but maybe more crucially for people seeing these headlines, this from james gorman, the ceo, he sayss to remain ceo for at least three years. the joke at j.p. morgan is the rolling five-year view of jamie dimon. it is another three years for mr. gorman. lisa: at least three years, even as there is a shakeup just under him. you asked the question why now. is this a coincidence we are seeing all of these shakeups in the same week? i would argue it comes ahead of next week's hearings in washington, d.c. jonathan: you are not the first to say this. lisa: i know, i am not original. [laughter] jonathan: i am not implying that. i am just suggesting that this is an argument that is building going into next week. lisa: i think they are trying to take on a more responsible diverse kind of view, saying we are representing all of these different viewpoints tom was talking about, as we reshape banks for a new era. jonathan: morgan stanley this morgan, jp morgan a couple of days ago. tom: remember, i mentioned also that mr. proves on -- that each of these stories is different. no one knows that be

is it possible james gorman is actually going to go in three years?ou look at where morgan stanley is today and from where james gorman took morgan stanley , from the financial crisis and the vicious infighting, it is a much changed bank. the best-performing u.s. major bank stock in the last five years. clearly the going is good and for any leader on top, it is hard to weed yourself away when it looks like everything is going great but it does seem he is clear about the idea. the question is, if the good times continue whether he changes his mind. matt: thank you so much for joining us on the story. clearly, anchors like to read about bankers. -- bankers like to read about bankers. coming up, we will discuss the state of the labor market below the c-suite. not $10 million a year jobs, but something a little more modest. the importance of giving those in need a second chance and a fair shot, with erin stewart, cofounder of jobs.com. this is bloomberg. ♪ ♪ matt:matt: this is bloomberg: markets. today, we learned that u.s. initial jobless claims felt a f

morgan stanley ceo james gorman has unveiled his big leadership shakeup. an positioned a strong rebuff -- a small group of his most likely investors. he named copresidents, a cohead of strategy, and chief operating officer. gorman is 62 and has run morgan stanley for 11 years. in iran, president hassan rouhani powers have agreed that economic sanctions on his country's oil and other industries would be lifted. negotiators in vienna have been trying to revive a troubled nuclear deal from 2015. rouhani says they have taken a "major step." they have been holding indirect talks. israeli warplanes pounded houses, weapons, warehouses, and underground tunnels in the gaza strip today. it is meant to consolidate gains ahead of what could be in eminences fire -- an eminent cease-fire. according to "the new york times," the two sides have been discussing a truce that would stop israeli attacks on infrastructure, and in return, hamas would stop firing rockets at israeli cities. the u.s. house of representatives has voted to create a committee to investigate the anywher

jamie dimon and james gorman are teeing up their next in line but all is quiet at bank of america.rlie: what stands out here, liz, is that this is literally the only bank that has not announced some sort of a succession plan or hasn't had a succession. we should point out that david solemon, ceo of goldman sachs relatively new in the job. the ceo of citigroup, frazier, relatively new to the job, so you don't really need succession plans there. they are new to the job. mike corbett stepped down last year. not so for bank of america, and as you just said, jamie dimon, jpmorgan chase announced, you know, the tentative outlines of a succession plan, same with james gorman, to senior executives and by the way these plans often change, people leave it's a long time before these guys retire. jamie dimon is 65 it's unclear how long he will stay i think he's in the middle of his contract still but one place, which does not have it and it's very odd and is sticking out like a sore thumb and i was alerted by this , it kind of went over my head, by investors, by people who buy the stock, of ba

james gorman joined merrill lynch and work for more than -- he served as ceo since 2010. welcome, mr. gorman. mr. scharf, you are recognized for five minutes. >> good morning and thank you for the opportunity to be here today. just over a year ago, when i last appeared before congress upon assuming my role as ceo, we are on the verge of the pandemic and i cannot help but look back and think about how little we understood about what 2020 would bring. on the pandemic struck, we all came together to stand up unprecedented at a scale and speed it had never been done before. the process was not perfect, but we the government and others rallied to do what needed to be done. and now, we must continue to work together to ensure a fair and equitable recovery. as we begin taking steps toward recovery, i am proud of wells fargo's efforts to support our customers, our employees and the communities we serve, all while continuing to transform our organization. i believe our country and communities benefit from that strong wells fargo. i am proud that we have been a source of strength f

