tom: goldman sachs, so nice of them to delay. sonali basak now with what we see from goldman sachs.quities and trading also be expectations. interestingly, they bought in just about how much morgan stanley bought in, little bit more. these two banks have been at it for the last couple of years in terms of competition. fixed sales in trading also beat expectations. we saw a slight decline over a jp morgan. we knew that the commodities business was a star when it comes to their trading business. they got into the nickel market in the first quarter. tom: let me interrupt you. wall street firms and commodities, is that all the rage now? you are so good at looking out a year. is that we will see in 2023, re dux of the commodity boom of 40 years ago? sonali: this could be a double-edged sword. people making money on the volatility but also seeing losses. jp morgan yesterday with that nickel exposure, credit cost of $120 million tied to the chaos here. banks are looking to make markets. if you trade the wrong way, you know you can lose a lot of money just as easily. not to mention these ba

jari stehn from goldman sachs is still with us.t policy response whether it is took cut benchmark rates or the rrr, is it enough to offset the economy pressure based on the lockdowns we are seeing? jari: it is pushing it together with more expansionary fiscal policy and infrastructure spending and higher credit roles. offsetting it completely is difficult. we are seeing the covid restrictions are weighing on activity. some of the incoming data points have weakened significantly if you look at the lines particularly in services. we think growth will come in below expectations for this year. we have a 4.5% forecast for china this year. tom: are they constrained by the fed? we know they have dry powder but is that a constraint? jari: to some extent but i think the difference is you have a lower and weaker inflation picture in china than in the u.s. and you do have pretty rapid slowdown in growth. that does provide them with more room to ease both on the monetary side and physical side. -- fiscal side. tom: how do you map that growth p

perhaps there is a reason why goldman sachs is cheaper, why goldman sachs is at a one price to book, why goldman sachs is at a 52-week low versus a morgan stanley. what do you think? >> well, so that's interesting you're saying is it cheaper for a reason because it's growth is not as robe ust over the last fr years. if you look at the history of goldman and where they made their money, they're strong reformulate and reimagine the company to some extent, but i understand what pete's saying and one times booked isn't a lot for a growing financial, and i think that's a reasonable purchase and entry point right here >> i think we've got pete back carrie approves of your purchase just yesterday when we spoke about the markets you couldn't find a single stock to buy, what else is on that list of yours? >> we were talking about that yesterday and best buy was one of the names i was definitely looking at there's a few names and multiple names each and every day and sometimes something else pops up, but the reason i wanted to make this move in goldman was it just seemed like the right timing

goldman sachs under wrote $6400000000.00 worth of bonds for the fund. the bank made 600000000 in fees out of it. ng was accused of helping divert more than $4000000000.00 from the fund to malaysian government officials and others through bribes for future business. but ng was just one player in a complicated web of corruption. his former boss, tim listener, is the most senior goldman sachs banker to plead guilty, receiving tens of millions of dollars in illicit proceeds. goldman sachs malaysian unit pled guilty and paid nearly $3000000000.00 in fines. former malaysian prime minister naji bra, zach convicted in 2020 of money laundering and corruption was sentenced to 12 years in prison. and finally, there's jo low, a flamboyant malaysian billionaire business man, and the alleged architect of the scheme who prosecutor se pocketed $2700000000.00 for himself. he still on the run from authorities. analysts say it was one of the biggest corruption schemes ever. this is corruption at the grand level. unlike most sovereign wealth funds where you actually have w

goldman sachs notes that includes $495 billion in single stock diffederivitives. that could add to the volatility it all comes as stocks are suffering in april with all of the major averages lower. let's talk about this and the fed with joe fahmy joe, i was being snarky about the fed. they can say what they want ove what they are doing later on in the year is it possible that the federal reserve, while everyone saying they raise rates 100 times they could change on a dime. could they not >> of course i think they could be flexible based on market conditions i have been saying that i feel there is limited upside right now until the fed changes or ends the hawkish tone. i have been bullish since the pandemic lows for two main reasons. technicals were improving and the fed was providing all of this insane an accommodation not only by keeping interest rates low, but with all their bond buying. more treasury purchases in the six weeks following the pandemic than nine year combined between 2009 and 2018. they continued with that $120 billion a month in bond purchases. w

