what was goldman sachs doing that was not noncompliant, illegal or however? >> the issue for me it was not just goldman sachs that was being noncompliant. it was the federal reserve bank of new york and federal employees, as well. it's easier for me to say but they were not complying with two at they were say not complying with because the gap to do is so big. it's very difficult to find things they were doing right. it's an embarrassment of what they were doing wrong. >> could you give us an example? >> yes, one of the examples i talk about early on in the book is when i was sitting down with the federal reserve bank of america employees whose stoop pass on knowledge and the anti- money laundering program is simply, is that the employees are supposed to follow to patch anybody, customer, that is trying to use the banks to launder money, and other words to make dirty money clean. talking to me as i sat there and took on this information from the new york employee is how this particularly employee was telling me at the same time they're doing all of these thin

alix: goldman sachs' new ceo.ork times reporting david solomon will become the new ceo and chairman. doubling down on russia. president trump blames the mueller probe for driving a wedge between the countries even after the news conference that shook capitol hill. fed chairman powell facing the senate. happy tuesday everyone. welcome to bloomberg daybreak. i am alix steel. david westin is off today. the stocks you want to watch today, goldman and netflix. netflix still getting hammered. goldman sachs adjusting on a mixed earnings report and a new succession plan that says david sullivan will become the new ceo on october 1. crude trying to recover from yesterday's brutal selloff. time for your morning brief. industrial production for june and minutes and :00, jay powell delivering his semiannual report to congress. at 2:00, president trump meeting with lawmakers at the white house just one day after that meeting with russian president vladimir putin in helsinki. goldman sachs posting better-than-expected earnings

>> goldman sachs cash management account. >> andrew would like a goldman account. >> see, i'm at ubsa swiss bank >> so you can say you're at a swiss bank >> because it's at large >> what? >> what is going to happen to the management at goldman sachs? because there's been a lot of people waiting for a very long time to move up the ranks, and a lot of people have stayed for a very long time what kind of transformation do you think you'll see at the top. >> there were two people on the fixed side of the house that left pretty quickly after david was elevated in march. pablo salomei was one and isabel -- i don't remember her last name -- is the other. eventually david will have his own team on the fixed side they have a deep bench they always have a deep bench. it's harder to get into goldman sachs than harvard university. they always have great people. they'll find the people. >> assess the tenure he and david are the last people standing post financial crisis >> i think in that firm he was brilliant, and the way he handled the fair reputatio reputational barrage they experienced afterw

through the financial crisis >> he did a fabulous job at goldman sachs.ck price outperformed the stock index over that time goldman sachs performed tremendously during a financial crisis and goldman had among the best returns in the banking industry. having said that, it was not perfect. they didn't pivot until about two years ago. the last five years goldman has had worst in class trading results, and also goldman was slow to manage its external reputation outside of its core clients. on balance he did a very strong job even if it wasn't perfect. the challenge for the incoming ceo is to continue the efficiency savings and to make sure they have the right talent in the right spots >> what about the level below, do they still have the best people at goldman sachs? do they still attract the best people throughout the company? >> i think they do, will i've said this a bunch of times, it's harder to get a job at goldman sachs than it is to get into harvard and stanford. so they still have their pick of the litter, so to speak. what i think is interesting is d

he has a long tenure with goldman sachs. if you include the company where lloyd worked, and they were acquired by goldman sachs. they were a commodity trading company acquired by goldman sachs, he has racked up about 36 years this fall of tenure. which you don't rather very often anymore. so for all of our millennial members, it has worked out for some of us to have long careers in the same company. before that he worked at the -l-leizure. donovan he worked for non-profit organizations, including the dean's advisory board at harvard law school, the dean's council at harvard university and advisory board of the university school of economics and management, and the board of overseers at the wild cornell medical college. he remains on the board of the partnership for new york city. recall the day when i took over for lloyd as co-chairman of the partnership for new york city. it was supposed to be my day. it was supposed to be like a big celebration for my day, and lloyd grabbed the microphone and says terry, congratulations. i

