jp morgan and citigroup.ere even better than citi's, but the common theme for both of them is that they had very strong consumer banking results and capital market results, so i think this bodes well for bank of america when they report numbers tomorrow. those are the driving factor in this quarter's numbers, and if it is sustainable, i think the consumer business is. look at the employment rate last week, 3.5%. record employment. the consumer lenders, i think 20/20 could be their year in the sun. we talk aboute: the mild compression. is that a concern for you at all? good pointis a because that was the concern in .he summer thehe fed has paused, funding has eased up. we expected to ease up further in the first half of 2020. 2% on theo a 10 year, that will improve things. alix: how do you feel about lung reserves and how much money these banks have had to set away for bad loans on the consumer side or otherwise? gerard: this quarter, credit was even better than expected at three banks. i think what you're goi

let's see if jp morgan made a dent there.hat jps a morgan is overrated by three notches, that it is only one notch above deutsche bank. there are some inefficiencies out there when it comes to the profile of jp morgan. sonali: it is interesting's you mention that. if you look at stock analysts, they have a weaker sentiment on jp morgan just given how much it has risen, but jp morgan cost of capital is low, they have 70% return on tangible equity, they are diversified, so as a credit story, they are enormous least wrong. at some of the banks in europe, we are seeing a lot more trouble. vonnie: as always, pleasure speaking with you. that is bloomberg's sonali basak. guy: we are going to stay with the financial perspective in just a few minutes. we will speak with xavier musca, chairman of amundi, on blackrock's climate change announcement. this is bloomberg. ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." is really seeing the fallout from the 737 max crisis. it also suf

jp morgan and citigroup doing great in consumer banking. a littlereasuries just bit lower in terms of yield, 1.82%. this on the fact that we disappointed slightly on core headline inflation. services inflation not making up for the lack of goods inflation. look atve a another few stocks doing things today. 2.8%.fargo down it disappointed greatly. about $500 and continues to rise. delta also had a knockout quarter thanks to do messick demand, lower fuel prices -- thanks to domestic demand, lower fuel prices. smile direct club is getting into direct company should with its main competitor. guy: european stocks are up a little bit. oil acting as a little bit of a drag. definitely the focus on the u.s. banks. in terms of volume, we are ok today. -- german tenure backing away from the zero line. cpi data out of the united states seems to have given the arrow a little but of a bounce. $1.11, butl north of only just. vonnie: wells fargo's quarterly profits slumped. citigroup beat expectations on 49% fixed income surge. for more, let's bring in all

upther jp morgan is catching and surpassing morgan stanley and asset managers will be an interest forconomy and u.s. consumer does jp morgan need? tom m.: credit quality is the main issue. we were looking for good card growth in the order on a quarterr-year -- in the on a year-over-year basis. it would be better if we had more economic growth, but if you had to pick one point, the industry needs credit quality to continue to remain under control because that is a variable that can change quickly. we do not see anything like that on the horizon. francine: does this mean anything for the european banks? we were trying to figure out if u.s. banks really do well, they are taking market share from europe. sonali: deutsche bank has said fixed income will be better this year, so we know they are hanging in there, but do not know if they are taking aggressive market share. another place to watch out for that we have not talked about is the i.b. revenue. equity and debt underwriting did rise, but where they did gain market share, jp morgan, morgan stanley, goldman sachs represent one third eac

jp morgan's fourth quarter leads the giant to the most profitable year ever and wells fargo puts out report to forget don't miss the interview with wef president happening around 11:00 a.m. central european time i'm really into this car, but how do i know if i'm getting a good deal? i tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if i'm getting a great price. this is how car buying was always meant to be. this is truecar. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast. >>> welcome back to "street signs. it has been a strong start to earnings season f

most >> jp morgan was the first one to come out from under that. banks with a lot better valuation >> let me break in we are heading headline flashes. looks like the fourth quarter number for jp morning morgan is $2.50 a share. these are headline flashes i can't tell you everything that goes into some of these numbers. they do say the end book value was up 8% to $75.98. noninterest expense, $16.3 billion. return equity 14%, provision from credit losses $4.413 billion >> pretty good on the bottom line the trading line is what we don't know much about. it seems like a good enough. the big question taken after this great run is to absorb whatever is in these numbers it is pretty high. >> what is your knee jerk reaction to that question? is there reason to still have previous in the stock? >> they are looked at as the high-quality safe place. that's the first place they kind of go to that has since shaken out and gone to more discounted stock like citigroup >> i guess that's the result >> the catch up. it was falling behind. it still has farther room t