tom: sharon bell, equity strategist at goldman sachs, let's bring you in. the line from bullard upon the 75 basis points and says it should be considered. we have bill dudley saying in order to get inflation down, you have to take a hit to the economy, there will be a recession. what do you make of these hawkish calls and commentary, where it leads to where we should be thinking about the fed come may? sharon: we think they won't go 75 but there is a risk they do. we think they will go 50 in may and another 50 in june. a much faster pace than we expected a few months ago given the higher interest -- inflation rates. absolutely. francine: the earnings season kicks off next week. how much of a wobble will they have if inflation goes up? what are you looking for? margins, inventories, something else? sharon: the first quarter earnings will probably be ok. my main focus is on europe, and european growth being absolutely fine even with the high rate of inflation. a couple of reasons for that. i think the pace of recovery out of covid, the pandemic and lockdowns,

goldman sachs will have numbers that will not be pretty either generally you can see goldman sachs is the golde-- tgoldman sd and they'll give us a big number. >> all right, coming up the number one worry on investors mind and shares of delta airlines ceo saying things are phenomenal do our traders agree that trade and much more when "fast money" returns wonder woman... serena... wonder woman... serena... wonder woman. ace. advantage! you cannot be serious... get your tv together with the best of live and on demand. directv stream. now get $30 off over 3 months. you can't buy love. happiness. or confidence. but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. ♪ ♪ >>> welcome back to "fast money" airline stocks gaining altitude, delta posting a strong quarter and the rest of the group taking off too. let's get more from phil lebeau. >> this is a testament how many people want to get out and go, whether for leisure or business, they are traveling guidance is the reason all airline stocks moved higher today. look at delt

sonali: goldman sachs had already settled a record buying year. when we talk about this trial and a lot of detail was bought -- brought to the service about exactly the crimes committed. roger ames, the first banker to face prison time, 30 years could be a long time for him. he has millions of dollars here at play for himself when the crimes were committed. really, the page has turned for goldman largely because of compliance changes. it is a story we have not seen before coming to closure here. jon: certainly the trial did provide all sorts of details on how this came about. nothing short of fascinating. sonali: especially because tim leistner who also pleaded guilty was one of the people testifying. a lot of the things we knew had happened. it is the details of how they happened. again, eight weeks that people were brought to light here on how these crimes were committed. jon: sonali, thanks. we appreciate that update. we will continue to watch that story. i want to very quickly mention some headlines from the president of the european commissio

me tell you, goldman sachs always makes money.e environment they have a lot of cash they can earn and the traditional banks i own are better positioned to benefit from higher returns on cash. even a goldman sachs can suddenly in a higher-rate environment earn money on money-market funds again they haven't done it in ten years. this is a positive here. i think the baby is getting thrown out with the bath water watch the price. i'm a holder >> long-term maybe this works out. i hope it does for your say, michael 2 plus percent dividend yield doesn't offset the loss you seen today where do you stand on the banks. mike mayo had a note to look at the impact on a steepening yield curve and he prefers main street banking over wall street banking. where do you stand >> i think if we look at what happened with the yield curve inversion now the fed will unwind the balance sheet at a faster pace will be less of a topic of conversation because we're likely to see the yield curve steepen. consumer balance sheets have been in pristine shapes and

head of the research at goldman sachs.w note on the commodity super cycle and issues facing the market jeff, great to have you back on. before we get into your note, europe is debating today potentially to directly sanctioning or stopping buying russian oil. if that were to occur, i could see two scenarios. one, russian oil keeps flowing and inventory builds up and prices go down or markets get tighter and prices go higher what do you think? >> it pushes prices higher because europe would have to source barrels somewhere else in the world. the immediate reaction to reshuffle oil around the world would be bullish it won't change anything in terms of the longer term amply indications. i think doing that, gas is not so much critical with germany, it will wblock this bottom line, germany doesn't work out the low-cost gas through the pipeline from russia they will push back. it will be short of catastrophic in terms of economic growth to shut the pipelines it is mutually assured destruction to stop the gas flows. i like to poin

goldman sachs under wrote $6400000000.00 worth of bonds for the fund. the bank made 600000000 in fees out of it. ng was accused of helping divert more than $4000000000.00 from the fund to malaysian government officials and others through bribes for future business. but ng was just one player in a complicated web of corruption. his former boss, tim listener, is the most senior goldman sachs banker to plead guilty receiving tens of millions of dollars in illicit proceeds. goldman sachs malaysian unit pled guilty and paid nearly $3000000000.00 in fines. former malaysian prime minister naji bra, zach convicted in 2020 of money laundering, and corruption was sentenced to 12 years in prison. and finally, there's jo low, a flamboyant malaysian billionaire business man, and the alleged architect of the scheme who prosecutor se pocketed $2700000000.00 for himself. he still on the run from authorities. analysts say it was one of the biggest corruption schemes ever. this is corruption at the grand level. unlike most sovereign wealth funds where you actually have w