goldman sachs and netflix are down on the earnings news. we certainly had financials from the last few days not propelling the markets higher to me it's something other than earnings that are propelling it higher i think ultimately what this is saying, we're not really talking about this, but there's a quiet period in the trade war with china. maybe during that quiet period people are saying america has the upper hand here. i think that might be what the market is saying >> jim talks about the unknowns. the fed chair says it is unknown what the eventual outcome of trade policy is going to be. the economic impacts of the fiscal policy. taxes. what's your read >> again, with you, scott, we talked about this for weeks with the panel as well. you talk a look at the impact to our market versus china, for instance, chinese markets down 12% over the last 30 days. our market is unchanged to slightly higher. i think chairman powell read correctly that the impact here for the short-term is not to the down side. the impact is not a negative one for th

depending on what we see from goldman sachs today, morgan stanley may have a very high hurdle. are encyclopedic and 1880arcus goldman samuel sachs, so we are not going to do that here. we are going to the bodies in the room when solomon takes over who are saying maybe not. is there any pushback? >> what do you mean? partnersrnal pushback, who are saying why are we doing this guy? >> anyone wants to see their guy. since solomon has become the heir apparent, there has been some changes beneath them. as this next ceo title becomes more formal, there is expectation that would embolden him to make even more changes in terms of putting the people he wants in place as part of goldman's future. thank you so much. we note is good to be mr. solomon, right? [laughter] we will have all on goldman sachs earnings. stay with us through those important announcements today. right now, first word news. taylor: both democrats and republicans have condemned president trump's remarks with vladimir putin about the helsinki summit. called theicans president's performance shameful, disgraceful, and wea

so lloyd has a long tenure with goldman sachs. in fact, if you include j. aron, the company where he worked and they were acquired by goldman was a commodity trading company acquired by goldman sachs -- he racked up about 36 years coming this fall of tenure. you don't hear that very much anymore. for all our millennial numbers, -- millennial members, just so you know, it has worked on for some of us to have long careers in the same company. and before that, he worked at ,he law firm of donovan leisure because he actually did get his degree from harvard law school. he is affiliated with nonprofit organizations, including dean's advisory board at harvard law school, the board of dean's advisers at harvard business school, the dean's council at harvard university, and advisory board at a university school of economics and management. he also is one of the overseers of the board of cornell medical college and remains on the board for the partnership of new york city. and i recall the day when i took over for lloyd as cochairman of the partnership for new york c

goldman sachs i mean those are payday loans are no rules gusting there are states that have outlawed these kinds of law it's really crazy i mean you know the personal loans are your goldman's offering range from like thirty five hundred dollars to forty thousand and these are the kind of loans where you don't to give them collateral it's just basically interest based loans right in the interest rates range from like six point nine nine to twenty four twenty five percent and nobody's getting six point nine yeah and it's a letter is to me because again like i said earlier they were bailed out by the fed using our tax dollars so basically you're taking money that you that you took from us and are not going to loan back to us but we have to pay the interest we're going to pay you back that loan it's like you know it's we're basically printing money paying back a loan of our own money one hundred years ago but it wondrous give us the money like if we come up and ask the same and i need like forty grand you just give it to us because you're pretty much took it from us anyway. just don't get

blankfein pushed out of goldman sachs? e because this played out so in elegantly. goldman in the post crisis era and even before the crisis, is pretty expert when it comes to managing the reputation and its profile. the crisis for the lawsuit filed senate hearings under car of, but for the most part, goldman does that extremely well. goldman is the type of firm inre we see tweeting response to a story about a newspaper pending retirement, like he is listening to his on unity and that is what lloyd 9ankfein did two on march after a report on the wall street journal. this did not happen the way that you would have expected from goldman. by all appearances, it did not happen the way lloyd wanted it to. >> i don't understand because goldman sachs outperformed under lloyd blankfein. if you want to take a look at the bloomberg here. i do not understand why now he would have him pushing out in an ill -- inelegant way. >> you introduced the conversation by talking about the firm's earnings. goldman has been struggling in some areas

