right here these are the words of j.p. morgan the next crisis is also likely to result in social tensions similar to those witness fifty years ago in one thousand nine hundred sixty eight in one thousand nine hundred sixty eight t.v. and investigative journalism provided a generation of baby boomers access to unfulfilled information on social developments such as vietnam and other proxy wars civil rights movements income inequality excedrin similar to one thousand nine hundred sixty eight the internet today social media leaks documents keiser report they don't write that but i add that provides millenniums with unrestricted. system information on a surprisingly similar range of issues so they're saying that the internet may make it. the next financial crisis and when the you know the us federal reserve and congress comes to our rescue again and even starts buying our stock so that we are always made whole the internet basically they're suggesting the internet should be monitored that maybe twitter might be dangerous in this situa

it wasn't a gift from daddy. >> j.p. morganing aim at the president saying he could beat president trump in a potentially 2020 match up. >> i'm as tough as he is and i'm smarter than he is. i would be fine. >> immediately after, diamond back pedalled. >> i shouldn't have said it. more out of frustration, but i shouldn't have said it. it also proves i wouldn't be a good politician. >> president trump seemed to agree firing back on twitter the next morning. the problem with banker jamie diamond running for president is he doesn't have the aptitude or smarts. he's a poor public speaker and nervous mess. otherwise he is wonderful. diamond who once served on the president's now disbanded strategy and policy forum, says a run for the white house is out of the picture for now. >> you're done with politics? >> yes. >> no running for president for you? >> no. >> ever? >> i never say never, but no. >> the wall street titan is wading in on policy, from immigration to health care and yes donald trump. >> unemployment below 4%. the market a

she is at j.p. morgan assets.oadly, why do you think all of these worries which were weighing on stocks and risk assets so much over the end of the summer come all of a sudden they don't seem to matter to investors for the last couple of weeks? karen: i think it is largely the trade news. think of what is -- think of what was expected. they are at the lower end of expectations come of the tariffs. how would china respond? think the response crafted from china was very clever. reducing tariffs to other parts itthe world demonstrating would try to forge further links with the rest of the world if that is the way the u.s. wishes to behave. anna: it was really fascinating. maybe even having to include the united states in terms of the wto rules. good morning to you. .e have a chart showing the dow heading record highs. -- hitting record highs. how broad is the rally? how convincing is it? what kicks it off the course? andn: it is booming incredibly cross based. it is a broad-based economic rally and a stock rally and

and about six years ago, they had some, j.p. morganad some so-called tarp warrants that were issued to the government in connection with the tarp debt, which j.p. morgan never wanted, didn't need it. we started buying those warrants. and j.p. morgan today is my, i guess, it is my second-biggest holding after home depot. david: where do you think capitalism has worked the best, and by that i mean, not for the individuals, but the country? ♪ ♪ david: capitalism, you love capitalism. ken: i adore it. david: that is what your book said. why? ken: because it works. david: does it work? ken: absolutely. david: how do you know it works? how do you see that? ken: i know it works by virtue of my own life. you know, my father wasn't a capitalist. he was a union plumber. he did not make much money. my mother worked in a school cafeteria. so the only money they made, they made by the virtue of time and their hands. and here i show up and i have this whatever you want to call it, talent or insight, whatever you want to call it. i become a capitalis

and about six years ago, they had some, j.p. morganad some so-called tarp warrants that were issued to the government in connection with the tarp debt, which j.p. morgan never wanted, didn't need it. we started buying those warrants. and j.p. morgan today is my, i , it is my second-biggest holding after home depot. david: where do you think capitalism has worked the best, and by that i mean, not for the individuals, but the country? ♪ ♪ david: capitalism, you love capitalism. ken: i adore it. david: that is what your book said. why? ken: because it works. david: does it work? ken: absolutely. david: how do you know it works? how do you see that? ken: i know it works by virtue of my own life. you know, my father wasn't a cap capitalist. he was a union plumber. he did not make much money. my mother worked in a school cafeteria. so the only money they made, they made by the virtue of time and their hands. and here i show up and i have this whatever you want to call it, talent or insight, whatever you want to call it. i become a capitalist

