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tom: that was morgan stanley ceo james gorman speaking us -- with us in davos.et the bloomberg first word news now without atkins. >> good morning tom. french unions are calling for another national day of strikes unless president macron backs down from his plan to raise the minimum retirement age from 62 to 64. railways, schools and the energy sector were disrupted amid yesterday's mass walkout. unions say two million people took part in the marches, double the government's estimates. the u.s. treasury has begun using special measures to avoid a payment default as the federal debt limit was reached yesterday. it is altering investments into government-run funds for retirees to allow payments without increasing total debt. speaking to bloomberg in davos, joe manchin called for a bipartisan approach to avoid default. >> kevin mccarthy, it's a wonderful opportunity for him to say, "listen, let's act like adults." we got in debt. who's at fault? we're all at fault. how do we fix it? together, and move forward. peruvian police have fired tear gas outside of congress

you are don't mess with it. >> very good james gorman. >> great to be here. >> thank you >>> tell us ack, we have world central kitchen founder jose andres who is going to talk about global food security and his organization's work feeding the hungry in ukraine. >>> stay tuned, you're watching "squawk box" and thiisnbs cc. i am here because they revolutionized immunotherapy. i am here because they saw how cancer adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here. >>> welcome back to "squawk box," we're going from the alps to a different story in florida this morning because a jury ruling in favor of the rapper flo rida in a lawsuit against celsius and awarding him more than $82 million the jury finding celsius guilty of breaching an endorsement deal with the rapper between 2014 and 2018 and we had spoken w

you have brian moynihan, james gorman later in the week.ifferent conversation that you'll have with them maybe then with jane fraser. jay: we always want to talk about the consumer and the middle-market. david: he has been relatively positive about the economy, thinks it is going well. james gorman is doing well at morgan stanley, but he also decided to move back into etf's. a question of whether they can catch up with the jp morgan's of the world. guy: you spend a lot of time talking to these people. the data that we saw last week, cpi beginning to soften, the claims data painting a picture of a robusta labor market. you spoke moments ago about the poly crisis, but can we took off for this year u.s. recession? is that one of the messages that we get, that we are overdoing the pessimism, under doing the optimism? david: you have seen some analysts suggest that. i will ask jane fraser this tomorrow. she said there might well be a recession in the second half, we will ask if she still thinks that. as you suggest, some of the economic data sug

alix: that was morgan stanley ceo james gorman in davos. his bad economic news bad news for stocks?good economic news bad news for stocks? we are just trying to make sense of the rally we saw, the selloff over the last two days and the mix of economic data. >> the data is very mixed, that is a good way to put it. on the other hand, investors have to handicap what the fed is going to do. we are a long way from the next 2% target. investors need to recognize that the fed is not going to stop early and will probably keep rates elevated for a while and will have to handicap whether a recession is coming. guy: what we got to do here is try to quantify how bad the economic data needs to be for the fed actually to reverse course. your sense is that we are nowhere near that point. >> correct, that is what we believe. the fed is going to hold rates higher for longer than the market currently expects. on the other hand, we are not going to see the same number of rate increases that we saw last year. when we look at opportunities to invest, we could find opportunities where valuations have com

james gorman put that in a different way. he said they want to be doubling down as well.hether or not it is the same at both banks will show up in the numbers in the plan forward. guy: share price reaction suggest may be a different story. thank you very much. sonali will be back in the next hour keeping us updated on how some of the calls are going. let's go back to davos. lisa abramowicz is with christiana riley. lisa, back to you. lisa: how do you prepare for a bust that has not happened yet and does not appear to be on the horizon in the near future? christiana riley, a pleasure to have you. i want to start their. how do you prepare for a downturn everyone is expecting but we are not seeing in the data and we don't really understand what it could look like? christiana: you have analyzed it well. we are in this interesting sweet spot at the moment between the end of last year, the peak uncertainty around the interstate outlook and the period where we know intellectually those interest rate hikes are going to hit the economy. we are in this intervening period about anal