francine: jp morgan beat on all levels. the share price gained 1%. more do they have to do for shares to go up more? james: i think people are missing the trick on jp m. it is not just about growth. it is about the reorganization, rationalization of earlier acquisitions and a reduced overall cost structure. we have seen the effort they have put into growing the revenue. i think the next big trick is cutting costs. francine: james bevan therefrom ccla investment management. germany's slowest growth in six years. we will focus on the your area economy. towill also continue listen to president vladimir putin's speech. his foreign minister is in india. this is bloomberg. which will come into force again on the first of january, 2020. one a family has its first child, it will already get the capital,get maternal not from the second child, but from the first child, a full maternal capital payment. after indexation, it will be 466,000 rupees. ♪ this is "bbg surveillance." i'm francine lacqua in london. let's focus on the euronet area. we have had a gdp data

that's good for jp morgan, good for a lot of the asset managers.bout, in terms of schwab cutting fees to zero, what does that mean for active management. you'll hear that coming up. jp morgan kicking off this big healthcare conference and the bank earnings with a strong start this morning, posting a beat on the top and bottom lines for their fourth quarter at jpm. i spoke with jp morgan chase chairman and ceo jamie dimon late yesterday. we touched on hot button topics, from the china trade deal to the ongoing debate between capitalism and socialism. we begin with the state of the u.s. economy. great to see you. let's start on the economy. you've got such an incredible vantage point. how do you see things today? >> it's doing okay. the united states consumer, 70% of gdp, their confidence level is very high, their jobs are going up, wages are going up, savings are strong, balance sheet is in excellent shape, more household formation. id say it's very good. 30% is business. that confidence came down, cap ex came down, a lot of it's p driven by trade a

jp morgan it is a great stock. but i mean, are you really going the generate that much alpha by owning jp morgan over some of these others that kind are of projects, if you will? i think there is an underappreciation for what the potential earnings power can be. >> i own a lot of different banks. i was looking of the a my exposures, bank of america is still there, citi, which i love. citi does something great. matter of fact, bob pisani today was showing this it is something i look at all the time in the last five years they have bought back a tremendous amount of their own stock it is inexpensive. i think they are doing the right thing. when you look at where that is trading versus jp morgan it doesn't mean it is a better stock. i think there is more torque. >> it underperformed the group since last qurlt i think you can see a catch up trade quickly. >> u.s. bank as well i think it is another one of the names that's off to the races. trading near its 52-week highs i added stock, added calls i think there are names

jp morgan seeks control of a china fund.rgan looking into getting fullonership of the fund management to a joint venture in china. let's kick it off with black rock. we kissed on it in the last segment. what have you learned from earnings? >> with assets rising to that much of a record, the big question moving forward is what happens when the markets get choppier? last year we had a good run in s&p and a lot of the black rock assets are equity products and they saw pretty great flow this is quarter into both fixed income and equity products. a question i think people will look forward to is how are they doing in some of their other initiatives like private markets. that is something that's an opportunity for black rock but not a proven bet yet. alix: it dovetails to yesterday in the annual letter of sustainability and black rock at the end of the day can't be superactive and make a ton of changes but if you're an investorened call up and say we have these funds and won't mention straight up the s&p index fund but with asset

they will be a huge focus this week citigroup, jp morgan today what are you looking for those have beenmers as of late. jee we do. they are still selling at a good discount we think this will be a very good place to be things you are looking for are the credit quality, loans picking up are they able to make a profit we think jp morgan, citibank have better than expected earnings wells fargo is a little more caution. we think wells fargo has the best upside over the next 6 to 12 months. >> are regional banks much to look at. the money center started out best we think they'll catch up over the next year. they'll make a good return, not a 50 p% return but 10 or 12% return >> thank you always good to get your thoughts >>> that does it for "worldwide exchange" this morning "squawk box" begins right now. >> good morning, china's delegation arrives we learn more about the hundreds of millions of goods china has agreed to buy. >>> earnings season here and more >>> and larry fink making environmental sustainability a goal of all of the first's decisions. it is tuesday, january 14, 2020. "squawk