we said, we got lucky because j.p. morgan stepped up and bought bear.rgency resolution authorities to keep failing investment banks out of bankruptcy just like the government had with commercial banks. he said, we will not get congress to act unless you are prepared to shout, if we do not get these authorities, you will have an investment bank like lehman brothers fail and the consequences will be terrible! that was something we were not prepared to do. as soon as we started saying that, they would have gone down immediately. withme out of that weekend big concerns. we do not think bear stearns would be the end of the problem. >> fannie mae and freddie mac in freefall as both were down more than 40%. wall street worry. >> losing so much money on the mortgages they have written, that stocks will become worthless. hank: fannie mae was set up in 1938 right after the great depression. freddie mac in 1970. these were covered government-sponsored entities. they had a noble objective. promoting homeownership in america. >> when you buy a house, you take out a

there are the outliers, j.p. morgan, for example, are saying you should go ahead and short 10 year bonds in japan. they do think yields will pick up a bit. by and large, most market players are saying the changes from the bank of japan will are -- are not sufficient to restore price discovery mechanisms in the bond market. --are seeing different seeing depressed volumes even in recent days. haidi: always appreciate your time. the cross asset managing editor in tokyo. we are going to stay on the theme of bonds. the benchmark 10 year yield for china climbed to a two-month high in august. says now is a good time to start buying chinese sovereign bonds. joining us is tianhe ji, who is the bnp paribas global rates and affect strategist. great to have you on. why now? >> hello, this is tianhe ji in beijing. haidi: why would you go into this market now? >> actually because we think that for the economy performance , there is still a downward pressure from the internal part, so we think for the founding cost there is still some

two months later on march sixteenth bear stearns was bought by rival j.p. morgan with cash barred from the fed it had been the fifth largest investment bank in the united states. on september sixth the federal takeover of us government sponsored mortgage lenders fannie mae and freddie mac. . a little over a week later another low wind u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. telling savers that their deposits are safe. shows and an attempt to avoid a run on the banks because. what began as a us subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the us economy contracted by almost three percent and the german economy shrunk by five percent. economists young khan joins us from frankfurt now apart from the toxic securities

it was bought by rival j.p. morgan with cash borrowed from the fed. six months later the federal takeover of u.s. government sponsored more used to rescue us financial markets began to seize up as trust between banks disappeared the world's governments were forced to step in with trillions of liquidity. that couldn't diverse a global trade slump though and economies around the world went into recession in some places the effects continue to be felt to this day. economists young peter khan joins us from frankfurt now apart from the toxic securities which everyone knows about in which a lot of people actually put their trust in the whole crisis sounds like it was caused by simply a lack of trust or that's absolutely true and in such a crisis we always have to expect that financial institutions among each other the trust why because it is so park what is in their portfolios what about the trust of economists you're an economist and the head of the o.e.c.d. said today that economists forecasts need to better reflect reality do you take that personally. i

federal reserve and j.p. morgan chase was more than thirty. billion u.s. dollars pulled the bank back from the brink. but the crisis was far from over. wall street's money making machines were crumbling when i went to the office and i heard the bear stearns was sold to j.p. morgan i don't very very cheap price it was shocking it was astonishing it was unbelievable how this happened how quickly that's when we realized that these investment banks actually may have taken excessive risks and now these interests are actually coming up and coming back to bite it was a watershed event rights or anyone stop trying to buy forty eight percent that sent a signal that there was more to car suddenly of the entire sort of stock market back a bit people investment portfolio there were also i believe you know in the reds. dr soon which aggarwal who was formerly working at bank of america had now become a senior financial economist at the chicago federal reserve and regulators like him what worries so immediately at the federal reserve and we started looking at what are th

