coming up, an interview with james gorman and david solomon.ll here on bloomberg tv and on bloomberg radio. market check? equities, bonds, fx. equities firmer by a quarter of 1% on the s&p 500. tom: sterling up three days in a row, nice lift over 1.30. with mr. draghi coming up, watch the weaker euro. jonathan: fx ahead of the decision. later we hear from mario draghi. the euro weaker after soft pmi's. 1.1350. treasuries up. 72% on the u.s. 10 year. this is bloomberg. ♪ >> this is bloomberg surveillance in new york. we are expecting the ecb announcement and we will bring you details when we get them in 20 minutes. another stock moving ahead of the u.s. open. taylor: all about the airlines. american airlines not coming out with numbers yet. we got numbers from southwest and jetblue. southwest higher, earnings-per-share beat after corporate bookings arising. they are forecasting revenue for available seats, mile rising to 4.5% this quarter exceeding forecast from delta and united. so far, january, revenue is $15 million hurt by the government shu

james gorman looking to grow his $463 billion investment management division.his comes after the company posted their worst result in three years care for more, let's welcome one anyone. great to have you back. we have seen morgan stanley plunging 30%. how does this stock up -- snuck up? >> this was the worst result we got on the entire street. that is saying something. we already entered this week of earnings expecting that fixed trading would do well -- terribly after the market volatility we saw in december. as you mentioned, james gorman is also talking about interest in getting involved in some asset management deals here and there. not huge megadeals but a few to add on to his investment management group. course, we can forgive him for turning attention to that division because it tends to be the one investors are most interested in these days when it comes to financial services. how does morgan stanley asset management business stack up against its rivals? lananh: it sounds like gorman wants to add more because he sees that there are spots where the comp

when it comes it will come gently. >> james gorman, thank you, sir.s. that shows you a lot of times it doesn't happen -- expansions -- they don't -- it's not like night and day where you have 12 hours of light and 12 hours of -- there's a way of managing it. >> to be fair, it's also being parked relatively close to the fastest-growing economy in the world. i joked with the australian finance minister, if chile was where australia was and australia was where chile was and you had to pull that ore over the atlantic ocean, things might be different. >> we didn't ask your view on china >> china's $11 trillion growth is never slowing it could never maintain as it did in the double digit growth the latest reported figures were 6.4% china is slowing but mathematically it's going to slow in terms of absolute gdp growth, the u.s. and china account for 42% of global growth we didn't talk about it but the whole trade discussion has to take into account if you have a dislocation between 42% of global growth, you will have a slowdown for sure. >>> coming up, a lot

ceo james gorman saying the firm's results were impacted by a volatile global market environment.d frost who just spoke to the firm wilf >> i just spoke to the ceo and he described this as a, quote, messy quarter but great year overall. on the year point, record profit before tax, record revenues overall. he said it was the post-thanksgiving period that led to the various disappointments but the key thing we'll hear from the analyst call is they will risk rate their guidance and targets for the full year ahead and it was a particular five or six-week period and they hope it won't be repeated so on the fixed income trading performance that came in at $500 million despite the long-term target being $1 billion per quarter, saying that's been better going forward in january and indeed that they hope to reiterate that target going forward wealth management was a disappointment here and they said that clients' exposure to equities fell with that volatility they saw allocations to cash and cash-like securities go up to 3% or 4% higher than usual and most of that cash is still sitting on

james gorman did enter investors that quote - we do not believe the fourth quarter is the new normal. he talks about the volatility in the markets being a big issue. my next guest for reaction, rafferty capitol markets, dick, always a pleasure to see you. >> thank you, maria. >> assess the situation or a spear there always a lot of mixed stories how did you see it? >> i think we start to break it down product line by product line, it gets a lot easier to understand. i think the most important product a bank sells is its loans. loan volume is actually reasonably good in every one of the companies that reported in the past few days. so i think that if that is where the earnings come from for this industry, it is looking good.the capitol markets part of the industry did not well at all. particularly, bad was what happened with the trading of bonds and the underwriting. but you have to believe, given the amount of debt outstanding in the united states and in the world. we are talking about trillions and trillions of dollars. all the stuff is going to roll over, all of that has to be treat

but on the earnings coerence call today,ceo james gorman said the most recen quarter is not indicative of things to come. >> we do not believe the fou ih quarte a new normal. in fact, while it's early days, e first quarter has started on a similar path to the start of the first quarter of 2018. >> but shares of morgan stanley did fall 4% in today's session. >>>se ere, the state department today recalled most of its furloughed a workers said it is taking steps to pay salaries despite the partial government shutdown. ther agencies have also recalled some of their workers as well, but without pay. and they did so by expanding the definition of essential servntes. sa brewer has more on that from hackettstown, new jersey tonight. >> reporter: after 27 days of a partial government dosh, the doors of the farm service agency opened once again, but for three da the fsa provides crop insurance and serves as a lender of last row sort for farmers on the brink of going belly up. farmers like georgefetzer. >> i lost $40,000 retail. for sll guy like me, i can't afford that. and all i wantedas to do g

