jp morgan fixed trading up. pure jp morgan seeing the best fixed trading revenue in 3.5 years. voting well for goldman sachs and european banks. outside the banking sector, hp is planning to cut 4000 jobs over three-years on a pc slump. the accelerated a 2015 plan to cut 3000 jobs this year versus 2018. we will take a charge of $300 million depending on the size of the counts. infosis cut is forecast. down by 4%. the indian outsourcing industry has been hurt as u.s. corporations tighten their belt and spend less. jonathan: coming up, janet yellen speaking in boston in a few hours after u.s. retail sales cross in 18-minutes. her insight into the strength of the economy in the united states and more clarity on the next rate hike. that is next from new york. this is bloomberg. ♪ jonathan: from new york city, this is "bloomberg daybreak." david: i'm jonathan ferro. surprise from j.p. morgan. similar story from citigroup. the trading business performing well, up 2.3% in the premarket. wells fargo, unchanged. net inco

jp morgan hit this despite lackluster economic growth.imon saying monetary and fiscal policy need to be coordinated to spark growth. we will be all over the earnings released on friday. scarlett, we have breaking news on mcdonald's, the company expecting to incur $130 million in pretax charges or $.12 a share when it reports its earnings on october 21. just about eight days from now. you can see mcdonald's shares in the down, 0.1% after-hours. let's go back to benjamin segal from newberger berman international equity fund. i want to go back to the banks as they kick off earnings to tomorrow. would you expect to be the biggest winners? we were looking at john stumpf, his stock has trounced morgan stanley, citigroup. good afteris be earnings? benjamin: there are the spread driven banks that take the lending, and rates so low that wells fargo could make that connection. and you have investment banking in particular, the need for capital in investment banking -- to be really challenging. they have come under pressure with unusually strong man

jp morgan, wells, citi. some of them going into negative territory or at least threatening to do so. there's the xlf. you put an overlay of the xlf, the s&p 500, it's going to look like a virtual identical chart there. that's the story right now. new at noon, though, a bullish call for alibaba. mkm partners saying it will be the best performing sb ining in name over the next year. it has a buy rating. anybody own it on this desk? if not, why? >> we own it for clients. pete owns it. i don't own it right now. unfortunately, i got out too early. i owned it. the stock exceeded what we thought it would do. i know mkm here is talking about the cloud in particular, and none of us think that anybody two from outside of china will run china's clock. this is not a surprise, but it's a good call by the analysts because in the united states there's going to be a big competition for the cloud. china, there's zero competition for the cloud if alibaba gets in there hard right now. >> they're expecting a solid quarter. they

significant beats for citi and jp morgan. why did we slip during the trading day. k it is two main factors. the first focus on jp and citi on trading. question is will that continue to next quarter. that was one issue. the other comes back to bond yields. you guised mentioned it. we beat estimates today. why have we rallied so much? the difference share prices have already done well for the banks coming into these numbers and that really comes down to what bond yields have done and rate hike expectations. they have had a bit of a rally over the past couple of months. that is why i think there is more room for slippage in the share price. >> what about you as you rifle through the earnings reports? >> they were definitely a little better than expected. nothing really to write home about. the jp morgan numbers were the best of the bunch. they were good and they really show that the big banks are winning today. in my 35 years of covering the banks big banks lost share of the are tail business for years. right now they are winning in the market place. >> do you think --

stephanie flanders with us right now from jp morgan.lagarde we're expected to speak to john lipsky, former i.m.f. managing director. thrilled to catch up with him and we'll do that on bloomberg radio this morning. from washington, this is bloomberg. >> bloomberg surveillance, brought to you by volvo. tom: good morning, everyone, from washington. in meetings of the international monetary fund. we're in our news bureau in washington down new york avenue from treasury. a good number of blocks. and over on the other side of n.w. there is an i.m.f. building that will be most interesting this morning. francine: a 10-minute walk. tom: with debt front and center you never know what the story will be. it's certainly the buildup and we'll get to that in a moment. robert rubin from another time and place, he's the co-chair of the council on foreign relations, secretary reuben, the fundamental challenge in america is re-establishing a willingness among congress to engage in principle compromise across policy and political divides to make difficult

jp morgan. the dollar has dropped to one half percent. our next guest. is not he said it will not drop to one point 5%. they will try to train up to 2.75 percent. whitey's deal so sure? so sure? you feel >> look at the reality will stop i spend my waking days obsessing about growth. wherever i look we struggle to find it. it is remarkable that in the first half of this year, the euro economy has outgrown the u.s. economy. company times have we been able to say that recently? that is a reflection on these logos in the u.s.. only look for signs of inflation, the reality is that is bad inflation. it acts as a tax on consumers because of course consumers are getting wage increases. anna: so we'd should not get excited if we see upticks. we should say, that is just inflation. guest: unless there is wage inflation it will act as a catalyst. anna: thank you. --us: next up on dave brat on daybreak, saving the world's oldest bank. we will bring you more. this is bloomberg. ♪ ♪ a anna: welcome back let's get the business flash. >> thank you. concentrating. earning

