j.p. morganb of a and others out with results, china responds to rex tillerson's comments on the south china sea, plus more ceos head to trump tower. and another automaker, another emissions probe. we will fill you in on that. but it is all about the banks this morning. wells misses, j.p. morgan beats, b of a posts some mixed results. jim, you just tweeted enough with the binary trade. what do you mean by that? >> we're in a difficult situation here because there are people who've been saying the banks have run up so you got to sell them. that's trader talk. when i was at a hedge fund i would say i'll put out bank of america at 23 buy back at $22.88. these are unbelievable quarters, they're unbelievable because they've become growth stocks, coca-cola, they do not have the ability to run this organic growth. these are remarkable quarters and we just started. bank of america haechbt seen the gains yesterday. numbers i'm looking at i've calculated 100 basis points in fed increase, you get $3 billion

indonesia hitting back at j.p. morgan so by cutting business partnerships, all in retaliation for the bank issuing a downgrade. we have the background. rosalind: the indonesia finance ministry says it is not accurate or credible. the report downgraded toonesia's equity markets underweight, and called it a technical response to donald trump's win. the indonesian finance ministry says it will stop using j.p. morgan is a primary dealer and underwriter of sovereign bonds. let's take a look to see how j.p. morgan chase ranks in all of this. this shows a breakdown of underwriting in indonesia sovereign bonds last year. j.p. morgan chase tied for sixth $850, more than 800 a.d million. finance ministry saying that the banks should take responsibility for economic reports that could influence fundamentals, so indonesia not happy there. rishaad: you have to be careful there. i suppose this is the fine line to go down, isn't it? you don't want to offend them and lose business, but at the same time, you don't want to be seen as a pat

is j.p. morganare you and other businesses in the roundtable going to be the voice that says we need a much more pragmatic solution, we need a way to keep the people, particularly for the jobs we need, and frame this as an economic argument, as a growth argument, and as a jobs argument? jamie: i went to the president-elect, and i felt that for j.p. morgan chase -- i felt that if you are black, jewish, lgbt, african-american, woman, we will support you in the kind of diversity the way we did before. that will not change. think you see the rhetoric seems to have gone away, even the rhetoric about immigration. president-elect trump is sounding a lot different than candidate trump. he now says, if you break the law, we will deport you. the estimated the 11 million undocumented, they estimated that only 800,000 broke the law. that is the current policy of the united states. president obama deported 2.8 million people for breaking the law. but absolutely, the business roundtable has already supported immi

more maybe diversified j.p. morgan then goldman sachs really closed gap recently with huge performance in the last several months. i notice also they trade around same price-to-book value right now. which would be your preference? how are you viewing these two stocks right now? >> well, i think you make some really good points there. by the way, good morning. and i think that the key thing here is that if we look at goldman sachs, obviously it's a focus capital markets bank. we know one of the things that's positive as a result of this rally, as a result of the news after the election has been stronger capital markets both fixed income and equities. and clearly you can get the benefit of that in your earnings pretty quickly. with j.p. morgan of course you get the same thing. but in addition to that of course it has a big retail commercial bank which will get more benefit from the rising rates. so in a way at the moment j.p. morgan will have benefit of both capital markets now and, you know, rising rates going through t

it does look like j.p. morgan did make the right call. right, but is there a sense that j.p. ssured to reverse its rating after indonesia retaliated? that would mean a lot. , j.p. morganl itself says there was no pressure for its reverse and call, action taken by the indonesian government it said had nothing to do with it. in a statement, it said its research is independent and published as the result of extensive, objective analysis. inyou speak to some people the market, they say it is probably a compromise with the government. you know, indonesia retaliated and stopped all business with j.p. morgan. last week, it took further action against the negative research, ordering all primary bank,s, hsbc, deutsche they have to maintain relations with the government, or if they fail to comply, their dealership licenses may get terminated, so crystal clear what indonesia once. you so much. haslinda, joining us from singapore. bloomberg markets: middle east coming up at the top of the hour. yousef gamal el-din is standing by in dubai. lots coming up. we have a call on saudi arabia fro

dollars and j.p. morganchase was not listed as a member for those two, so perhaps it already has an impact. trump, the, after emerging markets were out of favor pretty quick. we saw them dumping indonesian assets and in the last quarter, foreign investors sold $2.8 billion in indonesian stocks and funds which drove it lower. you can see that currency there jumping up, so it is a pity for banks to issue independent advice and information to clients when the client will be the ones issuing the information against and away. it is a difficult time for them to tread. it certainly is. we will continue to look at what the fallout is. thank you, rosalind chin. much more ahead. sink or swim. what is on the horizon. betty: could equities and bonds run out of steam this year? we discussee ouook with jpmorgan. this is bloomberg. ♪ anchor: this is "daybreak asia." i'm shery ahn in hong kong. tesla is lower in extended trading after a fourth-quarter delivery fell short of estimates. it sold about 22,000 200 vehicles throu