about just the man himself but the indications more broadly for what it means for diversity at goldman sachs struggling with this issue? >> goldman clearly has a problem but so does the rest of wall street. everyone out there, especially in the last two years, has come out and made big pledges about diversity, about the need to improve the diversity of their workforce especially at the senior ranks but goldman's numbers show you the challenge. at the start of last year, they only had about a dozen black partners in their ranks of about 400 partners globally. five have left in the last year. when you have moves like this, it becomes that much harder to keep peace and keeping pace is not good enough. they have to make up ground to rectify for the lack of black executives in their senior ranks. kailey: that brings up the question that the pipeline. it is everyone else that could intentionally rise to the upper echelons. >> you would remember about a year and change ago when the ceo came on said the problem is there is not a great biplane above executives to choose from. very quickly, he realize

there is something fun to note when it comes to jp morgan and goldman sachs. had a loss when it came to the newcomb market, but goldman sachs started making markets in nickel, and the bid they were taking, and the ask right now, nickel is trading above that midpoint of where they were making markets. so that will be very interesting to watch in tomorrow's numbers for goldman sachs. kriti: we have covered trading revenue with you, we have covered the bank bottom line. a question in the market is what these companies are going to do with these piles of cash they have. i'm curious about the advisory fees for jp morgan, because one of the questions for corporate america is, we but to go on an m&a boom before this cash is worth less? sonali: it's a great question. you are seeing the private equity firms dip into the debt markets here. early provide a lot of private credit and financing when a lot of the banks and their investors are shyer on that regard. that said, m&a has not bounced back to a huge degree. we see some one-off rumors about deals involving large, we

that is where i first met the chief economist at goldman sachs.owned the high ground on the last housing boom. we are going to talk about the goldman sachs call, the gloom of recession, and the labor economy. thank you for joining us. i want to go to labor. years ago when you were a young upstart at goldman sachs, go back further. your analysis on where we are with the strange labor economy goes back to the 1940's and 1950's. jonathan: that is right --. jan: that is right. if you look at the gap between the total number of jobs and workers where we have the most overheated labor market going back to the early 1950's, that is great to see. 11 million open positions, 6 million unemployed workers. that 5 million gap is a record in absolute terms and relative to the size of the economy. that is what the fed will be focused on. tom: politicians want unemployed america. what is wrong with an overheated labor economy? -- politicians want an employed america. jonathan: -- jan: with a 2% inflation target, you get higher inflation that erodes the real wage

goldman sachs is a second., but i hear if just based on my sources are telling me, that they expect morgan stanley to pay a fine. how big of a fine i can't tell you. usually there's unusually some sort of agreement to better your practices on block trading. again we don't think this is a criminal case. my legal sources who are involved in this thing and there's a lot of firms that are involved in this because the sec investigation, basically they first covered every firm. it went on for i heard years they've been looking at this stuff. it picked up during the bill hua ng investigation, as you know, today was indicted on securities fraud charges. liz: arrested. he's been released on bail. charlie: now how does that have to do with this? he was a major client of major firms so that caused him to speed up essentially and gave impetus to this broader look at block trading and whether inside information is filed or is shared. now i just want to say i don't have the charges in front of me. i can't guarantee morgan st

i want to tell our viewers we were going to have jeff currie of goldman sachs on today.e will get you back on tomorrow to talk about oil and gas we are having technical issues i want to tell our viewers we're working on it. lindsey, you and i are getting a lot of time. >> i love it >> i feel like -- it's great by the way, 5:45 in morning. whatever time. why not? i feel like the angel doom higher this and higher that. let's be optimistic. we all talked about it or a lot of us talked about the roaring '20s that was before inflation roared in and obviously before putin decided to start his unwinnable war in ukraine if you have to be bullish about the consumer or stock market or both, lindsey, what would it be? >> you know i'm the half glagl glass full gal i'm optimistic inflation can come down in the latter half of the year that can give consumer the relief that consumer is in a healthy position versus entering the pan demo demo demic. they beabsorbed better money th last couple years. they are really putting that to good use you see that in the tax refunds. they are using

>> he said that he bought goldman sachs. >> and the setup is good for goldman sachs.setup for jp morgan, i'm sure karen feels this way, when did you mention the last time we were here together, december of 2019 well it was february of 2020 where everything created and jp morgan was making an all-time high at 136 and where it is now. and jp morgan in earnings this week for the first time in a while, i think it worth it is worthy of a change. >> we're off this friday but the following friday at 5:30 shares of microsoft dropping we'll tell you the potential slowdowns that that has faults worried. and now at&t topping today's tape the big deal that had shares surging. do not go anywhere more "fast money" right after this ♪ ♪ ♪ ♪ ♪ ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina?

