scarlet: that was james gorman, ceo and chairman of morgan stanley.ames gorman speaking earlier on the earnings call along with citi and jp morgan. let's get more on the overall bank earnings picture. office stephen biggar -- also with us . what is the big takeaway? sonali: you have the stocks of jp morgan, citigroup higher on the day, two are up more than 4%, showing you the boost in net income is staving off a few worries given the you are seeing some provisioning for loan losses tick higher. jamie dimon said if the economic environment were to get worse, those provisions can also get bigger but all in all he is saying not only can they navigate the storm, they will remove -- give back to shareholders as well. they are worried about the classic investment banking businesses and also concerns around trading and the longevity of trading is misses as these firms -- trading businesses as these firms take on more risk and you see cracks form in clients around the world may be more constrained. jon: she is addressing some of the looming issues the banks a

and to have a james gorman running it now, i could not be more proud.if you had to do it all over again, would you go to medical school like your mother wanted? john: to my mother's disappointment, thank god i came to wall street. ♪ hi, i'm jason and i've lost 202 pounds on golo. being a veteran, the transition from the military into civilian life causes a lot of stress. i ate a lot for stress. golo and release has helped me with managing that stress and allowing me to focus on losing weight. for anyone struggling with weight and stress-related weight gain, i recommend golo to you. this is a real thing. this is not a hoax. you follow the plan, you'll lose weight.

to have james gorman running it now, i could not be prouder.: in hindsight, if you had to do it all over again, would you have gone to medical school as your mother would have wanted? john: to my mother's disappointment, thank god i came to wall street. ♪ >> before the covidd

to have james gorman running it now, i could not be prouder.: in hindsight, if you had to do it all over again, would you have gone to medical school as your mother would have wanted? john: to my mother's disappointment, thank god i came to wall street. ♪ >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees.

and to have james gorman running it now, i could not be prouder.id: so in hindsight, if you had to do it all over again, would you have gone to medical school as your mother would have wanted or you are happy you became a wall street person? john: to my mother's disappointment, thank god i came to wall street. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™

morgan stanley comes back and is doing well, you decide to retire, and you handed the reins over to james gorman had not been a lifer at morgan stanley. he had come from merrill lynch, a recruiter from there, and he was a consultant, not a trader, not an investment banking person . was that controversial? john: i never heard about anyone saying, how could you do that? james is smart. he knows the business. he spent time as a consultant at merrill lynch. i saw how he ran the business, our retail business at morgan stanley. i got a chance to see his interface. i would go up once a week and spend time in the office in manchester once a week to be with him and see how he managed. smart as a whip, does not suffer fools, and he has a great personality. david: for a young person now looking at a career, would you recommend a wall street career today? john: there are not many jobs you can have as a young individual where you are always, always learning. it may not be something you can write, but wall street lives on the news and what people are doing and the trends. you go into the manufacturing busines

ruth: so i think james gorman is an extraordinary ceo.e reasons i couldn't imagine leaving my position as cfo is we had a great partnership. i think what he's done at morgan stanley demonstrates that. he's an extraordinary person, and when i described it to him, he said, "i understand," so we tried to figure out what would be a logical transition, pulled it together quickly. david: so you took the position, but now you're gonna be breaking into another world where women are not that prominent. was it harder to break into the technology world as a woman, or was it harder to break into the financial world as a woman? ruth: well, when i broke into the financial world, i was junior, and i think it's harder when you're junior than when you're coming in as somebody who's credentialed. but if the question were-- broadly is--which world is tougher, wall street or tech, you know, both have evolved meaningfully since those days of the boys' club on wall street that were so painful. and i think there's a much greater awareness that it's not just the

interestingly you have james gorman talking about how prime brokerage is a stable business. seen a lot of pickups in the last couple of years. all in all, you are hearing the screws when it comes to risk management in the leverage loan market, the prime brokerage businesses and among consumer clients. >> we were worried about cl lows and leverage loans. do you feel like the worst is in for what they are expecting or can we anticipate more losses in the fourth quarter? >> it's very much weighted toward the fourth quarter. if you look at the third quarter, you barely saw any markdowns. stability started to shake after the third quarter. morgan stanley wouldn't give it specific number one analysts asked. they kept saying we've been conservative, the losses are pretty contained they are pretty minimal all in all. does that continue? are a lot of concerns, more estimates floating around wall street but again it depends on what happens to the market between now, the end of the quarter and into next year. things always have the potential to get worse. the market is much more closed

