j.p. morgan, goldman. the reaction is a question mark. yields taking higher -- ticking higher. today is also about coin base and when we will see a trade, what it will do, and all of that wrapped up into bitcoin, hitting another record high of .8%. if anything starts to trade, we will bring that to you, but it is not expected to until later. deeper into bank earnings and what we got. sonali is here. what are the key takeaways? >> the number one thing is investment banking was gangbusters and will continue to be a stand out the coming quarters. we have j.p. morgan saying its pipeline is still very robust and goldman saying they are at record levels at the end of this quarter. ipos also a standout and debt underwriting held up well with the banks highlighting different areas like leveraged lending, asset-based lending, that they could capitalize on. where are the pain points? consumer banking, no surprise. loan demand has been tepid. this has been a continuation of many quarters of a trend, but now

is j.p. morgan all the way down the 1st headline former j.p. morgan banker gets finra 5 bam after bilking his wealthy grandmother a former j.p. morgan financial advisor has been barred from the industry after being accused of trading his grandmother's assets without her knowledge so federal banned him and he had apparently put $80000000.00 of her pension or her retirement savings into. private equity sort of funds where he was collecting more at a fee of course his his cut she did cade the trade which is means declines knowledge decline stollen so this is something as a broker you don't want to see on your desk a memo saying your client d. ks this trade so she dk the trade and she went to court and she want to settlement which is very very rare because typically when you sign onto a new account form you go to arbitration which is staffed by a panel of brokers and bankers and very very few dollars are clawed back from this type of scandal and the but there was so egregious and so rotten that this grandmother finally did get some money back but yo

and certainly banks like wells fargo, j.p. morgan chase, several international banks were very interested in the franchise of washington mutual. so we said before we finalize raising the capitol we should check with all the parties and see if there's something better for the shareholders that we should consider right then. and we went through that process there is nothing, no one put up a price and an approach that they felt was good and the best long-term interest of the shareholders appeared we were particularly concerned in the case of j.p. morgan chase they never submitted a formal bid. they just gave kind of an informal indication of interest. and then only subsequently said it's time to raise new capitol, we did that. they continued to talk to investors and say they wanted to find a way to still try to do something with washington mutual. and they started talking to regulators, to treasury and others to express their interest that they would love to somehow get a deal done with washington mutual. >> so one of the things you arg

j.p. morgan's chief strategist says. aaron ward said in an online presentation this week that j.p. morgan estimates americans have built up extra savings worth around 8 percent of u.s. g.d.p. during the coded $1000.00 pandemic when their spending options have been limited ward a former top economic adviser to the u.k. finance ministry said she thought most of this would be unleashed on a spending spree when combined with joe biden's $1.00 trillion dollar stimulus bill worth around 9 percent of g.d.p. that is likely to push inflation higher she said as you point out that's not those aren't wages that's income so income through transfer payments yes or money fronting yeah because the economy died in 2008 and it's being kept animated like you and adam made a corpse with electric shocks with money printing and this is causing bubbles so used car prices are in a bubble not because wages are growing and that there's inflation of there's g.d.p. growth and there's any hope of paying down the national debt those hopes have been dashed to stop we're going to happen but we do have these bubble

is j.p. morgan all the way down the 1st headline former j.p. morgan banker gets finra bam after bilking his wealthy grandmother a former j.p. morgan financial advisor has been barred from the industry after being accused of trading his grandmother's assets without her knowledge so federal banned him and he had apparently put $80000000.00 5 of her pension or her retirement savings into. private equity sort of funds where he was collecting more at a fee of course his his cut she did cade the trade which is means declines knowledge to climb stollen so this is something as a broker you don't want to see on your desk a memo saying your client d. ks this trade so she dk the trade and she went to court and she want to settlement which is very very rare because typically when you sign onto a new account form you go to arbitration which is staffed by a panel of brokers and bankers and very very few dollars are clawed back from this type of scandal and the but there was so egregious and so rotten that this grandmother finally did get some money back but y