jp morgan, citigroup, wells fargo.hief executives will help clarify whether the low interest rates, geopolitical tensions are enough to end the good times. faang stocks trail the broader market so far this year. the chief investment strategist at northern trust asset management is with us. we are going to go into the jaws in the banking. we have seen a swath of global job losses in the past year. arbitrage look at the of global thanks? -- global banks? wouter: we still think the u.s. banking sector is better positioned than the european banking sector. the u.s. looks a lot better than europe. valuations are also different. underlying trends look more favorable to the u.s. fourth quarter earnings for the u.s. will be interesting. but it will be messy because we have new accounting coming in and we don't know how that will impact different banks and reserve accounting measures. nejra: you are overweight broadly u.s. equities. i want to circle back to the chart showing the outperformance of tech versus financials. does th

at least not yet at the end of the month it might do the trick along with citi and jp morgan. i'm antsy about the results because the stocks had such magnificent moves, i don't know if anything could live up to the expectations bank of america is under the same gun the company is putting up consistently good number after good number and the stock is being rewarded again, though, worried about profit taking. i'm trying to be sure you get the theme. and we hear in united health and the stock is a scorcher since elizabeth warren backed away for medicare for all which would put them out of business no wonder it was in the low 200s all of the worries about the democrat primary have secured the success of this company. when you see the numbers, i'm thinking that you will get a positive beaten race scenario for the year 2020. aside from earnings, the big event next week is the signing of the phase one trade deal with china on wednesday once it goes into effect, i believe president trump will roll back some tariffs in exchange for china making major purchases of american-made goods. y

gimber is from jp morgan and is with us.y are saying at this point the bank is pretty much out of ammunition to fight the next recession. i have heard this countless times, 1.5 to 1.75%. during a downturn, you need five rate cuts. do you agree that the fed is practically out of ammunition to fight the next recession? hugh: i would not go as far as that personally. what we have seen from the fed and other banks around the globe is that their ability to experiment and find new ways to stimulate the economy remains intact. yes, you look at where fed funds like today. i agree that perhaps only using interest rates will not be enough, but i am sure they will be looking asset purchases and other forms of policy to get their economy going again. clearly, the outlook is more challenge than relative to previous sessions, but i am confident they will be able to do what it takes if and when. cash: ideas from direct injections, a digital dollar, all those options, what is the towards?y to lean hugh: this combination of monetary policy a

jp morgan beat revenue expectations by $1 billion.they beat by $1 billion, but it is the best year or jp morgan for any u.s. bank, trumping what we have seen through history. text income propelled these earnings for j.p. morgan and citi. expectations and analysts expected it to be a better quarter. you can see how dismal it was in 2018. this is a huge beat. according to jamie dimon, this has to do with improved trade relations between the u.s. and china, that gave investors confidence to trade these products. results set a high bar for the bank earnings we have on deck. before the u.s. open we will get bank of america and goldman, and later in the week we get morgan stanley. will goldman see the same trade as citi and jp morgan? for goldman, revenue is a bigger portion of earnings than most of the other banks. according to bloomberg intelligence, how they retain their competitive edge will be important for these earnings. ,ob cuts is also a question though it is unclear if we will get any commentary on that. morgan stanley promoted th

jp morgan kicking off the fourth quarter season to the upside. the financials are the best sector on the day, helped out by jp morgan and citigroup. a strong quarter for both. jp morgan encouragingly providing positive commentary about the macro in terms of the global economy, the state of the consumer. we also have bonds rallying. david: bonds are up. explain that to me. abigail: investors want more. they want to see what will the other banks pulled up, what will the technical stocks put up? one stop that is pretty fun right now is beyond meat. it is up 60%. there is a 25% bear short interest. a short squeeze. today the company saying there eyeing china. dunkinay a day between and snoop dogg. the company keeps putting out positive announcements. david: many thanks to abigail doolittle. now it is time to go to mark crumpton with first word news. mark: president trump's impeachment trial is expected to begin next week, but the president strategy remains unclear. he has sent conflicting signals about key aspects of the trial, including whether witn

