goldman sachs higher by 0.9%. particularly i thought we saw from citi better than we were anticipating in that part of the business, too. it will be interesting to see what we get from both of these later on today. but a bit of a spillover from the rally we saw in u.s. financials yesterday. now, the journey of a piece of steel, that's what cme is calling its launch next week as it attempts to crack the premium smartphone market. the company that is often called the apple of china, today made its debut in apac. india. customers will be able to get their hands on clemi3 starting today. joining us now, founder of radio mobile. richard, thanks for joining us. first, i just want to talk about them specifically. we're talking about a brand that sold 26 million hand sets in the first half of this year. it's putting them on the par with the likes of lg and lenovo right now. >> for the chinese market, certainly. and not -- there's no reason why i think they're particularly interesting is not just because they sold a lot of

goldman sachs results due out in about five minutes. we will be all over it. sharing trading higher. ♪ >> good morning, everybody. between jpmorgan and goldman sachs, let's get right to top headlines. here is adam johnson. >> breaking news from eastern afghanistan -- a car bombing has just occurred. it killed 89 people. military officials say a suicide bomber triggered an explosion that happened in a busy market near hamas. it is the most serious incidents of the rival presidential candidate said there presidential dispute. thatockets hit aircraft were parked near the runway in tripoli and then set them on fire. two people were killed in the attack and the control tower was damaged. rival groups have been fighting for powers in the fall of cut gaddafi.r and william hague says he will quit. he says he was a lower level cabinet position. ron minister david cameron is expected to announce a successor later today. >> in between all these earnings big merger and a acquisition announcement this morning. reynolds american, the maker of camel cigarettes, is now buying

is goldman sachs really out on a limb here?> goldman sachs certainly always seems to be the bank that comes up in headlines. on the other hand, if you stopped and took a look at all the headlines with wall street banks, this one i am not sure is in the top three. we are seeing one of the biggest banks in europe getting charged for clients doing deals with sudan and iran. it seems like we are in this moment in global banking where inse huge organizations their different ways are doing things that are illegal and scary to people. >> you made the point that there may be the evidence, according to a princeton economist, of pay disparity. that is economic -- those are hard numbers and they are irrefutable. that is a much different place from anecdotal he said/she said -- not to underplay that -- but speak to the severity of the pay discrepancy between men and women at goldman. >> goldman sachs, one person familiar with their strategy -- my sense is that goldman sachs says do not trust the statistics. however, in the report we have,

you missed it. >> liz: goldman sachs, let's get to that. they had me surprised the street. icular department-- are they singing the blues, charlie? >> this is what we now with sources inside goldman. the words that describe fixed income department, particular trading is freaked out. no one can remember the last time goldman had a 10% decline in fixed income rate revenues and that's what cannot today. while the over gnome number's are good and investigate being was very good the equities department did pretty good and equity trading did pretty good. the area of fixed income trading is where it is weak and we should point out that the cfo on goldman on the compass call kind of dance around the notion of layoffs, but he was asked by analysts point blank are you-- so, it sounds to him like this you are going to cut income and other places will be stale and the guy basically said that's a reasonable way of looking at it. what we do know is this, people are worried about cuts internally, senior people. they are worried or at the managing director level and that is how resource, th

goldman sachs and j.p. morgan beat earnings estimates.sales also coming in slightly better than expected. remember we are still pretty lackluster here when it comes to consumer spending. we are on the markets again in 30 minutes. coming up, yahoo! makes a move that could allow you to go on tour with your favorite band right from the comfort of your living room. ♪ >> we are 30 minutes away from the opening bell. you are "in the loop." i am betty liu. jp morgan and goldman sachs are posted earnings that beat estimates. a big takeover and the tobacco industry. the maker of reynolds american has agreed to buy laura lars for $27 billion. janet yellen begins two days of testimony on capitol hill. it is her appearance of monetary policy. you can watch her live on bloomberg television beginning at 10:00 a.m. eastern time, and hour's time. the economy has a new poster chair. mike mckee says the real deal is that may complicate her capitol hill testimony today. how? >> here is the dilemma. in the testimony we used to call humphrey hawkins, how do w