>> charlie gasparino broke the story, but now, we know j.p. morgano jamie dimon toward some of his employees he could be president trump of the 2020 election, but then issued a statement recanting. he said the president could punch him all he wants. he also said he smarter than president trump. jamie dimon later in the day issued a statement saying and this is a quote i should not of senate. on the right president. i wouldn't make a good politician. i get frustrated because i want all sides to come together to solve big problems. lauren: i think it's statements like that that we like and jamie dimon, right? >> i'm not going to go there. i'm curious at the present takes the bait. lauren: 7:00 a.m. is when he usually tweets. we have video from a google, the google bosses were hysterical after the election of 2016. >> take this as a grain of salt. you decide if it's a smoking gun. the video shows google executives pursuing their colleagues after donald trump won the presidency. >> certainly find this election deplete upsetting and i know many of you due

it was founded by the j.p. morgan chase foundation. so far, more than 15% of the projects work hours have been locked by local labor. >>> a final farewell to an american hero. top political leaders said their final goodbye to senator john mccain. >>> also, it was a family reunion at sfo between a sister and brother separated at birth in postwar germany. the story of how they found each other decades later. that is next. >>> that, and the all-important labor day forecast. it is all coming up after a break. mccain was buried after a private ceremony at the u-s naval academy in maryland. cbs reporter demarco morgan... on the final goodbye... to america's maverick. (track) ell to >>> senator john mccain was laid to rest today. he was buried after a private ceremony at the u.s. naval academy in maryland. dimarco morgan on the final goodbye to america's mager -- maverick. >> reporter: on sunday, the arizona republican was laid to rest and applauded at his home on motter. his burial follows a week of national mourning for the presidential can

. >>> j.p. morgan chase ceo jamie dimon said today the trade seissues could get wrom here, but it's still unclear if they will have a drag onow economic . >> i worry about it and i just don't know. i think china has been very predictable in retaliation and i think the market kind of expected a tit-for-tat retaliation. i think we're expecting nafta to get done. it could get worse from here. we really don't know. i hope they sit down and have ration conversations. >> dimon added that the economy will continue to grow at the current rate of 3%. comments in philadelphia where they're opening new bank branches even as other banks are clo.ng th >>> the u.s. and skroouth korea signed a new trade deal. the president said it was long and coming and called it an, ot historic milestone. they'll get better access to the south korean market and sets an example for other trade markets. they are still in an explore ra torr ri phase. the european trade negotiator said deal negotiations have n started yet, both sides a

j.p. morganthing we haven't seen in this country for 50 years plus, casino stocks falling today despite a big month. atat is sending the stocks lor?th's coming up on "power lunch. ♪ ♪ ♪ each day, brings new possibilities. that's why you need a partner dedicated to helping your company reach its goals. u.s. bank -- the power of possible. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. >> cnbc.com hugh song has dramatic predictions >> big dramatic. somewhat bearish look, he has been known as the -- >> marco has been known as the man who can move markets, and something that he has been seeing in the markets the past couple of years is really bothering him, which is what happened e what happens when trading -- when trading declines and liquidity falls away right? we have these sharp, sharp crashes. he is basically predicting that when -- you know,

two months later on march sixteenth bear stearns was bought by rival j.p. morgan with cash barred from the fed it had been the fifth largest investment bank in the united states. on september sixth the federal takeover of us government sponsored mortgage lenders fannie mae and freddie mac. . a little over a week later another low wind u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. because we're telling savers that their deposits are safe the show isn't an attempt to avoid a run on the banks. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contract by almost three percent and the german economy shrunk by five percent. and for more on that i'm joined now by my colleague last hired to who

traditional banks among those involved in what is called the inner bank information network are j.p. morgan chase society general and santander the royal bank of canada and the australia new zealand big zoo here discusses our friend and crypto in finance expert christy are the co-founder of counterpart x. christy welcome back so we haven't had you for a few weeks so it's great to see you think you're ok so let's get right into this one i mean what's going on with what the banks are doing you and i have talked about this before not not on the program but they've been looking at sort of the at least more than a year right we're trying to do here so they've been looking at this for the last eleven months to see if they're blocking technology could truly process the payment process a much faster than a nonstandard banking transaction so what they're doing right now is that they're trying to see if a mutually shared ledger that's shared amongst banks could potentially speed up payments that have issues such as a missing data says client confidentiality issues they're trying to see if with this l