nejra: a year-long accelerated rally that jp morgan want to see.he recent rally has been led by the mega caps. the small caps have been underperforming. the put-call ratio has been dropping. does that show that sentiment has got overextended? most pessimistic in six months. in a lot of different indicators to look at and also asking the question again that we were asking yesterday when we heard from howard marks whether this is simply a liquidity driven rally or one simply based on fundamentals. manus: we showed that chart of the fed balance sheet and the s&p 500. irked, provoked. the yuan has broken a trade trend. what you have seen is a little bit of a rally in the yuan. we have a nice eight day chart which shows that first turnaround in a number of sessions. you cannot over read the strength of the yuan as being some big global picture. we don't have it, so let's just move along and talk about the s&p 500. not a problem. the s&p 500 irked a little bit. the huawei technology story. the role back in tariffs, what do you need to deliver an upside?

they are going to start it off 'em to, wells and jp morgan get things going, and citi tomorrow. your long goldman. >> yep >> like it seems almost everybody is given where the can census is and sentiment. i have made reference to the upgrades which steamingly are coming every day and josh alluded to or joe did to cramer's point last week of the set up being bad because the sentiment has been so good the set up is so bad because they better live up to the hype or else. >> i think the sentiment is worse for the big cap tech because they have had such a major move if you look -- i was doing a lot of work on the market this morning and over the weekend we are look at negative % earnings growth for the fourth quarter. just under 10% for the year and just over 5% in revenues for the year in terms of the bank. the banks and energy are leading in terms of optimism in forecasts going forward. so you say, say, so if they don't do well it's the going to take the market down i don't think that's the case. i think what investors will look through, regardless of the bank earnings is loan growt

i am worried about the jp morgan effect jp morgan reports the best of all bank and what has the stock done since nothing. that's what i am worried about in terms of people saying i am going to get in know i think you can get into a lot of opportunities lower later what really matters is that the numbers longer term are going to be august menned by the china deal i think those who belittle the deal or call it a nothing burger -- i know they didn't read it. if they read it -- it is reading war and peace in 23 hours. >> to your comment about jp morgan then i will let you go. >> yoerpt to go anywhere. >> good. we don't want to let you go. >> what the heck why am i going you have got jepy herring ton and liz young. what, like steve weiss just wants to -- ask whether it is for real come on judge. >> you said yourself the other day relating specifically to the bank -- this is maybe the jp morgan thing you are talking about -- that the setups were so bad because of the runs that they have had. is that an issue now for many of these stocks now as we get deeper into earnings season, the setups

just got a big boost jp morgan chase announc today it's making a million investment to help develop and preserve fordab housinout for surrey has more details on this lar infusion of money to tackle this big problem. >>and such a p morgan chase wants to step in and say ok what can we do allen. fernandez smith with jp morgan chase unpack the detailsof the company's large investment and why it is significant to get involved now come so we're starting with $22 million and that 22 million is going to go to e preservation and production of new affordable housing and workinclosely with a number of our community ganizations know these organizations that have proven history and experience in doing this work. >>and ones that we have had long relationships with to say how can we lift up the invative ideas that you have been close of the community where can we use some of our capital weather be philanthropic capital for our long capital with favorable terms to say how can lift up that work and thats really where that initial 22 million is coming from. >>he talked about the studies of howhomelessnes

also for jp morgan and wells, they have big mortgage arms, it's going to be a mixed bag.expect downside from the third quarter. the china deal is going to give us more runway to get more corporate confidence and maybe some r&d coming back and so we're really excited that this is going to happen this week. that's great news. lauren: one more for you, rebecca. alexandria ocasio-cortez tweeting this, the dow soars, wages don't. inequality in a nutshell. what do you make of the fact that only some people are invested in the stock market and it's not open for everybody and, you know, there's inequality out there, a democratic talking point. >> there's always inequality in any kind of system. it's called access by the rich. the truth is, in this case if the economy wasn't doing well, this isal al is all they'd be tg about. if it's doing well, it's not important, they don't need to discuss it. if it wasn't doing well, a lot of people wouldn't have jobs, wouldn't have the wage growth that we have had. we've had the highest wage growth at the lowest end of the spectrum on employme