one more thing to mention, james gorman, the head of morgan stanley saying in his opinion, the higher inflation will force the fed to start tapering and raise rates next year. clara also saying we may be ready to start talking about it in the upcoming meeting. so making the subtle shifts, suggesting we will be pulling out some stimulus earlier than we thought. yvonne: really going to be the language we hear, when the central banks will turn more hawkish. sounds like we are hearing more of that from them today. kathleen, thank you. the kiwi being lifted on the back of the decision. let's get to the first word news. vonnie quin is in new york. >> the first face-to-face meeting between president biden and vladimir putin is expected to take place june 16 in switzerland. the white house says they will discuss a full range of pressing issues as the u.s. seeks to restore predictability and stability. they will discuss issues that include cooperation on the fight against the pandemic. a powerful cyclone is set to slam into india wednesday, the second in less than two weeks. they are evacuatin

jamie dimon, david solomon, brian moynihan, james gorman, and charles scharf will all appear.e and they are going to get grilled today. manus: i wonder where they are going to get grilled about lending. is it about their green credentials, diversity in terms of where you lend? let's say the start of that banking senate committee today -- they will be quizzed across a broad spectrum. risk management. the practices along with diversity. there is a lot on the agenda. should we finish with a bit of a flurry on the kiwi? you said it at the start. it's all about steven major. it is not forward guidance. the possibility of rate hikes going into 2022. literally flying high. dollars on the year two. year two. annmarie: our mliv says rbnz met the kiwi out for a run. maybe a big one on the heels of bank of canada. that does it for us. this is bloomberg. ♪ (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to

guy: james gorman at morgan stanley thinks it is a possibility we get a rate hike early next year.e got similar comments from one of that member's of the bank of england. how out of position is the market if that is the case? saira: when you look at what the fed has been saying, they say we are nowhere near where we should be, i do not think the market expects rate that early. for us, the key is watching wage inflation, if that really became a driver of that, we think the fed may pull forward, but we think the fed starts tapering,. kailey: and for that time being, liquidity is still abundant, many people for -- pointing a finger. and the meme stocks, researching once again, when you think about those forces, how does that impact the way you are thinking about the broader equity market and risk assets in general? saira: liquidity has been the support for the market ever since we went to the pandemics, and that has been the bridge to the earnings growth. we have here is a coordinated ability for the fed while earnings growth really continue to take the baton, and that is when you get

don't have a lot over them, which is so interesting because weeks ago we had morgan family ceo james gorman saying that was an area that certainly needed more transparency, especially after -- what we had. he said his staff was working on a report about what happened in january, something we can expect this summer. he also said he is asking staff to review market-making and broke ridge concentration, so think securities. that industry will be getting a closer look under this sec and you can be sure that when we hear from gary gensler, there were explicit concerns around payment for order flow and the relationship the brokerages have with their wholesalers. >> fascinating stuff. he wants to basically provide more transparency, that is what we heard from both of them, especially in terms of shortselling. i think it is so interesting that for someone who worked at goldman sachs, worked at the department of treasury, randy cftc, and is a professor at the school of management, if he has to double check on the rules so much, it has to make your job as a clients officer difficult. >> -- compliance