j.p. morganigher. everything has flipped now. cpi higher, good, that means the fed has to show its medal, bank of america, you talk to these ceos off record, what are they talking about? bring them on. we're all set. in the j.p. morgan conference call, which again nobody read because it's really long and boring, there's a moment where he says we are set up for rate hikes. so if you're set up for rate hikes, you get a cpi hot, interest rates going higher, get your rate hikes, do you want to own j.p. morgan or target, my friend? my friend. has he ever been to a target? >> i don't think so. >> i have. i have. i've been to a target. what? >> we're not sure he's been to the grocery store before. >> i luckily avoided it this weekend. it was a close call. haven't been in years. >> is that true? traffic was not you. >> the list wasn't complete. it was our anniversary, i said maybe i'll go, but then i managed to get out of it. >> wow, that's a lot of detail. a level of granularity that's shocking. >> figu

megan: a peek into the future as jamie dimon talks about his legacy at j.p. morgan chase.e world as it is shaping up right now and when you look at this administration, what are the things that concern you and the possible black swan events that we could see that would be truly disruptive? jamie: if you look at the geopolitical trends, and we made at a list of all the big one since world war ii, korea, vietnam, afghanistan, iran, iraq, china had a border skirmish with russia, india and pakistan, china anvietnam, i am missing a bunch, on one ever derailed the global economy. the others had an effect. vietnam had a huge effect, but only one, and it was the 1973 middle east crisis that derailed the economy. geopolitics is always noisy, but with little effect. i think it is a little worse. i would say from normal friction, it is it better or worse? it's probably worse. there are more wars in the middle east. more and more uncertainty around the nuclear risk, because of iran, russia, north korea. threatening mankind. north korea has a bomb and will soon be able to deliver it to

j.p. morgan gave its c.e.o. a $1 million raise after the stock climbed 31%.

j.p. morgan jamie diamond will likely give up the comments on the economy but don't expect much in the way of guidance. he doesn't do that. the bottom line the earnings will get a nice boost this year, maybe not 20% but 10% certainly doable. the markets need to take a breath and believe the data will be forthcoming. for "nightly business report" i'm bob pisani at the new york stock exchange. >> dramatic day on capitol hill. donald trump's nominee to lee the department of housing faced intense questioning by a senate panel and it led to some very heated exchanges. diana olick reports. >> reporter: dr. ben carson a neuroroe surgeon by trade told a senate panel that he was well qualified to lead the nation's housing agency and oversee its nearly $50 billion budget. >> a good ceo doesn't necessarily know everything about the business but he knows how to pick those people and how to use them and that is one of the marks of good leadership. >> but running an agency that directly effects the president-e

since j.p. morganks have underperformed the wider emerging markets, and this other chart shows you what happened last quarter, foreign investors sold $2.8 billion of stocks and bonds, the rupiah got smacked. the highs and lows of the indonesian market there. yvonne: they certainly called it, but is there concern that j.p. morgan was forced to reverse its rating? pressure, that is what j.p. morgan is saying, no pressure to reverse its call. action taken by the indonesian government had nothing to do with it. research, its independence, anything published is the result of extensive, objective analysis. indonesia is no different. some say it is probably a compromise with the government. as you know, indonesia retaliated. last week, it took further action, ordering all primary theyrs in the country, have to maintain relations with the government. failure to comply, they say, may lead to their dealership license is getting terminated. indonesia making it quite clear. amine: haslinda joining us from singapor

hear if j.p. morgan healthcare conference i sat down with jpmorgan chase chairman ceo, he was upbeat on transition into upcoming trump administration like many, of us, he woke up on election day, to a result i had -- he had not eepd in a surprised at rilths went to sleep one point woke up drove to work may be good for the economy for a the average manner he, and kind of moved on. >> so you thought about the economic portion of what is going on. what trump is coming out with let me ask you about that what you are expectations for economy as a result of his proposed tax policy, and rollback of regulations. >> i like the fact that the focus has been on growth, and we see it in the talk about the tax policy, you know regulatory policy, i think growth is going to be very good for all americans, not just for companies, so i like that, fact i think you have seen optimism not stock prices, hopefully they will deliver some that a. >> do you think companies will in fact behave differently with 15% corporate tax ra

j.p. morgan was one of the firms are there.dman sacs. this year because of the new policy enacted by donald trump you will start to see analysts come out. as well as a 2% yield. and that is great because that is fiscal policy dictating that.ç you will also see a healthy and robust market for this year. >> we will meet you there. the impact was focusing on that. as well as the pound right now. that is a key point. it's something they have can stay focused on. automakers reevaluating their plans. general motors are standing firm. back in a minute. enter sleep number and the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store, right now, the best buy rated c2 mattress is only $699.99 learn more at sleepnumber.com know better sleep with sleep number. ...better than a manual, and my hygienist says it does. but... ...they're not all the same. turns out, the

