they are pretty much in negative territory at this point right now. the nasdaq is outperforming a little bit for that tech-heavy side of things, which is still close to the flat line, maybe up about a tenth of 1%. about the middle of the day's trading range. meanwhile, the s&p has retreated from that 4,000 level, down just marginally right now but it's the dow that's the big story today close to session lows, down over a percent so far in trading. that's due in large part

goldman is under pressure right now. the reality of companies being rewarded for addressing sobering realities. job cuts. wayfair, which is up 20%, is cutting the workforce about 10%, 1700 plus jobs. a huge winner early on during the pandemic but now feeling the crunch and the layoffs hitting the company staff. we are also watching this story on google which we have talked about all day. the parent company, alphabet, also announcing it is cutting jobs, 12,000 in what amounts to a 6% slash. the ceo saying he takes full responsibility for those layoffs but let's bring in mandeep singh. maybe we should also highlight for the audience the way in which this business works. the fact that advertising is not necessarily, or the revenue, is not something they can control unlike software companies. what they can control is their own spending or the size of the workforce. mandeep: yes, you bring up a great point. ad pricing is all bidding and auction driven. unlike the software side of things where vendors set the prices -- and the

the man under him griffin came from goldman sachs. the likes of citadel, millennia, these hedge funds are thinking ahead. but even among the banks, remember even with this retrenchment, to you about in this next year and see competitive weakness in the banking industry, you see credit suisse firing by the thousands. you see other banks in a tough spot because of the macroeconomic environment. you have to ask what are the ambitions competitively, even for the biggest public banks retrenching today? alix: i appreciate this conversation. this takes us off well for earnings on friday. coming up, more on the question of the day and more on the markets. wells fargo chief investment officer will be driving us. this is bloomberg. ♪ >> we want to buy tech is a recovery story. we need to for the market before we can get to a point where you want to buy the tech sector. we go back to the quality issue. if i look at all the s&p 500 sectors and bring them in terms of quality, that hardware component ranks highest. you might not get cheap valuation

goldman seeing its biggest miss in a decade. china's growing pains from a slowing economy to a slowing population, and a resurgence of covid cases. we've got the latest and what means for the china investing pieces and united airlines on deck to report we've got the action, the story, and th

namely one, goldman sachs.e hope in this market because gold man goldman had the largest miss in ten years or fell 391 points goldman is an investment bank with no ipo and no merger business to speak of so of course, the numbers were bad and even goldman is making changes that seem to be paying off there was far more risk than we thought. it makes no sense to slam the whole market when wells fargo, jp morgan, citi group, morgan stanley was amazing today. the big consumer banks indicated consumers are responding to the fed's rate hikes except for travel because life is too short. i think we need to focus on the companies making changes to become more profitable or the ones raking it in now other than tossing out everything over some earnings jitters i end tonight's program with a message of constructive optimism we've had a ridiculously strong market this year hascashing out makes a little sense the fed is preserving your wealth, not trashing it. that with the fed not against them i like to say there is always a

maybe not as drastic as goldman. really ramped up hiring during the boom, spac boom, investment banking boom began in 2021. it ended when the fed started to raise rates. goldman the most dramatic. others are doing the same. it could last through 2023 into next year. neil: no matter how well the market does, if this continues today not with standing? >> i think the fed raising rates clearly put a damper on deal-making. neil: that is goldman's. >> jpmorgan does mortgages. higher rates hurt mortgage creation. you can see how it filters through the system. when you staff up, you try not to staff up, but goldman staffed up because they had a ton of deals and people working overtime. neil: parcel out with the bonus, that will get people to quit. >> where are you going to go? morgan stanley is not offering great bonus when there are no deals. this happens all the time on wall street. neil: it does. >> we're on the down cycle. we're on a fed raising rates. it is not the worst thing in the world. this is not the great recessi

jonathan: so you've got golden -- goldman sex. -- goldman sachs. what do you make of that, tom?rce, morgan stanley, goldman. tom: of all this over the last few days of thinking everybody's got a plan. all the rest of them i'm with mr. lyons. i don't think anybody is surprised i'm saying this. jonathan: thank you. we will catch it at the 9:00 hour but the back of these hours. we have a plan for the next hour. the head of u.s. economic research. is going to join us. is it an stadia? i hope it is. tom: he is here in new york. he missed the flight. jonathan: when he ordered the extra round, that's what happens. flights get missed. tom: yeah. they tried to get me there. you comes on the plane. well the suitcases. yeah. the luggage. i cut back. i used to take 7, 8 suitcases. walk up the mountain from the train station. jonathan: was anything in them? tom: free stuff. free stuff is great. the box of chocolates that you get, it's pretty good. jonathan: i remember the bloomberg chocolate it was pretty good. tom: milk chocolate. jonathan: nice. equity features right now done about 2/10 of