you also had james gorman talking about everything and he feels relaxed, what were your takeaways?at is the one taking the biggest beating on the share price. when you look at today for example, they missed on fixed income trading's and equities, a lot of trust in the institutional businesses. they met expectations with wealth management. investors getting more discerning on where bakers are missing. sluggishness overall. i jp morgan, wells fargo, staving off concerns as net interest income is soaring past expectations. thus in of great and what they expected net income this year. they are setting expectations on how bad it can get but what they are telling you is that they can weather the storm. you are seeing the way they handled this through telegraphing of capital return stories and that is what investors are latching onto today. guy: you would've thought after all about regulation, they would be able to stay their way through this. thank you very much, fantastic work today. let's get to the monastery. bill smead , makes back today. what is your ticket -- take away? bill: main

we know that market has moved considerably and if you listen to james gorman with morgan stanley, he'st about the employment market and the labor market moving forward. so we're much more focused here on the economy, not just what we're seeing right now, but what's ahead as we wind down 2022 and we head into 2023. maria: yeah. i mean, that's what you're hearing from a number of sort of important voices from larry sommers to jamie dimon that we are anticipating a pretty severe recession in '23. goldman sachs predicting a deeper recession for the u.k. in 2023 after the tax return. chancellor jeremy hunt says they'll no longer be proceeding with cuts to the dividend tax rates as the bank of england ends purchasing of u.k. government bonds. so we've got the u.k. story as well. is this what you're expecting also from the mack he crow story in the -- macro story in the united states, that things will get tougher. that's why we're focused on guidance for companies that report earnings this week. >> sure. i mean, i think if you look at -- if you look at the economy in today's day and age, thin

i thought james gorman sounded confident on the show a few weeks ago so today's numbers did come as ato me then again the stocks feel cheap and got a great franchise with a big buyback and bought back a ton of stock. i won't get too negative on the bottom here is the bottom line. we got good quarters from three of the four major banks that reported today i say three out of four ain't bad and i'm holding tight with morgan stanley if the whole market hadn't already roared yesterday, i think we could have had a nice rally in response to these numbers. but as it is, i say that this is a surprisingly solid start to the earning season and a possible sign of new leadership in the entire stock market let's go to chris in texas, chris? >> caller: hey, jim. boo-yah from dallas. thanks for having me. >> good luck sunday night. what's going on? >> caller: yeah, big game. so i'm sure you're excited. >> big game. i'm a kind guy i said good luck i'm not like those philadelphians that punch people and throw rocks and stuff. i say good to support your team. what's up? >> caller: hey, i wanted to hear

. >> it kind of reminds me what james gorman of morgan stanley says this morning. your going to see a washout in his view in fintech. these prices, i think the sellers are only there if they need to sell they're probably holding out for better valuations, which he thinks might come later this year that'd be a huge chapter shift in how we've talked about legacy banks and some of these new startups. >> that is the key question. where do they think their valuation should be? at what point do they get out? it also raises the question of how do you finance these deals we have seen more all cash deals but this still doing some leverage buyouts in this tricky credit market, that's difficult. you've also got this uncertain economic backdrop as reasons against m&a. we are seeing deals done >> indeed, in fact, let's stick with the markets this morning, bring in cnbc's senior market commentator mike santoli talking about banks, and apparently how we're still beholden to some e coe data >> for sure. yesterday's move was impressive, dramatic, not decisive you have to look at it

indicates in any way that those banks are not ready to step up to their commitment now, you call james gormannd morgan stanley, and so far, he hasn't called me back. he would say nothing there either he was on with you last week >> yes, and i asked him. he goes, you know, i'm doing my job. >> jim, we're still sitting here waiting for something from the court. the deposition that we've all been led to believe at this point, and obviously, i don't speak directly to elon musk, was frightful for him, because it's the only real thing you can look at and say, what caused this it has been delayed, but it may be as little as a day, so it's possible if things don't get on track, depose him tomorrow listen, those deleted emails, those deleted texts, i should say, that's real potential issue for him and his lawyer we don't know where that would lead everything i hear continues to indicate that this should come to a conclusion very soon, but here we are, two days later, still waiting for what is simple stuff. simple stuff like, just, get the deal done, agree to stipulations, whatever it is. morgan stanle