and j.p. morgan and banks in general are filled with people like this who will literally built their grandmother rather than not get their christmas bonus so we're going to look at some data you know when i saw a lot of people tweeting that story. it's a recent story so it made me think of what lynn alton who is a financial analyst was recently looking at terms of macro economics and the situation in america whereby you know we have a problem with the voters the deplorable people in this country who keep on voting for a populist you know sort of politicians that they want well here's the data she points to to say well perhaps we need to address these issues and that might get rid of the need for a populist you know politicians over the past couple decades the u.s. labor share of g.d.p. has decreased to being well below trend while u.s. corporate profits as a percentage of g.d.p. have increased to being above trend so here those 2 trends labor share. as you see has plunged since 1952 all time lows dur

is j.p. morgan all the way down the 1st headline former j.p. morgan banker gets finra bam after bilking his wealthy grandmother a former j.p. morgan financial advisor has been barred from the industry after being accused of trading his grandmother's assets without her knowledge so federal banned him and he had a parent.

>> we know j.p. morgan serves so many american households. j.p. morgan in their first parts of this letter, jamie dimon had gone into that specific role and what they mean in a household and community. with home depot they talk about if you start a small business you sweep the floor in front of the building so nobody swayed -- slips on ice. you take care of your community. a lot of that is in this letter. i read it as a call for banks and other parts of the business community to stick with the economy, to stick with parts of the country that are still very much in need as we start to come out of this, because it's not over. sonali basak -- tom: sonali basak on the 66 page letter from jamie dimon. from rbc capital markets and their equity derivative strategist. i want to get technical here away from the basic equity block and tackle. what is the distinction in the derivative space right now if you look out over the four cross moments of variances, the skew, if you look at the nitty-gritty of derivatives, what does it signal about the latest bull mar

earnings and america start wednesday from j.p. morgan.s is "bloomberg surveillance ." ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. jonathan: from new york city, this is "bloomberg surveillance ." check on the price action this monday morning. s&p 500 futures down a little bit, off by 2/10 of 1%. the nasdaq off by 1/3 of 1%. the russell down on the week, off by almost 0.5 of 1%. michael wilson talking about the underperformance of the russell compared to the s&p 500. since small caps pete last week, eight points of underperformance. the bond market, 2's, 10's, 30's, it is not just about cpi's tomorrow, it is about retail sales thursday. bank of america looking for 11.5% month

investment bank j.p. morgan if there is interest by these kind of players these financial institutions it means there is. a potential for a bright future you way for the governing body of european football has reacted with fury one top member says he thinks 3 of the 4 clubs in the champions league semifinals next week will be banned for their roles in the super league. yes referred to chelsea manchester city and real madrid saying the clubs must go and i expect that to happen friday then we have to find out how to finish this champions league tournament. us and the footballing world stand united against these graceful self-serving proposals we have seen in the last 24 hours from a select few clubs in europe. outside of anfield stadium super league club liverpool's own fans showed their disdain for the super league which their heroes are now part of a sentiment shared by fans of super league clubs elsewhere in europe. the dignity of the european football is about its diversity and what we're seeing now is the con

j.p. morgan ceo going all in on america in annual 66 page letter to shareholders, we got your back, here's the "fast money" clipnotes version of the letter. he says market valuations are high but justified due to excess saving deficit spending and strong economic growth. banks are playing smaller rose in financial system thanks to the rise of fin tech and china is on the rise america should get ready for it. bottom line, it's boom time in the old usa. so is he right guy, what do you say >> well, it's interesting. i didn't read the 66 pages i'm a cliff notes guy, as you can imagine. i'm sure you frowned on people like me in college, mel. tim's saying the same thing i've said literally in the last year that it's all come to fruition is only the horizon, it appears that way, looking at the economic numbers coming out you see the euphoria and optimism in the market and other areas. a lot of what he says makes sense. i think valuations are st stretched. he's not concerned he's ahead in j.p. morgan so

liz: speaking of j.p. morganou hear this there is a center of what could be the biggest shakeup ever for european soccer and has shares of the biggest publicly traded in high gear, the spectacular off field move that you need to see in the new goals for your portfolio. closing bell ringing 37 minutes from now and we are looking at a red market on the screen, the nasdaq down 1.1%. ♪ ors into this chip whoo! yeah! oh, hi i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq my name is douglas. i'm a writer/director can i hold the chip? and i'm still working. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen.