goldman sachs, morgan stanley, citigroup and wells fargo out with results.ding was better than expected in the quarter. the analyst call is underway and citi's will star in 10 minutes. one of the key takeaways will be these enormous streaks of trading revenue. a lot of this is coming off elevated volatility we have seen, some assume. looking at a fixed handle of 21, close to our normal. flex we have talked about this. volatility could have been stifling but there are some businesses that blew through the roof. open sax posted a beat and a significant rise in extinct -- goldman sachs posted a beat and a significant rise. morgan stanley fell in line with last year, more than $2.9 billion for morgan stanley in trading revenues, higher and higher than the historic for what we have seen before with morgan stanley. for citigroup, even with a slight decline, they beat expectations. equities, morgan stanley taking the lead again, with almost 3.2 billion dollars of equity trading revenue in a tough environment. guy: these banks used to make a lot of money in russia.

amanda lynam of goldman sachs on credit. jp morgan yesterday and asked him about 2018, and said with qt would have the same result. he really takes a very different view on what took place in 2018. he said a lot of that session risk around the fed hiking story was born out of the trade war between the u.s. and china, and he believes that was the catalyst for the weakness and the growth scare, and the fed was just everything on top. he thinks this time could be different. lisa: that is fascinating. i do wonder about the idea of quantitative tightening actually causing longer-term yields to go lower, that it would slow the economy enough that you would see some sort of flight into duration, and how this would really help credit. high-yield bonds are now yielding on average almost 6.6% if you take a look at the bloomberg barclays index. remember when they were yielding under 4%? if you look at the incredible increase, and a lot of this is because of the rates story, people are saying i can always get that 7.5%, 8% that a lot of

tom: that internet goldman sachs said that on the show a couple days ago.or market is shockingly tight. does that lead to the wage spiral michelle meyer just spoke about? >> we have a lot of other factors pushing inflation down. the key thing to focus on is if the labor market is this tight, what's going to happen to wage inflation. five and wage inflation is not consistent with 2% inflation objective. you need to push the unemployment rate up and that's the problem. every time the federal reserve had to push the unemployment rate up, they have ended up in full-scale recession. it's not going to occur in the near term because the fed has not yet made monetary policy tight. it might not even happen in 2020 three because we don't know how aggressive they are going to be in terms of tightening monetary policy. inflation will get more entrenched and they will have to do it later so a hard landing is inevitable whether it happens in 23 or 24. jonathan: how do you think they will respond to a mechanical pecan inflation this year? >> they are going to take some si

we will talk with joe walsh -- joe wall of goldman sachs next. bloomberg. ♪ kailey: small business owners say it is getting rough out there. a new survey from goldman sachs found that inflation, supply chain issues, and workforce challenges are having a negative impact on small businesses. joining us now is joe wall, goldman sachs national director of 10,000 small businesses voices. right to speak with you. 91% of small business owners say broader economic trends are having a negative impact on their business. that is the vast majority. which issue, inflation, labor, is the greatest for them? joe: thank you for having me on this morning, we have done now 12 surveys dating back over the last two years of our small business community. we started at the beginning of the pandemic and have seen sort of the roller coaster that has occurred over the last two years your get our most recent survey in january acutely spotted that inflation supply chain issues and workforce challenges were obviously weighing on small business owners to a significant degree.

what is comical twitter went out hired goldman sachs to advise them, goldman sachs hassle rating.remium over what goldman sachs says it is worth, unbelievable! charles: hope they come out tomorrow, up the stock. never mind, it is a buy. >> we'll probably are going to have to. charles: speaking of the market, you've been spot on. do you sense we're starting to bottom out a little bit here? we do get hit from day-to-day, time to time. seems like we're starting to build a base here. or do you still think, you said we may have to retest the lows? >> i thought we were going to retest like those january, february lows. i do agree with you it feels a little bit more confident. it feels like it wants to build a base. like anything, one really negative headline coming out of eastern europe or get more negative eco stat, u.s. economic stats could send us lower once again. i think that yesterday they tried really hard to downplay the inflation story. yields went down. all of sudden everything is great. once those bids start to disappear, there is a repricing, when 10-year treasurys get to 3%