it was jp morgan highest in 3.5 years. fueled byurge of 48%, a surge of bonds, fueled by the grexit vote in june. consistently low interest rates margins.ped its return in equity, orange, falling over the years. there has been a disconnect between rates and equity prices over the past few months. this is correlation of the two-year yield, the most sensitive you in the policy. it turns out that rates may not have had as big of an impact on the stock as investors would have thought. one milestone was jp morgan as the mosts fargo valuable thing. jp morgan hit this mark despite lackluster growth. it was said that monetary and fiscal policy must be courted native. we will be following the stock throughout today's session. vonnie: thank you for that. wells fargo and citigroup also reporting before the bell. both companies posted profits that eat estimates, but the stocks are moving in opposite directions. stocks of wells fargo falling. now to discuss the three banks. is there anything we can pull out of the earnings ahead of q4?

lower than a year ago as it operates in low-interest rate environment but jp morgan may see benefits as well. customers leave wells fargo because of the sales scandal and they open new accounts at jpmorgan chase. we will see. we are watching it. nicole: massive data breach of yahoo last month is giving verizon second thoughts of buying that company. verizon top lawyer said it's reasonable to believe that the breach may have impact on yahoo's value. burden on yahoo to prove that it has not happened. the breach occurred two years ago but discovered after $4.08 deal was signed in july. as of now it's expected to close by the end of march. lauren: we will see. coming up. why is the fear of hillary clinton presidency sending gun sales through the roof? gun sales and background checks hitting an all-time high? jeff flock has more. >> for you're watching fbn:am, first look at morning markets and breaking news is it a professor who never stops being a student? is it a caregiver determined to take care of her own? or is it a lifetime of work that blazes the path to your passions? your persona

jp morgan did not get as cut up as other banks. on.ceo was looked could you have foreseen it? yeah, there were a lot of people that foresaw it. stop selling your products, stop taking the job. sell your job for a lower price. the next person has more leverage built-in. we wanted everyone to have a mortgage, whether they could afford it or not. encouragedizations everybody, make the loan regardless. dark that was if you did not make the loan, you were distributing a -- discriminate against people who could not afford it. the trouble is there are no quick answers and we tried to create one. you create the bubble and then the bubble collapses. throughoutad bubbles history. they manifest themselves differently. we will have them in the future. >> human beings, we get smarter about a lot of things, in terms of how to produce things. we do not get rid of basic human emotions. greed and fear will always operate the same way. greedry decade or so, gets out of context. how could we have been so stupid. and revise history not havewe should known. back,k, if you look people who want to t

the stock is off 16% year to date compared to jp morgan up about 3.8%. some other u.s.anks soft 4% or 5%. from a value perspective and with the dividend that it pays it might be worth it. >> i think right now as i understand it the story line is worse than actual financials for wells fargo. >> have you been able to glean anything from consumers? there has been quite a bit of outrage. even people showing up at branches demanding to know what is the deal, where do i look? how much of a reputation problem could that be? >> people are angry. i think the trust factor cannot be diminished. it is important for people to trust their banks. this is their money that they get every week. i think the american consumer if they say i don't like what they did, what they did was wrong and this is cheaper for me and easier for me they will be willing to forgive it down the line. >> i guess the risk is while wells fargo takes the time to be patient the competitors are saying we are not wells fargo. >> you are going to side step this one for now? >> this one i won't side step at all. he g

jp morgan, though, still bullish on bonds. global search for yield will remain in place for a long time to come, provided continued supports for credit. in terms of stocks on the move in europe. h hexagon falling on news that roland is under investigation in norway for insider trading. that stock down more than 5%. advertising giant wpp reporting that shares are higher reporting strong earnings, but it did say it's a business in the u.k. that slowed after perhaps the first signs of brexit anxiety. speaking of the brexit, the pound is now the worst performing global currency this month on uncertainty facing britain following the vote. sterling falling by 8% this month. the weaker currency, though, still good for exporters, and that's why we take a step back. you'll see that the u.k. did post a gain for the month of october. it's now up about 6% since the u.k. referendum vote. in terms of other stocks on the move, germany gaining. spain higher. italy higher by 5%. bother now about a month away, scott, until that constitutional r