we have solid earnings from j.p. morgan yesterday. reason to cheer when it came to what jp morgan was reporting. still, shares dropped. why? >> i am hearing two schools of thought. one is the margin's fickle expectations were high. the other one has to do with sort of what wells fargo cfo was talking about there. that is the loan growth. consumers that not only paid off their loans but aren't taking new ones typically it does not bode well for future earnings. jamie dimon says this means we have a healthy consumer. they are able to pay off their debts and they don't need more. none of this applies to goldman sachs. rallying to percent with a monster quarter thanks to their investment bank my thanks to trading. the ceo talked about this on the call yesterday. >> result underscore the supportive environment in which we operated. we delivered the best performances and global markets in a decade driven by solid client activity across our platform reinforced by last year's market share gains. we maintained a resilient balance sheet as we co

investment bank j.p. morganorganizers estimate revenue of over $10000000000.00 euros annually significantly higher than current european torm tournament and the super league is also promising a massive front cash injection for clubs for instance infrastructure investment hefty $3500000000.00 euros so some big money involved let's cross now to our correspondent in new york court because this whole thing is being bankrolled by j.p. morgan a u.s. investment bank yes why are they behind the project. well i mean it's a big deal to begin with it might be the biggest sport financing deal of the year and then j.p. morgan they have quite some experience in the world of sports a way back they helped their glazer family an american family to buy mencia stay united later they also helped them to bring that company here on the floor of the new york stock exchange they also advised them other teams when they got to buy it for especially in italy for example they also helped to raise funds for real madrid to refurbish the bin

when you look at j.p. morgan chase and back of america, their franchises in the united states have returns on equities of over 30%. citi cannot match those numbers, so citi will have to take a look at how we get bigger in the u.s. jonathan: we asked this question of sonali, and you can answer it a little more aggressively, i imagine, because he read bloomberg, we have to be double medic. do you see -- have to be diplomatic. do you see a difference between mr. corbat and jane fraser? gerard: absolutely. we expect new guidelines on targeted return numbers, what they expect to be able to achieve with these strategic changes. citi has a lot of work to do, a lot of heavy lifting, but with the new leadership under jane fraser, i acting there ash i think they are going to be able to accomplish new and better numbers for shareholders -- i think they are going to be able to accomplish new and better numbers for shareholders. lisa: in the market, who is winning? gerard: it looks like so far, goldman sachs came out on top i

let's start with why bank stocks fell, despite the fact that citigroup, j.p. morganll reported predictions of a post pandemic economic boom. su: investors appear concerned about week loan demand and what that could be saying about the economy, but they cannot deny the fact that citi and bank of america joined j.p. morgan and wells fargo in blowing away expectations for the quarter. they also joined the heads of those banks in seeing good things ahead for the economy. citigroup's ceo says this is the healthiest we have seen the consumer emerge from a crisis in recent history. quickly to the trading revenue, fixed income trading came in at $6.4 billion. fees from underwriting quadrupled, helped by citi's dominance in the white-hot stock market. even as net interest income declined and loan demand was acknowledged as tepid, they beat on almost every measure. bank of america also reported record revenue on that spac craze. rishaad: tell us a little bit about citi's retailing changes. you have ceo's testifying. can you answer all that in a minute? su: i'll try. the ceo ex

goldman sachs, j.p. morgan, they are involved. morgan stanley has been involved with most of them in the past. the player that's not as deeply entrenched in this process since it's on nasdaq rather than the stock exchange is said all securities. they are designated market maker for the last major direct listing in this scenario. nasdaq does a lot of price discovery on their own with the banks. >> do direct listings always take this long? typically an ipo would take a half hour or 45 minutes on the long side. i was there for a number of them. we see ipo's drag on. facebook was fairly disasters on the nasdaq but that did not take this long. it was just the size and the style. sonali: it takes longer to list direct listing on an exchange i say don't wear heels when you go to new york stock exchange. everything i would have happened over weeks is now happening in real time. some has been happening in the last couple of weeks while banks and others try to get a sense of what investors are going to do. but at the end of the day, when you