we've had these discussions before on air, and really james gorman has put a strategy to get a higher multiple more akin to a blackrock offer charles schwab with advisable asset management for recurring revenue. that still has opportunity on the upside because it's trading below the s&p 500, and goldman is one or two steps behind there. david solomon at goldman is just going to have to grow not organically but by acquisition more assets under management and that's really the direction. you're not going to get a higher stock price for doing credit cards or retail banking. that game is really dominated by the banks that reported friday >> and do you think that the provisions that goldman took in the past quarter for in part the consumer credit card and retail banking business looks sufficient i mean, i think there's probably a sense out there that they were much higher than people were anticipating is goldman trying to sort of front load some of the pain so that it's a cleaner outlook in subsequent quarters? >> well, there were provisions, but it's not in the billions, and we're not sur

i think james gorman is going to be right we're going to get -- >> what does business as usual mean whato you mean by that >> you got to cool off inflation. we haven't had -- where are the bankruptcies party city i looked at a party city this weekend. i don't know >> i saw your pictures from bed bath & beyond. wasn't that this weekend i think i saw you tweeting, you in an empty store. you did go at like 5:00 in the morning. >> that was, like, 10:00 on saturday, like the caverns when you were the only person allowed to go in once i got in early to see cooperstown, and it was crazy. the magic kingdom. i got in early not anymore. i don't think they'd let me in the magic kingdom early. i think they'd put me at the back of the bus when it comes to the jungle cruise. >> i think so too. i don't think you get good treatment at disney at all >> peltz and i -- >> your endless criticism of that fox deal. >> geez, i hate -- wrecked balance sheets sorry. sorry. >> back to business as usual >> okay, i just mean that, look, we haven't had layoffs, except for companies that are very rich oh, microsoft's

i said james gorman worked from home.t observation that i saw in davo's, that answer -- in davos, that answer from james gorman. >> you cannot put the genie back in the bottle. going back to the office three or four days a week, is that enough to get it done? maybe in the banking sector, but is that on a broader base? is there a shift to other locales? this is a real question because a lot of people do not think we will go back to what it was. >> i have an offspring. she's got four degrees. her major line is may i help you. she makes clear that working from home is not happening. she has loads of friends isolated in their homes. >> have you seen the job listings? a fraction our work from home. the number of people wanting to work from home? everyone. >> lisa abramowicz with james gorman of morgan stanley. that was something. stay with us. this is bloomberg. >> keeping you up-to-date with the first word, i am lisa mateo. >> in ukraine, president volodymyr zelenskyy thanked the u.s. and germany for their promises to deliver

as far as comparison with other ceos, we saw morgan stanley cut james gorman's pay despite the bank beingthe better performers arguably on wall street, notwithstanding the headwinds that are afflicting a lot of its rivals. at the same time, j.p. morgan is giving jb nyman -- jamie dimon's pay unchanged. one of the big ones yet to come is goldman sachs, with david solomon under pressure. we will have to see what the board does for him. dani: russell, along with it being the season where we learn about executive pay, it is the season for promotions. bloomberg large bank of america named 360 managing directors. this time around, more than half are women, or people of color. talk to me about bank of america's diversity efforts. >> this reflects a push across wall street to improve diversity. there is certainly a lot of work to be done. bloomberg reported last year 18% of senior bankers on wall street are black. so there is a lot of work to be done. and in bank of america's case, this is the third year where underrepresented groups from the majority of the promotions to managing director. bank

the board has decided james gorman should be paid a little less than the previous year.rast to that, we had a day earlier, jp morgan's board saying jamie dimon should keep his pay unchanged at $34.5 million. that reflected his ability to keep clients served in the challenging environment. quite contrasting approaches, remembering a couple of years ago, dames gorman overtook jamie dimon to be the highest paid ceo on wall street. quite a change in fortunes for those two. dani: i was going to say, he still was one of the most highly paid and you mentioned it was a small pay cut, he still getting paid $31.5 million for 2022. how does this compare to the overall story when it comes to renumeration and staffing? there have been conversations about pulling back on pay when it comes to bankers and pay in general. russell: morgan stanley i think a bracing themselves for the economic downturn, inflation is sticking around and rates are going up. morgan stanley is cutting 1600 positions this year and also trying to keep a lid on cost. this is sending a signal that these sorts of be