jp morgan's record year.e break down how tech helped push the bank to its most profitable year ever. plus, crystal ball. we will look at one of the internet pioneers and what he sees for tech in the years to come. hacking ukraine. in the midst of an impeachment investigation into president trump, russian hackers went after the company at the heart of it all. our top story, jp morgan setting records. tuesday, reporting the best year for any bank in u.s. history. shares jumped in the fourth quarter, ruled by a rebound in trading. joining us to discuss, bloomberg's sonali bostic. it seems like humans at least stand another chance against the robots that had been threatening so much of the trading business. sonali: even though there are humans involved, remember that jp morgan among other banks are working very hard to make these businesses much more electronic. almost every part of these banks are being transformed by technology, except the m&a rainmakers we really need the relationships to make a difference. if

maria: my thanks to jamie dimon of jp morgan.nce. my next guest focuses on how women can have it all. one company is pushing the limits of science to improve your life. we take a look, zeroing in on the companies here. back in a minute. ♪ what do you say we leave for california. ♪ maria: welcome back. women in the workplace, one struggle many women face is striking the perfect balance, life balance. my next guest is a best selling author, the author of you can have it all, not just at the same damn time, range o rommi ns with us. thank you for being here. >> thank you, maria. i'm thrilled to have this important conversation. maria: we all want your tips. tell us how to find had that balance. >> well, all women, no matter if you're an entrepreneur, working from home, working in an office, we're all suffering from an epidemic, it's called unrealistic expectations about who we're supposed to be, how much we're supposed to do, what we're supposed to look like while we're doing it and it's leaving us stressed and exhausted and feeling

morgan chase is devoted to the homeless crisis affecting our enti area in fact. >>they plan to invest 75 million over the next 5 years now earlier i spoke with alan fernanda smith with jp moan chase about th decision to devote these funds to those in need. >>and such a p morgan chase wants to step in and say ok what can we do allen. fernandez smith with jp morgan chase unpack the details of the company's large invesent and why it is significant to get involved now come so we're starting with $22 mlion and that 22 million is gog to go to the preservation and production of new affordable housing and working closely with a number of our community organizations know these organiations that have proven hiory and experience in doing this work. >>and ones that havead long relationships with to say how can we lift up the innovative ideas that you have been close of the community where can we use some of our capital weather be philanthropic capital for our longcapital with favorable terms to say how can we lift up that work and that's really where at initial 22 million is coming from. >>he talked about the studies of how homelessss is affecting so many nd in so many harmful way

to be as is turning out weird earnings season, inasmuch as straight out of the gate you get jp morganwing away everybody's expectations, and looking fantastic. as bad ass numbers the stock market reaction suggest they are. >> i do think jp morgan is certainly executing at the higher end of all of the banks in terms of their profitability. there is out -- they are also a leader, and as we have said, this is noticeable, given that they are a leader. i would say goldman and bank of america also have very strong results. if you look sequentially, goldman actually grew from last quarter. keep in mind that a lot of these percentage gains are not just due to a strong fourth quarter, but a weak year ago quarter. there is some aspect of the performance from last year. whether it did better last year and in terms of looking forward, what's positive on jp morgan there is some stabilization in at whereas costed not grow for citigroup. an overall, expenses for bank of america at this point, clearly is the fact that they have flat expenses, there is less optimism on the revenue side. have a bitrica

the annual jp morgan chase health care conference kicks off next week.nt has been known to spark interesting moves for one group in the sector, more on what we can expect meg tyrrell back at cnbc hq. >> well jp morgan biotech team being looks at stock in that sector back to 2001. they found during the week of conference biotech outperform the broad are market in all but three three years by average 2%. one of weeks was in 2016 the last presidential election year. are we in for a tough year if i spoke with the head of investment banking who said the industry is in cross hairs during elections but despite 2016 history doesn't necessarily suggest that much disruption his prediction m and a. we have seen the conference in previous yeerg years and he says that could happen. and analyst are watching gill yap surpta for the updates next weeks and we'll have a number of of the ceos appear others joining us on cnbc brian. >> thank you very much meg. sticking with the health care space by the way check out this mystery name. surging more than 20% in the last three

