the current ceo james gorman saying the change feels right. asak sat down with gorman and pick at the firm's offices in new york where they covered everything from the economy to the business going forward. james: the u.s. has stage the recession. the fed is very close to being final within probably 25 basis points. we are starting to see the chevron deal we announced the other day. we are seeing activity in different sectors. it is coming alive. i think the next couple of years will be great. what i care about is over the really long run. we set about on this journey, we were not focused on a quarter. if the stock takes a dip and a quarter, i say that is kind of good news. we are buying back stock. every share you buyback you are retiring a dividend. shareholders who hang tough are getting a 4.5% yield and we are buying back stock in the stock is cheap. it is kind of a good situation to be in. medium-term, no. i think the firm will degrade. sonali: what are the biggest challenges for you as you navigate the environment? ted: there is so much o

i spoke with james gorman and incoming ceo ted pick.ake a comeback and to lead the next cycle. take a listen. >> organizations grow because you have change. you are not going to grow by doing the same thing again and again. i feel like we set this up several years ago with the board. we have had a very, very intentional process and then up with a -- ended up with a phenomenal outcome, which is ted. a phenomenal executive. it is sort of what you hope for. you try and drive strategy and put together a team. you try to deal with the inevitable knocks you get from the market and the disappointments that come in any complex business. at the end of the day you're trying to handed off to the next generation. it feels great and it feels right. sonali: you have been rumored to be a ceo contender for so long. how does it feel to step into the role next year? ted: morgan stanley was the first place i worked out of college. 33 years later, i'm sitting next to mr. james gorman. it is the thrill of a lifetime. i'm so excited. sonali: you have inherit

bloomberg's sonali basak will be hitting down with both james gorman and ted prick in new york at 3:30 p.m.. as we had to the break, let me give you a quick snapshot of risk. it is all about the dollar today. assets struggling to find any strength versus the yen which crosses into 150. we are in the intervention zone. aussie dollar and kiwi dollar are taking a beating, down by at least a quarter of a percent. this is bloomberg. ♪ dani: welcome back to "bloomberg: daybreak europe." president biden and israel prime minister benjamin netanyahu have discussed efforts to your the release of hostages and boost data deliveries into gaza. biden asked israel to delay a ground invasion, but he sought no assurances on netanyahu. as biden well, i have indicated to him that if it's possible to get these folks out safely that is what he should do. that is their decision but i did not demand it. i pointed out to him if it is real, it should be done. dani: joining us for more is bloomberg's senior editor bill faries. we had that from biden but also impassioned lines from netanyahu about israel fightin

we know that there are three people that may or may not take over from james gorman.nk about that. we know that ted and stan -- and dan are in the running. it can make a dark horse as well. but what we definitely know is that james gorman is planning to be gone by may, if not sooner. he just underscored that. he said the bank is well into the succession process. and i'm quoting, we are close to picking a successor. as he would say, he is leaving the bank in good order for his successor, but this quarter won't be the standout one for this year, at least. haidi: plenty more to come here on "daybreak asia". this is bloomberg. ♪ (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's p

does james gorman get involved the road is littered, when the successor can't keep pace.es gorman has done a great job nobody thought he would perform 14 years ago >> it's a miraculous thing there's certain ceos we don't give enough credit to. that guy deserves a lot of credit i think he's set the bar pretty high at this point the question is where does this business move to given how transformed it's been. >> ted pick has big shoes to fill, absolutely i think institutional security, ted pick knows in spade, i think they want to get deeper market share, in wealth management, 1 trillion of net new assets in three years. the strategy is not changing, the management is changing, but it comes down to execution new players rearranged a little bit. >> are you recommending the stock. >> when you look at goldman sacks and morgan stanley, they have return on equity. if you're thinking of voting morgan stanley, why wouldn't you own goldman sachs instead. >> when you look at the core institutional businesses interest, market and bank, goldman has performed better over the long-term