so goldman sachs you used our money our tax dollars to stay afloat and now you want to loan them back to worse at twenty five percent wow. well and you tell me in the reilley i'm cyberdyne in their terminators they got nothing. goldman's loans and amazons pills now let's start watching honks. one. get the. real thing this would be. the bottom. of the day like you said i got. this. week so i. rolled over on the watch of the harks i am tired robot and on top of the well it. and. pales lower a shipping. goal that i'm a little urgent at. that. yeah i really though the whole thing with the goldman lunch thing is very unsettling because there's this idea that you know predatory behavior is supposed to be illegal it's worse to be frowned upon here in the united states whether it's economic or physical predatory and you know here we are on the same day that harvey weinstein gets predatory it's an assault charges put against him by the the new york d.a. and at the same time you've got. predatory party happening over a girl a goldman sachs i mean those are payday loans to live under the rules g

so it was a very hard test that really slammed especially morgan stanley and goldman sachs harder. capital levels fell more than anyone else's doing the hypothetical scenario. so to be a bit million at the end so they could continue distributing -- to be a bit lenient at the end so they could continue distributing dividends and buybacks at the same level, was not that soft, when you consider how harsh it was in the beginning. nejra: i am glad you bring up goldman and morgan stanley. our economist matt levine wrote that they passed the stress test without actually getting a passing score. can you explain to us exactly how that happened? yalman: yes, that is interesting, the first time that happened. basically, even with -- after the losses -- the last quarter of 2017, tax reform in the u.s. actually made all the banks take big hits to their profits. they had to write down their excesses. so the banks argued that with that in mind, if you take that one-time hit, their capital levels of the fed said, "no, not really. we see that, so we will be a bit lenient, but still, you cannot incr

goldman sachs as far as i know has no bitcoin. but if it does work out, i can give you the historical path of why that has happened. so i am not in the school of saying gee, because it is uncomfortable or maybe because it is unfamiliar, this can't happen. that is too arrogant. >> some people talk about things. no woman has run a big wall street come. you started a $500 million do that.e to there wasn't an obvious person to succeed you at goldman. explain to me, in five years time whether there will be a woman running a wall street firm and discipline it. >> other firms have more senior women. the most senior woman at goldman sachs was the person who ran -- until actually the end of this month because she submitted her resignation. sometimes people have to work harder at this and get it done. we are working very hard at this. you are right, there is nobody who is that proximate. other firms may have different experiences. we have metrics on some occasions that women are at the highest level. it is sad to say and blame, and ome of i

america, bank of goldman sachs, morgan stanley.hey are taking market share, it is that activity out there is going up. they have more reliance on investment banking. that benefit for the bottom line is a little bit bigger. jason: i want to get your thoughts on what jumped out at you in the morgan stanley report. overl: what impresses me and over is there managing of the cost line. we are in it. -- period when all the banks are investing heavily in new technologies, continue to grow their businesses. that was a big feature in the goldman sachs commentary and jpmorgan commentary. they managed to keep costs under control both on the fixed side as well as the cop side. that jumped out at me. obviously, volatility begets good trading income. that is a big part of this. the other thing that jumped out at me was you continue to hear that the pipelines are good for m&a as well as investment banking. this is not a one quarter wonder. this is going to continue. continue talking about that, i'm glad you brought that up about investment bankin

a goldman sachs i mean those are payday loans. gusting their stance of outlaw these kinds of law it's really crazy i mean you know the personal loans are your goldman's offering range from like thirty five hundred dollars to forty thousand and these are the kind of loans where you don't to give them collateral it's just basically interest based loans right in the interest rates range from like six point nine nine to twenty four twenty five percent and nobody's getting six point nine yeah and it's a letters to me because again like i said earlier they were bailed out by the fed using our tax dollars so basically you're taking money that you that you took from us and are not going to loan back to us but we have to pay the interest we're going to pay you back that loan it's like you know that we're basically printing money paying back a loan of our own money one hundred years go back but it wondrous give us the money but if we come up and ask the same and i need like forty grand you just give it to us because you pretty much took it f