good run over the last three months, but mike is working on a safer way to play going into both the jp morganlth care conference and earnings it's time to risk less and make more options action starts now. >>> yes, it does and welcome or welcome back, everybody. so let us dive right in. we'll talk about the payment stocks because most cashed in a lot of big gains last year check out shares of mastercard and visa led the pack up 58 and 40% respectively american express and paypal did well square lagging a bit, still up 3% on the year carter says one of these names is about to ring in more money in the new year. carter is going to break down the charts for you carter >> let's jump right in we're looking at amex, the setup here is recent outperformance relative to other financials and proceeding underperformance. it's a one-two more often than not. the table is very simple over the past six months, yes, what we know is that the bank index has done 13, 14. we know the etf financials have done 11 and amex has done 1.5. that's over the past six months. moving forward, take a look over the past mont

even if you don't own stocks, tomorrow when jp morgan wells fargo kickoff earnings seasons, quickly followed of america, goldman, morgan stan lee and state street. look at this. charles, u.s. bank court, usc depending on how much money they did or didn't break in from stock trading and wealth management, some of these names will have the power to move the entire market and not necessarily up. are those metrics once you really should be watching? where joined by security analyst, head of u.s. large bank research, mike is first on foxbusiness. i've seen you are wearing not just a sport jacket, is a hoodie? >> you caught it correctly. >> you can't beat a banking analyst without a tech analyst? >> exactly. thanks spend more technology more than any other industry. we think this is the decade of banks and technology. i will play the part here. >> are using everything from acts to the cloud to data, fake data etc., that is what will make or break these banks in this decade? >> that's the starter, absolutely. digital banking, electronic payments and the government over the whole process, that makes

let's go right to jp morgan.ou can see that jp morgan really has outshined its peers since acquiring bear stearns and has just been pulling away recently. we also note that on the conference call there were a lot of questions about whether jamie dimon will be retiring anytime soon. let's look at how the jp morgan stock price has been for the year. with the latest performance, he what hee years is about will be looking at. that's what he said last year and he said it may follow with another five years but that is what he is looking at, to stick around for another five years. fixed income was that key for j.p. morgan chase. inigroup's trading income fixed income was up 49%. it also was a very big surge. that windfall help the ceo beat its profit target. strength andome debt underwriting and consumer banking so that was positive. in terms of wells fargo, very disappointing. they not only missed expectations, but clearly the new ceo is facing legal issues in has pledged to engage more cost-cutting going forward, but

sonali: it has been a record otherut jp morgan and banks are preparing for tougher times ahead. an stanley went to cut 2% of the workforce. we do not know what they will definitively look at with the other banks, but we wait for goldman sachs and morgan stanley to see if the investment bankers will keep up with pay. amanda: good news on this front in the form of higher meant -- hiring. there are cuts happening in parts of the business. how optimistic does this make us? areli: even though they hiring bankers in the u.s. to maintain competitiveness, they did just cut hundreds. ubs and its peers are calling hard in the season and that makes it competitive for the pay for the high bankers, but difficult for everyone else. shery: we also have some private insight. but what do we know? sonali: credit suisse might want to make a push into the u.s. in smaller ways. while they are a huge of management firm, ubs has the biggest number of advisors in the world the u.s.. morgan stanley has a behemoth unit. watching them compete with the u.s. banks and their rival ubs will be an uptown battle

jp morgan says it is high anticipation. what do we think?hink there's been high anticipation for institutional adoption of bitcoin for a very long time. i used to cover it very heavily. it takes a long time because even though markets are opening up, some of the financial concerns for big institutional investors, regulatory risk and what not come others are still problems. so until some of that is cleared up. bitcoin? what is j.p. morgan treats it as a commodity. they said they look at a downside risk after friday. there's a lot of institutional interest, but on the other hand, a lot of risks still there. alix: there's interest, but i feel that ceos reversed their position on bitcoin every three months. [laughter] sonali: yes they do, let's be honest. investment banks love it. they are aware that it is there .ecause there's a lot of risks alix: it will be fun to see how that pans out. sonali basak joining us. in today's off the beaten street, a lonely japanese millionaire says, comply with me. -- says, come fly with me. he plans to fly to th