we have jpmorgan and then goldman sachs as well.break down the banks, next. ♪ >> welcome back. in 20 minutes time, you will get "the pulse." you have airbus chief operating officer. and then you will have david joyce. draghi'sissect mario recent comments. do not miss that one. all of that coming up at the top of the hour. and citigroup -- banks and citigroup, they agreed to pay $7 billion to resolve claims it misled investors about the quality of mortgage backed bonds sold before the financial crisis. eric holder yesterday -- >> the bank's misconduct was egregious. the bank has admitted to its misdeeds in great detail. it jet or lives and livelihoods -- it shattered lives and livelihoods in the country and around the world. it took a $3.7 billion charge in the second quarter to cover the cost of the settlement. it is not exclusively focused on punishing bad behavior. explains the question. consumernefits from relief? citigroup has agreed to pay $7 billion to settle government claims over fraudulent activity. holder that eric describ

many others also injured. >> goldman sachs and jpmorgan will likely set the tone for today's trading and goldman was initially really up quite a bit, moderated a little. jpmorgan also, both of them are still higher, aren't they? >> yes, both companies reported better than expected results, so that's giving them a lift in the premarket. we should note that jpmorgan's results were down from a same year ago quarter. the bank's net income dropping 8% hit by weak results and trading. that offset asset management businesses. revenue in fixed income trading was hurt by low volumes and volatility dropped 15%. mortgage originations dropped 66% in the quarter while profits in mortgage lending dropped 38%. still earnings of $1.46 a share were 17 cents ahead of expectations of $1.29 a share. the firm's revenue at 25.3 billion were down 2% from the same year-ago period. earnings we should note were impacted by a half billion dollars in legal expenses which trimmed 13 cents from the bottom line. in a statement the company's ceo jamie dimon said toward the end of the second quarter we saw encoiragi

let's get to goldman sachs. commercial break charlie had a story, well, it does appear that it is weaving through something he warned you might happen. it looks like the goldman sachs people are throwing in the towel when it comes to a certain part of their business. executives have now indicated to wall street analysts that they could make significant cuts in their fixed income trading staff amid a significant slowdown in business. charlie, we knew that the fixed income was struggling. what is the breaking news? >> well, i mean, here's the thing, there are two stories here. there's one that it appears -- now, this is what we're getting from analysts, that the company's indicating to these analysts that there will be significant cuts all but likely in the fixed income department in the weeks and months to come. they go through a second half review, the firm does, every year. these cuts, from what we understand, will occur sometime after this review is over, and there will be more. this is at least what the analy

regulations stopped old goldman sachs from being the old goldman sachs, right? they can't take proprietary risk they used to do in the old days. they're shrinking. their fixed income department has been slowly whittled down and may do cuts at end of the year. they have to grow stable earnings. how do you grow stable earnings through asset management or wealth management? there is debate buy something like schwab or e-trade. that is why both of those things are up. or do you build it organically through smaller acquisitions. i don't know where they're going to go. i do know from my sources close to the firm that is being discussed at highest levels. >> this shows how public policy does influence investment in very real sense. not only charlie talking about with regulations but also the fed. the fed is killing savers out there. it is killing fixed income markets. fixed income that goldman sachs is cutting back on. that is why we have to watch what the fed does this week. melissa: speaking of all that state of consumer. goldman sachs downgrading walmart to neutral.

>> it's much easier to own a regional than goldman sachs. >> goldman sachs is dealing with regulation and a third of dodds frank has been written in there. the big banks would like to follow the rules, we're not sure what the rules are. >> and citigroup got fined with $5.7 million. >> isn't it a little apples for oranges there, wouldn't you say? >> not at all. they're both large financial models, not at all. >> are you saying because of the investment banking business? >> you have a lot more of the investment banking business going on, a lot of the revenue streams going on for that. >> look at jpmorgan. the jpmorgan business has been growing as far as branches and retail clients and it's been a big growth. >> goldman sachs doesn't have a huge retail business. >> except for the private wealth management group. >> exactly. got to switch gears, we should keep talking about the banks, but because we're obsessed in new york city from getting from one place to another, big apple says no to ride share app lyft. lyft is facing regulation hurtles where uber did not. how they're breaking down t