out today and goldman sachs plans to add david as the new ceo. isn't new, but the timing, perhaps. gets the top spot at goldman. the current ceo will stay for a certain length of time and a lenders could be in for more of a risk of getting's waste as the tariffs escalate. hows get more details on banks would fare in a trade war. great to have you with us. what about the leadership changes goldman sachs? he has been touted as a leader. >> as you mentioned, he was elevated to be the president of goldman sachs earlier this year he is number one for the ceo share. a formal announcement could get made on monday. so, watch this space. reports out host of of the banking space and the trade story and finance was important for some of the banks in the asian region. >> it is not the most glamorous parts of banking, is it? it is important and it is one of trading hubs. the global trade war goes beyond words. supply chain and there were products on the target list and these of the sort of conversations on the region banks. >> ok. let's see will goldman sachs

dan: it is a shift in power and goldman sachs. one of the most closely watched financial establishments in the world. increasing the revenue. if you look at the evolution of goldman since the crisis in the past 10 years, the trading operation has been less emphasized. at the same time, the investment area isvid solomon's growing in importance. this is an important shift. ramy: looking back at the legacy, how can solomon capitalize that and continue forward on that if he needs to? legacy foris a great him to emulate. profits are up, revenue is up. the firm is much more diverse. it has more areas of business, it has more profit streams. the consumer efforts they are making now are examples of that. stigma ofcarries the the crisis. he became famous outside of wall street. this is in the popular imagination as the face of wall street during the crisis. he was the one on tv a lot. he will carry that as well. haidi: did we get any surprises out of most recent results. >> you mentioned the declines, it was not worth it. even after the tra

also had on your board just there, goldman sachs. goldman actually really did see some disappointment in he is latest earnings report. >> by end of the day, what was very interesting we had another repeat of the netflix ride. back.and coming couple of important things, they did beat across the board. some analyst were questioning earnings. you can see just in the two day it dropped and came back. what the questions were, it was as 2% midday.much i had to do with some expenses in trading,op equity trading. they did well in the earnings questions the noncompensation expenses rising. analyst said the drop also had to do with the change at the top. theays we're going to see 12-year reign of the current ceo and the new guy stepping in who has an interesting -- that may the stocks.ighed on thepositive it ended up off slow. item --il taking a tumble. what oil traders saying now in market ishere this headed? there's a lot of noise as we saw that goldman sachs report. distorting expectations. >> lot of noise and what's interesting about the dr

tenure with long goldman sachs. include j aaron, andcompany where he worked they were acquired by goldman sachs, a commodity trading company, he racked up about 36 years coming this fall of tenure. you don't hear that very much anymore. for all -- for all our millennial numbers, it has worked on for some of us to have long careers in the same company. before that, he worked at the of donm as -- law firm and leisure. he is affiliated with nonprofit organizations, including dean's advisory board at harvard law school, the board of dean's advisers at harvard business school, the dean's council at harvard university, and advisory at the scene quite university school of economics .nd management i recall the day when i took over for lloyd as cochairman of the partnership for new york .ity it was supposed to be a big celebration for my day. microphoneasp of the and said, congratulations. i hope your two or three years as chairman of this organization are better than mine because these are the worst freaking years of my lif

that is why goldman sachs had one of the best quarters. 20162017, goldman sachs made very little.ery good for investment banks because volatility is coming back, but not as good for risk-taking. think people are underestimating the risks in the yuan? it is down 5% in the last quarter. >> yes, they are. part of the reason is, remember, china is not a conventional country. it does not have a conventional central bank. it doesn't really have commercial banks that are truly commercial. it doesn't really have a capital system. the result is everybody is assuming the degree of control the government has is very high, and it is, so long as the capital account is not open. remember what happened in 2015-2016, how they close capital account. effectively re-nationalizing renminbi. , i agree,s underestimating, but one has to accept the degree of control that china has. it is greater than ever. wehaad: it is astonishing have discussed the so far without trade wars. are the dangers being underplayed as the imf and larry fink are putting it, that people have been far too complacent about a trad