. ♪ megan: nearly a decade after the global financial crisis, j.p. morganhase chairman and chief executive officer jamie dimon has emerged as one of the more sought-after voices on banking and the global economy. i sat down recently with dimon in detroit, michigan to talk about the motor city's economic recovery, helped in part by j.p. morgan's $100 million investment in the city, to discuss whether strategies used here could be

oh, my gosh thank you all i'm absolutely trifled to be here on behalf of the j.p. morgan 3 thousand bay area employees yes. >> (clapping.) >> it was just about a year ago we announced our existing partnership with the golden state warriors to bring a world-class venue to the bay area the bay area it a beacon for technology, innovation and education and we expect the new chase center will become a beacon for sports and entertainment and cultural as we prepare to break ground it on the chase center we're well aware the baby boomer is at the center of social changes as technologies and cities are revitalized remust make sure that the individuals at the margin are brought in and 3w506r9d up while those in the middle are not pushed out over the next 3 years j.p. morgan chase will be investing $25 million to support initiated that help the bay area to continue on a pathway to more inclusive economic growth yes. >> (clapping.) >> as part of this commitment we announced last week chase center assist is community initiative that will tackle head on the bay area economic and social

we've got is j.p. morgannc of america and wells fargo and it will be all about the forecast here. let's go right to j. morgan chase because you had, in terms of stock was a very strong fourth quarter. in fact, j.p. morgan chase the me 23% since election. fourth quarter revenue and eps could rise 2% versus a say and analysts the outlook for business and deal activity entering 2017 key. be wall street firms in general are expected to post the biggest fourth quarter the ng haul since financial crisis as the election triggered a frenzy of global market activity reporting been on. fixed incomes dot-com be ing revenue seems to up 18% at five of the biggest investment banks. c.e.o. of the j.p. morgan chase, often ery outspoken, has been supportive of incoming president donald trump. he's praised trump's cabinet picks. and he's said he's "optimistic about the trump administration." we may hear more about that on the conference call. the big k that's key is the guidance, can realistic expectations and not derail what

j.p. morgan's ears.usly you have a stock that's done a lot of heavy lifting dow 20,000, that really needs those rates up because it doesn't cost them anything and they get this giant windfall. remember, they've been saying publicly four rate hikes equals $3 billion. and that would -- if you take a look at the stock, it's truly a parabolic move. you need to see rates continue to go higher. that's not happening today, but these comments certainly do help. >> he says three hikes reasonable. and that overshooting would put the recovery at risk, right? >> i think the dollar skyrockets. i hope we get some repatriation or you're going to see number cut. there are very few companies that can sustain this. coca-cola, by the way, which was downgraded, they are hedged euro and yen. don't freak out about the euro, but emerging currencies. >> we will see repatriation it would seem, just a matter of when. >> yes. when. >> we got that downgrade p&g at goldman, downgrade at coke, apple a top pick at morgan stanley. >> v

that would be j.p. morgan chase, bank of america and wells fargo. let's start with the diamond house. according to j.p. morgan expected to earn $1.43 on $29.95 billion in revenue. markets implying what could be a move of nearly 3% up or down post earnings. earnings are for their of 38 cents. options here currently pricing an proximate near 4% move. finally, wells fargo expected to earn a buck a share on $22.48 billion. options here pricing at approximately a 3% move up or down in the stock. there is no doubt the bank earnings will be the key given how strongly they already performed. now it will be about whether the knew can keep that momentum going. back to you. >> have a fwraet weekengreat we. >>> so dan is over at the smart board. what are you looking at? >> yeah. the way i see it, those implied moves he just laid out, i would be sprieds to see those names move that much. when you think about how much plow into this sector i don't think they will be giving them up so quickly. the other thing is i suspect november and december for all of the stuff

oh, my gosh thank you all i'm absolutely trifled to be here on behalf of the j.p. morgan 3 thousand bay area employees yes. >> (clapping.) >> it was just about a year ago we announced our existing partnership with the golden state warriors to bring a world-class venue to the bay area the bay area it a beacon for technology, innovation and education and we expect the new chase center will become a beacon for sports and entertainment and cultural as we prepare to break ground it on the chase center we're well aware the baby boomer is at the center of social changes as technologies and cities are revitalized remust make sure that the individuals at the margin are brought in and 3w506r9d up while those in the middle are not pushed out over the next 3 years j.p. morgan chase will be investing $25 million to support initiated that help the bay area to continue on a pathway to more inclusive economic growth yes. >> (clapping.) >> as part of this commitment we announced last week chase center assist is community initiative that will tackle head on the bay area economic and social