. >>> and goldman's less than golden quarter hammered after the worst earnings miss in a decade what is wrong with wall street's once mighty titan. and then ip vesting of hundreds of millions in alibaba what is behind it. will others follow this is melissa lee. i have a full house. tim, karen, dan, and guy we start off with the high growth, high risk rebound stocks may have been mostly flat today but a couple of areas have seen big moves. take a look at gains in meta and amazon both up double-digits in 2023 the semis have been on a tear led by nvidia rising 21% higher risk assets catching a bid once again bitcoin surging back over 21,000 with a gain of nearly 30% this year even the so-called meme stocks finding new life amc and bed bath & beyond up so the market bulls are back the question we ask, though, is should they be dan i'll go to you first. >> the jury is still out we're two and a half weeks into the new year and i said this to you earlier, six months ago you could have thrown a dart at your fact set screen, i have 200, 300 tickers up there and would have landedond a stock 23

are you more bullish than goldman?ion we published the outlook at the beginning of this month, we looked at it 20% growth. not only for, co china but also for the china shares. >> i think that is a very interesting quality you just give us in terms of the internet sector. i stand absolutely corrected on that. sometimes one does have to dissect this. the 50% relative to that and call that they have. you are a braver man than goldman. you can walk away with that. we are looking at emerging market stocks. we are back in a bull market. let's close this conversation. how do you see -- what is the biggest risk here? this monster rally? >> one thing we can see from here is a of policies. i think getting to q1 or q2 of 2023, that is easy to be a lower basis in 22. there would be the second half of 23. without the relay of the policy, hopefully it focuses on consumption. i think the rally only relies on the reopening. also, policy changes and property sectors. that could show where we have put this in our base case. i expect th

plus goldman's rough week. an investigation by the fed. more details ahead "fast money" is back in two. [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh >>> welcome back to "fast money. earnings season is ramping up. next week isn't quite the busiest of the season but pretty close. big names like johnson & johnson, lockheed martin, and general electric out with results. we thought this would be a perfect time to play a little game of -- >> trade it or fade it >> that's right. trade it or fade it, america's favorite game. let's kick things off with johnson & johnson. courtney, do you trade it or fade it? >> i would trade this. it does continue to look attractive with some of the drugs in their pipeline right now and what's expected to come out next year

and goldman sachs is not just an investment bank.ed its consumer bank under lloyd blankfein, the previous ceo, it became a new-fang ifinged type bank -- fangled. they weren't opening branches like jpmorgan, but everything was online, and you could open deposits, and there's a huge compliance aspect of in that you have to follow. they did ramp up for that. but, you know, apparently -- and this is what i'm gathering from my sources there -- they tripped up on some compliance issue enough hat federal reserve is making an inquiry. i wouldn't -- i'd be real careful on speculating this is some sort of an existential to goldman sachs. i mean, this stuff happens so much because the fed literally is in every major consumer bank checking these things. so is the consumer finance protection board, the cf if pb. -- cfpb. so this stuff does happen, but where this gets really interesting as a reporter covering it, where it gets sort of problematic for goldman management is what it means for david solomon, ceo. i mean, this is a guy, i know him, he'

so, again, goldman sachs coming at double mess.ing on morgan stanley, maria, back to you in davos. maria: we will get back to you when the numbers hit. thank you so much, cheryl. stock is down one and a third percent on goldman. quick break, we just heard from goldman, morgan stanley expected to hit the tape any minute. morgue a-- morgan shares expecty minute. ♪ ♪ ♪ ♪ ♪ maria: welcome back, morgan stanley is out. cheryl: double beat for morgan stanley. really big when it comes to asset management. coming at buck 31 adjusted. earning per share was 1.13, strong beat on earnings per share on morgan stanley but revenue coming 12.75 billion, the street was looking 12.64 billion, a few things to note here what they did say as they pat themselves on the back, maria, they say reported solid q4 reports amiss a revenue market. as for wealth management. net revenue 6.6 billion. mark and i were talking in the commercial break that it is about asset story when it comes to morgan stanley because they focus on business since 2008. they also talk