jamie dimon package was unchanged, james gorman has fallen 10%, david solid -- david solomon is threeimes as much at 30% of a drop to $25 million. guy: you look at the share price -- >> i would take it. guy: nevertheless looking out of the earnings season, that is reflective of some of these pay. thank you very much indeed. bloomberg sonali basak over goldman sachs. coming up, bank of america says investors are piling into european stocks. they are doing so the fastest pace in nearly a year. our next guest will join us, multi--- multi-asset strategist. this is bloomberg. ♪ guy: let's talk about european outperformance. investors have been chasing european stocks, doing so at their fastest pace in almost a year. u.s. inflows remain muted which is interesting according to bank of america. here for perspective is ubs global wealth management strategist. we have seen a startlingly strong start for the year for european assets. should we be chasing? is this a rally that scott's legs? >> it has been a pain trade for long time, the rest of the world versus the u.s., but we think we are in a

it is morgan stanley chair and ceo much james gorman. we spoke to him in davos.ys there are clear signs that inflation is eking in the u.s. he also told us he has his eyes on china's next policy. >> there is clear evidence that inflation has peaked and is coming down. how quickly the fed will get us to 2%, remains a debate. the slope of the line is in favor. the second is, not just the opening up of china, but china has embraced the rest of the world more aggressively in the last few weeks, witnessed by the vice premier meeting. in a way that we haven't seen for some time. the big question coming out of the congress and president xi jinping being reelected by the congress was, where does china go from here? does common prosperity mean effectively dividing the pie up so everybody gets a piece? or by growing the pie? what we are seeing is the tilt is no to divide the pie to grow the pie. we have got a very good business in greater china, obviously we have a huge business in hong kong. and we continue to have up to 1000 people in various functions. no, i think we ne

ceo james gorman did have this to say about what it will take to get that m&a, that ipo deal activityake a listen. >> i'm highly confident that when the fed pauses, activity and underwriting activity will go up. i would bet the year on that, in fact a ceo's job is to drive growth in their businesses. they do that two ways -- organic and inorganic. i've been doing this a long time and i've done both and the only tricky part about inorganic, once you have your strategy set, is timing. and sometimes you've got to ignore timing, but if the market is really volatile, it behooves ceo, particularly those early in their career, to be a little cautious, and that's what we're seeing. >> we're going to continue to monitor the news out of the big banks and bring you as we know more that's the current state of play with these banks again, a tale of two of them, morgan stanley a little more optimistic about what's happening with the future for deal flow if the fed and macro conditions start to permit, morgan. >> dom, a tale of two today, but really a tale of six over the last two trading days. is i

and 2011 house gop had a strong speaker and a 24-member margin james gorman gave his view at davos. >peful that congress will be sensible about this the u.s. is -- it is the backstop to the global economy don't mess with it >> joining us now for more is cnbc's elan moye for as much as we should be anticipating market volatility as the observers suggest, have we learned it's more bark than bite or should it be more worrisome >> this is a slow-moving train wreck. and the analysts are right saying the resolution is not likely to come until we get down to the wire. part of the problem is house republicans made a deal with speaker kevin mccarthy in order to get him that job they would take votes on fiscal austerity measures they want to cut spending, to rein in what they see is wasteful government spending and deliver that to constituents they have to show they're making progress what they do that is railing about the debt limit and passing bills in the house that will end up going nowhere in the senate that takes up a lot of time that lawmakers could be using to reach a constructive compr