financial crisis goldman had so much to do with, the only person who went to jail, the person goldman sachsted to go to jail. when goldman wanted to go to jail -- what really caught my eye was when they arrested him the prosecutor said this code, denied bail, couldn't be left on the street. this code that he had could be used to manipulate or crash financial markets if it was in the wrong hands. goldman is the right hands? i couldn't -- could it have been in worse hands already? i presume -- this stuff had to do with high frequency trading at that time no one had ever heard of. all of a sudden it was in the newspapers without much explanation, a computerized trading. it took a couple years before i came around to doing this story and other things but when i got into a 9 needed a primary on high-frequency trading. i called friends on wall street, people who were investors, do you know anybody? very weirdly there's this canadian guy, you won't believe what he will tell you and yes, he knows it, the only guy who is not an area 51 guy who knows what is going on with high-frequency trading. but

goldman sachs is one of them. you downgraded goldman sachs. been looking into that case. >> and in particular the next person to lead up goldman sachs. there has been talk that goldman has stepped up its bench to groom of people. the ceo has been having dinner with different people. these are people already on the bench -- gary cohen, harvey schwartz, as well as david solomon, various executives. -- blank fine says he is not going anywhere, but this comes back to the idea of how do you groom that bench of talent at a time when there are a lot of attractive alternatives? i know brad mentioned a few of them, and we talked yesterday about a story where if you are potentially a teenaged intern in silicon valley or at a tech firm, you are getting six grand a month. it seems wall street has taken has taken over as the hot place to go rather than the traditional place. >> this is why brad is going to nyu, to groom the next generation of bankers, right? >> well, there is always the demand for bankers. wall street turns over about 12% to 15% a year, so

first up sex discrimination lawsuits are abound this week and one old school company goldman sachs and one new school company tender are both having to answer to their questionable behavior we'll tell you all about it coming right up and daniel alpert is on the program today he's the author of the age of oversupply and he's sitting down with me live this afternoon to discuss the economic limbo that the u.s. seems to be kind of stuck in right now and sports headlines this week have been dominated by i don't know. maybe a little bit of it with the world cup but the wimbledon final very happening this weekend in today's big deal edward harris and i are just i think money in tennis and there's way more of it in tennis but probably. not to get to. our lead story today women in the workplace or maybe more appropriately put women suing the workplace now there are two pretty prominent stories making business headlines right now involving powerful women suing their former employer one of goldman sachs and one it tender the start up dating app company now let's start with the gender story with m

from the senior latin american economist at goldman sachs in new york.here is the expectation that a deal with the holdouts will be worked out soon. at some point, everybody has to come to the table, take the terms put to them. we will see how this one gets resolved over the next week or so. much.ol massar, thanks so we will continue to follow this press conference happening in new york. we do have more breaking news, coming from washington, d.c. republican-controlled house of representatives has voted to sue the obama administration over the implementation of a 2010 health care law. house speaker john boehner saying the president violated the constitution by delaying when employers have to comply with that law without getting approval from congress. more of "bloomberg west" after this break. ♪ >> i'm emily chang. this is "bloomberg west." we continue our look into privacy and how much life has changed for business, government and consumers since edward snowden's revelations. microsoft general brad smith says, the u.s. government cannot force american te

is goldman sachs' ceo lloyd blankfein on the hunt for an acquisition? is it on an loin brokerage?e. he's got the inside scoop, he's rushing down to the studio now with exclusive details. >>> and the next big thing in fun runs may already be here. have you seen this? color runs? they've quickly become one of the most popular running event ises on the planet, and guess what? they also make a lot of money. find out what the secret ingredient for success is here. could it be the corn starch, the colored corn starch, or is it something in the way travis snyder thinks? he's the color run's founder. it's a fox business exclusive, part of our fit for business series. >>> and just a reminder, we are waiting on president obama. he's supposed to speak outside the white house. please stay with us, we'll have his comments when he comes out. ♪ you make a great team. it's been that way sincthe day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to