carleton: we will get an update from goldman next month.hey had an investment day three years ago. is there a serious cut ability issue for the bank and its leadership? andrew: interesting to see how committed goldman remains, getting outsize attention and generating outsize problems. it's a real test for goldman's ceo, david solomon, who staked his reputation on building this thing up. carleton: when you look what happened over the last week, what do you make of goldman stock? andrew: it is down 8% this week, transferring one. one times the value, a 3% dividend yields but ultimately they will right the ship, shut it down or scale it back or fix it. solomon's credibility is on the line. this is a make or break year for solomon. if the firm doesn't do better it could be vulnerable. carleton: in true barron style be wrong to actionable ideas. hough i'm going to talk about ferrari. the argument in favor of it is it shouldn't trade like a mass-market car company, it should trade like a luxury goods company. that means steeper valuation premium

also on the show from goldman sachs to goldman fact the investment bank lays off thousands as a global downturn weighs on markets. we'll get more from wal welcome to the w business. this is christy plots, and back with you from berlin. it's becoming a major battle ground among rival superpowers. the u. s. is encouraging its international partners to join a plan ban of chinese computer chips. according to media reports. us ambassador to japan, rama manuel says the u. s. is in discussions with japan, the netherlands and south korea, nations critical to the industry supply chain. in an interview with bloomberg, he said, all the parties are at the table. all the parties have a mutual shared interest in the outcome. he said the deal must be multilateral in order to work. the korean government for its part has denied its and talks with the u. s. at the stage. meanwhile, another u. s. partner and the world biggest manufacturer of, of powerful semiconductors, taiwan has passed its own ships act to give tax breaks to key manufacturers. now, earlier i spoke to dan, i've a tech analyst at web bus

there will be a focus on goldman sachs, they had a difficult 2022.re estimates have been on a downward journey from about $11 .60 this time last year to $5.60. that is a downward journey that follows a major reorganization and layoffs. tom: how much diversions -- divergence do you expect to see? charlie: a lot of banks have already reported with large retail operations, so they are focused on the consumer. goldman and morgan stanley will get us more intel on what that deal flow atmosphere looks like. tom: in terms of the gauge as to the real economy, what are the data points you are looking for out of these earnings to give us a sense how these banks are positioning for the growth picture? charlie: these are bellwethers the american economy, and mashed and so much -- enmeshed in so much activity. when you see the ceos, recession has been the elephant in the room. trying to prepare for worst-case scenarios and explain why deals has been so difficult and get a slight sense of optimism. it is a difficult task but it is looking like the consumer is in go

we have a $2 billion loss in goldman sachs banking echo those conversations never happen at goldman sachsourse not, because they did not have this unit to the scale five years ago. in the beginning, i remember having conversation and so much of the purpose was to diversify and lower the cost of funding. but the cost to do that, markets are still giving you 335. most of the large banks have not budged among .01%. so it costs a lot to get customers. there is big reporting from liz hoffman that showed you it was not all just the decisions they made. they hit a lot of hiccups along the way. one interesting one being an issue with a vendor. i thought that was very interesting attention as goldman expands. how do they expand not just to meet the consumer but to keep their existing client happy. lisa: how much of these cuts really are just delayed attrition? sonali: a lot of that is definitely true because in the pandemic, they were making so much money. even this coming year, even with profits falling off, they are expected to post their second best year by revenue. i think we have to quickly c

you cover goldman what do we think is ultimately going to be the scope of this business, whether, in fact, it stays under the regulatory sights or not >> a few things to think about first, they are already backing down on several different elements of their consumer business they're winding down personal loans. they are not going to move forward with their ambitions at least on the large scale, they were planning to do that and then you have the credit card division. things there become trickier you can't just pull the plug on something where a partnership exists apple as well as gm, the green sky acquisition, how do you pull back on something you acquired not that long ago. this also really points to how complicated consumer lending, credit cards, consumer banking in general is. consumer complaints can go a long way with regulators goldman already disclosed last year that they're under investigation by the cfpb for their credit card operations, and just in what goldman disclosed, you can tell that inaccuracies, mistakes, even small missteps in consumer banking and lending can really