i think james gorman, he's doing a fabulous job if you look at the capital he's using it's an asset lightt back 15% of their shares and he's really focused on capital allocation. he's doing what some other companies in the past are not doing. i think you're going to do well here even if you be an economy not going to do well because the wealth management business is a gem of the company >> i didn't want to front run it too much but financials that's your sector which was carrie's too in the stock summit and a few others so there's a lot of love behind that space >> we never want to be in the same heard but last year i think you've got huge operating leverage every one of these banks is talking about cutting costs. if second half is going to do better, this is where companies are going to do well you don't need margin expansion. you get earnings expansion and good dividends and you can see again capital allocation is going to be key in the sector. >> kicks it all off jp morgan, b of a, citi, we'll talk about that tomorrow. up next we'll hit the biggest analyst calls of the day including up

testimony from former twitter executives, house moves from house oversight reform committee chairman james gorman politically charged investigation. he said the committee investigation suspected involvement in the moneymaking schemes of his son hundred biden top priority. the role in washington accountability are coming. livingston, texas is approving of congress so far. go ahead. >> i very much disapprove, how can anybody approve of this social security? the democratic house in 2024, republicans take over, they are on right now and hillary clinton said years ago this is a war. tell me what else it is they're trying to do. people better wake up and look. what are you going to do when your mom and dad, when there social security is gone? that's what their republicans are about. i say investigate needs to because we've got to get past this thing. o we got to move on from that but cutting social security and what they are doing, it's become a bunch of angry old white men, because all they are. i hope you have a good day. >> rust on the approve line. >> hello. i just i want to say i approve. i think

tom: let's speak to james gorman of morgan stanley.lly fascinating saying we are not facing identity crisis. we know who we are. maybe a nod to goldman as they wrestle with that retail part of the bank. but with the lessons for european banks as we gear up for the european banking season? will we be looking for? nicholas: interest rates clearly is a big one. there's been a lot of debate as to how long banks can continue to be earning more on lows before they have to pay more on deposits especially the ecb's [inaudible] expire. that's a big question across u.s. banks. trading as well. we had a results with goldman sachs and the debt trading business. what does that mean for fixed income heavy banks like deutsche bank for example. barclays also we will see how that plays out with them. these banks are well-positioned in the macro business. anything with interest rates and government bonds and interest-rate swaps the people are using to hedge against inflation. that will be very interesting but also the credit-rating side so corporate bon

david westin with their leader james gorman, david?orman in the chair. james, thank you so much for joining us. your earnings came out and i heard a story, once, some time ago wealth management may not be as exciting but over time you do better is that what we saw? i notice your stock went up 6% goldman went down >> 6%. >>first of all, thanks for having me. i told the board a couple of years ago what i would really like to see, selfishly, is a very difficult environment. i don't want to see it for the country but for morgan stanley because i wanted to prove the business model would you find when things are really difficult. in fact, we had our second best year ever in revenues and net income. what it proved was the volatility of the market, everybody understands. the volatility of underwriting, what happens when things are very uncertain, what we proved is by having between five and $6 trillion of his money under management, that is stable and that was designed 12 years ago. lisa: one thing you said was you were planning the wealth man

shery: james gorman on the sidelines from the world economic forum in davos.t this china reopening is probably what is driving market sentiment in asia today because we didn't have a great lead-in from the wall street session. given we still saw the s&p 500 closing .8%. concerns around rising rates and the outlook for u.s. recession. today in asia so far, half an hour in for japan and korea, most sectors moving to the upside. one of the few laggards so far, but frack currently -- fractionally qamar i.t. stocks down .1%. otherwise, green across the screen. to break it down into more detail, it does seem the focus on china's reopening is front and center. part of the commodities complex, given we are still seeing iron ore gaining. other factors we are keeping an eye on our equities pitch. japan south korea trading flat. trading volumes is playing into this, given we are approaching the lunar new year holiday. much of asia will be off-line. trading volumes as well looking for as we headed into the trading session. >> the u.s. says it is willing to work with the e