thank you, j.p. morgan chase and mike kimball, who i think is here with us tonight. [applause] >> so next on our agenda, we're going to cut this ribbon, and after that, we invite you to explore the building. you can go back that way, you can go down, you can go up, and we'll have staff that are wearing compass name tags that are scattered throughout the building who can give you more information throughout the programs and the services we offer here and answer any questions, and then we've got refreshments on the second floor in the conference room. so thank you again for celebrating this and it's time to end family homelessness in san francisco. thank you. [appla happy new year, everybody. i love the fact that we are doing a tournament here at the center. when i was in eighth grade i played on a basketball teechl. team. i have to admit i wasn't very good at it. i always aspired to be an nba player. regardless of playing in college or nba, i expect many of you have be leading us because of the leadership skills you are learning on >> president brandon: meeting called

you believe at j.p. morgan should cut stocks. they think u.s. assets are in a "sugar high," and that is about to come to an end. shery: the longest ball cycle in history. -- bull cycle in history. we chart the emerging markets hawks and currencies that are eking out gains. despite these escalating tensions, asian-pacific equities look set to extend the rally. this is bloomberg. ♪ haidi: "daybreak asia this is." i am haidi stroud-watts -- this is "daybreak asia." i am haidi stroud-watts. shery: the latest tensions in the u.s. china trade war. let's get inside with george schultze, the founder and ceo. great to have you with us. let's get started with these trade tensions. right now, we only have more and more uncertainty. will the markets be better off than before this all caps started? -- got started? george: eventually, they will have a deal where there will be a negotiated solution. it might take longer than people were expecting. the latest tit-for-tat on tariffs seems to make it that we are going in that direction, so -- shery: how positive

jessica: j.p. morgan take generation before taxpayers are forgive big banks. he said washington did the right avoid a great depression but it could take that.or people to accept he said tariffs are the wrong way to go. argentinian president mauricio told bloomberg there is zero chance of default giving theinuing support from i.m.f. and others and said a new deal with the fund should be should bolster consumer confidence. debt has haunted 2001 following another i.m.f. loan. >> the level of support we are countries,rom other especially the united states of america, and the level of commitment from my government citizens, with this new rate, a very competitive exchange rate, so we our foreigng accounts. the weekendn said opic meeting in algers says there is little support for trump and u.s. sanctions, saying they would needs.o market iranian oile due to in november as the white house bring exports down to zero. promise andn empty threat that is empty of credibility, perhaps on this path we will sustain certa

citigroup, j.p. morgan, morgan stanley, goldman sachs with big moves, 3%, 3.5% basically all day.s move and what might come next. this sector has been asleep all year a lot of people loved it coming in what do the fundamentals tell you about this potential breakout >> we still love the sector. people have forgotten about it, as you mentioned let's take the macro reasons first. tax reform has barely started to take effect. there is more of a favorable regulatory environment for these companies. but more so fundamentally, priced to earnings ratios are low. they're making more money. they'll continue to make money but the main reason we really like this sector, we believe we're in the middle of a technological revolution and the banking and technology sector are more aligned than ever so they're just going to continue to make money alongside technology we're along the space for the foreseeable future. >> all right so maybe they're not going to be disrupted as much as some people think by technology. stacy, what are the options market telling you about the positioning in these stocks?