james gorman and the incoming ceo of morgan stanley, ted pick. let's talk about this, the stock is up 18%. endeavor, remember, of course, most recently in the news because of the merger of its usc with wwe creating tko of which they control it. go back to the ipo, back in april of '21 i believe it was, you can see, it's not been a good performer that's including the move up today. that's frustrated ari emanuel who runs the company and maybe even silver lake, its largest stakeholder and the company that controls endeavor. late yesterday we got this given the continued dislocation between our public market value and the intrinsic value of our underlying assets, we believe an evaluation of strategic alternatives is prudent. what does that mean? we may sell the company. silver lake made it clear we're not selling to anybody but us. so they might buy in what they don't already own. silver lake believes in endeavor's business and is not interested in selling its shares in endeavor to a third party nor in entertaining bids what silver lake is interested

and speak to ceo james gorman and his new successor. james: you try to drive strategy and put together a team and try to deal with the inevitable nonce you get from the a market in the disappointments at any context. at the end of the day, you are trying to hand it to the next generation, so it feels great. ♪ (adventurous music) ♪ ♪ ♪ be ready for any market with a liquid etf. get in and out with dia. >> in china, this year, we have seen growth rates which are lower. the expectations we had at the beginning of this year -- tempora did a bit better. on the gdp side, in the recorder, our china sales were up quarter over quarter. even so, gdp is running at a lower level. it remains the most important market. we see opportunities in the long-term. guy: stocks under pressure, mercedes-benz. ceo speaking earlier. a similar situation out of volvo. volkswagen pre-leasing earlier but also with disappointing earnings. the auto sector continues to be under pressure. in some ways, we should have anticipated this. the consumer is facing high price po

david: james gorman, morgan stanley chairman and ceo, in the incoming ceo of the bank, ted pick, stickingith sonali basak. more corporate stories. we are one-third into earnings is and in the asia-pacific and you can see where we have the data for estimates, it has been largely disappointing with 40% missing. let's see what the 70% look like at this time. as far as revenues go, this is where things have cascaded number. fun aggregates, if you add all the sales of companies that have come out with earnings before the aggregate number is 14% below estimates. as it pertains to earnings, where most companies missed earnings, on an aggregate level, we are actually flat and have come in in line with expectations. so we are still getting to the think of it, so obviously the sample size is not quite as represented yet of what the third quarter looked like for these companies. yvonne: and we have plenty more coming up. we talked about the ones coming from china that we are putting a focus on. china to free. tsingtao breweries. overseas travel permit how strong is the spending among consumers? and

shery: what is james gorman's legacy here and what role will he have at the bank?l pit comes in as ceo in january but his legacy cannot be understated. he oversaw the bank through the period of intense turmoil with the global financial crisis in 2008. then later a number of other crises that came out, specifically our cagle's capital management and their almost $1 billion loss that morgan stanley made in relation to that and that was a huge pr rebuild for gorman. he has faced a number of challenges, built morgan stanley into a bigger business than it was when he took over and that will really be his legacy. one of overwhelming success for most people. shery: our finance editor there. deutsche bank is starting another round of job cuts as part of an effort to lower expenses and lift profitability. it ceo says new measures are expected to secede previous layoffs from six months ago. despite the recent cuts the german lenders headcount has grown by more than 4000 this year. >> more coming. we're going to continue to work with discipline, we have laid out to investors

you got to give james gorman credit. it was in 2009 when it was heavily reliant on trading and investment banking, diversified into the wealth management or retail brokerage business. as well as asset management. it comes down to consistency of earnings or consistency of cash flow. that is what goldman sachs try to do with their expansion into the consumer banking this is which is failed miserably. they are exiting that now. they want the model like jp morgan which is diversified revenue or morgan stanley which is less diversified the jp morgan, but more diversified than where it was in 2009. jonathan: as jp morgan versus everyone else. jp morgan year to date of 10%. everyone else down. what separates what is happening at jp morgan on the rest? is it just first republic? gerard: it is part of it but performance of jp morgan before requiring first public was better than the fact and what you have here is flight to quality. everyone knows jp morgan where the big premier u.s. global banks. it is dimmer stated that with very

when james gorman took over, it was a $40 billion company.e the market cap. now morgan stanley is worth about $20 billion more depending on the day. if markets get tumultuous, can he keep up the trading? the most recent quarter they missed. tom: where do these two guys go? they are not going to stick around. what kind of institutions would want to pick up these valuable talents? sonali: you have the ceo of the firm, also a contender. he is looking to do deals to expand predium, expanding its asset management base. harvey schwartz, goldman, carlisle, they are picking up talent. katie: morgan stanley under ted pick, it will not be two different, not expecting in the way of huge strategy shifts. this is the morgan stanley we know. sonali: you think about the big deals that morgan stanley has done. the largest financial acquisitions since the pandemic. james gorman said they could do more deals but if you have ted pick coming in, is he willing to do more transformative m&a when he is still getting the seat warm? the transition period for him and