both jp morgan and goldman sachs talked about prime and cash equities doing really well. e are businesses where morgan stanley is also a leader. my guess is we saw some strikes there. derivatives has not been as strong. alix: i think you are pointing theut also, sonali, that fourth-quarter was affected by prices. what and where do you like in the banks/financial sector? thing, like the whole and this is an important story. got wealth management, investment banking, trading, but look at the interest rate environment. that may improve this year. has been managing costs throughout all this and still seeing good results. financials has not been a great place to invest for years, but they are starting to show signs of life. could be a leadership sector this year, may be taking leadership away from technology as some of the u.s.-china battles margin to that story. sonali: fic trading revenue more than doubled, and the reason it is important is because they are making a lot of investment in that business. they really transformed their equities business by investing a .ot in techn

karen ward, managing director / chief market strategist emea, jp morgan asset management is still withith the under shooting of inflation, but this has been persistent for developed markets for many months, many years. what if anything is the significance of this commentary? karen: it is really significant. there was a call within the fomc over the last year or further that if the u.s. economy cannot generate inflation when it seems to be at max capacity, 3.5% unemployment, what will happen when it does turn down? and narrative is growing becoming a core narrative that they need to make sure inflation expectations do not become de-anxious. all central bankers are terrified of japan. when they stop raising prices, it is hard to dislodge as the bank of japan shows. they are focusing on how it changes their framework and toolkit, and will be a key focus for the first six months of the year. they are telling us they are aiming higher and looking for more inflation. matt: first off, a disclaimer because i get emails from american viewers were awake and watching the program that there is inf

the ceo of jp morgan earning 31.5 million dollars.new york, this is bloomberg. ♪ scarlet: we have more now from davos. the president of columbia sitting down with francine lacqua. >> many people were setting i was going to present a pension reform. it did not happen because we did not plan to present any reform. we believe it has to be a consensus. why do i believe there has to be a consensus? in columbia, one out of four people older than 65 years have access to a pension if we do not close that social cap, it is going to turn into long-term poverty. we have to solve this in a way that is sustainable. francine: will we see a pension bill in 2020? >> between the government, the workers in the private sector, we have to agree on a mechanism that can ensure or people in columbia have access to a pension. the excess by pension system is the principle of equality. we will continue to search for that. francine: what are the chances of this agreement coming together? >>>> i think this is an important chance because this is for the good of t

jp morgan is about to boost the tonual fee from $450 $550.rn, they are adding new perks like a $100 credit on doordash delivery service. i'm to be on a hurtado. that is your bloomberg business flash. alix: the entire control room is so mad about that sapphire card yearly fee. now we turn to wall street beat to cover three things wall street is buzzing about. first up, you've got revenue from the investment bank, the largest business -- the bank or just business. up next is quant firm cutting its global workforce. and wework pumps the break. -- the office shuts no expansion as they shut to offices in new york and london. what did we learn from jeffries? reporter: one reason we always like jeffries report is because we get a read through to other banks. they clearly seem up to mystic about everything, and it is incredible in some ways. the world thinks constantly on the edge. there's a threat of war under the three -- under the trade conflict. in is am also interested the 2020 element. i wonder if any of that is going to be frontloaded because

jp morgan, your firm, best known analyst on this stock. the point is, is it safe to own ge is it safe to own this stock. >> it is a momentum play. >> it is not the only bullish call out there. >> i don't believe you can justify valuation on this stock this year or next year so it is purely -- the fundamentals -- not are they great, but have they turned? are you going to cult believing they are going to continue to turn them? do you want to miss this as the price action goes up and they continue to say the right things that's the call here you don't have to guess ultimately whether he actually turns the company completely around all you have to guess is what is the momentum going to be going ford in the near term. that's probably a decent bet. >> i would say this company is somewhere between financially distressed and having an actual turnaround, given where it is priced right now i still think the tension liability issues have to be -- pension liability issues have to be resolved or at least the investor base has to be comforted about that