morgan stanley ceo james gorman has unveiled his biggest leadership shakeup in more than a decade.lected a small group of executives as is most likely successors. he named copresidents, a cohead of strategy, and chief operating officer. gorman is 62 and has run morgan stanley for 11 years. apollo global management cofounder josh harris is stepping down from his day-to-day role. harris will transition to a new role when apollo's acquisition of racine holding his completed. there is speculation that elon musk scouted last weekend for a place to build teslas in the u.k. according to "the telegraph," musk flew to london and left 48 hours later. "the telegraph" reports that regional agencies were asked to submit possible locations for any factory. that is your latest business flash. guy: in terms of how significant come this was a huge story certainly this morning in the u.k. the u.k. car sector has a problem. we have no battery production. if elon musk were potentially to come in, that would change things. alix: i wonder how much of this is real versus a negotiating ploy because he has

shery: morgan stanley ceo james gorman unveiled his biggest leadership shakeup in more than a decade,ll group of executives as most likely successors. joining us now is our bloomberg wall street correspondent. who looks to be his like a successor? >> in classic banking form, they set a deep bench. and the people very high up on that bench include someone who really helped morgan stanley solidify its number-one standing globally in equities, trading, and revived of the fixed income business through measures including cost-cutting and innovation. and you are seeing the wealth management had an the asked -- wealth management had to end the asset management head, and the cfo now becoming the new ceo of the firm. haidi: what do we make of the lack of diversity among the bank's ranks? how does it compare to other firms? >> that is a really quite question -- really great question. it was notable in a week or j.p. morgan also announced elevations of other leaders. we have two women at j.p. morgan who are in that lineup of succession. at morgan stanley, it is mostly male and mostly white males

shery: in the meantime we heard from morgan stanley's james gorman. interestingly he thinks that the fed will start tapering and raising rates much sooner. he is even beating his own economists. kathleen: exactly. it goes to show how everybody is on this. people really aren't sure, but when jim gorman says his opinion is what he sees and he knows the fed does not see the same thing. that's look at exactly what he said. my personal view is raising in the early part of next year, 2023 is the projection. most fed officials still aren't looking for rate hikes until 2024. he said also after many years of inflation, we see price increases getting people's attention. you mention the dots, let's bring them up, it does show you that 2021 is not just jim gorman suggesting it, there are four fed officials right now who are, as you can see from that line, those four little dots that do see great heights by the end of next year. there is another cluster by the end of 2023. most are looking for something much further out. at any rate, this is a debate that is not g

jp morning, jamie dimon, morgan stanley's james gorman, bank of america, brian moya hand, goldman sachs will face the house committee tomorrow and efforts to fight systemic racism republicans are also expected to grill the ceos on claims of, quote, woke capitalism over corporate america's focus on progressive social causes. >>> and uber ceo says he's not happy with how long it's taking for drivers to pick up riders or the price that customers are being charged. speaking yesterday, he said the demand for rides has outpaced the supply of drivers as more people start to travel again the situation is getting better as more drivers are getting vaccinated uber announced they would spend $250 million on a onetime stimulus aimed at getting drivers back on the roads. brian, i tried to go to brooklyn to west chelsey saturday night, $100 i took the subway instead. >> mta thanks you because their budget is in shambles. 100 bucks -- i guess there's no more taxis. >> yeah, i stumbled, lower east side. >> raised your hand? >> yeah, it didn't work. a lot of people doing the same >> the signs of the cit

when likes of james gorman makes a call like interest rates are going to rise in early 2022, you havet thinking about why. this is what the fed essentially offers, a forecast and reaction function. this is where we think the data we -- data will be, and this is how we will react to said data. if you will disagree with the fed, you will disagree with the forecast, the data, or disagree with how you think they will react to the data? i think the bar for the latter is higher than the bar for the former. you can disagree with the data, but do you want to disagree with the reaction function? that implies you know what they will think or are thinking in the future. the bond market, fx market shaping up as follows, for euro-dollar, we have a chart. what i like about this chart is the euro-dollar, for all of the talk of the dollar bearishness at the start of the year, euro-dollar came down to 1.17. when 10 yields peaked, that was on was the peak of u.s. sec. liz a -- u.s. exceptionalism. the higher the year was 1.23 on january 6. i think you have said repeatedly, tom, when we inch toward thos