all about j.p. morganl about bank of america, pnc and a lot of it's going to be about jamie dimon, who i've said before nobody talks positive future better than jamie dimon and sells it better. important thing is while earnings are not increasing 23 #for 2017 in most industries, they are for the banks. analysts have been creeping numbers up. look here for j.p. morgan's numbers. november 8th they had 625, this is 2017 numbers overall and now they've increased to $6.50. this is an increase of about 4% overall. most of the earnings revisions are on the positive side for banks, four, five, even six percent. of course we're looking at the lobby of trump tower. right now the dow down 93 points. guys, back to you. >> gary cohn of course in the lobby going upstairs on a day where dina powell also from goldman going to join. be the fourth official from goldman going -- or alum. >> i'll take 237, do you think there will be a pool? >> head of the n.e.c., national economic council. also we have some pictures of hen he

j.p. morgan to break out. that will be an important stock. >> big reason we saw that 10-year in the 2.6 neighborhood. some argue kept us from cracking 20k before. >> yeah. i mean, look, we want this to be a staged rollout, so to speak. we need the banks to go up, to break out and then we go to 2.6. then the banks break through where they were. >> let's see what happens. the opening bell here at the nyse and the nasdaq looking for some opening prints. we do expect the dow to crack 20k for the first time in its 120-year history. and it is done. >> we were on when it happened, our grandchildren will remember, hey, those guys were on. we were on. >> when it hit dow 20,000 we were on television. >> yeah. >> is that what you're saying? >> yeah. >> exciting. >> kind of like first man on the moon. >> yeah, i'm sure it's equated to that. >> 20,030 for the dow. first time in history. interestingly, guys, dow's had 78 calendar years up, 43 calendar years down. best year ever 1915 up 81%, worst year 1931 dow

j.p. morgan, repeat the news on j.p. morgan, lizzie, what did you say.ty're taking over a fifth of black rock, acting as custodial and replacing state street. stuart: so what. liz: a trillion dollar of assets j.p. morgan will be handling for black rock. stuart: managing it, taking fees from there. maria: and point bank of america, we had the ceo on today, brian moynihan and people are spending more money. loan demand is up, businesses are also inquiring about doing more, he's looking at spending up and he had a pretty good prediction for 2017, b of a up 36% since the election adding to moves today. stuart: you know, you just don't see these kind of moves very often, do you? november the 8th was the election and we're now 1600 points higher for the dow industrials, and these bank stocks have gone to the moon. >> the bank stocks led the way and the dow is weighted a certain way. goldman sachs has an over, overwhelming influence on the dow. and because these big banks have done so well under the notion that we're going to either get rid of dodd frank or mak

oh, my gosh thank you all i'm absolutely trifled to be here on behalf of the j.p. morgan 3 thousand bay area employees yes. >> (clapping.) >> it was just about a year ago we announced our existing partnership with the golden state warriors to bring a world-class venue to the bay area the bay area it a beacon for technology, innovation and education and we expect the new chase center will become a beacon for sports and entertainment and cultural as we prepare to break ground it on the chase center we're well aware the baby boomer is at the center of social changes as technologies and cities are revitalized remust make sure that the individuals at the margin are brought in and 3w506r9d up while those in the middle are not pushed out over the next 3 years j.p. morgan chase will be investing $25 million to support initiated that help the bay area to continue on a pathway to more inclusive economic growth yes. >> (clapping.) >> as part of this commitment we announced last week chase center assist is community initiative that will tackle head on the bay area economic and social

matt: alex dryden of j.p. morgan, talking us through this historicen after a record close of the dow jones. coming up, we talked china as the world's second largest economy orders banks to curb loans in the first quarter. later, we hear from the ceo of unilever as the consumer goods giant says tough market conditions are likely to continue in the first half of the year. londonerview at 7:50 time. plus, raise a glass. diageoak to the ceo of after the drinks maker reported earnings that beat estimates. this is bloomberg. ♪ matt: welcome back to bloomberg markets. china's central bank ordered that nation's lenders to control new loans in the first quarter of the new year, another move in china to curb excess leverage in the financial system. the government has been targeting home loans since the fourth quarter to contain runaway property prices in areas deemed overheated. alex dryden from j.p. morgan asset management joins us. alex, is china on the brink here? is china a question mark in your investment strategy for 201