you fine bank of america and jp morgan. you fine any of these banks, and you look at all the finds that have been done. right? it's in excess of about $200 billion. well, the part that everybody forgets is you take that money out, you put it in u.s. treasury. really what you have done is taken $2 trillion out of the u.s. economy because banks are levered 10-1, right? right now if deutsche bank has to pay, you know, that $13 billion, $5 billion fine, let's say it's $5 billion, well, that means that $50 billion of loans that deutsche bank would be making is no longer going to be there. what's the biggest complaint everybody has? >> banks aren't lending. >> yeah, bairn banks aren't lend spla small businesses can't borrow. you have taken a huge amount of capital out of the system. i think what you have to do is figure out a way if you are going to fine somebody, to use that capital and make it available for small businesses. >> it's also shareholder captain they're taking. they're not taking the money from the bad actors. it's

six banks were invited to submit bids received bytes from two jp morgan has been selected as the preferred lender. the finalizing the agreement and the details of the agreement renegotiations currently. the expectation is that the jp board will be approving that agreement in november. the interim financing has been reviewed and discussed with the comptroller's office and the mayors office of public finance could we recommend you approve the proposed financing capacity in accordance with government code section 6586 and 6586 .5 and i'm happy to answer any questions whether it relates to the financing or the project itself. i also joined by financial staff from caltrain it is any diesel financial questions. >> supervisor tang >> thank you. can you go back to the issue of the federal grants and for the public purposes can you tell us how much we are excited out of that? >> yes. we been working with fta or full funding grant agreement for the last two years intensely and we are in the last stages of securing all the necessary approvals for that grant. the total is $647 million. so it's roughly

we own a lot of jp morgan and citi. we like all of those. >> bill, it sounds as though you're far more optimistic than many we had on the show last week. nelson peltz to his credit talked about the negativity, and he believed that was one of the reasons why he would work higher. >> he said it was unwarranted. >> in that negativity itself, when you look at that and you see so many people, who are negative, and you see the other side of that. these are just negative conditions that have been around, and you have climbed that wall of worry in the 30 plus years that you have been doing this. >> it was such a shock. it was so painful where housing prices went, and i think it put a heighterned risk consciousness on the part of everybody to the fore. when that happens, what happens is typically the opportunities on the other side. if you were long beta since then, you have done pretty well. we've had a great period since then. i think the caution in terms of the real world is warranted, but it's already expressed in the overal

i think tomorrow's banks led by jp morgan, surprise better equity capital markets business.nk these numbers in a bad environment, these banks certainly are most interesting in terms of valuation. >> thank you for joining us here kicking things off on "closing bell." much more coming up next hour on "closing bell" with gregory meeks revealing whether congress will take aim at tim sloan. >>> we're continuing to follow the wells story. other financials falling. what to expect when banks report earnings tomorrow and during john stumpf's testimony member maloney questioned him about his stock sales in 2013. she joined us here at the new york stock exchange with her take on him stepping down later. you are watching cnbc, first in business world wide. >>> beyond the wells fargo ceo shake up investors are looking to big bank earnings. joining us now you invest in a number of these companies. welcome to post nine. they had a pretty rough day today. what are you expecting? >> i think the quarters will be fine. capital markets picked up in september. i think there is a number of issuan

he's head of dramatic equity solutions at jp morgan.teven, where you're set up right now, i feel like we've done nothing since the u.s. broad trade in markets. is it all clear from here or do we have things to work through? >> i think the market will focus on short-term things like the election, the fed hike in december. we're seeing good results, and for the first time in a year, we'll see probably positive earnings growth. that needs to continue into next year if this market moves higher. while the market moves sideways, it's the more cyclical sectors which led, and i think that's a positive statement about where we're headed next. >> i should mention we are about paired off at the bell here. the market has been gyrating here. we also learned there was a huge outflow of equities. why aren't people pulling out on the nasdaq? >> we've seen $150 billion coming out of global equity markets this year in funds. i think people are getting nervous. they look at the election and say, let's take some money off the table. i think that we're not

wells fargo, jp morgan chase, and citigroup release quarterly results. janet yellen delivers remarks on the economy. investors wl look for any clues on the timing of a potentl rat hike. retail sales will shed more light on the strength of the what to watch for on friday. >>> mortgage interest rates inching higher in antic a feder. the 30-year fixed rate average rose to 3.47%, hardly high but a rise, following a yield in the ten-year treasury which mortgage rates track closely. >>> house flipping is the hottest it's been in nearly two decade. as home prices heat up, high end flipping is also gaining steam. it is not, however, for the faint of heart. the rewards can be high. but so are the risks. diana olk has been following one investors for four months and gives you a peek inside the anatomy of a million-ar. >> 30 inches off the toilet. okay. >> repor last june real es age dana rice was in the throes of remodelling this home in bethesda, maryland. she bought it for $600,000, intendg to flip it for a hefty profit. >> absolutely not as easy as it looks. >>