as ceo in october, ending lloyd blankfein's 12-year run. >> with lloyd blankfein pushed out of goldman sachshat's the overwhelming sense that people have. why? because the secession played out so inelegantly. goldman has been struggling in some areas. commodities and fixed income more broadly. it is overcapitalize and hasn't been able to grow revenue. been fixed income commodities and currencies. so, there is a sense that goldman needs to reinvent that business and more broadly reinvent the firm. and lloyd blankfein having been there for 12 years in the eyes of some people on the board and at his age, may have run out of ideas for how to accelerate growth at goldman sachs and transform the firm as fast as some people feel it needs to be done. ♪ >> federal reserve chairman jay powell making it clear to congress he wants to stay in his lane and keep on the message of monetary policy. his message may have come with a caveat. jay powell said gradual rate hikes will continue for now. >> he is mostly concerned with the economy and not making waves for the markets. he noted very little about the bi

tough environment for tech stocks is a relative term ok and change at the top of investment bank goldman sachs who's a place in the successful lloyd blankfein. a lot going fine and he was the head of goldman for the past twelve years and now he's going to step aside by the end of september and he's going to be replaced by dell of david solomon who is with the company since one thousand nine hundred ninety nine by the way he's also known part time to that he likes to function as a d.j. so we will see if the employees of goldman really like his. well he is known that he might be might go some bold steps he is not necessarily loved goldman but he is highly respected and it might not necessarily be important to be loved by your employees as long as they respect yours so overall the choice was to be expected so he will take over or first on top of it goldman also had their quarterly numbers that came in better than expected still the stock of goldman traded slightly to the downside a solomon the part time a d.j. that's how we can find the right mix for goldman sachs thank you very much yes quarter

shares of goldman sachs are little changed in free market trade. we're glg to hear from a pair of gold man peers, michael corebat. will sit down at 3:00 p.m. eastern on closing bell. that will be followed by an exclusive interview with bank of america ceo brian moynihan at 6:00 p.m. on mad money, seema. >>> deutsche bank forecasting better than expected preliminary second quarter results the bank is expecting second quarter revenue to come in at $7.7 billion that stops expectations of $7.4 billion. shares are moving higher nearly by 7% lets bring in allen this morning. >> thanks for having me. >> there was a note from bank of america who said that. there are some playbooks that won't work and she thinks financials are a good sector to look at. not only undervalued but less susceptible to the trade fears your thoughts? >> i definitely think that's the case the real benefit you see as the financials have come back from the 2008, 2009, profitability is better, balance sheets in a better position. despite the rhetoric going on and all the noise in the

. >> and yet another dow compone gashgs hacomponent goldman sachs had another blowout quarter exceeding estimates. revenue was becter than ed in every major business unit except trading, but the stock slippeder slightly a goldman said that the legal and regulatory costs rose during the quarter. goldman sachs also made it official what we have been reporting and namely that david solomon would take over as ceo on october 1st. one of his challenges would be to continue to focus goman's mo famous business, dealmaking while also expding the tomorrow's newest business, its consumer division. time to take a look at today's upgrades and downgrades with d component intel that was downgraded from in line to outperform a ever corps isi and the analyst cited major competition from nvidia and amd. the price target is now $54 with the stock down a fraction today at $51.75. goodyear tire was given a rare sell ring by goldman sachs. the anast cited an increase in raw material prices and price targha now $18 ands fell more than 1% to $22ven today. >> tribune was upgraded to overweight from equal weight

joining me now is jeff currie, goldman sachs global head of commodities research. ill remain robust. goldman express -- expects brent prices to reach $80 a barrel. together,ou put it the weakness in the yuan or the strength or the dot -- in the dollar, rising commodity prices and u.s. rates, the three are not compatible. i like to call them the terrible trio. if you want to get something sustainable, you need stable to declining rates, rising commodity prices and a weaker dollar. the question is in thinking about -- are we at a turning point for the dollar? is the dollar going to start getting weaker? if we think of the bullish view on commodities right now, it is the headwind created by the stronger dollar which is a reflection of weakness in demand in emerging markets like china, brazil, turkey. the question i ask is are we on the cusp of a turning point on the dollar which would be an indicator of stronger growth? alix: are we? jeff: i would say yes but i felt comfortable saying that two weeks ago after we saw 17 consecutive days of selling in copper. i thought w