oh, my gosh thank you all i'm absolutely trifled to be here on behalf of the j.p. morgan chase and our 3 thousand bay area employees yes. >> (clapping.) >> it was just about a year ago we announced our existing partnership with the golden state warriors to bring a world-class venue to the bay area the bay area it a beacon for technology, innovation and education and we expect the new chase center will become a beacon for sports and entertainment and cultural as we prepare to break ground it on the chase center we're well aware the baby boomer is at the center of social changes as technologies and cities are revitalized remust make sure that the individuals at the margin are brought in and 3w506r9d up while those in the middle are not pushed out over the next 3 years j.p. morgan chase will be investing $25 million to support initiated that help the bay area to continue on a pathway to more inclusive economic growth yes. >> (clapping.) >> as part of this commitment we announced last week chase center assist is community initiative that will tackle head on the bay area econo

. >> reporter: j.p. morgan topped the list with a broad beat. america and wells fargo also impressed. the focus turned towards guidance as opposed to the fourth quarter itself. all the banks making it clear that the benefit is still to come. costs also remain under control, particularly for j.p. morgan and bank of america. which is encouraging for operational leverage. and shares for shell are being boosted before any deregulation. and here's why. >> if you look business confidence, consumer confidence, house hold building, wages going up, unemployment going down. retail sales going up. it looks like it's getting stronger, not weaker. that's my personal belief. >> and he had positive remarks for trump's appointments and was upbeat about the effect of a corporate tax cut. and as for wells fargo, it was fine and the sales scandal updates showed pressure still exists on year on year turns but on a monthly basis is improving. they're looking to close around 200 branchs and have announced a new compensation plan that does not award employees based on

j.p. morgan's c.e.o. has given them a 1% raise. jamie diamond got an $8 million compensation package, .7% more than a year earlier. they overtook wells fargo which stumbled because of a bogus customer account scandal. that's you're bloomberg business flash. anna: a little breaking news on the brewing sector. heineken saying they are in talks on a potential brazil deal with kirren who said around midnight u.k. time that they have not decided anything on the sale of their brazilian operations but said it's true they are in talks with heineken. manus. that business in brazil is a loss making business. is the riskn brazil they're chasing. china is at the top of they have agenda, along with brexit and inauguration day. those are the subjects that will dominate the conversation in davos where eric is stand big. ic: i'm here with inge beal, c.e.o. of the world's largest insurance market, lloyd's. one thing i've picked up in my conversations, particularly with british bankers this week here in davos is t

it's kind of no different than what citi and j.p. morgan did years ago. they bank them wherever they go. they will be competitors. to me that's a given. in the great global investment banking business, it will be tough, but they can buy someone. they have huge financial wherewithal. >> buying anything is difficult. jamie: they're already doing some of these things. and they should. you'd be thinking, i want to expand, i want to grow, i want to serve my clients, and one day i want to be knocking at jpmorgan's door. version onguing which to end. jamie dimon, thank you very much. vonnie: thanks to john mikel suite here. dimon.course, ceo jamie mark: coming up, the opec secretary-general joins us. will opec members stick to their agreement and cut productions? this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. mark: i mark barton. this is the european close on "bloomberg markets." now, oil prices are lower today. both tumblingde today earlier on air, international energy agency chief addicted u.s. shale production will rebound strongly in ligh

citigroup, barclays, j.p. morganhase, rbs pleaded guilty for a judge saystes, misconduct will be best deterred if those responsible are not only fired but any money they make is given back. bitcoin retreated rapidly from wednesday's all-time high, jumping 23% from its intraday record. the virtual currency reacted to a rat -- rally in the yuan which posted a record to date offshore, the growing popularity link to the yuan and the ruby and speculation china make her its use as a way of awarding l clovis rick and. -- capital outflow restrictions. companies were told to move back to the u.s. by donald trump or pay the penalty and nissan has a similar response, message received, the top carmaker in mexico and would be hard hit in the trouble administration goes through with his threat to impose border tariffs. >> we will not make any move before understanding exactly what will be the new policy of the american administration. this is the second largest market in the world for cars. obviously we want the president of the u

of >> our review of the week "bloomberg best" with compelling interviews from the j.p. morgan health conference. discussing political challenges buffeting their business model and politics was top of mind at detroit as w in automakers respond to pressure from president-elect donald trump. road they negotiate the ahead? we're very proud of the fact strategy is to build. >> we have a strategy to much as production as we can. >> this is bloomberg. with the xfinity tv app, anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your