we've been waiting on goldman sachs earnings. they are out. at of on revenue, 12.93 billion. while that is down from a year ago a on a percentage basis, it is still a strong revenue number from goldman. now, the number i'm seeing for earnings per share at this point and if i have to adjust it i will in a moment but right now i'm seeing a 10, 76 earnings per share, 10, 76. we were looking for 889. i will correct that if an adjusted number comes out. if you look at the meat of the report, what's the fixed income business, what is investment banking. revenue investment banking, 2.41 billion. that is in line with what the street was expecting. compensation and benefits, 4.08 billion. again, it's nice to work on wall street, folks. asset management revenue, 546 million. that is another number that's crossing. consumer and wealth management revenue, 2.1 billion. operating expenses, 7.72 billion. but anyway, you do have a strong double beat, again, on goldman sachs. they are talking a little bit about the environment which you would expect them to say

david kostin, goldman sachs chief equity strategist. we have been talking about consumers and how they are doing, what they're spending money on. coming up, bridgerton is the most english language watched show on netflix. but the stock plunging after subscriber losses. we speak with mark stoeckle, adams fund ceo. he has strong view on the subject. ♪ anna: welcome back to bloomberg markets. shares of netflix taking a dies. the streaming service started losing customers for the first time in a decade. more losses are on their way. joining as the ceo of adams fund, mark stoeckle. he is a netflix shareholder. thank you for coming to talk to us. let me ask what you take away from today's -- well, last night's announcement. is the problem with the company? is it across the sector? is the problem the u.s. consumer? is it about reopening trades? what has gone wrong for netflix? mark: can i pick e, all of the above? [laughter] i do think it is a little of all of those things. clearly the streaming business is a hard business. it was easy when ne

goldman sachs upgrading that stock today buy.stanley downgrading hewlett-packard enterprise, down 3.5%, saying the demand for telecom equipment showing softness. citi downgrading cisco to sell. they say some of the other competitors continue to eat the lunch of cisco. tom: earnings tomorrow from jp morgan and then goldman sachs. right now, to bring you up-to-date on the dynamics of this bond market, robert tipp joins us, chief investment strategist at pgim fixed income. how much blood is on the street? price down means money is lost. how much? robert: tremendous amount. this is a record move in bond yields we have not seen for 30 years plus. even greater drop in price because you are starting with low yield which means prices are more sensitive to movement. it has been a tough period and we have jumped the rails in terms of growth and inflation, investors have gone a long way toward handicapping that here. we are kind of at a weighing station in the market at this point. you can see, today, in the price action, when the market is

goldman sachs, again, we talked about it goldman sachs, i think they are going do well and even with the capital market coming in on the underwriting trading is a hugs are. they diversified into wealth management and they have's multitrillion manager on what that looks like. this morning "jim treader and look at those places where you can invest in high-quality management team and businesses that will have a diversified mix to weather these storms and exchanges and i'll touch on this one again, the financials. the movement of money and whether volatility goes up or down, people who make money that movement of money i believe will do well. pay attention going forward and listen to how they're guiding you in the quarters that we have ahead versus what's happened in the rear-view mirror >> we'll bounce for a couple of minute bmo's brian belski we'll find out how he's asitioning himself and whether hegrees with mr. minerd and a price target on the s&p. does it hold up? we'll talk to him next i invest , a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay...

goldman sachs downgrading it to sell after that news ibb, that tracks it, down 3%, lowest level sincebank slashing its forecast for this year david malpass on whether the war in ukraine and spiking food and energy prices could spark a recession. welcome to your world. your why. what drives you? what do you want to leave behind? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> the world bank today slashing its global growth forecast this year to 3.2%, down big from the previous estimate of 4.1%, as countries deal with the war in ukraine to inflation to the

goldman sachs, the survey of small businesses, talking about things going from bad to worse.at what you see? stephen: there is no doubt there is a challenge in labor and supply chain, that has been with us for years. and and has gotten worse. on the other hand, small businesses are doing very well. this has been an extraordinary run up over the last several years, as we have worked our way through the pandemic. as we are talking with our customers, the challenges are present, but they are optimistic. they have orders and activity that they have to figure out how to fulfill and overcome the existing challenges. many of them are able to pass along inflationary costs. that's a good thing in the short term. it's obviously a longer-term structural risk. but businesses are doing well. sonali: how long can that last, in terms of passing on costs to consumers? bankers say the consumer is strong, but the inflationary pressures are here to last for a bit longer, so what is the breaking point? stephen: is not clear how long they will be here. the price at the pump has radically changed