that will be my response to goldman sachs. haslinda: how much does goldman sachs oh malaysia? million as suggested before? >> that is the arrangement. i would want to see more responsible response from goldman sachs, so we can end this. it's a big institution. there positive issues with them but, they're also huge problems in the past. i don't think i would want to venture to that. my only appeal is for them to make -- to settle this deal. 1mbd as known throughout the world. it's in the books. goldman sachs should come out clean and deal with malaysia. don't think you can dismiss this as something small that you can use your strength to dictate your terms. haslinda: goldman says that malaysia is intentionally undervaluing the assets to forced goldman to pay the 250 interim payment. >> if you want me to pursue that i would say, given a fair deal, we're supposed to be paid much more than that. ok? which i intend to deal with them. if this thing is not settled. it's not my intention. i'm new in the game. i want to settle old scores. we have to move on. if they come to pressure us

goldman sachs is the big problem for the dow shaving more than 100 points off it because goldman is down.5%. that was a pretty bad earnings report. what did it tell you about the economy and the markets? >> good morning, stuart. if you look at the report from goldman, it sums up where we are today. profits are down for the quarter and their expenses driven by the employee expense are up. if you're running a business and have to spend more money to have employees and you're making less money, that's not a good equation. it doesn't add up. it doesn't work. so what's goldman going to have to do? they'll have to have more layoffs coming to get their costs under control. that's bad for the people who work there but the fed is trying to slow down the economy. more and more people will be out of work because of it. stuart: and it's working. the economy will slow; right? >> absolutely. stuart: okay. all right. stay there, mike. i believe you volunteered to be with me for the hour. lucky man. lauren: did you volunteer? stuart: we press ganged him into it. >> i love being here with you guys. stuar

the second and goldman sachs's history.he profitability of that business is a key concern for goldman and a key thing that is on david solomon's mind today and tomorrow. guy: david solomon would not appreciate this on his birthday. as a think about the investor day, are they questioning his leadership? sonali: that's a great question. the clock is always ticking. they have medium-term targets. 10% of return on equity, that's below this medium-term targets. the question for david solomon becomes, what brings you to that point that you can deliver those medium-term targets as promised while keeping your people happy? you have executives acknowledging here that some of these compensation costs were also tied to this idea that they need to keep people happy and pay-for-performance at a time where they want to be set up for the year ahead. james gorman put that in a different way. he said they want to be doubling down as well. whether or not it is the same at both banks will show up in the numbers in the plan forward. guy: share

goldman says you did.f that is the case, maybe, just maybe we went through the panic and capitulation phase in a whole different way. bring in ria advisors, their ceo, lance roberts. we had this conversation so many times about classic capitulation. maybe it happened but we didn't see the panic. can we check that box or do you need to see more selling, particularly amongst some of these technology stocks? >> no. i think we might have actually seen it. you know one of the problems we have today, more than anywhere else in history, is this illusion caused by passive indexing. we have record inflows last year into passive indexes which tend to support the market. so we had a lot of selling going on, a lot of negative bias. in fact we're still at some of the most negative bias of investors that we've had in the last 10 years. so we may have actually gotten there. you know, was that october low the bottom? there is some tending call indicators certainly starting to look that way. charles: i want to bring up som

goldman sachs is a leading indicator. bear in mind with goldman sachs banking activity is more exposed to the ipo market than the other banks. the mix of the portfolio there at goldman sachs is more geared to ipo ipo has been a catastrophe things are held upper with mergers and acquisitions goldman sachs is not as strong very much a leading player, but not the biggest one. a difference in the portfolio of the investment banking mix as opposed to jpmorgan chase with the debt side and mortgage and acquisitions gol goldman's line of business has suffered i think a lot of the banks have been holding on and rlaying off people >> it is interesting to see that analysts are squaring in on the view that the banks that are more geared to investment banking is the one to report worse results year on year let's ask about the retail and commercial focus banks one of the big issues that has come up is net interest margin you think in an environment where the yield curve is inverted and that would not be a positive for the banking syste

francine: have we ever seen something of this scale at goldman? have to go back to 2008 to see something of this scale, where it is something like 10% of workforce. that gives you a sense of where they are. it is the same at every bank, 2021 was a great here, goldman and a lot of banks over hired, so it is 30% bigger than it was two years ago. that puts that 3200 in context. if you want to be more glass half-full, they were expecting to cut about 4000 jobs in previous reports, so it is comeback, but still bad news. tom: that underscored the growth. banks are preparing for another difficult year. we have earnings later this week, what are you and the team looking at? >> you got jeffries today, and friday is huge. citi, bank of america and a few other big hitters. traders so far are immune from macro volatility, benefiting from interest rates rising. and the investment banking divisions we expect to be bad news. there was a story last week saying if you are an investment banker, it is down something like 40% in some cases. francine: tom metcalf join