liz: j.p. morgantiromo about donald trump saying he will be good for the economy. >> did you watch the results, what were you thinking on november 9? your reaction? >> i did watch the results, i was up almost all night, i was surprised. but i can' i went sleep, woke up, went to work, and thin thinking maybe this is going to be good for the economy. liz: you don't want to miss on only on fox business. up next trump's border wall could cost billions of dollars before mexico pays us back, we have a massachusetts sheriff, he suggests using prison inmates to build it, no other project would have as much of a positive impact on the inmates and cur country. sheriff, make your case. >> this is an opportunity for inmates from the country to be dispatched to the wall, where we will be able to save taxpayers millions of dollars in building it but giving inmates a chance to do something for america, and learn a skill, and prepare themselves for reentry as they look for their own jobs. up only century. liz: has an

j.p. morgan, wells fargo, bank of america, set to report earnings tomorrow morning. will bank earnings derail this rally, pete? you're an owner, are you worried? >> no. what we've seen is this consolidation going on for over a month. if you look at the range, banks you're looking at basically call 23 to the upper 23 it, 23 it 80. and that's where we've been and where did we finish today. by the time everything was said and done, we finished at 2340. so it's sitting right where we want it to be right now those of us that are on the bullish side. when i go to last quarter and i see the numbers that were produced, all these are going to be reporting tomorrow, we're going to find out but my hunch is that the banks are doing extremely well still. i think the environment was great for trading. because of that and the forecast going forward, i think we're going to see a lot of bullish activity. >> i don't think it's priced in yet and the reason i say that is, even though the stocks have moved to the upside, banks aren't priced off of pe, banks are priced after that book val

which bank is better set to capture that story because there are two sides to me, the more nimble j.p. morgann the one side and the banc of america with this huge deposit base ready to take advantage of the yield curve. which is it on balance? >> if you look at the overall, return on equity, that's the key metric. j.p. moving and wells fargo still leading. wells fargo despite all the troubles, a lot of focus on their sales culture and going forward but still these banks earning relatively higher. >> still ahead on "bloomberg best," deliberating over two huge multinational mergers. discussing some of the regulatory decisions in 2017. plus more on the hot-button issue of drug pricing. from c.e.o.s of the world's top pharma companies and up next, more headlines from the week in business. jack ma visits trump tower. >> they see an opportunity here with n time and a couple of other retailers that they have invested in. >> this is bloomberg. ♪ >> this is bloomberg best. i'm michael mckee. let's continue our stories. in the uk where prime minister theresa may is preparing to negotiate britain's exit

all three banks, j.p. morgan of america, and thes fargo report before friday opening bell and kick off the fourth quarter earnings season, which is all about the forecast. index was down 2% in the thursday session leading into this. that may not have anything to do look because j.p. morgan chase had a boring fourth-quarter and terms of stock performance, up 23% since the election. fourth-quarter revenue and eps by analysts may rise to percent. the outlook for business and activity is a key area of concern for analysts and investors alike. wall street firms are expected to post the biggest fourth-quarter trading hall since the financial crisis. in terms of jpmorgan ceo jamie dimon, he has been vocal lately, particularly about donald trump. andas praised trump's picks is optimistic about the trump administration in terms of what it means to the economy, and we may hear more about that as well on the conference call. bank of america, the stock chart up 33% since the election, the biggest of the large bank stock gain

jonathan: on the numbers from j.p. morganumbers? >> the rate across on the credit quality side his credit is benign. that has positive implications for regional banks. long growth was ok in the 4% to 5% area. capital markets, largely expected, was quite strong. david: there was some disappointment in the pic trading. tell us about the numbers from goldman and morgan stanley. numbersge: jp morgan's were up in the mid 20's. the of a was up in the 10% area was up in the 10% area. i wouldn't be surprised if they were in a bad trade in the last of the quarter, but nothing that changes the story from our perspective. jonathan: we talked about which bank would be better positioned to an upturn and pivot offense. j.p. morgan expects to comment on whether they have interest in buying european banks. how offensive could we see lenders get? mr. george: from him in a i would expect -- from m&a i would expect jpmorgan to do little. we get a more benign regulatory environment there could be benefits on the cost side as well as the trading

oh, my gosh thank you all i'm absolutely trifled to be here on behalf of the j.p. morgan 3 thousand bay area employees yes. >> (clapping.) >> it was just about a year ago we announced our existing partnership with the golden state warriors to bring a world-class venue to the bay area the bay area it a beacon for technology, innovation and education and we expect the new chase center will become a beacon for sports and entertainment and cultural as we prepare to break ground it on the chase center we're well aware the baby boomer is at the center of social changes as technologies and cities are revitalized remust make sure that the individuals at the margin are brought in and 3w506r9d up while those in the middle are not pushed out over the next 3 years j.p. morgan chase will be investing $25 million to support initiated that help the bay area to continue on a pathway to more inclusive economic growth yes. >> (clapping.) >> as part of this commitment we announced last week chase center assist is community initiative that will tackle head on the bay area economic and social