alix: that was james morgan -- gorman speaking on the morgan stanley sales call.sonali basak sick -- the 8% loss is unusual. sonali: it is unusual for morgan stanley to miss, given where cash is yielding, when do they start getting back into markets? that will be the difference not just for morgan stanley but the big wealth and asset managers. you are seeing this across different versions. i want to pull up the screen and talk about how much asset and wealth business is important. morgan stanley, j.p. morgan and goldman sachs. you have had deal -- deals made. the asset and wealth manager is up in the last quarter. you are seeing these gains plateau a little bit. goldman sachs had those breakdowns tied to commercial realty and other assets. if you strip down those assets market to market, once you see that starting to wane you wonder where you start to make money from and if you're waiting for investment banking to come back you have analysts asking if you're waiting to see green shoots, it's like they haven't been watered yet. a lot of questions about where the ju

. >> that was james gorman and had pickup speaking with bloomberg.k at how things are shaping up for friday's u.s. session. they are up .7% after the index dropped 1.9% having already dropped 2.5% in the wednesday session as the future is looking to be pointed to a gain of .4% over the open and amazon and intel both after hours more than 5% even as web services portion of amazon did not point make the estimate. >> it wasn't some cautious optimism. we do see that sort of trend of delegates easing, some of the top beneficiaries have seen dollars coming under so much pressure. really curbing some of those earlier gains. the euro also showing up some of those losses. there was still largely expected. we are seeing the dollar index looking pretty steady at this point after rising as much as .3%. morgan stanley saying those differentials continued the move in the dollar positive direction. we are also watching dollar china trading as well. coming up on the next hour, the managing director joins us for the last interview. he is singapore's longest-serving c

>> this was my first job out of college and to be sitting here next to james gorman, unbelievable.-year chart, tenure chart, 15 your chart, the wealth and asset businesses have durable earnings. the global investment bank has miles to go. we are thrilled about the business strategy we have in place and it continues to have a long term value for shareholders. >> do you expect the next couple of years to be choppy for morgan stanley? >> a lot of what is going on in the market seem to target our particular business. i personally think the u.s. has dodged a recession. i think the fed is very close to being final within 25 basis points. look at the chevron deal we announced the other day, phenomenal. we are seeing at 70, is coming alive. i think the next couple of years will be great. when we set about on this journey we were focused on a quarter. every share you buy back, they are getting 4.5-year-old and we buy back stop and it is cheap. medium-term, i think were going to do great. sonali: what are the challenges as you navigate this -- >> client need advice. they needed an asset mana

james gorman. >> the next cycle will be investment banking led. inequities need to be one or two.is now a top five business. investment banking is going to lead the next cycle. there is going to be a lot of m&a. the world has gotten smaller. there is a new cost to capital. we want to be a leader, a global leader in all of those spaces. dani: that is the morgan stanley incoming c.e.o. ted pick speaking with bloomberg. there is likely to be a focus on asset management for morgan stanley. let's bring you some of the top stories of the morning and china's former premiere leader has died less than a year after stepping down from overseeing the world's second largest economy. he was the ruling communist party's second most powerful man before retiring in march. he suffered a sudden heart attack in shanghai. he was 68. elsewhere in the reeling, china's foreign minister is reported to meet president biden today when he visits the white house. it is a move that could lay the ground work for a meeting between biden and xi next month in new york. tice between the two largest economies has im

and james gorman and the morgan stanley conference call nailed it saying when he was 5% risk free, it's very difficult to get motivated into the risk-on. as an asset allocator, is to look for things and we'll talk about trades. trying to provide relative return and not banking on lower rates to save us. >> let's squeeze in a break. i appreciate you being patient with us. it took a while to get to you but we'll start with you on the other side of the break. kevin has several moves you need to know about. our "chart of the day" is in the mix as well. >>> all right. you saw the dow there still trending off the lows. i mentioned kevin simpson has a number of things to discuss. we wanted to discuss our "chart of the day," slb, the former schlumberger. down 2 1/3 percent. oil near $90 because you suggest it's a buying opportunity. >> this is a company that missed on revenues, beat on earnings per share. the earnings were excellent. revenues up double digits. the stock is trading off of its highs. this selfoff is an opportunity. it's close to 2%. they've been increasing it by lebs and bounds.