"in the loop" returns in two minutes. ♪ >> goldman sachs has been accused of gender discrimination andlawsuit brought against the firm from two former female employees who are seeking to broaden the case on behalf of other workers and it includes more than a decade of discrimination. bloombergd by sheilah.eek reporter what are they alleging? >> they do not promote women fairly and transparently, that it is basically impossible for a woman to become a managing director, and as you mentioned, this noise club atmosphere. there is a story about a former goldman employee, a female, who was forced to go to a strip club where some of her colleagues wanted to entertain clients, so a lot of fairly harsh allegations come and they are trying to broaden their case. >> and not unique to goldman sachs? >> no, that is what is interesting about these claims. they have a familiar ring to them. women and other firms have made similar allegations. there is something that is different about this. in the 90's there were a lot of landmark sexist termination cases, for example, the salomon smith barney boom

this after goldman sachs drop gold and the forecast. ying goldman -- it saying janet yellen will bring rates up and a third quarter. that is sentiment around the dollar and is trading at a one-week high. it is following a much stronger jobs report we had out of the u.s. adding over 200,000 jobs. time for another bloomberg exclusive. michelle barnie has a message of doubt jean-claude juncker's nomination. get over it. the economic conference. he stressed the eu and eu k better together. a u.k. are better together. >> we need to get past the situation. it is to stay together. it will be a weakening. it is our good luck to have it. it is the entry point for investment into a single markets. we need this gateway to be in europe and not outside. barnier once in equivalent with u.s. banks and that will be talks. bloomberg got a chance to speak exclusively with the ceo of rum.ge at the economic four it is a few days after toss with ugeyes and iliad. >> i believe the french market, not the physical size to support 4 operators. definitely believe

first up sex discrimination lawsuits are abound this week and one old school company goldman sachs and one new school company tender are both having to answer to their questionable behavior we'll tell you all about it coming right up and then you know alpert is on the program today he's the author of the age of oversupply and he's sitting down with me live this afternoon to discuss the economic limbo that the us seems to be kind of stuck in right now and sports headlines this week have been dominated by i don't know. maybe a little bit of it with the world cup but the wimbledon final they're happening this weekend so in today's big deal edward harris and i are discussing money in tennis and there's always more of it in tennis and probably. not to get too. our lead story today women in the workplace or maybe more appropriately put women suing the workplace now there are two pretty prominent stories making business headlines right now involving powerful women suing their former employer one of goldman sachs and one at tinder the startup dating app company now let's start with the tender

this is a question that all wall street firms need to look at. >> in goldman sachs and -- in goldman'sse, his diversity training taken seriously on planet earth? >> i think that is a good point. >> i have eaten a lot of diversity wine and cheese in my life. i'm done. sheila, thank you so much. story atead the full businessweek.com. up, it gets a little cleaner. matchmaking for multimillionaires. we will talk to the one woman who helps the one percent find real love. ♪ >> you are watching "market makers" and i'm erik schatzker with stephanie ruhle. you know the old saying that you cannot buy love, but you can get someone to find it for you. a dating service that caters exclusively to legionnaires. >> i want to ask -- to millionaires. >> i want to ask the first question. >> 71 to ask the first question. -- stephaniee wants to ask the first question. >> it is catering to millionaires, so only two men? -- is it only for men? >> it is for both. it is $20,000 to join. >> if i am a man or a woman, do i have to pay the $20,000? >> yes. >> i've spent the last 15 years and down township reality