j.p. morgan says cut u.s. stocks and by emerging markets. the latest analysis saying the sugar high from tax cuts will fade. david: welcome to "bloomberg daybreak." story to say that danske captures your imagination. they put six times the gross national product of estonia through the bank. alix: i understand you want to resign as ceo. he can't be the only human responsible. where is the board? david: and are there other banks with an estonian problem? alix: good point. an interesting dynamic playing out. higher global yields, yet global equities seen resilient, and the dollar goes nowhere. equity futures are basically flat. -dollar higher. i weaker dollar story despite 10 year yields at the highest level since may. crude pretty much flat. of the be the dynamic currency market and yield dynamic and how that filters through the equities for me. david: yields went up, but the u.s. currency did it. alix: are we back to global synchronize growth? is that now the narrative? david: be still my heart. let's get an update from taylor riggs with firs

spoke to -- book to bloomberg and it was an explosive interview. 2008, stearns were filled up by j.p. morgannd it was after that that we started thinking about what would be the next shoe to fall. and then fannie, freddie, and aig happened. in some ways we should have been prepared, but i don't think anyone was prepared for the devastation that hit the morning after the bankruptcy of lehman brothers and the chaos in the market. and people don't understand the interconnectedness of what banks were lending to each other, do we now fully understand it 10 years on? >> you are correct that we didn't understand completely, and i think that's a much better understanding today. banks are safer and sounder. to say we understand the complexity and the big interconnectedness would be optimistic. >> at the time we should has been the vulnerabilities, what do you think is vulnerable now that regulators are missing? we realizedmoment there was a problem, this thing just big goal -- the single biggest issue was too big to fail. how can we be sure that we never intoto put public money banks, or other financ

thank you, j.p. morgan chase and mike kimball, who i think is here with us tonight. [applause] >> so next on our agenda, we're going to cut this ribbon, and after that, we invite you to explore the building. you can go back that way, you can go down, you can go up, and we'll have staff that are wearing compass name tags that are scattered throughout the building who can give you more information throughout the programs and the services we offer here and answer any questions, and then we've got refreshments on the second floor in the conference room. so thank you again for celebrating this and it's time to end family homelessness in san francisco. thank you. [appla five, four, three, two, sustainability mission, even though the bikes are very minimal energy use. it still matters where the energy comes from and also part of the mission in sustainability is how we run everything, run our business. so having the lights come on with clean energy is important to us as well. we heard about cleanpowersf and learned they had commercial rates and signed up for that. it was sup

kevin: amid -- emma: j.p. morgant to $10, street low, revisions have all been downwards, underweight for stocks since 2016. consensus among analysts, it has been down. we have a chart, you can see, the white line, the stock has followed analysts lower. jpmorgan is saying this downgrain is prompted by the failure of the eight grain turbine blade, one of the products within the power division. jpmorgan is saying that indicates revenues will be lower than estimates. if you look at the share of operating income, that has been true in terms of the power segment of ge. vonnie: the first thing i look at in the catalog. this is bloomberg. ♪ ♪ vonnie: 11 a.m. in new york and 11 p.m. in hong kong. from new york, i'm vonnie quinn. julie: i'm julie hyman. this is the "european close," on "bloomberg markets,." vonnie: the top stories covering around the world. the battle for control of sky nears a dramatic conclusion. fox and comcast go head-to-head in a one-day auction for the satellite carrier. continues after yesterday. works

history, j.p. morgan, designed the federal reserve. it loans out the money at 1% or it is rest, that's where now, to lending banks, goldman sachs, jpmorgan, bank of america, and then they lend out at a higher rate of interest, making a profit from the difference, to ordinary people like you or to businesses. more often than not, they will use that money created and lend it to hedge funds, futures, derivatives. it is a very important institution. a cornerstone of the current day banking system, of the currency. if you look very closely at a one dollar bill, it doesn't say u.s. treasury note at the top. it says federal reserve note. same if you look any five dollar bill or $10 bill or $20 bill. look at that. there he is. andrew jackson himself. that's strange. what is he doing on that bill? call me crazy, but that almost looks intentional. am i right? almost like a gotcha, we win. like if you are a big game hunter and kill some game, you take that head and mount it on a wall as a trophy. or maybe i'm wrong, maybe they just forgot that ja