shaking up a suite for four executives seen at top choices to eventually leave the bank current ceo james gormanthree more years and former executive carlos doane lost his bid to get millions from former employees nissan and meets bishy missed wages and severance payment was demanded the court ruled no value and must pay them $6 million remains an international fugitive in lebanon fleeting from japan after escaping house arrest another ghedevelopment in that story. carl, back to you. >> thank you, rahel. >>> and turning to kate rooney for more. >> and a lot about democratizing the stock market moving on to the ipo market start of saying, just about 20 minutes ago, letting users buy shares of companies as they go public customers can put in requests for companies in the process of going public, shares robinhood partners with investment banks here for allocation of shares not an underwriter in the deals. a partnership model. amount of shares varies depending on supply. this is kicking off today with a company making medical scrubs and other equipment, going public today roughly $3 billion valuatio

jp morgan's -- morgan stanley's james gorman takes the other side. people may be thinking inflation may be structural long term. the personal view is that rates are likely to rise in the early part of next year, not in 2023, which is the current production. that would be a big shift. joining us now is barbara ann bernard, wincrest capital ceo. thanks for joining us. you've got to find the deals, got to find the right pairs. how do you deal with this inflation tug-of-war on the macro side? how do you structure? barbara: so what is the market giving us? that is the only question that matters. clearly we are in an inflationary era. i don't think you can paint inflation with one brush. some segments are going to have significant more inflation than others. how do you monetize it? the answer is commodities. there is structural demand and supply imbalance. if you look at copper, for example, ev -- for example, ev car growth over the last five years is the hundred 65%. that is a trajectory that is not going to stop. so let's be smart about how do we make mo

jonathan: as morgan stanley's james gorman has his call materialize, maybe things change again.he call at eight conference -- at a conference in japan this morning. tom: the growthiness, value-ness of what the fed does is almost like gospel right now. jonathan: are you pushing back? tom: no, i just think the certitude that we get inflation, apple goes up, i have problems with that certitude. jonathan: you tell me where the rates market goes and i will tell you where the equity market goes and the complexion of it. lisa: you have seen a rally in the nasdaq and disproportionate tech shares as yields -- tech shares have years -- tech shares as yields have come down. they would like to see an environment on all counts where that happens. jonathan: do you think the bankers want higher rates? lisa: do using the sky occasionally is blue? [laughter] good morning. jonathan: sometimes. tom: this is a thursday conversation already. jonathan: a thursday conversation on a tuesday. equities up 10 on the s&p. this too with through things quickly, and the bond market, yields are lower by -- jus

james gorman, former mckenzie. they have to say, what do we need in our bank to really compete?it is technology, we will go out and acquire. it is going to happen, especially if they don't have hundreds of thousands in software that offers to make this work. jonathan: ken leon, thank you. hsbc could not get the scale, and it's couldn't -- and they just couldn't invest in the quality either. not good. tom: i think you've got a really unique perspective on this. to me, it is across the causeway from our offices. how is the hsbc perception? jonathan: the product in the u.s. is not good enough. in the u.k., it is pretty decent. i know a number of people who have hsbc bank accounts. if you select to fill out the form, it is very cumbersome. just not good. tom: i can't say enough about what we are learning coming out of this pandemic about corporate culture and its importance over strategy. jonathan: on what front? tom: like at&t, down in flames with warner bros.. whether that goes down to discovery, amazon buying mgm and all of that, this cultural overlay among all of the finance, th

morgan stanley's ceo james gorman offering his view over the last few days.expects the federal reserve to taper its bond buying this year, with a hike in rates in early 2022. not the current market projection of 2023. mike wilson, morgan stanley chief u.s. equity strategist, joining us now. that is not the house view. are you with gorman, or argue with the house? mike: you are trying to get me in trouble. [laughter] here we go. i probably side more with sooner rather than later. even our house view is ahead of where the fed dot plot is on rate hikes, for example area i think james is just pulling that forward even further. nobody really knows. we have been pretty bullish on the economy, on growth and inflation, more so than most through this whole recovery period. that would signal an earlier taper and an earlier rate hike cycle. that would mean they were successful in the policy choice. i think james is seeing the business, seeing the economy, and saying things are working well, so it is hard to argue with that. we are going to have to find out. one thing i