j.p. morgano? if he gamed things, what did wells do? this is what they did. this is when they got all their market share. >> right. he wasn't leading financial institution that was knowingly packaging securities and saying they were one thing when they were another. >> right. >> he was potentially foreclosing as a result of the fact that they were one of the larger servers out there. you have to do. >> look, no one knew -- i think people also forget until that era we did not have mass foreclosures on homes. they went back to the '30s and did the stress test and the stress test turned out all wrong and that portfolio was uniquely 9%, 10%. foreclosures were happening so quickly by the week. so i don't regard him as being a goad about that. what i think they -- you know, he flipped it to c.i.t. in the previous administration i think we would have said he made too much money. there would have been kind of this rap. i think the republicans are okay with someone making a lot of money this way, but i th

silogen well attended 10,000 at 35th j.p. morganealthcare conference jamie dimon talked to me about why most successful attended conference on wall street. >> -- 35 years ago, the first year there were 20 companies came here market cap 3 billion this year 467 the total combined market cap 4.3 trillion there are 10,000 people coming as guests 20,000 coming guests of deutsche bank goldman sachs competitors as they meet people here, the amazing thing this going on '09, the innovation excitement the growth, health care data systems cancer curiosity staggering, up lifting going to do mankind, unbelievable, exciting to come here. >> one growth story in sector take a look at stock in the year they raised guidance on earnings past year stock has risen 15%, i spoke with ceo at the conference to talk about what to expect in the year ahead. >> -- particularly at this moment in time, where it seems like celgene has greet momentum you have a phenomenal timeline talking about celgene growth story tell us about that where is the growth right now.

francine: we certainly are, j.p. morganue to report earnings, a surge in bond rating on the back of the election of donald trump. for more with michael moore who joins us. regulation and the fact that interest rates are going up in the u.s. will get a boost to u.s. banks but not created equal are they? >> it depends on the business mix but the retail side is benefiting from a steeper yield curve at higher rates. on the trading side, you have a little bit of boost from the volatility that that is a little -- a very low base from last year's fourth quarter and the last few years in the fourth quarter. tom: it is who has the best use of capital, who does within american banking? , u.s. banks,.o.e. wells fargo, retail only shops. the investment banking has been driving down. tom: where does the morgan stanley adjustments we saw earlier today. bring up the chart, this is an worlds ofart, the two american banking, white line, yellow line, j.p. morgan and wells fargo. down below the dogs are the dogs, you are consulting with mr. c

the former employees of j.p. morgan chase, citigroup and barclays were accused of being part of a global cartel currency rigging. seen growthoen has last year, selling more than 3 million cars. the post -- boost was driven by the iranian market. up by 110%. in china, sales fell by 16%. in the u.s., volkswagen has pleaded guilty to emissions cheating scandal and agreed to pay $4.3 billion in penalties. the settlement will see an independent monitor being appointed for the company for the next three years. volkswagen has already agreed to pay more than $17 billion to settle civil claims. brian quinn has the details. billion, that's the price of closure for volkswagen in the united states, as it looks to put the dieselgate scandal behind it for good. the german automaker has confirmed it has negotiated a draft settlement with the u.s. department of justice that would see a plea guilty to criminal charges in addition to the fines. that draft must now be approved by the volkswagen board. in september 2015, volkswagen admitte

. >> reporter: j.p. morgan and goldman faqs are built at benefiting. >> reporter: we're also going to build a very big walled with low-cost houses to millions of dollars. >> reporter: how does this wall figure into president tromps. >> reporter: mexico is already starting to proposition some ideas out there. >> reporter: ironically the biggest cement company is in mexico. >> gary: giving everybody currie is back home in his native charlotte. campbell walker added 26 points. before you know it blown warriors are of six. >> gary: durant had 33 coax. the jury magadan's 1151 03. --115-s 103. >> gary: they can't pay any sound out of curries mouth. >> gary: we are going to lose stassen we can give any audio we are sorry sorry. >> gary: he picked up the handset and there was no sound. he fixed a head set himself. >> gary: just for that we are going to honor his border one more time riley currie during a high school game where her father's jersey was retired there. >> gary: riley has a bad off. >> gary: making national