on the earnings front, three big bank reports that a citigroup, jp morgan chase and wells fargo.s the one at the heart of the scandal that cost the ceo his job this week. 18,098, the nasdaq was off 25, 5,213. that's the latest from cnbc. back to you guys. >> susan lee with cnbc. thanks for that, susan. >> you're welcome. >>> a chilly start to the day but we do have temperatures in the 60s. lots of sunshine, details coming up in my full forecast. >> we're also watching the road. this is 76 in gloucester city. over in new jersey around our cameras at market street. the traffic moving away is heading towards philadelphia. no backups yet. we'll keep our eye on that and be back at 5:30. >>> a student is dead after a fight broke out at a school in philadelphia last night. we'll tell you who was involved and what we know about the investigation. >>> also, it's being called one of the most powerful speeches of the entire election season but it wasn't given by a candidate. hear from michelle obama as she campaigns for hillary clinton. what's for dinner tonight? wegmans ez meals. dinner's

jp morgan things that is not going to continue. 90 minutes away from the end of the tuesday's session. at the percentage change column today. minor 0.03%. zero 00%.fore plus we are gone nowhere for three consecutive days. basic resources, check out this takeaway. at the industry group, the highest level since 2015. the index is itself is unchanged. days, sharesight 68%.risen by they have risen by 27%. fallen by 23%. they are now lower. the chief executive promise to return to profit. what a wild ride. love this chart. this shows the stoxx 600 bank index impressive. just where they were before exit. back over theept past month because of the deutsche bank resurgence. down 18% for the year. before then, the low was since 2011 was a 36% year to date. no longer banks the worst performing industry. reallyg with banks, simple chart. indexs stoxx 600 bank price to book ratio, the white line. we were near .50 a few months ago. price-to-book .95, which leads to the question, do we have a valued stock? we will ask that to one of our guests. vonnie: spot on. checking in on the news. more from th

bothan sachs and jp morgan posted better-than-expected results earlier this month.worths growth was twice as fast as analysts were expecting. progress is welcome and their is more to do. singapore united overseas bank fell. came in at 567 million u.s. dollars. expects subdued global economic growth and volatile conditions to continue over the coming months. a plane carrying mike pence skidded off the runway at laguardia after landing in a heavy rainstorm. a bumpy approach and hit the runway hard before skidding off. the 40 passengers and crew including mike pence were all evacuated from the plane unhurt. flown fromad iowa. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. thank you for that. general electric says it is not discussing an outright purchase of baker hughes, but is in talks about potential partnerships. to houston now. what is the latest we have on these talks? >> just basically what ge has tod, that they are in talks partner with baker hughes in any variety of fashion, and that

jp morgan choice fell hurt by low interest rates. they are stronger than expected. and citi group said it profits frequently a year earlier to money again, retail sales rose last month month as shoppers spent more at car dealerships and restaurants but we cut back at department stores, that may have retailers nervous ahead of the holidays. >>> we're buying and brining less orange juice. they have been questioning the value of the drink. a 12-ounce class has 130 valeries and 27-grams of sugar. that's the carbs as a and ms. >> netflix is paying chris rock $40 million for two stand up specials. that's a lot of money. no word on what the specials will be called or the topic that he will cover. >> for more go to fox business. >>> and october is breast cancer awareness month and the time for the mom to spearhead a drive for her non-profit. money to buy presents for the kids with a mother with cancer. what inspired denise to take the action and meet a local family needing her help in a special report tonight at 10. >>> coming up in a moment, how your donated dollars are he

bank of america, jp morgan chase, citigroup and wells fargo all topped forecasts. goldman sachs will report its earnings today. netflix beat forecasts for subscriber additions in the latest quarter. that's good news for investors who were nervous about the company's future. most of the success comes from international markets where netflix added 3.2 million subscribers. in this news sent shares up by 20% yesterday. visa's c-e-o, charles scharf, is resigning. he says he doesn't want to spend enough time in san francisco to do his job effectively. scharf says he wants to be close to family in new york. alfred kelly is taking over. he is a member of visa's board and former president at american express. conversations between striking jim beam workers and management will pick back up today. workers listed their complaints during a the union had was not enough full- time workers. it said there are too many temporary employees and many have complained about being overworked. it's here's a live look at on our city cam. stay with kcrg-tv9. it from a precipitation standpoin