goldman sachs, it is interesting, one thing interesting about goldman sachs, for as liberal as lloyd blankfein and gary cohn are, they support hillary clinton where are the, where are the senior women? where are the senior women in goldman? no where. >> what it takes to be successful on wall street is 24 hours a day, seven days a week. >> women can't do that? >> when women get into the prime, prime years when you're at your pinnacle -- adam: not every woman drops out to, quietest person who is also on wall street weigh in. is there detriment to women on wall street? >> i think there is because of commitment to hillary is talking about. hard to put in the 24/7. >> why is it goldman is outlyer in this regard? >> goldman has deep pockets. they have -- >> deep pockets has nothing to do with it. why is goldman outlyer in terms of senior women in the senior ranks? senior women in morgan stanley, bank of america. why at major banks, at jpmorgan, why is goldman an outlyer? i would like to know. this is most politically correct firm in the world. gary cohn, supporter of barack obama. why only

morgan and goldman sachs beat expectations. investment ranking the, but will this these keep rising? plus as ceo jamie dimon is addressing his cancer treatment. a vertical jump for the nba, it wants to double its tv deals to a massive

goldman sachs has not confirmed the accuracy of the article.hat djokovic -- djokovic beat roger federer. to the newspeaking champion later on today on bloomberg television. let's stay with the world of sports. the tour day france kicked off this weekend but not where you would expect. northern england and all places. ryan chilcote caught up with one of the owners of the top teams. >> oleg tinkov was the champion of siberia before he made millions of dollars in selling russian beer and credit cards. now pumping his money into his own team. he wants to talk to me about it while he does a little writing of his own. what about making money and to what extent is it you are a rich guy and you can afford to have a team? >> i would rather spend money this way. >> we are a week into the tour with one of best teams in the business and we have full access. justhe gowex -- riders another day. cover 30,000 will kilometers a year. they're just a couple of hours before the punishing 219 kilometer race to the top of a swiss mountain. the race and it's time to

i happen to agree with a very rosy outlook from goldman sachs early in the week, and we could never reach that potential on the current war on success, our embedded greatness is the real safety net and starting to bring us back. i happen to be a huge fan of the renaissance and america, we faded just enough we could use such a moment right now. it would begin with a greater appreciation for knowledge than political awareness, massive revolt against the current status quo. the most important ingredient? individual freedom. tracy, the renaissance in the middle ages in italy. they rescued a sharply declining europe, do you think the similar circumstances that we need stuff on rescue as well? >> it's not that romantic in the united states. it's political nonsense before it gets through, that being said, i believe we are onto something. if it were not for the regulation holding us back, we could be that much further ahead. there are pockets in stories that you hear, people that can't find homes for north dakota, they're going for jobs and living out of their cars. we on fox business have been r

twitter has named former goldman sachs anchor anthony noto as its new cfo. he led the twitter ipo and has a background including serving as the cfo of the nfl, a west white bread, spent some time in the middle east in the army. gupta, wholace mike will stay on as senior vice president of strategic investments. this comes weeks after reports of a power struggle. today's news is sending the shares of twitter higher. cory johnson is with me in the studio. from san diego is paul kedrosky. in l.a., jon erlichman. tell us more about anthony noto. obviously, well known on wall street. why take this job? >> and not just an investment banker, before that, spent time as an analyst. ,his is somebody that someone clearly, twitter executives got to know well on the road to the twitter ipo. as you build relationships, that builds trust. this is someone that was already going through transition, had announced plans to join a hedge fund. he was transitioning. twitter was looking for a little bit of wall street love. the frustration that some investors have had with the lack

a will get the view of goldman sachs asset manager.with us. ♪ >> good morning and welcome back to "on the move." i am guy johnson. tougher sanctions on russia. world leaders are almost certain russia supplied the weapons that shut down malaysian flight 17. let's talk about that story. we have katie koch. she is at goldman sachs. good morning. we want to talk by international. we are in a world where geopolitical risk is clearly dominating the news. what is happening in the ukraine and what is happening in the middle east. the big stories with potential ramifications. i look at the market reaction and yes,, it has spiked a little bit. markets moved a little bit. around the your head differences between geopolitical risk and the enormity of it and the market reaction? >> i very much agree we are looking at a market that is exceptionally rich in risk. offsetting that is there've been pretty good macro news coming out of the mini major economies especially the u.s. what we are doing for clients is trying to make sure we have diversificatio