as you heard ceo james gorman told investors in their conference call, he expects investment and dealsivity to pick up once a federal reserve rate hikes, and he says he will bet the year on it. stay tuned. haidi: two keenan there with the latest. the latest headlines this hour, credit suisse chairman is warning employees to face steep abundance cuts after what he called a horrifying year for the lender. speaking of the world economic forum in davos, he said it is not looking great as credit suisse embarks on a painful and costly turnaround. >> obviously we had such a poor year. it was a horrifying year for credit suisse. i think people have realistic expectations it will not look great. on the one hand you have the topic of retention. then you have plenty of parts of the group that is doing extremely well. you need to compensate somewhat fairly but you also need to look at the shareholder perspective. it is clear it should get cut on bonuses. haidi: a sentra cisco court assembled the jury that will take part in elon musk's security fraud trial. opening argument begin wednesday in the u

rishaad: james gorman on the sidelines of the world economic forum.omics raising that production for china's growth, seeing the rebound starting off as of march. let's bring in david in. david, how much has it lifted things unwind -- and why? david: yes, the quick reopening was the reason for lifting the forecast, but we have other reasons one of the most important things is we have seen the policy stance has been more supportive to growth, and we have seen the government and authorities are trying to lift the sentiment in the economy side so that is also a reason for our lifting the forecast. rishaad: ok, but there are bound to be risks as well, give us a sense of those risks. there have been a wealth of others doing the same thing. david: we have seen the government trying to lift sentiment, but the sentiment, whether or not the sentiment can be raised adequately, that would be looking forward, and also the consumption side, especially the situation in the property sector is also another uncertainty because yes, we have seen policies, but whether th

there's james gorman this does it for us today. now it's time for "squawk on the street." ♪ >>> good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber live at post nine of the new york stock exchange. futures, modestly green here as the market absorbs a morning of soft ecodata ppi is a miss. retail sales down more than double the estimate. yields backing off the curve two-year near 4.12%. our road map begins with easing fears in davos, anyway, as hopes rise for a soft landing. a bunch of economic data crossing the tape today. >>> microsoft considering cutting as much as 5% of its workforce. >>> and shares of moderna are rallying ahead of the opening. the company reporting positive results for its rsv vaccine >>> let's begin with the markets as the nasdaq tries to extend its daily win streak to eight now. we'll get more data in a few minutes with industrial production >> i think we're getting exactly what we were looking for, different from what the bears were looking for you'

. >> i think that james gorman, i don't think you'll see anything that's -- >> they had a big plan at they really saw an opportunity to do a lot of different things. not just cutting staff, but -- >> look at that chart. there's a chart. >> yeah, look at that chart. >> not everybody's an idiot. there's my new theory, my new mantra for 2023. not everybody's an idiot >> it would be a great book title. >> how about that? we have people come on and they are not idiots >> guys, i want to talk about wrestling. >> change in management there. >> yeah, wwe, this was the story last week, vince mcmahon coming back he had stepped aside, and then he came back, and he's basically running things again a lot of his re-entry has sparked speculation that the company might be sold, and the stock has moved up appreciably you can take a look, even, in a short amount of time stephanie mcmahon stepping down, he came back, exec chair, running things again at world wrestling. would there be potential buyers for this company one would think yes. doesn't take much to think that even the likes of our parent compa

we run on the drama and soap opera of it, the overarching theme is everybody wants to do what james gorman has accomplished. they want to do wealth management because of the persistent fees and the capturing of blackrock-like assets and on and on. forget about what we will see with kevin -- kenneth leon we will see in a few been -- few minutes, haven't figured out the wealth management. solomon is doing that in consumer banking. the per account acquisition costs of doing markets is difficult. jonathan: they are doing it organically, aren't they? tom: very good, very mba of you. organically. avocados, bananas, they do it. talking about organic strategy. jonathan: nice, have a coffee and move on. do they play golf? tom: they do not do golf at davos. we tried that at 3:00 in the morning. jonathan: rachel did good she had the guy from coldplay in the head with the golf ball. [laughter] tom: i remember being horizontal in a mercedes, me, i could barely fit in. jonathan: you had to lie across the back. tom: it was peter, i don't remember his last name, he was holding my legs of just to be sure i