james gorman up next. comcast business built the nation's largest gig-speed network.ng down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. jonathan: live from the economic forum in davos, this is bloomberg surveillance, alongside tom keene, i'm jonathan ferro. tom: are we on speaking terms? ok. jonathan: you are not excited? tom: i am excited. pretending we are still on speaking terms. jonathan: we get along. tom: we have mario draghi in this hour. the conversation coming up, including gold

we will be live at davos speaking with morgan stanley ceo james gorman, david sullivan, and spain's economyn exclusive interview with priscilla chan. the chan-bloomberg initiative cofounder. 9:00 a.m. if you are watching in sydney, 5:00 p.m. if you are in new york. that is it for "bloomberg markets: asia." this is bloomberg. ♪ selina: i'm selina wang in san francisco and this is "bloomberg technology." coming up, tesla shares stumbled -- the carmaker announces it is cutting back on the production of the model x. will profitability once again come under pressure for the company? plus, uber makes a splash at the world economic forum in davos, giving new details about the self-driving car units. we will bring you the highlights of our c

ring so i'm concerned that the month of december was aberrant but not because of anything that james gorman it was aberrant because people were afraid everywhere what this tells me, it wasn't just hedge funds it was kind of everyone who had wealth >> people pulled back. >> now we have 800,000 people living paycheck to paycheck. >> well, not getting a paycheck at all. >> paycheck to not paycheck. >> the statistic that 400 bucks would break a lot of families. >> 40% don't have 400 in emergency savings. >> these are people who are not watching our show because they're busy working we have the high end obviously frozen in december po powell powell. then we have this group of 800,000 people and the ripple effect these people aren't going out to dinner they're not going to olive garden they're not going anywhere. >> they're not. >> they're eating velveeta >> the number of federal employees that did file doubled, 10,000 federal workers filed for first time benefits. >> powell's dialogue is like this i don't see any weakness, but others do. the moment he sees weakness, you've got to fie bye this ma

it was not the morgan stanley of james gorman. how did you talk your way into morgan stanley?i don't know. how today get a job with all those working kids? that's all those wharton -- all those wharton kids? [laughter] people, 75 partners. it was a really amazing time. a lot of partnerships die as we try to bring forward to general atlantic. they were terrific leaders and partners. jonathan: let's talk about what's changed since then for your world right now. i want to talk about the ability to exit, bring in a company from a private situation. has the incentive changed over the last couple of years? there's an argument that maybe these companies can stay thriving for longer, that they don't need to -- stay private for longer, that they don't need to go public. guest: there's so much private capital in the world that large-scale cap raising allowed buddies to stay private without having to go public to raise the money they needed to grow. that was a fundamental shift. that allowed companies to stay private longer. i think the pendulum went too far. i think there's discipline a

just going to circle back to this commentary about, you know, recession coming the other thing james gorman said this morning was that his native australia hasn't had a recession in 25 years. so the idea we're so close to dawn or whatever that metaphor was, what happens if this cycle keeps going? >> the market keeps going, however, we've got 3500, two or three years now. there's no reason. the only thing that really caused a recession right now is the fed making a mistake the underlying, other indicators we look at that, you know, typically incoming recessions, they're just not there and really, a recession is unlikely without a fed policy mistake the market was legitimately worried about that when powell talked about hiking until infinity, but he's, you know, walked that back substantially they're on hold until june and, you know, i really do think, as we get into the back half of the year, it's going to be more about, you know, maybe we've just been through a little soft patch called a down cycle. it's a new dawn coming and it's a new up cycle >> amanda, let me just, go ahead, finish your

i think that is what james gorman is can talk about today.ty to have a great franchise that you can grow in your bouncing that with a very volatile capital markets business. >> and do you expect a recession over the next two years. we look at the cfo survey. this is duke university. they are looking for a 49% chance of recession at the end of 2019. that number goes up to 92% in 2020. that got my attention. essentially then i come back to we need capital investment and that helps the large banks in terms of traditional lending. equity and debt underwriting or both down. you would expect that because taxi from changes in the they can't see the stock repurchase of. still head. banks in focus. we are waiting on morgan stanley earnings this morning. this is why voya helps reach today's goals... all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan, invest and protect kind of help... sorry, little paws, so. but have fun! . . . voy