they had gone so far as hiring jp morgan chase to evaluate a bid.witter is losing money, but it is still worth almost $12 billion. rishaad: the british prime minister theresa may has publicly back to the bank of england, trying to counter perceptions of a division in policy. she says she is supportive of the governor and his leadership. earlier this month, there was a comment that some of the bank's actions of not helped voters. atdi: shares will be offered free, the equivalent of five dollars, making this the third-largest of this year. it is the third largest railway after the breakup of the state run japan railway. investors putting off taking risks ahead of the third u.s. presidential debate wednesday. let's take you to singapore now. -- sorry. go. haidi: standing by. we have the regional cio for southern asia-pacific at ubs wealth management. great to see you. ont is really playing investors minds this week? is it the third debate as we head into the u.s. election, or is it the china issue that is in this onslaught ahead of us. actually, it's b

the some is surging citing jp morgan saying rising coal prices are not necessarily bad for steel. and keep in mind shares of u.s. steel have doubled year to date, up more than 130%. jppointing to some historical analysis as well, saying scrap in general have been positive, not negative, for these steel players. back to you. >> wow. big move there. thank you, seema. >> 17 minutes left if you're keeping score. before the closing bell of the dow, up 60 points. >> she'll name names in just a moment. >>> we'll look at the future of the media industry where more than ever conflict is king with discovery ceo david zaslav. stay tuned. you both have a perfect driving record. until one of you clips a food truck. then your rates go through the roof. perfect. ♪ for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you twenty-four seven. call for a free quote today. liberty stands with you™. liberty mutual insurance. the conference call. the ultimate arena for business.

the saudi's are attempting to .ell their first dollar bonds jp morgan, which is organizing all of theses, is one of the tank coordinating the bond sale. banks coordinating the bond sale. this can get very big and serious for the saudi's. yousef: let's get some additional context. what is your take on what is happening in saudi arabia, the pervasive negative sentiment? think the kind of austerity measures that we have seen, the kind of talk of these things cooling down or balancing out after two years of the drop in oil prices. some of the things that you have just talked about about the bonds, they were delayed earlier. my worry in saudi arabia is the micromanagement that the government is going to now, even interfere with banks because their lungs or salaries have been dropped. when you go to this level, i think these kind of pressures are not positive. these banks are supposedly public companies, private sector. they should be acting in the interest of their shareholders. they pumped in 20 billion liquidity.t to up that is creating a snowball effect which is not positive at the moment

there is the 52-week high for jp morgan, sun trust, comerica. we highlighted it last week.i'm a little concerned about some of the big industrials. we have seen dover, honeywell and ppg. that's down very big right now. the one little concern i think floating out there. >> good to see you. up 95 as we head towards the close of the trading day. armstrong industries ringing the closing bell here at the new york stock exchange. stay tuned for hour number two of "closing bell" with kelly evans and company. i'll see you tomorrow. >> thank you, bill. welcome to "closing bell." i'm kelly evans. we have quite a rally on wall street. the dow is up 88 points on the bell. nasdaq up 36. the outperformer and those 100s going for a new high. 5328. the s&p 21.63 and the dow 18,329. oil was the big mover that fed into the rally. presidential candidates hillary clinton and donald trump meeting on the debate stage in round two last night. we will have an in depth look at both tax plans with steve forbes. tesla popping on a tweet from elon musk saying the company will not have to raise money d

jp morgan was close to $13 billion. goldman sachs settled for about $5 billion.ou do see very big numbers. credit suisse and barclays, along with deutsche bank, are now negotiating to close this out and figure out how much they are going to have to pay for this. >> what happens next? >> they have a long, painful negotiation to go through at the department of justice, where the department of justice typically holds all the cards. >> they said they would cut 9600 jobs and suspend evidence as part of an effort to cut costs. >> is this what we expected, or is it more or less? >> people were at first looking for something like 2000 to 3000 job cuts. sooner or later, it became clear that this was not going to be a job cuts or revamp program that we've seen in the past, which was addressing small steps. new ceo at the commerzbank trying to bring an end to restructuring and make one great move to finish it up. >> i'm going to ask you one question. does this organization reflect you? >> i am deeply sorry -- scarlet: turning now to wells fargo. we have been hearing from jo

robin, 42, a commodities trader and younger sister, annie, 37 and administrative assistant at jp morgan arrived to seychelles on september 15th after sight seeing in kenya and tanzania. local police say the women appeared to be so intoxicated the night before they died that hotel staff had to assist the pair to their villa. it would be the last time they were seen alive. a preliminary autopsy report revealed both women's cause of death to be fluid in their lungs, a condition known as pulmonary edema. the autopsy for annie showed fluid in the brain or cerebral edema as a contrenting factor in her death. reports are pending. in a place known for its beauty and ser renty described as annie as the best place ever. family members face the somber task of bringing their loved ones back to the u.s. on their final journey home. rosa flores, cnn, chicago. >>> coming up next, van gogh, how investigators managed to recover two artist's paintings 14 years after the heist. traits from your family. my ancestor, lady eleanor, made it big in textiles. my great-grandfather bernard wrote existential poetr