they have been getting the premium, goldman sachs was liking. want to be less risky or not, let you like -- not, they like it attention. scarlet: goldman made money on a trading business and now that you have an investment banker leading the firm, does that mean goldman will shrink? shrink the trading business. or, will they let it continue as is and growing the other parts of the business? they have plans laid out to grow the other part, do more corporate lending which hopefully gets more m&a business and more consumer lending business. there's only so much they can do. if they wanted to pull back on trading, it is still the largest of the revenue this quarter, the largest part of the business. they would have to be a dramatically smaller firm, which they do not want to do if they pull back from trading. there is a limit to the amount of move they can make. this move is a little bit of a storyline they want to keep going. julie: if that is the storyline they want to keep going, what do you think is the david solomon adjust tow does that the pre

billion from a year ago and their earnings per share of shot up to around sixty three cents and goldman sachs. the fifteenth largest bank in the united states posted an even greater year over year percentage profit increase of forty four percent with two point three five billion dollars in profits just under six dollars per share versus one point six billion a year ago and the earnings per share beat estimates of four dollars and sixty six cents and a related personnel news goldman sachs c.e.o. lloyd blankfein formally announced in a call with managing directors that he will be replaced by goldman president david solomon mr solomon's promotion had been widely expected since he became goldman's only president in march but there is no word yet on when he will formally take over . and the retail sales numbers are out for june and they rose by half a percent the figures represent spending and us stores and their websites and restaurants at the same time the may figures were adjusted upwards by half a percent from point eight percent to one point three percent and here's a look at retail details a

morgan, citigroup tomorrow and bank of america and goldman sachs and morgan stanley reporting next week. there is pessimism surrounding the industry with the low bar when it comes to second-quarter numbers and analysts believe they have to report numbers in line with expect aegzs and potential surprises and they stem from a recent shift in the yield curve and a potential pickup in loan demand and a benefit from regulatory reform one problem stop could be mortgage revenue which they expect to decline year over year due to the impact of higher rates. the recent underperformance and the yield curve which has spent much of the last two years flattening and some investors are concerned that bank earnings have already peaked. even with pockets of weakness, banks could be poised to break out to the upside and the industry is trading at a multiple that's only two-thirds of the s&p 500 and 8 percentage points below historical levels, again, it's a very low bar, melissa. >> all right thank you, leslie. leslie picker in the news room we're going off the chart and robert schlimer is over at the pla

goldman, sachs doesn't see it that way, the data don't seem to back you up on this. the feds' capital requirements and stress test are like a belt and suspenders you can loosen the belt, rely on suspenders or take off the suspenders and rely on the belt. but if you do both, your pants will fall down chairman powell, we learned in 2018 that when the big banks' pants fall down, it is the american economy, american taxpayers, american workers who get stuck pulling them back up it looks like to me the fed is headed the wrong direction here. thank you, mr. chairman. >> senator shots >> chairman powell, thank you for your service and thank you for being willing to engage. i understand the need for you to stay in your lane. i'm going to ask a question. i want to have as constructive an exchange as possible knowing that some of this ground has been covered and i don't want to turn it into a partisan conversation banks are doing well they had record breaking profits in years 2016, 2017, 2018 will be another gang buster year. they increased dividends by 17% in 2017, 12% in 201

goldman sachs investors took home about $5 billion more than they would have. bank. gift to the on top of that, the said proposed a rule in april that would make the stress test less severe, effectively reducing capital requirements at the eight largest banks by a total of $54 billion, according to a goldman sachs analysis. fire own account, the economy is -- by your own account, the banks just got huge tax breaks, three fed presidents, president -- to strengthen the banks instead of siphoning off cache to shareholders, so why is the fed under your leadership persistently seeking to reduce capital requirements and we can stress test? chair powell: with respect, we are not doing either. in 2018 wasest materially more stressful, the amount of loss to pass the test was by far the highest of any test. say, thet know what to fdic doesn't see it that way, goldman sachs does it see it that way, the data doesn't seem to back you up. the feds capital requirements and the stress test are like a belt and suspenders. -- loosen the belt and rely on the suspenders, but if yo