that's mack boss, manager of department stores and j.p. morgan i hope you heard what i heard, there is much more ahead for retail, the consumer, the stores, the theories i like it. "mad money" is back after the break. >> announcer: coming up, do your homework drink responsibly and make "mad money" we break down what just worked for a star in the constellation of cramer favs, next did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company. what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more in

stella gains at j.p. morgannd goldman had a lot to do with the reddit-fueled craze over gamestop, the fervor over spac's, and you had both banks and wells fargo releasing reserves for loans that never materialized. there had been a warning that the good times could not last. it looks like profits were outsized, surprising everyone. however, j.p. morgan did report that loans were down 4%, a 14% decline in credit card loans. wells fargo also root -- also reported a slump. that has raised concerns. you did see j.p. morgan stocks go lower. concerns about what this means about loan demand going forward. although the banks tried to put a positive spin on it, that there is pent-up demand that will probably pick up in the second half. back to you. rishaad: thank you. next, richard byworth on all things crypto and the coinbase ipo. ♪ ♪ >> when people called cryptocurrencies, they are really the vehicle for speculations. nobody is using them for payments. it's a little bit like gold. >> this is volatility that will be uns

this is going to be relevant to have j.p. morgan and goldman sachs and wells fargo indicate what their future prospects are. tom: i don't agree. jonathan: i don't know what's going on with either of you. tom: j.p. morgan and goldman sachs, which one measures you the most. jonathan: let's go straight to the price action. equity futures like like this. up around three points. there's a big picture of me, hopefully we can get to the price action. tom: your entourage put that in. jonathan: can we just start again. [laughter] is everyone with us today. is tom sober? bond yields are higher by a couple of basis points. lisa: today we are expecting earnings. let's talk about j.p. morgan kicking off earnings and ash in about 45 minutes time. then we will be getting goldman sachs and wells fargo. this will kick off the whole week. people will be looking to the dealmakers. really saying goldman sachs could stand to benefit the most from that surge in enemy. jay powell going to be speaking along with a host of other fed speakers. speaking with

octavio: i think there was expectations j.p. morgan was doing quite well. they did better than expectations. i'm not sure what will happen. markets behave that way. it is unclear what happened. they should have been rewarded much better than they were. who knows why that happens. just markets behave that way sometimes. alix: i love when that is the answer. markets are weird some time. what some might point to is the week loan growth. they have much more there than there actually having loan demand. how did you interpret that? octavio: that is something we've seen in all retail banks and will see into the u.s. as the results come out. simply u.s. consumers are not in the mood to borrow more money and standing on the sidelines. i will not spend too much money. we've seen deposits pour into banks. at the same time as loans have been soft and declining and deposits go through the roof, maybe people bring cash into there accounts and checking and savings accounts, that means the banks are sitting on a lot of cash they could be lending out but they cannot find pe

there's a story on the bloomberg talking about j.p. morganoldman sachs bringing people back to their london offices. there is something about face time. we are almost having facetime. tom: we don't have face time with ferro, but that is a different story. futures negative eight. stay with us. this is bloomberg. good morning. ♪ ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think ag

bank j.p. morgan. chinese leader xi jinping reiterated his calls for international cooperation and criticism before he grants one sided rulemaking speaking tuesday at the forum for asia a gathering of politicians business leaders and scholars organized by china he called for wider trade liberalization and criticised efforts to wall off local commerce. and so for me the doing business to squash. the fight against the corona virus pandemic. has the rate of infection in developing what does the latest research. information and contact the coronavirus update 19. on t w. do you feel worried about the planet. the truth. on the greens. and to me it's clear remains true. solutions are out there. join me for a deep dark green transformation for me. the coronavirus knows no borders similarly there's one group of people that manages to target more migrants. there at a higher risk of acquiring and dying from covert 19 dantes patchy and the reasons are diverse. today we cut through the prejudices and racism to see