. >> smarter than your -- than charlie scharf smarter than james gorman, jamie dimon?eally you sure you want to go with that >> i am going with that. let me tell you why i'm going with it. this past -- this is -- the technology they're putting fintech to shame. the asset gathering. the amount of bad loans and whoever they're loaning to is just perfect the amount of money their clients still have, all those measures, brian moynihan's done the best, and i really respect charlie scharf and wells, my travel trust owns it i wish i owned this bank today >> not a lot of hair on the print or the call today. no trading day losses in the quarter. delinquencies, well below pre-covid. asset quality and loans, pretty g good shape leveraged loan losses lower this quarter than in the prior quarter. >> none of their numbers are supposed to be that short-term -- their trading business, up 13%, david. i mean, they're taking -- the number of people who come in that have averages that say 60,000, robin hood has 3,000, in case you're mr. fintech, i know you're not, i don't mean to denigrat

this market for trading today, jim >> i did have an interview, please don't get mad at me, with james gormanrom morgan stanley. >> i'm aware of who he is. >> quite positive about the possibility that we were going to get, say, four unemployment, maybe the fed peaks at four in terms of where it might increase rates. and basically, therefore, traces out a pretty positive scenario, given the fact that, remember, they don't have nearly the exposure because they have -- it's margin, and the customers have the stock so, it's less levered to the possibility of a recession but david, typically, you're not supposed to buy bank stocks into a recession. you're supposed to buy a stock like merck, which was upgraded today by guggenheim, kraft heinz off the goldman. everybody's so negative that it would be a surprise to see something positive we had notes this morning that say, buy jpmorgan into the print. gutsy. >> that is, in part, because -- and i know others keep these statistics handy, but i don't remember jpmorgan shares ever going up after an earnings report over the last year or two. it feels like

tom: yeah, they want to be james gorman. jonathan: that is going to be the spinoff for the investment bank. they are considering a ipl for that particular unit. lisa: they're looking far outside funding to go out and buildout. how much can they really. that using private capital without necessarily some of the consumer composites. i am curious about what kind of equity stakes some of the senior managers have. facebook is at 20% in the free market. tom: after meta, after what we saw with facebook google, after we saw there, amazon and apple are ever more important. i take issue with people who compare, even google with the cash flow streams of amazon and apple. jonathan: that side of equities, unchanged. look at the bond market. just up to 4% on the 10 year. the fx market, euro slightly weaker. 10041. tom: combined with the equity market, you mention in our two hour meeting, the idea that spx has actually done better than the tech -- over the last couple of days. you see it as with euro goes with parity, vix. jonathan: it was

james gorman was way ahead of the industry. jonathan: gina, joins us from bloomberg intelligence.ing to pour in. they have not been that bad. take your thoughts on the banks this morning, please. >> i think they are very consistent with your thoughts. beating very low expectations. banks and the financial sector are expected to be the worst of the worst. down for a second consecutive quarter. expectations are looking at double-digit pace of decline for much of the sector this quarter. that is plenty -- pretty low expectations and an easy bar to beat. the s&p 500 has gone from a point of expecting 10% earnings growth in july 2 expecting just over 1% earnings growth on the index for the third quarter. clearly, we haven't seen that slowdown. we pressed in a significantly greater than probably will emerge in the next few weeks. lisa: do you think that will be a rallying call or will people say we are seeing these cracks in real time. we haven't filtered through these companies yet and hang tight because the pain is coming? gina: depends on what they say about the outlook. it is a diff

dana: bringing in our panel, james freeman from "wall street journal" editorial page, matt gorman forional republican congressional committee and vice president of targeted victory. and you all know jessica tarlov. one of my co-hosts, don't look now, james but the heading over past 5 days look really good for republicans, is it as it has been. >> i thought in spring it would be ain't inflation election. i think a lot of democrats maybe hoped for some glimmer of good news in last week's inflation report, they didn't get it, i think that voters done need that official government -- didn't need that official government pronouncement to note that prices have been brutal. looking at history that means a tough time for the incumbent. dana: you have been matt, involved in a lot of campaign cycles how does that compare to others, the feeling? >> very different. when dobbs decision came out the democrats got bullish over the summer. as we got into fall, into this last month, inflation is the hot topic, but crime, you see that in a lot of ads, i think that republicans in the last month have got