solomonxpecting david will be officially made the next ceo of goldman sachs. t, it will be interesting to see what they lay out for the future, if anything. in particular, their consumer lending business. sachs has made david solomon a huge proponent of that business. it has not had a big impact on the bottom line, but goldman has been talking about it as an engine to growth going forward. does the u.s. financial sector think about european finances? it has been this long tail of two banking systems. we are seeing legacy issues persist. deutsche bank had a rare piece of good news yesterday. seeing,you are also will be get those numbers a bit more clarity into the specific of the business? ?ow sustainable is that >> do bankers look at this as an opportunity? oline: absolutely. much, ourk you very bloomberg executive editor for global finance training us. let's talk about tech. netflix shares have plunged pointed toompany disappointing subscriber growth for the second quarter. opinion writer, alex webb, joins us. should we be seriously worried if you have investe

we have goldman sachs. it keeps up the amazing bank rally yesterday completely out of nowhere. amazingly strong i think the most important thing is, will the other members of faang break. does it matter that amazon's site went down >> no. why would it >> netflix compared to what is their connection to amazon and facebook >> they're in faang. >> yeah but not related business wise. >> they're in faang. facebook dominates social. alphabet, what does it do? surge. wait a second, they want to do youtube. amazon what is a key growth area video? all those are as stupid as wood. >> the time spent on netflix is going up people are watching more and more. >> i know. >> i'm totally netflix down let's say 60 okay maybe you start buying it. i'm saying netflix wasn't horrible if the rest of faang and stocks go down, i'm saying it turns the market. >> the walt disney company now has a $15 billion market cap lead on netflix. >> oh, thank heavens mickey, i feel so bad. >> what happened to tesla and surpassed gm and lost it.

from working in the engineering parts of these various companies to a financial engineering of goldman sachsrobert: it is quite an interesting story. i had done very well, top student in my first year of business school. so i had to come back for summer graduation to get this award. as they went through my background, there was a man who ran his own investment bank who was the keynote speaker. he comes over after to give me my award, and he said hey, you have a really interesting background. have you thought about a career in investment banking? i said well, there are a bunch of former investment bankers in my class. i don't like any of them. he said, why not? i said, they think they know everything and are pretty arrogant. you have to understand, i am an engineer and we do know everything, and it bothers us. he chuckled. he did not take offense to my joke, and i was happy. but i said honestly, i don't understand what investment bankers do. i was a scientist. i was a technologist. i thought about the world through that lens. and this was another case where somebody extended themselves for me

morgan and goldman sachs are heading out to milan and paris and expanding their offices there cutting back office here construction and infrastructure giant for rovio has announced it is moving its international headquarters from the u.k. to low tax haven amsterdam because of banks that the spanish firm which owns a quarter of the airport heathrow and runs its u.s. canadian polish and u.k. operations from oxford says it needs to keep within the legislation after the u.k. leaves the e.u. and airbus of course you already mentioned is well. possibly right now to be clear up to the referendum i said this was an economic disaster and then right after the referendum a moment ago you know this is going to be continue to be an economic disaster on the week of the referendum i said this is fantastic that david cameron is getting his teeth kicked in and making you know that that pig loving david cameron with is . david cameron that's the phrase now. loves pigs so much he's going in france being a pig farmer is a french bank farmer now but you know i'm not did i said oh this is great the david c

goldman sachs. but those are not -- >> it's not enough.'ve got powell midday, midmorning that a lot of people are going to wait on. this isn't the catalyst that we were looking for. julie: thank you so much, guys. bloomberg's paul sweeney, romaine bostick, and lucas shaw. those shares trading sharply lower in response to earnings in the after-hours session, down by almost 13%, after just about doubling this year. this is bloomberg. ♪ julie: "what'd you miss?" let's look at what the week this in that -- weakness in netflix shares means for the market. rob is joining us from newport beach, california. netflix shares continue to decline by about 13%. great to see you. thank you for joining us. we were just talking about netflix and its importance to the momentum story. troubles herets are also going to spell trouble for other momentum stocks? rob: of course there is a distinct risk of ripple effect. i published a piece a few months ago entitled "it's a bubble: so what?" in that paper, we talked firstly about the definition of the word bubble.