goldman has been getting new and younger consumers. we will see how their losses stack up against other banks that are also showing those charge-offs, in particular, are rising as they get new critic our customers. definitely a competitive business. goldman, they're one of the only banks with a meaningful relationship with a very large technology firm. citigroup try to do something with google a year or two ago. that fell through. apple was supposed to be huge competitive advantage. we expect them to lean on their leadership of apple, not only in earnings, at the end of february should give us a sense of how far the ambitions should go. caroline: remind me why it is an official for apple to tie up with goldman. when i is apple pay i am just caring about which credit card i'm using, debit or credit. >> when all the started a couple things happen that same time. goldman sachs wanted to diversify his revenue base. well that costume -- cost them over the longer term? the strategies of other banks have doubled down in terms of wealth, even

goldman." that's him, paul t. goldman.y. [ cheers and applause ] it's on peacock now. we'll be back with diego calva! i prep without pills. with apretude a prescription medicine used to reduce the risk of hiv without daily prep pills. with one shot every other month, just 6 times a year. in studies, apretude was proven superior to a daily prep pill in reducing the risk of hiv. you must be hiv negative to receive apretude and get tested before each injection. if you think you were exposed to hiv or have flu-like symptoms, tell your doctor right away. apretude does not prevent other sexually transmitted infections. practice safer sex to reduce your risk. don't take apretude if you're allergic to or taking certain medicines, as they may interact. tell your doctor if you've had liver problems or mental health concerns. if you have a rash or other allergic reactions, stop apretude and get medical help right away. serious side effects include allergic reactions, liver problems, and depression. some of the most common side effect

i got bad news from employees at goldman sachs. looking at all of this, we have the reopening story as well very much at the four. -- fore. yvonne: china rejoins the world. a lot of the optimism and emotional reunions at the border here over the weekend when things kicked off on sunday as well and it seems like the u.s. jobs report which was mixed. wages cooling down and that lifted the market plus the reopening story and that basically means the rally has a bit more momentum behind us here today in korea punching 2% gains. hong kong at hsi at 1.8%. the dollar is sliding on the back of the u.s. jobs report, holding onto the losses as well. you are japan closed for today so no treasuries but basically regionally, we are all slightly higher here when it comes to bonds. that is the one to watch next. rishaad: this is the msci asia pacific. approaching a bull market, 19% up since we saw this -- those october bottoms if you well. 20% of course is a bull market, way past that whole notion of this essentially being one which is lacking co

i want to start with goldman. why did they miss? adam: ultimately, the bottom line is that expenses are going up faster than a lot of people are realizing. the expectations going into this were pretty clear that the cost basis is increasing in certain areas. we see what goldman is trying to do in terms of layout some of the staffing in certain areas, that has been pretty well telegraphed. it is actually appearing that it is slightly than people even thought. you heard it there the ceo himself, the results are disappointing. even he isn't able to find the one bright spot amongst the businesses. that shows you just kind of the tricky challenges that the bank is facing at the moment. we all know that 2023 is going to be a particularly tough year probably from the banking standpoint, certainly from an economic point of view. a lot of these u.s. banks are positioning for a year ahead. i think what this shows and one key take away from this result is that we know these expenses are going up, we know these cost spaces are struggling, and y

goldman is very economic sensitive.reet was down 60%. that is why they got hurt. charles: then of course the number that really, really, you talk about stands out provisions for loan losses, 972 million, up from 300 million a year ago. 500 million a quarter ago versus 87 million. why do they have so much risk? >> failing credit cards and failing bad loans. they're a risky bank. they take risk. they tried a credit card program that hasn't worked. they tried to fund it. they had lots of default. morgan doesn't have the risk. loan loss provision tells they have debt and they have to cover it. charles: let me clear that up, 12.5% net margin, right. that is the margin you go into here. that is how you get the margin numbers. seven teen .8% for morgan stanley. a lot better than 12.8%. how important are margins, for you? when margins go this way, stocks usually go this way. >> we talk about the whole last six to nine months, cash flow. cash flow means margin. why this because they make money on cash. when interest rates go hig