>> if elon musk can raise capital he needs to prove to the twitter board of directors and goldman sachst he has the $40 billion that he needs to make his $54 20 cents offer real, it is his company. there is clearly no one else coming along to buy this company. there is no question that $54.20 is a fair price for this company. $43 billion for a company that makes $1 billion per year is plenty generous, plenty fair. if he can arrange for the financing and prove he's got it, it is over. >> we believe it there. thank you very much for joining us. tim hubbard, jim anderson and william cohen. you can see the program any time by visiting alj azeera.com. you can join the conversation on twitter. for the whole team, goodbye for now. ♪ ÷÷ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ñ■ >> how many people are interested in a backpacking trip? we're talking about real adventure. this stuff changes who y are. >> just taking it all in, also mind, power trick i think. >> getting to the top, i felt like ias on top of the world. >> when i get back home, i'm gonna be totally changed. >> real talk, we go! [ambient music] -

around goldman sachs or jpm, the investment banks recover, of this a couple of things going on.estment banking revenue is down a lot year on year, extraordinarily low levels and also high-yield issuance has come back quite meaningfully in the corridor. i think it is well known. we all follow the data, it's expected by the street. trading is the whole back fixed income i'm estimating a decline year-over-year for trading. this is where we could be surprised. fixed income, of the volatility and volume are so high, could it end up giving us a positive surprise we are not looking for. guy: mixed message coming out of these trading debts and what's going on here. talk to us about what's can i happen with provisioning and buybacks. betsy: on the provisioning side we have slightly higher levels of provisioning then consensus does. part of the reason is running our numbers ahead of the quarter i am thinking we have got at that point we had a slight inversion in the curve, we have the war going on, inflation high. to me the bear case has to be rising. i would think management teams are go

that's no different than what we knew to do when we were at goldman sachs.re doing it at hertz. now we're sweating the assets. we need to think about return on assets what is the return our asset base can produce and there's the ame. you can't overindex on any one figure rate is one component. utilization is another, depreciation is another. you need to take the whole of that and say what's the return on the asset and let that guide you whether you're buying cars or not and whether you're buying electric cars or not because electric cars are fulfilling the analytics we first put in, which they are proving to yield a higher roa, a higher return. we're getting higher rate and lower operating experience on them >> one last question because of semi conductor vavailability and price. is it possible you're buying high, and once they work out the supply constraints, you'll be stuck with a fleet too expensive? >> you need to mine your sales, right? you can't just look at infleeting new cars. you need to think hard about what is the value, the residual value on an ol

if you were to look forward, you would say gee, you know, goldman sachs might have some rocky numbers because the investment banking numbers at jpmorgan weren't great. on the other hand, you might say morgan stanley could do reasonably well because despite all the negatives i just gave you, it was another surge of, if you will, money going into invested capital. liz: well, yeah, and let's just be clear. the basics of the bank are very solid. jpmorgan also announced a $30 billion share buyback but jamie dimon, who of course a lot of the market listens to, not just people investing in finance , are saying, is saying in essence on his earnings call, beware of what could be a very shakey market. in fact, he said, i love this double negative. i can not force, triple negative , i can not foresee any scenario at all where you're not going to have a lot of volatility in the markets going forward. so he is saying be ready for volatility. i mean, we've got the vix down today at least at last check. i'm just wondering as we look ahead at these banks, for years now, big bank investors and quite f

could be good for morgan stanley or goldman sachs counter david's doom and gloom, exciting thing for banks, raising interest rates and good for profit margins what do you expect from the group? >> sure. no, sara, david touched on important parts. i highlight that the cni loan growth, look at loans for jpmorgan chase, ex-cluesing the ppp loans, government guaranteed loans the government gave out during the pandemic. loan growth actually decent for jpmorgan again, regional commercial lenders we expect to see loan growth driven by inventory replenishment as well as capital market, or capital expenditures. in terms of the capital market, you're right, sara trading was better should anticipate to see some better maybe trading numbers tomorrow also i say to david's point about cost of funds. the big banks may see higher cost of funds. when you look at regional banks with core deposits grandmother and grandfather accounts we don't see them raising rates quickly, because too many deposits loan to deposit ratio for the industry is very low today we think initially the first 100 basis points o