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you have one on goldman sachs and only a market perform on morgan stanley why that shift >> well, as you know, i have been on the show earlier this decade our top three picks were morgan stanley, morgan stanley, morgan stanley. they had unique structural change that was underappreciated the stock then went up a lot the structural progression at morgan stanley is over, and now it's about organic growth. when it comes down to organic growth, we're going with goldman sachs over morgan stanley because goldman has grown organic revenues about twice as fast as morgan stanley >> get back to the citi thing. >> i don't disagree with anything you have said about the banks. and you haven't spoken to the ceos i think the ceos of b of a, of citi, of jpmorgan are the best ceos in the s&p, period. the most battle tested, have come through the brightest lights however, there's still some stocks that are held back by the old paradigms of valuation those are the autos and those are the banks. and i don't think they'll break through them so it's not that i hate the banks, that i'm negative on the banks

i headed back on earnings from goldman sachs. u.s. stock market futures pit the top 11. s&p 500 down three quarters of a percent. the nasdaq to a .5. cheryl: stocks opened slightly lower as traders are waiting for chairman powell's testimony. the dax in the red. >> stocks in japan up about half a percent while stocks in hong kong falling 1.3%. trying to the stock to be watching here is netflix sinking 15% after disappointing subscriber growth. "fbn:am" starts right now. true 25:01 a.m. in new york. good morning cheryl casone. gerri: i'm gerri willis and for lauren simonetti. so much to choose from. so many headlines you can pick one. trade to we are going to talk about netflix in a moment. i select the shows. it took a real beating. backlash from president trump's press conference with russian president vladimir putin. trump is back in washington facing sharp criticism for unloading on the american intelligence community in front of a man accused of trying to hack the u.s. presidential election. gerri: trump tried to lower expectations of what the sitdown could accomplis

breaking news, goldman sachs earnings are out.and revenue expectations. the company reported earnings of $5.98 a share on revenue of $9.4 billion. that is both above the revenue estimate and above the earnings estimate. goldman sachs shares are up a fraction right now. johnson & johnson beat earnings and revenue expectations earlier. we'll break down the numbers coming up. federal reserve chairman jay powell ishea is headed to capitl today. powell will testify in front of the senate today and the house tomorrow. futures this morning looking lower. we are expecting a lower opening for the broader averages, just a fractional move. the dow jones industrial average doubt 14 points, the nasdaq is off by 10.5. yesterday the major indices finished mixed but little changed. the dow jones industrial average was up 45 points at the close. in europe, markets near the flat line. they are negative. fq100 down a fraction, the cac down a third of a percent and the dax index in germany down 16. in asia overnight, mixed performance as well. japan

it's a big rally 4.4% in one day, something to take note of goldman sachs up 2%. eport tomorrow morning all eyes on goldman tomorrow back to the broader markets, the dow has led because of jp morgan and goldman sachs. up 32 points at the moment the others are negative but have recovered as we've approached the close. you can see it's a bit of a trading range all day. yes, down at the moment but nothing too severe netflix a look at that intraday and there is the netflix shot. that will be the main focus straight after the bell. >> 1.2 million domestic ads we're looking for, we're talking about 125 million subscribers. they're talking about adding 6 million, 6.2 domestic international. up 100% so far this year 108% actually. i think the disappointing thing is the very narrow trading range. we did have the banks up okay. the faang names other than netflix and i think bank of america up around mid, low single digits loan growth. >> the share price up over 4% the bank of america. and the dow the high of the day as we close. it's up 43 points or so, slightly higher for t

jason: and this is a business that people would not necessarily associate goldman sachs. cially for people who live in new york and no people on wall street, they associate goldman with sort of white shoe, very austere, high-end wealth. not this sort of business. zeke: if you have a couple million dollars, they probably won't manager money for you. if you are a small hedge fund, they won't be your prime broker. you think of them doing deals with warren buffett, advising the biggest investors in the world. this was a big departure. carol: is this after the financial crisis, trying to the time of the mass-market women wall street for what happened -- mass-market blaming wall street for what happened? zeke: that was probably a challenge on their mind. if you look at harris polls, what the public thinks about big companies, last few years goldman has scored very low, just above bp or volkswagen. so they might have thought we face challenges going direct to consumer, but it was an opportunity because in the wake of the financial crisis, they had become a bank and started taking