looking ahead, ceo james gorman was on the earnings call and he said the tone starting in 2019 is somethinganged, something for the better, and he's looking at m and a. take a listen. >> there are a lot of spaces where we can add on. we are not suggesting we are about to do a megadeal in management. you and i and everybody else knows those are complicated. not all of those have been successful over time. reporter: he's also thinking about purchases in wealth management and asset management. he also said that he thinks q4 earnings were not a new normal. but what is something new at least in terms of a record is right behind me on the gtb terminal library. in terms of record profits, this is what we are talking about for the entire year for 2018. this is the breakdown for the six major banks. the biggest one for profits was in blue, j.p. morgan, $32 billion. $120 billion is this line. we've never been here before. hopefully in 2019 that folks are hoping to get there again. we saw a huge surge in volatility less corridor affecting french banks as well. could we see the impact on asian banks ne

but the ceo james gorman said -- >> we do not believe the fourth quarter is a new normal.n fact, while it is early days, the first quarter started on a similar path to the start of the fourth quarter of 2018 >> the main disappointment was wealth management, close to 50% of that business revenue $4.1 billion behind forecast of $4.5 billion and the much watched pbt margin 24.4%. analysts were looking for 26.5%. but gorman reiterated 2019 full year targets here he is addressing client behavior in light of the recent market volatility. >> declines, move more money into cash, the answer is absolutely deposit numbers go up, cash levels are -- i don't want to say historic highs, but i don't have the full history, but as long as i've been doing this business, which is almost 30 years, these cash levels are high and people are sitting on the sideline number two, declines pull assets out during the financial crisis, i think we lost 2.5% of our client assets during the financial crisis and that was, you know, very, very, very different world from where we have been in with a little m

say that q4 could be relatively challenging for the capital markets business >> if you talk to james gormany and carries a large buyback stick. he's just sitting there buying back stock and buying back stock, taking advantage of the fact that unlike a lot of other companies that bought back stock at 20 and 30 times earnings, he's buying back stock at a discount that is extraordinary the banks, again, i don't think people realize how low little we're paying for re good franchises, because this quarter is one that has been impeded by the fed and by the turmoil in china that has made people more paralyzed. i think that a lot of people, just like micron, micron is a good example i know you typically don't analogize micron and morgan stanley, these are two very low multiple stocks that make a ton of sense to own. but you have to rep this quarter. i don't know how many people can weather a quarter. i think they should. don't know how many will beyond today, tomorrow, that kind of thing. >> yeah. listen, saying that the fourth quarter was not a good one from the capital markets perspective is an u

> people may look, they hope people will look past it >> what do you think about the fact that james gorman, never gets talked about. >> let's talk about him. >> he's done a great job >> yeah. >> that gorman, really good job. >> how about micron couldcoming western digital being down. >> i congratulate him. i look at tech to see who is coming back down it is all the companies that have inventory in their system, micron, western digital, people saying, don't jump the gun. >> dividend could be a risk at western digital as they cut it to sell. >> stock at $100 when they were going to buy, remember, they were going to -- toshiba, make -- >> yes, i do i remember it well. >> flash and disc drives and disc drives -- flash is down a lot. disc drives are seemingly old technology it is important to recognize that if they don't cut the dividend, wow, what an income, we know that when a dividend is that big, red flag, red flag, red flag >> take their target to 30 from 35 >> yeah. >> gorman very good. >> dow is down 137 to bob pisani. hey, bob >> advancing stocks it has been improving just in the last t

bank of america, steve swartzman of blackstone, ray delio, michael dell of dell technologies, james gormanuesday at 6:00 a.m. eastern time right here on cnbc. it's absolute confidence in 30,000 precision parts. or it isn't. it's inspected by mercedes-benz factory-trained technicians. or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned, or it isn't. the mercedes-benz certified pre-owned sales event. now through february 28th. only at your authorized mercedes-benz dealer. >>> want to wish everybody a good weekend and happy martin luther king day. we will not be here on monday. markets are closed and so is cnbc great having you here today. great to see you we will see you, though, tuesday, from the world economic forum in davos, switzerland. lots of big guests coming up big shows, tuesday, wednesday and thursday from the world economic forum in davos next week have a great weekend we'll see you next week. ♪ >>> deal or no deal. ringing in the opening bell at the nyse good friday morning. welcome to "

james will pick up what gorman said, the talked about the united states, not about what is happeninge in europe. mario draghi said it is growing a little bit earlier on. let's talk a little bit about draghi and put it in the context of what we're hearing from davos. first of all, what is your take? a look of the guys that we have been interviewing have been talking about the idea that the global economy is slowing, but not that much. yes, there is a little bit of a downbeat sentiment, but it is not that aggressive. is that what you tend to think as well? of thing what mario draghi was saying actually is the thing that people should be more worried about. yes, and maybe a lot of the slowdown we are seeing, one or things on their own, but they will not necessarily be all that much of a cause for concern, no matter where you are looking. it might be the u.s. versus china, it might be the u.s. shut down, it might be in europe, the problems with the call -- car companies getting their emissions sorted out. incrementally, though, that starts to have a knock on confidence. they can create a