this guy who was at jp morgan and i believe the stock is up since then. kind of amazing that there is no blip. the ceo left for personal reasons. it shows you there seems to be momentum. >> there are certain businesses that it isn't exactly about the guy in charge. it is just kind of a steward of a very good business. >>> let's get more on visa's results. >> the net revenue growth for the company is coming in at 16% to 18% versus street expectations of 20%. those numbers are lower. we are trying to track total payment volume. stock at the moment is up 0.97 following as you mentioned the news of the leadership changes last week and will be combing through the numbers more and will get back to you on any other highlights. >> thank you. guy, again, a lot of stuff here doesn't look like it is that different from what the market was expecting. anything you can add? >> i think it is good enough. i think that is exactly it. you talk about slow and steady wins the race. mike just spoke to this and asked how much longer can the market bid up names like this. my an

jp morgan chase hurt by low interest rates. the results are stronger than expected. citigroup says the profits fell 11% from a year early to $3.8 billion. that was better than expected. americans are spending their money once again. retail sales rose last month as shoppers spent more at the car dealerships and restaurants. but we cut back at department stores. and that may have retailers nervous ahead of the holidays. we're also buying and drinking less orange juice. americans have been questioning the nutritional value of the drink. a 12-ounce glass contains 150 calories, 35 grams of carbohydrates and sugar that is almost as much as a bag of m&ms. >>> netflix is paying chris rock a reported $40 million for two stand-up specials. that is a lot of money. no word on what the specials will be called or the topics that he will cover. that's business. for more, log on to foxbusiness.com. >> samsung's recall and replacement of the galaxy note 7 will cost the company a lot of money. samsung could lose $3 billion over the next two quarters because of the discontinued phones.

it was 50% better valuation than jp morgan. >> there was a lot of ground to make up this will not doon this news alone. what are you looking for out of earnings? is that where the markets should be more focused? >> i think earnings will be a very interesting thing. you're seeing a slowdown in cni lending which has been a big driver of bank earnings for several years. seeing some bright prospects on the mortgage side, which is kind of surprising. banks have been backing away from residential mortgages for years. we could do a $2 trillion in new originations this year, up 25% from last year. so that may be a bright spot. by overall, i think what you're seeing is banks running into a wall in terms of having enough capital to continue making commercial loans. the occ has a 300% guidance out there against total capital. once you get there you have to go out and raise more capital or stop. literally it fell off the cliff. it was cut in half in july, now the growth rate for cni loans is negative in august. that will affect third quarter earnings. >> across the sector, and also capital marke

jp morgan chase and at the group all coming out with earning that were better than expected. dpt mean they were higher than last year better low bar wall street set for them everything speak. lots of green right now. nice with bar good and low. exactly pl. let's talk about galaxy note 7. problems with the phones, problems with the replacement phones now they have to send out fire proof boxes. are we going to put a price tag on that? >> yep 5.3 billion i think it will be a little bit more than that. biggest risk for samsung as they get through note 7 disaster is it will affect sales of other devices that perfectly safe. our galaxy s series when it comes out this bring? is samsung going to have to cut price as incentive to buy it 5.3 billion is latest number due expect that to get en ert bigger. let's talk a little butt about rating for the nfl. talked a lot about them. uh-huh kick off for season i recall was right around time you know presidential debates. the election is supposedly to be percent. where does the business headline come in hererating are down big question is why

jp morgan chairman and ceo jamie dimon. >> there is no reason that deutsch bank shouldn't get over itshey have plenty of liquidity. we want all these banks to get through. it's better for everybody we move on. >> weighing in on the implications for the banks and broader markets, jennifer mcowen at capital economics and ryan jacobson chief portfolio strategist atwells fargo. jennifer, let's talk about the health of european banking sector. can germany's biggest lender have an impact on europe's viability? >> it certainly can. europe's largest bank. certainly there are risks from deutsche bank to other banks and globally important bank. imf said it's the most important bank. globally systemic importance of deutsche bank compared to others and it's -- it has cross border exposure and movements in its equity price tend to effect those. so far we've not seen those effects, thankfully. but there's certainly potential for that. >> ryan, it's not surprising that european banks are trading at a sharp discount to the broader markets. average price for european bank at 0.55, highlighting the nega