then start tapering before they even begin the conversation about raising rates, do you think james gormanould actually be right when he says that the fed could start lifting rates as soon as early next year? ira: i think next year would still be a little bit early. obviously the market is pricing some chance of a late 2022 interest rate hike. i think the question is what type of inflation do we get. do we get the inflation that is in goods and driven by commodities and potentially higher energy prices? or is it being driven by wages and things that the federal reserve once it to be driven by? i think the fed is going to be concerned about things like income inequality, and the fact that this is the pandemic, if anything and has made a wider disparity between the haves and have-nots in many situations. so i think the fed will wait to raise rates a little bit longer than the market is thinking, and i think a lot of people are thinking. that doesn't mean it won't taper. i do think they will start to reduce their asset purchases very early in 2022, and like you mentioned, they have to start t

haidi: james gorman at morgan stanley thinks the fed will taper and hike much sooner than most officialsven say. kathleen: he sees those prices rising. it is very interesting to hear the ceo of the head of a major investment firm, major banks saying this. my personal view -- he said this, not the fed -- rates are likely to rise in the early part of next year, not 2023 which is currently the projection. he sees the fed start tapering by the end of this year. he said that after many years of inflation -- no inflation, we are seeing price increases that are getting people's attention. let's look at the fact that james sense on what the fed is going to do on rates -- he is not alone. in december, that lined that you see for 2022 does show there will be for people looking for a rate hike. by the next year, you get many more. it's interesting that there are fed officials, just a handful, already looking for that rate hike and i think it has a lot to do with the fact they feel the economy is getting better, prices are rising. they are not worried about inflation. they are finding time to start

after jpmorgan made a similar move what can you tell us >> they both had their agms this week james gorman made a number of promotions this morning laying the grounding work for his succession ted pick, who runs institutio al securities and andy sapperstein have been named co-presidents. they are in the lead to succeed gorman pick fractionally ahead as he gets a co-title which he shares with dan simkowitz sharon yeshaya will replace pruzan as cfo. i spoke to gorman earlier today and he made clear that his top two main priorities is grooming his successor. he is in no rush, unlike when he took over back in 2010 the guidance of three to five more years for him is, i'm told, his once and final guidance on the matter he will not extend that. i get the feeling that the intention is to be on the shorter side of that, possibly including a transition to just chairman for part of that time period i think there's some disappointment that all four are men and white men. morgan stanley has been working to rectify things but from lower down for the next generation following today's changes, gorman has

we should point out that two major banks had succession plans this week, msnbc, james gorman named twoceo's that are relatively new, so they don't need succession plans. the one guy, there's jamie dimon whose 65 years old, the one place where there's no succession plan is bank of america, the 61-year-old ceo brain has nothing even close. now why does this matter? well, i mean, listen. god forbid you don't want anything to happen to your ceo, all you have to do is look at some of jamie dimon's health problems recently and there were people that could take his place inbetween. it's really unclear who would come in and serve as even an interim number two if brian moinahan would have a problem, tom montag, the head of trading, could do that although he was the subject of a blistering article in the new york times recently, so it's unclear if he's going to take that role. there are others in that bank, but still this is a problem and i think bank of america is going to have to answer to shareholder s on this , it is one of the fundamental how can i put it, ten entertainments of corporate go