liz: goldman sacks is calling it one o -- goldman sachs is calling it one of the top picks. lauren: it's got a strong brand but i'm still in the boat, liz. liz: you've anchored about every show today, oh my god. you are the machine, girl. thank you very much. u.s. stocks and bond markets will be closed for martin luther king jr. day but the "claman countdown" is live and kicking because global markets, oil, metals were all open in trading earlier and tons of breaking news and we need to get you geared up for it. it'll be an epic year of earnings and economo data and french markets enjoying a solid green day and all closing to the upside here. big news though out of germany, who's dax has roared nearly 9% higher just since the start of january. for comparison the dow's gains 3% and christine lambreckt ask out about her concern of leading the military and she offered to send ukraine 5,000 helmets when ukraine was begging for heavy machinery like tanks to fight against the russian invasion. the dax up about a third of a percent and global currency markets are trading and euro h

goldman sachs is excited, too. their ceo says rebuilding ukraine represents good economic incentives for real return and real investment. imagine. whose money is that? it's going to be yours to rebuild ukraine. these guys will get rich from it. see how it works? because these people have no self-awareness, the president of ukraine, zelensky, went on camera to say he's thrilled about all of these economic opportunities. watch this. >> it's obvious that american business can become the loco motive that will push for our global economic growth. we have already managed to attract attention and have corporation with such giants of the international financial and the investment wall as blockrock, j.p. morgan, goldman sachs, such american brands as star link, westinghouse. they have already become part of our ukraine way. your brilliant defense systems such as himars are already united our history of freedom with your enterprises. we're waiting for better. we're looking closely at abrams. thousands of such examples are po

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read the news out of goldman sachs.offices in hong kong, edmund koh, president at asia-pacific. good morning. >> thank you for having me this morning. david: the way ahead, that is the theme. why don't you find that for us? >> this edition of the greater china conference, we have been doing it for 23 years. i think the exit of zero covid and some of the macro policies we are seeing drifting towards growth is signaling the way ahead for the chinese economy. and -- no end for this particular period. david: i want to ask you about what is happening. it is affecting a lot of businesses across the border on the mainland with his surge in virus cases. how is your team doing? any changes right now? >> no. we have 1400 of my colleagues in china. it has not affected the way we work. we have some infections as well. you see a peak and then you plateau out. china is still going through that period. when we look at the economy we thank with the exit of zero covid and the growth initiatives the powerpack of growth initiatives will c

now, goldman had been on a hiring spree just a few months ago into the pandemic recovery. what's changed since then? yeah, well chris isn't so david, tell him and took over goldman a good 4 years ago. employment actually has increased by a good 30 percent, especially if you look at 20202021. we saw an exploding ip market. a lot of companies came to the market. so we also got a lot of support from the government for consumers and for a company. so we did not see a lot of losses of the credit. the people were able to pay their mortgages to all of that help and that might be changing. and now, so we see higher interest rates that makes it more difficult or actually the highest the debt load for consumers. also for companies that we will see if we will see a higher delinquency rate, the banks are getting ready. they're putting money aside for possible credit losses . and that's why the entire environment that's gotten gotten a bit worse at this moment for bank. right? yeah. so you're talking about them preparing for the worst. i mean, we're seeing a general overall economic sl

you will see goldman got slammed while morgan stanley was rewarded. it suggests that goldman appeared to be punished by investors for an identity crisis. they were engaged in restructuring late in the year, backing away into consumer banking, while morgan stanley was rewarded for his clear strategy, which we will get to shortly. as for goldman, a much envied bank on wall street. it missed on profit and revenue. it was the biggest earnings miss in years. earnings fell by a bigger than expected 69%, much steeper than peers. fourth quarter compensation costs also rose about 16% higher than a year ago. investors did not like it, neither did ceo david solomon who summed it up in six words. simply set, our quarter was disappointing. the results cap a tough year for wall street deals makers, the shrinking size of investment banking, really a concern for investment bankers. haidi: morgan stanley, it is really a case of their business model doing what it was built to do. su: they stuck with their business model. they rebuilt it to capitalize on wealth manageme

quite shocking that goldman-sachs should not get -- do not give goldman-sachs a free pass their credithecks and small loans were abysmal against that, you have gorman who took away the risk over at morgan stanley, but you need to see these negatives happen, and the negatives are very jarring, because it's like, well, wait a second microsoft, two years negative, wow, that's -- it plays into the soft landing theory. and then people like it when they do the layoffs because it shows discipline >> but is this -- well, i mean, you don't know we don't know. but is the expectation that they will complete these rounds and that will be it? >> i think the expectation is that they'll complete these rounds and at that point, artificial intelligence will begin to get kick things in. i disagree with that entirely. i think that they have to see some pickup. now, there was a -- there are some stories about morgan stanley, for instance, sees, in a piece where they recommend downgrade ibm, they talked about early signs that the technology trigger pullers at companies, budget stabilizing i cannot get that