robin, 42, a commodities trader, and younger sister, annie, an administrative sister at jp morgan chaseived on september 15th. after sight seeing. locals say they appeared intoxicated, that the hotel staff had to assist the pair to their villa. it would be the last time they were seen alive. a preliminary autopsy report revealed both women's cause of death to be fluid in their lungs, a condition known as pull marin -- pulmonary edema. toxicology reports are pending, and the police investigation is ongoing. in a place known for its beauty and serenity, described by annie korkki as the best place ever. family members face the somber task of bringing their loved ones back to the u.s. rosa flores, cnn, chicago. >> rosa, thank you. coming up, hillary clinton and donald trump don't see eye to eye on most issues, but they have passion nate supporters. making their case, next. that's not true. we agree on a lot. like paul rudd. everybody loves paul rudd. i didn't know this was going to happen! you know what else everyone loves? emojis. no. beer! that's why we're forming the bud light party. jus

we'll get the latest quarterly numbers from wells fargo, citigroup and jp morgan chase. investors will also be looking for any new comments from wells fargo on its sales practices scandal. friday is also the day we'll get a fresh look at the mood of the consumer with the holiday shopping season just ahead. the government will be out with retail sales figures for september. >>> martin shkreli is back in court this week. the former pharmaceutical industry executive has a pretrail hearing friday concerning security fraud charges. the actual trial date is not until next june. >>> and number crunching hits the big screen this coming weekend as warner brothers releases the movie "the accountant" starring ben affleck. i'm courtney reagan. get all your business news on cnbc. >>> dozen of people braved the rain yesterday in philadelphia to help out animals in need. they certainly dressed for the weather grabbing rain coats and umbrellas before heading out to the mums and mutts event at second and jackson street. >>> a young girl who survived cancer is giving back on her birthday.

we're going to hear from jp morgan and city on friday.s market-moving as anyone i think in front of us right now. >> why are we yelling? >> we yell a lot. >> i can do that. ear wax. >> tons of earnings, though. i don't think you'll see the impact here because of the u.s. dollar ridesing in the last couple of weeks. it's -- you know, you're reflecting back on what happened in q3. it is going to impact guidance. when we talk about earnings, that's really important. who is going to be able to provide strong guidance in an environment where you have a strong dollar and then you have the excuse. the excuse not just being weather, but you have. >> unfortunately, the majority of stuff we buy in america is made somewhere else. doesn't that provide an equal discount to the u.s. consumer. or if wal-mart buys go for a penny or two less because of the currency conversion and doesn't lower the prices, that's a little extra profit in their pocket, is it not? >> you're right in theory, but in practice over the last couple of -- >> story of my life. wron

jp morgan said, we know that there's more to do through the main streak project, we're trying to focus on making sure all the employers have a pipeline of workers along the way. >> thank you, gosh minor, i guess we can praise that question to you, what could montana expect from you as far as vetting people for different positions in your administration. >> well leadership is critically important and i think it's a sign of leadership you have to pick leaders well. unfortunately my opponent is on his third lieutenant governor, unfortunately lieutenant governor walsh had to resign and disgrace over the plajerrism and then there was an issue with his second lieutenant governor where we haven't ever gotten a fall explanation as to what happened. there was a meeting and clearly she was forced out but i don't think we've gotten a clear explanation. we've had a commerce contract outsourced and give on the a family member. i think it's important we bring accountable and fiscal responsibility back to the state government. i'm calling on the governor tonight to call for the department of commerce

its not as heavily weighted as bank america, citi, and jp morgan. we think almost all the banks are attractive, believe they deserve to sell at a premium to book value and that as we get to an end of this period where capital requirements are growing, that had he will be able to return most of the cash flow that they generate to the owners. >> yeah. i only ask you, obviously, in light of the recent scandal there and whether if you did own it, you had lightened up your position or altogether got out as a result of what happened there. financials in general, though, people thought these stocks were going to perform because interest rates are going to go up. yes, rates have backed up a little bit in the last, you know, couple of weeks or so. do you think that environment has changed for real any time soon, though? >> well, i think it's hard to get rid of hundreds of years of history where interest rates ha have averaged a little more than the inflation rate. we are forecasting some increase in interest rates. i think importantly, without interest rates

of next guest is the head north american m&a for jp morgan. ♪ david: this is bloomberg markets.onnie: we continue our deals report. it has been such a busy weekend. not only do we have one of the biggest deal announcements of the year between at&t and time warner, but we have a number of deals across the spectrum from aerospace to finance. jeff mccracken will break it down with us. he is standing by with one of the most influential m&a anu aiyengar from jp morgan she works on a variety of recentlycluding the announced 25% stake of helton. -- hilton. >> welcome. busy weekend. obviously, we have answer the question on whether there was concern over the election but we had over $100 billion in deals announced sunday and monday. you were on three of them. time warner, at&t -- >> saturday. rockwell collins, be aerospace, and then hilton this morning. we normally talk about merger mondays. this was a merger weekend bonanza and we are happy to have represented them. let's start with the at&t deal p1 is going on in the media, telecom landscape that has at&t willing to spend $85 billion