ammunition to push back than perhaps on other topics where we're talking about female representation james gormanounced his potential successes last week, for example, for white males there's less grounds for him to push back on topics like that than the ppp on the headline politicians and others have been able to throw a bit of grief toward the banks on ppp, but the underlying detail on the numbers are not so damaging they did do the lending. they did it as quickly as they could and more of the gremlins were in the programs than necessarily the banks themselves imsure that topic will come up as it relates to coming out of the crisis, coming out of the pandemic, it's different in terms of the level of grief they're going to get from the last crisis. i imagine it's more going to be on things like equality, representation, junior banker culture where there's more meat on the boens, but we'll see. >> but it could reflect the divide between with t two parties in terms of their approach to corporate america. it's possible some of the republicans actually may push back the other way and say are you --

this week on thursday, you'll hear from jamie dimon, ceo of jp morgan and james gorman, ceo of bank ofca, charles of wells fargo and david solomon of goldman sachs. it's a virtual hearing on just that issue, steve. that's the regulatory environment for the financial services, what you just touched on is a really important point because the biden administration wants to give additional tens of billions of dollars to the irs as it expects to ramp up the regulatory backdrop and force these banks to share more information about the flows in your savings and your banking accounts. it's pretty much surveillance so that the banks can see and the treasury can see the flows of your money and try to capture more taxes as a way to help the irs. they want to give all of that money to the irs. your thoughts on this. we will hear from ceo's this week and we will get the regulatory backdrop. >> what this is also a backdrop to is a wealth tax. in order to have effective wealth tax, you have to do everything that a family does and earner does and this is a big first step towards that and being able to

jp morning's jamie dimon, citi's james frazier, morgan stanley's james gorman, bank of america's brianoynahan, and charles scharf and david solomon, also the house ways and means tomorrow a twofer on this they're going to discuss consumers and businesses over the last year and efforts to try to stem stemmsystemic racism. guys, they're going to be getting it from both sides of the aisle. >> as they should. >> it's going to be interesting to see what the bankers saying what the questions are >>> meantime, cooper's ceo is not happy with rider wait times and prices neither are customers. jpmorgan saying the demand for rise is out of supply. saying it's higher, as we have not seen drive supply keep up with the demand growth in the united states. he's saying the numbers are improving as more people get vaccinated uber and lyft saying the supply and demand would press on. and we'd see a recovery in the third quarter. but i didn't appreciate, guys, how many drivers actually effectively turned their cars back, effectively with undone leases and the like. stopped renting the cars or whatever the

james p. gorman, the chairman and chief executive officer at morgan stanley. next, we will have mr. brian t. moin than, chairman and chief executive officer of the bank of america and then the chief executive officer and president, wells fargo and company. finally, we will have mr. david m. solomon, chairman and chief executive officer, goldman-sachs. without objection, your written statements will be made part of the record. each of you will have five minutes to summarize your testimony. you should be able to see a timer on your screen that will indicate how much time you have left. and a chime will go off at the end of your time. i would ask you to be mindful of the timer and quickly wrap up your testimony if you hear the chime. before we begin, with your oral testimonies, i would like to swear the witnesses in. i will call each of your names individually to respond. would all of you please raise your right hands. thank you. do you solemnly swear to affirm that the testimony you will give before this committee in the matters now under consideration will be the truth, the whole tru

gorman take that basmt let him have a doover. he doesn't usually say those things, so gonna say he's taken out of context. >> okay. i haven't talked to jamesd job keepening your job another three plus years. >> when you make as much money he has and does such a good job he deserves it. >> he can stay as long as he wants. >> his work to younger people carl is extraordinarily. all we ever do is talk about the robinhoods and -- >> e trade. >> yes. >> that's morgan stanley j.p. morgan is what we're looking at right here. morgan stanley is outpacing that although they are all up substantially for the years. and of course your old favorite. wells fargo. up the most. >> i'm not backing away from wells fargo. >> i know. >> wells fargo is charlie sharp. he's going to be able to return the most capital -- >> right which is soon. >> end of the month. end of the month of june >> yeah. >> wells fargo, quietly, charlie shar of, who says absolutely nothing. we call him charlie in the business he is just quietly making that bank -- remember it as, except not with warren buffett, who bailed >> all of it >> all five of the s&p leaders are either cruise line