brute force and some cases during that time he fails to mention of course that all his friends at j.p. morgan and other banks have been fined hundreds of millions of dollars well $1000000000.00 just at the end of 2020 j.p. morgan paid a $1000000000.00 fine from ministry late in precious metals prices whether or not that kept it down i hardly doubt it but in. certainly gas lip participants investors in that community when prices don't act as they should they believe but it's also like the equivalent of what we're talking about the hit donek adjustment so he selects a time frame and says look it's only our temper son of course if you scale back to when it was $250.00 back in 2003 so in 20 years it's up. 600 percent so it's you know that's the same thing that's equivalent to what central banks do is they try to reframe the move move the graph where where you're looking to to to make you feel like actually things are better. right joe is a bond bloomberg engage in pure softness tree. you know that says job. not unlike a lawyer for example might know their client guilty but their job is to engage

of all 6 of the english clubs that had originally signed up those plans are now dead the water j.p. morgan says that it will quote learn lessons from the experience. all right let's take a look now on the other business stories making headlines for. profits rise to 4400000000 euros in the 1st quarter that's thanks in part to high demand china has put thousands of its employees on a subsidized short time work program after being hit by the bottleneck in semiconductor supply. southwest airlines has become the 1st major u.s. airlines reported profit since the pandemic started federal aid boosted company revenues in the 1st quarter meanwhile american airlines reported a smaller than expected quarterly loss over airlines issued positive summer forecasts. over asia now south korea is one of a number of countries making pledges to tackle climate change at a today's summit hosted by the us seoul now says that will stop financing coal power projects abroad but the biggest investor in coal china has yet to follow suit thing. south career is one of the biggest finances of copeland's in the world behi

some people that are very optimistic about this to continue and i mean you had jamie diamond of j.p. morgan stating that he feels that this can go on for another 3 years you have the fed they're showing a good g.d.p. forecast and trying to keep interest rates low but at the same time i still feel like there's certainly some caution towards the tail end of the year because we already know inflation is starting to creep its ugly little head out there because gas prices are starting to go out i know we're seeing it at the grocery store so we just have to have a little bit of caution even though investors right now are in this crazy story as thinking that this could continue on and on but you have to have some caution because we have to balance that even though it might look good it's good for right now i mean continue for a while i don't know towards the tail end of the year so it's going to continue to go down this route and now kristie the big story on wall street obviously when there was coined by a shares they whipsawed thursday morning after it went public in that blockbuster direct with

monday ahead of big a bigger news week that kicks off wednesday with the likes of goldman sachs j.p. morgan and wells fargo what are we expecting from markets this week and these earnings. well the p s has just been revised up by 13 point one percent by fax which is the 2nd largest revision of since 2002 and there are reasons for that yields going up demigods going up the fact that they'll be able to do corporate buybacks but also there's the economic reasons for that as well because as people throughout the pandemic are saving money and paying down debt now the banks are expecting a tremendous surge in loan growth so any consumer spending expected out of the stimulus checks credit card debt as already gone up that's a 45 percent versus 23 percent in 2019 so again looking at the charts here and you're seeing all of this optimism about the bank earnings and the banks themselves going forward with the economy reopening reflected in the charts as they are now j.p. morgan your all time highs wells fargo's looks like it's about to take off all the banks look in good shape so unless there's some

been a lot of concern about the funding that is making this super league possible we're saying j.p. morgan chase is offering $4800000000.00 so with such a focus on propping up the most a lucrative teams here how much to the last valuable team stand to lose with this new alliance. yeah the real problem here i think for most fans is this would further entrench what is already a serious problem and competitive balance in in most leagues in europe for example if you look at spain pretty much every year the title races down to one of 3 teams of the other 17 are just playing for 4 place in any given time. this league would do is it would take those 3 teams who are even more money into those $3.00 elite teams make it even less likely for any other team to be able to make it into that crack into battle elite 3 but also have to believe this would happen well so it would exacerbate what are already significant financial lot of differences between the top teams and the little teams and make it even worse than it already is and saying only the elite teams that would be included weren't mad about it at