. >>> big banks feeling the blues, check out citi group and goldman sachs trading at 52-week lows asmorgan stanley and many more. you got a chart? on financials. what is it? >> i think this is interesting actually if you look at relationship between banks and interest rates, banks outperform when interest rates rise, intuitive but lately interest rates are rising and banks relative performance is falling off the cliff. so what's that mean? i think one we're close to a peek in rates. people look at me side ways when i say that but i think it could be true. i also think it means there's a low bar heading into earnings. all this reminds me of 2018, yields were up throughout the year, banks lagged, utilities and growth peeked and fed cut rates so it is not the best set up from here it's worth paying attention to relative to bank earnings and the macro picture. >> which bank is most important to watch karen, you shocked me. you said something other than jpmorgan. >> whoa, whoa. >> well, okay. i certainly own jpmorgan i own but the one i am most interested in for this coming quarter is ban

morgan, morgan stanley and goldman sachs are some of the banks that have a dedicated crypto team.ce of crypto hiring at financial firms quadrupled from 2015 and jumped 40% in the first half of 2021 i spoke to the ceo of onyx, as well that's j.p. morgan's bloc chain group. omar farouk tell me they have to move slower and worry about j.p. morgan's brand and says the impact is something that a fintech. >> platform can go from literally nothing to moving and transacting a billion dollars of trade a day in a few months. so i think that sort of scale can only be possible when you operate at a company like j.p. morgan chase >> farouk, they have 2 hun people from start-ups and they hired thousands of j.p. morgan employees around the world it's not just first-year analyst guys he says it's managing directors and some of the more senior leadership applying to work at onyx other folks i talked to have found the pace of innovating from within a bank to be frustrating. take mary katherine ladder she has an mba from harvard and worked at goldman and started working on crypto as a side project a

manus: and there is the goldman sachs ability graph, you can see the heightened differential.tay with us, norman villamin, cio private banking, union bancaire privee. coming up, morgan stanley's chief strategist says the bear market rally is over. is that the view of our guest? this is bloomberg. ♪ it is "bloomberg daybreak: europe." i'm manus cranny. you have rates rising. the word patience is gone. the aussie dollar up three days in a row. up 1.6%. the aussies playing the catch-up game. norman villamin, cio private banking, union bancaire privee, the word patience has gone. what does that mean for aussie rates? they are going to play catch-up to the fed, the boe, but they have more room they would say than the others because their inflation is not as outrageously bad. norman: they have a little bit more room but in terms of the aussie dollar come all the other thing they will have to keep in mind is the booming commodity prices around the world. that will funnel liquidity into the australian market going forward. one of the interesting things we see, we know commodity prices

well, goldman sachs is giving up on robinhood, only less than a year after it led the ipo.ng to break that down and what does that mean for retail investors who already get a little nervous about ipo's plus, the death toll is rising, after russia strikes a train station in eastern ukraine. coming up next, rebeccah heinrich shares her analysis on how far vladimir putin is willing to go to claim victory. living with metastatic breast cancer means being relentless. because every day matters. and having more of them is possible with verzenio. the only one of its kind proven to help you live significantly longer when taken with fulvestrant, regardless of menopause status. verzenio + fulvestrant is for hr+, her2- metastatic breast cancer that has progressed after hormone therapy. diarrhea is common, may be severe, or cause dehydration or infection. at the first sign, call your doctor start an anti-diarrheal and drink fluids. before taking verzenio, tell your doctor about any fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may caus

at least that is the call from goldman sachs, who pointed to low inventory and copper.ve that across the middle space, the lme at their lowest inventory. with another short squeeze in the way. manus: it is a thing of beauty. almost picasso. these are the six main contracts , all of the language, sleepwalking towards a stock hike. drawdown on that -- this goes to a much broader application. which is inflation hedges are rising, people are generally underway their exposure to commodities. because of the re-rating of commodity, within the overall portfolio. dani: did you see that call from j.p. morgan, basic commodity could rally another 40%. absolutely huge. let's look at what the equity markets are doing. i would not describe these moves. just flipping into the greens being led by china. we were talking about saed abukarsh -- two saed abukarsh. european equities ended lower yesterday, s&p 500 higher. u.s. futures treading water, underperformance in those small cap indexes. manus: a fact -- the dollar is flat, but his the sixth consecutive quarter of gains. outwardly, rem

the board of directors sat down and twitter and their bankers at goldman sachs -- liz: well they did have a poison pill they put into effect, charlie. they didn't like the initial deal. charlie: i don't care. i don't care, they were doing that just to try to get him to up the bid but here is the bottom line, and buy some time. maybe out of the goodness of warren buffett's heart he might, because they don't like elon, a lefty like warren would jump in. so here is what happened. they all sat down, jpmorgan, goldman sachs, twitter board, and they looked at their directors and officer's insurance policies and they said do you know what? if we say no to this guy, we're going to be sued to kingdom come jamie dimon and david solemon, the jpmorgan ceo's respectively and goldman sachs respectively, would have to explain to their major clients why they walked away from a huge premium on the deal and they couldn't say, by the way, that hey, this thing traded at 77 last year, because guess what? last year jerome powell was just fueling the market with money. that's cheap money, that was a fake n