a situation that that was certainly the case the others i don't know about but with goldman sachs well you. know yeah i'm going to have to get him back you know i just had a monroe wisconsin or two months ago all right well again we got to go out of time but the book is contradicted. by jeffrey summers and charles wolfensohn what's huge contributions from the immortal michael hudson thanks for being on the kaiser report. and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guest jeffrey summers lets get in touch with us tweet us a cause report the next time bio. war is probably the most complex and difficult to. answer. to the phenomenon of friendly fire probably extends back to the invention of gunpowder. to kill a bunch of people you know don't know what they're on their premises are really us people. writing children. this summer shoots my brother in the leg not intentional because of it because it was night time for in the morning even the best even the belch shoulders. are going to make mistakes does this w

i remember in the mid-en 1980s i was, woing at goldman sachs. i had this beat on merck.merck that was developing a new anti-cholesterol drug called mevacor. he was saying that mevacor could ref lugzize the way we treat hear disease, specifically, he envisioned a world where the link between high cholesterol and heart conditions at that time very tenuous and not talked about, hard to believe, but wasn't, but would be well-established and millions upon millions of people would be taking statens, the anti-statens and merck was one of them. it was the first. i always kept in close contact with the drug analyst at goldman sachs so i asked to see his model for merck's future earnings. it showed that mevacor, this anti-cholesterol drug in the out years, a couple of years from now might be making as much as 200 million annually. twr no one was talking about it being a big drug. in account fa, that was a loser. i had my clients buying merck. i had a feeling and then the stock was starting to run. and then a major magazine put merck on its cover basically saying how it might be th

goldman sachs, how quickly will the fed raise. >> you have been called worse. >> indeed.ging forward their real-time. this is very, very important. so they are going to move their view on rate. they say the u.s. will hike in the third quarter of 2015 as opposed to the first quarter of 2016, and the reason why i am focused on that, that has got a big impact in terms of 10-year government bond yields, and treasuries are rising, and they are wider than they have been against the rest of the g-7's. you have got the dollar up. you have got a challenge for the mortgage market, and, of course, -- ties in with the >> federal reserve minutes that are due. janet yellen not giving anything away. she talked in the imf's speech last week about using map for potential policies for defense, and when you look at some of the forecast for where interest lookinge going to be, at 2015, 2016, and you see a wide dispersion. some are predicting rates below one percent, other looking north of four percent. and the big issue there is inflation. is inflation going to start to move higher, and what

the three biggest dow losers for the year so far are boeing, goldman sachs, and general electric.e question then becomes whether those stocks start to catch a bid in this overall broad move. mandy, back over to you. >> thank you very much, dom chu. the nasdaq is also having a good day. what's particularly driving it, seema. >> a lousy first quarter read on gdp could shake these markets, and nasdaq outperforming. major inadditions, technology historically speaking tends to outperform in a rising rates environment. it's not the best performing sector so far this year, but it is staging a comeback, in terms of today's biggest movers, netflix, the best performing stock on the nasdaq 100, getting an upgrade, analysts citing international expansion as a big opportunity. micron, seagate also higher, so technology playing a big role here, biotech, another big story here, regen ron, celgene, gilead sciences, some of the notable stokes higher on the day, contributing to the nasdaq's outperformance, definitely a risk-on rally. that's what helping the nasdaq get a nice lift. mandy? >> thank y

buffett's getting an investment into goldman sachs." so what does rajaratnam do?e loads up on goldman sachs stock, and when they announce it that evening, he's able to make a lot of money. >> buffett's berkshire hathaway is now saying it is buying a $5 billion stake in goldman... >> $5 billion of preferred stock... >> it's a huge surprise... >> the next day, raj gets on the phone with one of his traders in asia, and he's so proud of himself. >> narrator: prosecutors allege that gupta had a financial interest in passing rajaratnam insider tips. he was convicted on insider trading charges, but is now appealing. rajaratnam was convicted and is serving an 11-year sentence. >> smith: there's a picture i've seen of you with rajaratnam under arrest. put me in the moment. >> there are two sides to that, where this was a culmination of the amount of work that we put into it, but the other side, the bigger side for me, was that, based in part because of the galleon investigation, we still had a tremendous amount of work to do. so it wasn't, "we made the arrest, now it's ove