jp morgan and city coming up on friday. and banc of america, goldman sachs next week.ng in holly and joel. holly, earlier this year it was about expectations manage. the c.e.o.'s would come out and bring the bar lower. how are we set? >> probably a little disappointment when you look at the longer term picture i think what's important to keep in mind for a very long time the expectation was this would be the turn around quarter. we were going to go from quarter after quarter of earnings growth into positive territory. we are getting disappointing announcements. a market still prized near an all time high. you have valuations that kept rising. if you don't have earnings to back that up, there's going to be disappointment. especially on the banking side. you are looking at banks within the financial sector to expect a growth of negative 3%. the rest of the financial sector a little bit more positive but still some names you are talking about going to weigh us down. >> one thing i'm looking at, i have a chart here on my terminal. a simple spread, obviously the big story w

of america paid $16 billion and jp morgan, if mistaken, paid $12 billion.tsche bank was the last one to settle. to settle first one generally get a discount for their cooperation. that if the market was told that the number was so is because deutsche bank made a mistake in tallying that number. chandler, i don't want o get you in trouble, but you've seen this before. basically everybody jaw bones something, ust do right? >> problem is preexisting conditions. banks are not in the shape. the u.s. banks got recapitalized whether they needed it or not 37 europe is very slow. this has been an on going trauma. get caught anks repeatedly violating the law, repeatedly getting fined i think bloomberg reported that deutsche bank is the most fined bank since 2008. preexisting conditions. do you fix it? i know it's easy to say the u.s. quickly.uch they have a business model that work. the u.s. went through a huge of pain. you had a systemic risk out there. the thing we have to avoid. europe makes it harder. directive that really confines or really limits the ability of

really looking forward to having him set up with jp morgan, then on we go to wells fargo and citigroupew york, on bank earnings, this is bloomberg. ♪ tom: the beginning of bank earnings. adam parker with us from morgan stanley. christine harper from j.p. morgan. with newsne harper from j.p. morgan. , onees, you say cash flow year, two year, three years out, these are going to be cash machines. is jpmorgan a cash machine? the sensehey are in that they are returning a significant amount of capital, as well as raising dividends and buying back stocks. tom: they have a 13% return on equity. the headline out today, it seems to be a giant norm us number -- with -- it seems to be a ginormous number. how are they returning on equity? they're big beat is in their corporate and investment 3.5er at they did about billion dollars in trading sales and trading. they were significant beats. i am guessing -- i have not had all the numbers, so i'm guessing -- fixed income was a big part of that. prediction twour years, three years out? charles: i am looking for a downside toward tangible book value by

jp morgan is up over the past few days or so. wells fargo is seeing a little bit of green.are going to see it go down after the fake accounts scandal. a sick a look at what is happening in terms of other readers today. today.-- other gainers google and called it are up, after we just -- and alphabet are up after we broke the story about the new google phone called, "the pixel." news of a tank over -- takeover interest coming out of hong kong should black & decker -- hong kong. black & decker shares are soaring after. apache corp. is very speculative right now. to thep by about .5% potential takeover interest. us take a look at the commodities. gold saw the green, but we are seeing some losers with falling -- increasing interest rates. its futures is seeing lowest in the past three years. it is down the most since july. but take a look at the british pound and u.s. dollar. -- let us take a look at the u.s. -- british pound and u.s. dollar. it is now down at the low of the day. with the latest news coming out from london that theresa may says she will give no special fever --

bank stocks have rebounded today again, jp morgan, citigroup, wells fargo, they have moved not necessarily a one to one correlation with what has been going on with yields but one of the things that has been benefiting the financials more often than not even as we see it put pressure on the interest rate sensitive groups like real estate and telecom and utilities. the overall averages, let's bring it back to that. stocks rising about to the highs of the session, the s&p not very quite as well because it is being held back by interest rates sensitive groups. the dow and nasdaq each up about two thirds of 1% or more. on oiled to check prices, not just today but over the past couple of weeks. five of six trading sessions we have seen an increase in oil prices. a 10% gain over the past couple of weeks, most recently today, the weekly inventory reports coming out with an unexpected drawdown in inventories, the fifth straight week analysts had been looking for a built in inventories and there was a drawdown instead. something helping oil prices climb. matt: one of the things that has been helpin