dow up 213 let's hit shares of robinhood dropping sharply on the heels of odowngrade at goldman sachs firm says street estimates are just too high and notes fading retail engagement along the lower end customer base as a headwind let's bring in bob pisauna robinhood priced at $38. got as high as $80 in august and now at a new low around $11. goldman says now it's going to downgrade it what do you think of the call? >> thanks. yeah, isn't that helpful $38 to $11, now they give up a downgrade. but there's three big problems here number one, you touched on this. robinhood lives and dies by retail participation last year and the quarter before, retail trader is back. turns out they weren't back. as the market grinded down retail participation pulled back that's down and that's a problem for robinhood. the other big problem is crypto. they went whole hog into crypto, but crypto volumes were also down about 40% in the last quarter. not showing signs of coming back finally, you have got very limited path to profitability. this is the big problem. you know this, sara. they're raising interest

some of the parks we have enjoyed during the pandemic in the office may be ending, especially for goldman sachsst wrapped their free lunch perk. they offered free lunches during the pandemic, they are no longer doing that. goldman has been pushing for a return to the office, they are transitioning back to pay for meal service for breakfast, lunch, later this month, they are saying they are boosting the stipend out of hours to $30 from $25. really interesting to see these latest moves to bring people back into the office, because it seems when it comes to the latest survey employees -- haidi: take a look. they're pretty damaging. it looks like 35% of nonexecutive employees are in the office five days a week. 19% of executives can say the same according to future form. the share of employees making the commute say they would like to have some flexibility, nonexecutive employees say they have less of a work-life balance. that disparity is starting to grow. next, china promises to support its economy but promises are falling flat with investors. traders and investors are not buying the bullets rhet

tomorrow we hear from wells fargo, goldman sachs, morgan stanley and citi let's bring in jeff hart atiper sandler with an overweight rating on jp and cut the price target last week welcome. why don't we just start with chase and take us through what you see there? is it as bad as the numbers suggest? number two, what does it imply for the other banks that report this week? >> good afternoon. i don't think it is as bad as the market reply shows their capital levels looked more challenged trading is quite a bit better than feared. investment banking is weak which we expected. they put up more credit reserves but the important thing is the driver of that is reaction to the macro environment. increased the probability of an economic problem coming. it is not really driven by problems or cracks in the environment which i think is important and part of the reason banks hold up in general today the thought is, is credit turning? this is being cautious people kind of look at jpmorgan and view the numbers better. >> so the credit reis everybodies is a question of prudence given the global situ

at goldman sachs, a review of u.s. crepe -- credit markets is not signal a recession is coming.r analyst says absolute levels of investment grade and high-yield markets are not at all close to recession levels though she expects widening of spreads through year-end. haidi: this is aggressive selloff across sovereign bonds. look at how the pass-through is being played out in australia and new zealand. a big move when it comes to the three year and 10 year. we see broad rise in bond yields globally. we saw a selloff and treasuries focusing on the short end of the curve. the five-year rising to hit above 3%. we saw 530 narrowing to below five basis points. we are looking at traders pricing in confidently 50 basis point rate hikes at each of the next three meetings. we heard from jay powell as well saying that he sees. in the argument for front loading increases and 50 basis point hike will be on the table for may. we are seeing the oversized reaction and bond markets carry through to the asian session. let's take a look when it comes to what we are watching for the production numbe

sarah: you have been a goldman sachs before greylock, you know how this works.ll happen in terms of the convergence of traditional finance and defi? there has to be some space where the two combine. sarah: yeah, i think this will be a massive boon to the ecosystem as more traditional finance players move into the crypto ecosystem. the greatest promise of crypto is accessible, trustless markets that are more efficient. the big institutional players, be they hedge funds or thanks or market makers -- banks or market makers, they provide efficiency and liquidity in markets. i think a lot of traditional finance organizations have been waiting for increasing regulatory clarity, but i'm really encouraged that you see firms like goldman sachs or citadel say explicitly we are making moves into crypto and feel more comfortable about the risks. i think that will make the entire ecosystem more liquid and mature. sarah: you are in the bahamas. about 2000 people are there. what is your biggest take away? sarah: we are at a point of maturity in the ecosystem where the most imp