>> it was a big deal for goldman sachs.t was the biggest company -- tech company that ever took public according to our data. that deal seemed to have been executed very seamlessly. >> contra to facebook. >> were there were all sorts of leaks about the dip, speculation about things that were not in the public filing. twitter and contrast was a very closely held deal. it was one that was executed very well. it was priced at a place that seemed to be very good and traded up 73% on the first day. but that was twitter's plan the whole long. now we're here six or seven months later and that valuation achieved on the first day, many investors are having second thoughts about that. that is why we sell the stock fall about 36% this year because they're concerned twitter hasn't been able to grow into the evaluation, that their user growth is slowing. that is why we've seen a lot of the management shuffle to date. that is why they brought in anthony noto, the guy that was there when the ipo was executed so perfectly is seen as the be

key owneriearnings reports out, jpmorgan, goldman sachs. advises are. is this an inflection point. >> a surprisingly good quarter. cautious on citi but today's earnings a nice step up, $7 billion settlement putting another overhang behind them. we prefer the jpmorgan more than the citi, we would expect citi to trend higher. actually nicely higher over the next 12 to 18 months. >> what is it about jpmorgan that you like better than citi right now? >> we, as a firm, have a lot of financials and in order to have a lot of financials weave tried to focus on the lowest risk financials companies that have their act together strong, cap cal ratios. sticking to the jpmorgan and wells fargo, stronger, better managed banks. you look since 2007, those -- we're trying to focus on companies whose book values have grown significantly. wells fargo book value up. citi group's book value down more than 50% over the time frame. citi seems to have its act together but not well run as some of the others. >> that's enthusiasm going to extend to the regionals or

goldman sachs. are downgraded to market perform from outperform at sanford bernstein.e target to $180. they are hobbled in its largest line of business, sales, and trading. allergen. they won fda approval for its treatment of vision loss in diabetics. the fda rejected its inhalable treatment for migraines. >> pinnacle foods. plans to sellpped to he'll sure brands. o hillshire brands. number seven is yahoo!. they are adding another comedy to its lineup. on yahoo!will air this fall. it features a group of students at a community college. >> i like that show. number six, green mountain. forming a partnership for creamer. make capsulesg to compatible with the machine. blackstone. they're relying on three traders for its first hedge fund. they are the largest investor in hedge funds, but this would be the first they manage directly. gopro. they posted a third straight day of gains. investors are optimistic that revenues tied to shared videos will share -- feel profit growth. will fuel profit growth. >> urban outfitters. they cut their price target from 37 -- 237 from $46. >

the goldman sachs bank that held to go public is the micro

newburger burman and goldman and sachs.e revealed friday morning as they gather in downtown manhattan for a court hearing on the issues. at the same time, tyler, an industry committee will meet to decide whether or not today's technical default as some of are calling it because the money was posted, just not distributed. if it does, those who hold cds, the insurance policies that hold out get their money. >> all right, we'll be watching all of that. >> a lot of issues. >> kate kelly, thank you very much. sue. >>> a lot to watch on the market. we are all over the selloff today. down 220 points on the dow. s&p is off 76. the s&p is off 30, nasdaq off 76. now the dow, s&p on pace for the worst day in nearly four months. average is also breaking through some key technical levels. we'll talk about those when we come back. plus a wall street dream come through for one teenager. there he is. he's also going to get investing advice from the world's best stock picker. all of that coming up next on power lunch. don't just visit san f