so a turnaround depends on the macro and chairman and ceo james gorman spoke about the recent surge ins saying he thinks the fed will do one more hike by the end of the year and thinks the fed will cut some time after 2024, but in about 12 months, that's when he thinks the game will really start to change, maybe will see a pickup in m&a activity, any of the cash sorting will be largely behind us, so we'll see some time in 2024 if we see a reversal, scott. >> leslie, thank you. leslie picker. fed chair powell set to speak tomorrow before the economic club of new york. here to discuss what to expect is our senior economics correspondent, steve liesman. what do you expect based on what some of the other fed speakers have been saying? >> well, we've been putting this all together, scott. i expect him to use the time the market is giving him. the first thing i did when lisa asked me to come on and talk about this story was to say, well, what has happened to the data since powell last spoke? i'm calling this the unofficial powell data dashboard. what you'll see is almost all the key economic

with that said, james gorman and his rival david solomon have seen signs of dealmaking could come backare green shoots for dealmaking in the future and these investment banks will be poised to capitalize on it should the market started to stabilize. haidi: be sure to turn to bloomberg radio for more and in-depth analysis from our team from our studio in hong kong. you can listen by the app radio plus on bloomberg.com. plenty more ahead. this is bloomberg. ♪ the first time you made a sale online with godaddy e you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com (adventurous music) ♪ ♪ ♪ be ready for any market with a liquid etf. get in and out with dia. >> i will be looking carefully at the data to see whether the real side of the economy begins to cool off or whether the prices, the nominal side of the economy, our heating up. as of today it is too soon to tell and consequently we can wait, watch, and see how the economy evol

morgan stanley has tilted towards wealth and asset management under ceo james gorman.omberg intelligent expects this to support their third-quarter results. bank of america is the bank with its stock most under pressure, down roughly 20% year-to-date. analysts say the impact of higher rates will show up in its results and it is suspected to report a profit of $.83 a share, up to .5% from the same period a year ago, growth, but not much, compared to jp morgan and wells fargo, which magnitudes of that. bit of red on the screen. we will see how they report this week. shery: bloomberg's su keenan with the latest on bank earnings. sticking with the earnings theme, big-tech companies are due to start reporting this week. let's discuss morning calls and bring in annabelle in hong kong. bilk tech -- big-tech has been an interesting sector, we saw the ai hype supporting them. at the same time, the rally in yields continues to add pressure to the sector. what are analysts saying? annabelle: that's right, when you look at the recent performance of big tech, you haven't really sta

ceo james gorman said a resumption of activity really depends on the fed, saying he thinks there willhaps, and then there will be a surge in activity. likely after he hands the c. >> suite to his ultimate successor. >> the minute you see the fed indicate they've stopped raising rates, the m&a and underwriting calendar will explode, because there is enormous pent-up activity. boards of directors are sitting there saying, until we understand the cost of financing, it is very difficult to pull the trigger on some of these capital transactions. so, i think you're heading into -- unfortunately, i'm not going to be around to enjoy it, but you're heading into a really good patch here. >> in terms of timing, gorman said he doesn't know if it's "six months out or nine months out or three months out," but this thing is going to start turning. also, he said he doesn't think the fed will cut rates next year but eventually they will. when i spoke with the cfo earlier this morning, she did tell me that the firm is seeing increased engagement with clients in the financials industry, energy transitio

i saw the story the first thing this morning and i'm thinking, james gorman, you have got to be next. yeah, great. sonali: diversifying away from jp morgan. it's interesting because "financial times" has a line in their story about not reading it this way -- guy: [laughter] sonali: jamie dimon likes to stick around -- the stock is worth $2 billion according to the bloomberg billionaires index. he doubled down on the stock at different points. it used to be a talking point that he never sold a jp morgan chair. if you have never sold a jp morgan share, your wealth is concentrated. it makes sense, 12% of his total stock holdings, but he still holds hundreds of millions worth of jp morgan stock. alix: just needs to buy stuff, vacay, time house -- guy: is this the first inkling, indication that the process is underway? sonali: at jp morgan the process has been underway for so long. this is concrete. this is definitely some -- mike mayo came out with a whole note about this, this is also what he sees as reasonable, given the more bearish view of the future. you saw jamie dimon really doubli