j.p. morgan chase, wells fargo, and bank of america. dow rose on friday. naf nasdaq closing up. >>> it's a frigid start this morning. we've issued a first alert for the dangerously cold air that is in place right now. temperatures still falling. live view of the snow making operations in camelback. why not take advantage of the the cold. 7 degrees. not much warmer in philadelphia. 12 degrees by 26. neighborhood forecast just ahead. jessica boyington in the first alert traffic center. watching the roads still slippery. >> still slippery. a lot of accidents to prove that. watching right now 26th street and penn road avenue. blocking the westbound side of the blij. no traffic right now. check in when we come back. >>> also caving in. take you live to the scene of a sinkhole that caused a mess. cleanup underway this morning. >>> we continue to follow dangerous cold. live update coming up in just a few minutes. >>> sinkhole scare. live in a philadelphia neighborhood where the street opened up. damage left behind and repair effort. >>> in the hot seat. president

what about goldman and j.p. morgan?dcause goldman is most to transactional type businesses, they may have the cyclicaleverage over a boost. the other thing we have heard this quarter is jamie dimon saying that they have seen a secular bottom. we have seen eight six alert bottom following comments from morgan stanley's comments earlier. in general, i think that is what investors are waiting for. quarterl be the third in a row of outperformance. this will be the first year in several years we see in increased overall revenue. that is obviously important for altman and the industry. -- goldman in the industry. of theirf the focus business, they really have a ceo'siew into the ceos -- in the conversations they have with their clients. they are -- and the conversations they have with their clients. they are going to measure goldman by those conversations. in 2017, are we in a bond there market? the tension is playing out in a positive way for goldman sachs. >> for several banks right now. they are saying it is a matter of ti

trump rally could be tested today as earning season kicks off results from the three big banks, j.p. morgan chase, bank of america, wells fargo. nasdaq down 16 points to 5546. >>> a lot to watch today. landon, thanks. >>> 5:26 january morning. it is 56 degrees right now. the mild weather continues after yesterday's warm day, but the wind is going to bring in the cold. it brings it back during the day. you'll see those temperatures falling. get your neighborhood forecast just ahead. see how the roads are looking this morning. friday morning. jessica boyington first alert traffic center. >> thanks. it's a happy friday so far. watching cherry hill new jersey. route 70 right around kings highway. couple of cars on the roads there. roads are dry. moving along nicely. check in with more majors when i come back at 5:30. >>> 5:27. taking matter into his own hands. hear from a local homeowner who came face to face with the robber accused of breaking in his home. >>> middle of flu season. one local county getting hit especially hard. tell you where we're seeing the highest number of cases in the area

j.p. morgan share their earnings tomorrow. this is bloomberg. ♪ oliver: a big day tomorrow for u.s. banks. fargo do to wells report earnings before the bell. >> we only have a hundred basis points of increases by the fed through 2018. even with that subdued outlook, banks get back in black. they start running the cost of capital in 2018. there is a trump bump and i agree with you that these stocks have moved some on the expectations of faster economic growth and more interest rate hikes. and if rates come back down, that sentiment could change. stocks fact is banks will be higher in three years. oliver: full coverage of those bank earnings throughout the day tomorrow. i'm still ahead, will trump policies help or hurt the market for initial public offerings? this is bloomberg. ♪ scarlet: this is bloomberg markets markets. volatility crippling the pace of initial public offerings in 2016 p but now you have a trump administration upon us. will we start to see things pick up? carol: i welcome everybo

while j.p. morgan chase is contemplating moving 4000 jobs. goldman sachs in barclays are taking a wait-and-see approach, echoed by some delegates at the world economic forum. >> you know, i think we will have to wait and see what the regulations that come out. whether it is a britain that was a do business or britain looking to entrench just like the united states is. reporter: the stakes of those negotiations are high. the financial services inindustry generates 205 billion pounds of revenue and employs 1.1 million people. >> french airplane engine maker forron has launched a bid the zodiac aerospace. it would create the world's third largest aerospace supplier. as the sector is gearing up to tackle record high jet orders, three months after zodiac's rival agreed to be absorbed. some analysts say that the tie up could be risky given that zodiac is recovering from three years of crisis. ceo insists that his business is currently at the center of the airline industry's focus. >> what airlines are fighting ar, their daily battle in competitive

the study conducted by j.p. morgan chase analyzed 2015 payroll records for more than 45,000 small firms and highlights the challenges that these employers are facing. >> you might be concerned about threats from outside your company like hackers but what about your own employees or the person you vest your money with. companies do not do their due diligence and that can be a costly mistake. >> you need to do reference checks and often times the hr departments at companies don't have the manpower to do it and they say, we want the background check done yesterday. >> reporter: and it's that pressure to hire quickly that can wind up costing millions. according to former fbi agent and private investigator ken springer, investigating key executives can uncover financial stress and any patterns of bad behavior. >> some of the biggest internal investigations we've done is with problem it people because they do indeed have the keys to the castles. >> reporter: with so much risk more firms are hiring investigators to do deep di