. >>> up next, a lawsuit charges goldman sachs with being a boys club. and fight apps with apps.how you what the taxi industry has come up with to beat back competitors like uber. ♪ ♪ >>> goldman sachs got some unwanted publicity this week. three women filed this brief asking for class action status for a sex discrimination lawsuit originally filed in 2010. the women claim that female vice presidents at goldman earned 21% less than their male counterparts. and they perpetuates a sexualized environment. it mentions company events held at strip clubs. goldman denies the charges, and said in a statement . . . and they may be true about the fact that it's a procedural step in trying to get class action lawsuit. but to one informed observer, the biggest deal about this brief is not what is in it, but what has been redacted by goldman like all of the blacked out sections you see here. that's the view of susan who is a journalist who wrote "tails from the boom boom room," a book that tells of sex discrimination of smith barney and other wall street firms. susan this is not surprising, b

goldman sachs is paying her.hs is financing hillary clinton. >> the vast dynamic of a motivational speaker, hits the ground rolling or are they buying stock? >> you don't understand the tinkle that goes up -- melissa: let's move on. >> lloyd blankfein's leg for hillary clinton. >> she should have played the saxophone. melissa: a new web site declaring war on hillary clinton, senator warren's supporters, making some not so veiled jabs at mrs. clinton. a post on the site reads, quote, we are not rusty or well-connected. we don't have any lobbyists. we are ready for elizabeth warren to run for president in 2016. one is the backbone of the democratic party. 2 often forgets that it needs a spokesperson, tells politico the senator does not support this effort. i am sure she doesn't. >> i never took the elizabeth warren thing very seriously but now i am. cheese to the left of him. i was wrong about another junior senator to be heard six years ago. melissa: hillary clinton is painted into a rich corner where she doesn't

to wal-mart or even goldman sachs to the you know small bank that operates just in the bottom up so we sort of tried to. go the extra mile to make sure that we really looking at similar financial institutions just depreciated by whether they did or did not have this access and the ones that had a greater access were the ones that really benefited do that. now if i understand you you're saying that markets reacted as if the appointment of tim geithner to the u.s. treasury was a positive event for the firms that he had regulated as the head of the new york fed so do you think this market reaction makes sense though. i think in hindsight it does make some sense i think what more the market was most worried about it was either some financial institutions going under or some financial institutions really being forced. to divest to sell. certain parts of their business. or be subject to very very tough stress tests or other tests and therefore having to raise a lot more capital and i think they probably said. you know it's going to matter who you know in this process some of these d

. >>> still, the company beat on the top and bottom lines, goldman sachs trouncing the estimates, earnings boosted there by strength in the investment banks business, and why not? there have been a lot of mergers, and they have been number one. shares of goldman and jpmorgan up strongly on an otherwise rather soggy day. jpmorgan at 5847, up $2.18. goldman sachs up 1.46 at 168 and 46. sue? >>> what are bank earnings telling us about that sector? financials are up more than 4 with respect. jeff jack ablynn and jeff husse. nice to have you here, gentlemen. >> jack, i'm going to start with you. the financials so far so good. what does it tell you about the overall market? >> it's saying that generally that the market goes as financials go. what we find is a very high correlation between the outperformance of financials and the direction of the market itself. it's something like a 70% correlation, so generally things are moving along well when the financials, particularly the large banks are moving in the right direction. so that's a good sign. >> jeff, do you agree with that? >> i agree with t

over the weekend goldman sachs raced his subpoena year end targets. he also hiked hi 12-month target to 2075. joining us is gene per ronni and kevin karone, with washington crossing advisers. welcome, guys. >> thanks. >> you agree with this call and think the market will head higher from here? >> yes, i do, sue. it's a very impressive market technically, price architecture is strong, feeling good police pulling they show good accumulation, and the relative strength continues to show the good depth among the key sectors driving this market. those sectors are very broad and diverse, like nothing i have seen in my career. >> wow. all right. kevin, do you want to comment on the goldman sachs call, first of all? you've got to say you have to read between the lines to look deeper into that report. >> what i've read of it is that it seems very much to be tied to the momentum tied to the economy principally. i believe what we will see in the next half of the year will be a pickup from what we saw in the first half. and ultimately the value of stocks is high i

. >>> up next, a lawsuit charges goldman sachs with being a boys club. and fight apps with apps.how you what the taxi industry has come up with to beat back competitors like uber. ♪ >> now inroducing, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for suvivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now >> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. ♪ >>> goldman sachs got some unwanted publicity this week. three women filed this brief asking for class action status for a sex dis