morgan stanley ceo james gorman and his rival, david solomon, have the signs that dealmaking could come there are green sheets for dealmaking in the future and these investment banks will be poised to capitalize should the market start to stabilize. i am sonali basak for bloomberg news in new york. kriti: coming up on the program, jim jordan lost ground in his effort to become house speaker. we will bring you the details, next, and all the latest in u.s. politics. stick with us. this is bloomberg. ♪ ♪ kriti: let's get to some top stories from around the world. the founder of country garden has met with the head of china national agricultural development group. the developers said it is looking to deepen cooperations with the state owned firm. on wednesday, country garden signaled it is sent to default on a dollar bond after warning it would not be able to meet all of its offshore payments on time. over in the u.s., several republicans are preparing to enter the race for u.s. house speaker, as trump loyalist jim jordan's bid unravels. jordan, who was endorsed by former president donald t

are a lot of questions here which is how are they going to maintain a culture at a time where james gorman does this be to a lack of commitment in some sort of inner passion? on the wall street, isn't it always someone about money? i did what he is saying, but i'm sorry, this is the normal game, fair compensation. and then you go, we have to keep dominic constant or lisa --, on and on. lisa: one person who is much smarter than i who works in the recruiting field in wall street said the excess is not at the top, it is in the high-level middle where people are replaceable and are necessarily driving the culture. that is what you are seeing in the culling. two year yield, 5.01%. futures up 13. on israel, on hamas, aaron miller next. hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the su

james gorman, it's the thrill of a lifetime. >> you have inherited a massive transformation over 14 yearsations in global banking but there are investors who worry this is as good as it gets, what do you tell them? >> there is more to come. we look at the 5, 10, 15 year chart. all the businesses have durable earnings. the global investment bank has lots of miles to go so we are thrilled about the strategy we have in place. it will continue to deliver long-term value. >> we have been in such a prolonged bull market that has had a volatile time. you expect the next couple of years to be more choppy? >> you know, i don't know. we were told this year would be tough and it was. a lot of what's going on conspires against our business. our turn will come. i personally think the u.s. has dodged a recession. i think the fed is close to being final within 25 basis points and we are starting to see activity. look at the chevron deal, phenomenal. we're seeing activity coming alive. i think the next couple of years will be great but what i care about is the long run. when we set about on this journey

three different people vying for that top job that james gorman will be stepping aside from. and goldman-sachs, of course, we're going to be focused on, will they say anything more in terms of their continued retreat from consumer? "the wall street journal" today, yet again, having another story about how internally, people are so opposed to it and why do we have the apple cart and what can we do to get rid of the apple cart, and why are we doing this stuff? it's not doing particularly well, even though it is a small percent. revenues and fixed income, in particular, are going to be much more important. >> employees, apparently, can't wait to unwind a lot of that. some managers have moved on to other divisions. there's talks with amex, but mastercard is in the mix that makes it messy. let's get to one more point before we talk to dan about birkenstock. >> it was a tough week to go public but not an inspiring debut. i don't know if you take more out of it that it's basically a consumer discretionary stock going public at a time when there are questions about whether the global

. >> i think the debacle of the week was unfortunately james gorman's swan song with morgan stanley.e's saying, look, issuance is coming back. m&a is coming back. lo and behold, who's doing this deal? if morgan stanley had done this deal three weeks ago, its stock wouldn't be at $72 going to $68. it might be at $78 going to $81. >> they did kind of miss. >> let's get "kind of" out of it. >> the average stock reacting to earnings has not been kind. that's a big piece of mike wilson's treatise over the weekend, that price action on earnings, i think, even wells tallying some of the number of companies that are raising, eight versus the number that are lowering, seven. >> we had a price target raise in slb, schlumberger. they do set the tenor. remember, we're a podcast, so you're nodding in agreement with me, and no one knows. >> they do set the tenor, jim. >> thank you. >> you're welcome. >> a lot of this revolves around geopolitics as well. >>> we'll move on to the middle east. nbc's jay gray is in tel aviv with the latest. >> reporter: hey, good morning, carl. let's talk about the la