. >> but then j.p. morgan chase boss jamie dimon did a quick about-face. jarvis. >> in a conversation about j.p. morgan's advancing city initiative, which will invest $500 million into u.s. communities over the next five years, i asked ceo jamie dimon about a potential presidential run and this is what he told me. >> why not throw your hat in the ring, jamie? >> i said this before trump was elected, you're not going to get a wealthy new yorker elected president. boy you can i was dead wrong. by the way, this wealthy new yorker actually earned his money. it wasn't a gift from daddy and i grew up in a poor part of queens than he did. i am a banker. i am part of the elite. i don't think the american public looks at trump as part of the elite. they look at him as the upstart who punches the elites in the nose every day. i'm as tough as he is. i'm smarter than he is. i would be fine. he can punch me all he wants, it wouldn't work, i'd fight right back. the democratic party, they've got to get their act together in terms of understanding how society actually wor

in easter of 2008, -- was acquired by j.p. morgan and it was soon after that when we started thinking about what be the next shoe to fall. fannie and freddie and aig all happened. in some ways, we should have been prepared but i don't think anyone in the world was prepared for the devastation that hit the morning after the bankruptcy of lehman brothers and the chaos in the markets. >> this is because people didn't understand the interconnectedness of what banks were lending to each other. do we now fully understand it 10 years on? >> it is absolutely correct we didn't understand completely the interconnectedness. there is a better understanding today. banks are safer and sounder, but to say we understand all the complexity of the interconnectedness would probably be a bit optimistic. >> we felt this is unlikely to happen. we thought at the last minute, the u.s. government would jump in. i was traveling from zurich to frankfurt when i got a phone call from our u.s. head telling me it is over and that was really the worst-case outcome.

we had j.p. morganover strategynd and say factoring in a space three of these trade wars, in the event tariffs are imposed on all chinese goods, which will keep the chinese economy and especially the u.s. stock market . with china and japan out today, it is going to be fairly limited. zoom in ons australia, greatly affected by the u.s.-china trade war. the s&p has raised its outlook, now stable. give us a look why they have this vote of confidence on australia. andreea: that is right. on friday they raised the to stable. stable -- what it says it is confident the budget will return to surplus. most importantly that the nation will avoid a property crisis. we have got a chart from the gtv library showing the decline in sydney property prices. another thing, it is not rattled by the revolving door of prime minister's we have seen in australia. we believe both sides are committed to returning the budget to surplus. and the assessment is very much in line with that of the central bank, the reserve bank of a

j.p. morgan's jamie dimon.dow is up 55 and s&p almost give so, they say that ai is the building block of the future. super. but today you're building wind turbines. morning sir. chief, the blade isn't passing quality gate. that's why you work with watson. i detect frictional loss on the midspan. it can detect the tiniest defects from just a few images to help production stay on time and on budget. i optimized the fiberglass finish to reduce frictional loss and maximize airflow. i was also part of the maximizing. for ai that can do more with your data, choose watson. hello. the best ai for the job. dow stock and it could be the beginning of an even bigger run. find out why on tradingnation.cnbc.com more "squawk on the street" is coming up. ♪ ♪ i don't care where we go ♪ and i don't care what we do ♪ just take me with you there are roadside attractions. and then there's our world-famous on-road attraction. the 2019 glc. lease the glc300 for just $469 a month at your local mercedes-benz dealer. mercedes-benz. the

european stocks drop after asian years head toward a one low after j.p. morgan warned of contagion. how much further do em was have to go -- woes have to go? the yen snapped a four-game four-day losing thatk amid concerns president trump will impose tariffs on china as soon as today. theresa may threatens to go hard on russia over the poisoning of the double agent, but europe is said to drop key brexit demands. this is the european open. i am matt miller in berlin. riksbank headlines coming across the terminal. rate left unchanged at 0.5%. euro swedish krona, and the krona is the worst-performing g10 currency. you can see the spike there in the euro. the krona is weakening against the euro further. we are now 31 minutes into the trading day. going onok at what is in the session as far as stocks. the biggest winners and losers in terms of percentage gains. safran is the biggest gainer after earnings beat expectations. melrose industries is rising. a good day for ex dividend stocks. losers, at at the least a dozen stocks going ex dividend today. they do weigh on t