morgan stanley posting better than expected earnings we'll also have james gorman on thursday morningoyment report showed another strong months for job creation. the markets are focused on wage growth joining us is labor secretary, marty walsh, first of all, thank you for being with us. >> great to be here, and you are outside, trust me. >> yes, we are this is for real the job market has unbelievably strong, to the consternation of the federal reserve at times, because they're trying to get their hands around inflation that's tough to do when you have such a strong jobs market. how do you look at things shaping up >> yeah. i think this months we'll have the best of all worlds we had a good strong job market, low unemployment number, seeing an increase in wages, and we saw the inflation number come down a bit. probably not as quickly as we'd like to see it come down, but we have seen it come down all of the different policies out there seem to be at least working right now. we're in a different situation from five months ago, in a better position today, and the president is focused on

morgan stanley, your interview with james gorman and goldman sachs, and a few others, maybe we get thattion of davos, you guys were brilliant with gorman on the national debate which is work from home. i thought that was just spectacular. lisa: right now if you talk to any executive, they are sick of it. the work from home experiment that just didn't work. aspects did work and it is not going to put the genie back in the bottle, but you aren't necessarily going to get the all work from home situation. there aren't that many but the number of people looking for work from home jobs is just extraordinary. tom: my theory on this one is if you sustain work from home you get a compensation shift because people have to travel. many of our viewers and listeners have a commute. and it is demonstrable if you are not work from home. lisa: it was interesting, even jim frazier. citigroup is one of the pioneers. she talked about retrading people if they were working from home. there was a feeling of frustration that i saw pretty universally between all of the executives. tom: i'm going to look at the

if james gorman says get back to work, a lot people will when they see this on the street.box, i cannot say enough about the journalism on amazon. he describes exactly what you said which is he speaks to multiple x amazon senior officers that say the company got soft. that permanent -- i am not sure it permeates every sector but in tech, i think we can say yes. jonathan: when they are emptying the office and selling things like the pizza oven and all that good stuff? tom: i do me a -- i do not think it is appropriate for me to comment on twitter. i think i will get banned. i'm referring susan li is back on now. i think tech things, like bitcoin. sonali basak i am told is listening to us. the bottom line is bitcoin this week has blown up and that is part of the tech is aiming is. jonathan: i have asked this a few times, is it the last two or three years of access or the last decade of access? tom: decade. jonathan: amazon going into the pandemic had about 800,000 employees. after the pandemic, that doubled to 1.6 million. if you look at their job cuts recently, we are talkin

lisa: a 28 year advisory to james gorman exiting the firm. tom: stay with bloomberg.re generations. ♪ welcome to a new era of flight. jonathan: good morning. equity futures are up. the countdowns the event starts now. >> everything started. this is bloomberg the open with jonathan ferro. jonathan: we begin with the big issue. what a week. cutting jobs and of earnings. the latest cpi around

. >> that was morgan stanley's ceo james gorman on "squawk box" yy yesterday.era >> pleasure to see you >> what do you make of the way that gorman characterized? do you agree >> he is reflecting the chinese vice premier was there in davos. he stated china is back. he is making for more investment they need to do this they suffered so much under zero covid. they need to revive the economy. i would say the historical fact pattern is you have to ask when they are doing this is it tactical and temporary for the last ten years, xi jinping made a very radical ideological shift away from the things that led china to grow that was started under jinping business confidence has been hurt in a shift from more reliance on state-owned enterprise and sucking up the capital from the banks and g golden shares. look at what happened to jack ma yes, that is what they are saying right now for now, that's what they want you have to wonder how much you can rely on them to continue on that viewpoint. >> when people ask you what is our relationship with them and what do you say? frie

there's james gorman this does it for us today.ing, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber live at post nine of the new york stock exchange. futures, modestly green here as the market absorbs a morning of soft ecodata ppi is a miss. retail sales down more than double the estimate. yields backing off the curve two-year near 4.12%. our road map begins with easing fears in davos, anyway, as hopes rise for a soft landing.