if we look at the goldman call, it is a significant headline call. i think it is likely the euro zone would be growing at the end of the year. i understand. i understand the message here is that things are out of balance. i do think europe is probably in recession at the moment. i see the message being the same as my general message, we don't need a big, strong recession to calm down inflation. therefore, the ecb can weigh it. we don't expect the ecb to have to operate from here. i think what goldman says is that you shouldn't as negative as you were before. francine: but does it mean that you actually come in and by certain asset classes in europe? >> yes, we are buying -- the one we have been buying -- the one we like is ones where there are value. that is our preference. we are buying global equities and also sustainable equities. but in europe specifically, i think the relatively high ratings means that we buy high yield relative to longer duration. you have to ask yourself, do you buy this bread, do you buy the duration? and how much do you trus

the strongest outlook of any asset in 2023, according to goldman sachs.a bullish concoction, basically a perfect storm when it comes to this asset class going into the rest of this year. parallels from the run-up in 2007-2 thousand eight. the year is starting out with a pullback in prices, rising rates as well. we are watching for the impact of the china rebalance as well. prices to the downside after last week's gains. iron coming under some pressure, we need to hear from china's top economic planning body asking iron ore traders to provide details as it looks to head all fresh commodity inflation. great to have you with us. what was your reaction when you saw some of their policy makers murmurings out of china and the impact? >> it feels like some of the previous cycles we've seen when they are reverting back to the old tools of the economic growth engine, infrastructure property and the like. clearly it is an easy one for them initially. they need to be careful about extending that into a full-blown rally. clearly the underlying issues in the property

goldman sachs says, hope for the best. we will speak to peter oppenheimer of goldman sachs. happy birthday, guy. buy tesla. they cut prices on cars just-in-time for your birthday. i am alix steel with my cohost in london, guy johnson. by my calculation, if i gave you $1000 for every year you have been alive, you could avoid a model y. congratulations. guy: my birthday is tomorrow, not today. friday the 13th not the data have a birthday. happy birthday to whoever it is. i think the markets are having a mixed day. i am sure it is the banks. i know the tesla price cut is helping. alix: i also have to say the s&p failed at the 200 day moving average yesterday. you never liked that and it is a long weekend in the u.s. but all that said, we are well off the lows. guy: let's talk about that. my take away from the university of michigan numbers is the consumers like lower inflation. give me the numbers. mike: as our former vice president dan quayle once said, happy campers you are, happy campers you will be. people do like lower inflation the fact it appears growth was reasonably st

and, of course, goldman sachs weighing down the dow. we heard from goldman.osting its largest miss in a decade the bank setting aside 50% more than analysts expected for potential credit losses. all four bets purported have been putting money aside, more money for bad loans, including our next guest jane frazier joins us now live at the world economic forum in dabos, switzerland sara >> good morning. yes, i'm honored to welcome jane frazier here to our snowy set. good to see you. >> great to see you as well. but yes, indeed, winter in dabos. >> has arrived just as of now it was beautiful all day look, we're all talking about the global outlook which is uncertain and has changed. it feels like depending on where you sit we're getting different answers. the financial companies, to me, sounded a little more negative about the outlook. is that true >> as you say, it depends where in the world that you are sitting. so different countries are in very different positions it is hard to make generalties i think we are all quite pleased with how the year has started in

when goldman was expelled from u.s., she was sent to russia. she lived there for two years, was horrified what she saw left in great dismay. deb, days before his death in the mid 1920s began talking about the vatican in moscow issuing decrees which everybody else was expected to follow. so he sort of wised up as well. the other questions, if not i'd like to thank adam hochschild for his insightful and powerful talk about his new book, american midnight. i hope this has been a wake up call, a call to fight for our civil liberties, our freedoms and democracy, and to fight racism as we go forward into. our next election season. so please join me in thanking and also books will be on sale in the back. and please come and have your books. and thank you for coming to mechanics institute here in san francisco thank you. now, it's my pleasure to introduce catherine smith. catherine smith is a journalist in history writer