this morning i was reviewing the jp morgan guide to the market. there's a stunning chart in the back of it you see that since the low in 2009, s&p is up 370% i think msec is up 124%. it's trading at a four point discount to the s&p 500. there's some really great companies in there should ford and gm trade at premiums to toyota and honda because they're in the u.s.? i don't think so go down the list and do that over and over. i think there's a big opportunity. i'm thrilled we're talking about it >> at the same point, it's not like people are dialing back their expectations for the s&p this year. you have oppenheimer, technical analysis, the road to 3600, btig 3440 you have 3500. there is still optimism that the trend here is going to remain your friend. >> i agree with that i'm not saying that the eem or any derivatives country specific of that aren't going to outperform potentially but i still like the liquidity here i think the recovery that's happening in europe is real. i think a lot of the stimulus that's been applied for years -- i don't want

we have seen essentially jp morgan, citigroup, bank of america starting to trough out at 65% cost as nd unable to go much further. morgan stanley still up over 70% on that number, much higher than those companies. a lot of that is explained by business mix. it is no surprise that one of james gorman's focuses is to get that number down over the next few years. anna: we talked a lot about china this week with the traded deal and growth numbers coming in overnight. how important is the access to china markets for the u.s. banks that you cover? or is it still a peripheral part of their story? now it looks like it they will have a more free reign and be able to own assets more freely within china. is this an important part of the growth story? tim: at the margin coming out -- at the margin, no. it is not something that my analysts or clients are talking about. china is still very important and arguably becoming the world's most important market. it has to do with whether the beginning of the easing of the trade tensions leads to more confidence, more spending, and higher loan growth. matt

she has been a leading member of the health care equity research team at jp morgan for 16 years.ide, the integration is more between medical and diagnostic. marrying it together with a lab company, they have done really well in being able to do patient recruitment, bringing new technology from a medical perspective to the marketplace. teladoc is one of our favorite names on the tele-health side. the cost of the services. they announced an acquisition yesterday of a company called intouch. this creates a broader platform for them to be able to touch people in the hospital, at home. they have a great relationship with cvs. taylor: as you look at companies making heavy investments within ai, how is that poised to be a disruptor within health care? lisa: when you start thinking about artificial intelligence and about making decisions around health care were artificial intelligence can play a part, looking at things like value-based care, that's the direction this country needs to move in. we have to move away from fee-for-service to value-based care. if you are a diabetic, what will

earnings kicking into second gear with block buster numbers jp morgan and citi, gang busters out of theate. wells fargo faultering a bit today, you've got goldman and bank of america. good morning to you, the big banks, are they important to the market now that we are sitting a stones throw away from record highs? >> they certainly are. the good news is so far so good. wells fargo is kind of an outlier. in terms of what we've seen so far, i would call it a victory i expect some really good earnings they would like to be one of the highlights it is not likely to be one of the earnings quarter overall the market thinks consensus is down i suspect they'll get a little bit up it will not be a banner quarter on the macroside >> what stood out the most to you about those reports from jp morgan chase and citi group. was it the idea that the bond service was back what does that tell you about later on today? >> you've seen a surge in the trading and investment banking the other part, consumer and loan demand is good to me that probably means again, you don't have much to worry about here in 202

. >>> crude oil sinking, what p does rbc have to say about the sell off and jp morgan is boosting the annual fee for one of its most popular credit cards. "worldwide exchange" begins right now. >> good morning. welcome to the show. stock futures pointing to more gains at the opening bell following yesterday's turn around the s&p around record levels as well it did set record interaday highs. up another 18 points implied today. the dow up by 153 and 60 for the nasdaq looking at the bond market yields are rising off of the lows we saw in the wake of general qassem soleimani's killing. 1.874% two-year 1.58% as well going worldwide. after seeing a rebound innizia you can see a lot of green on the screen nikkei in japan up almost 2.5% nearly 1% gains for the composite index as well. let's spin that over to what is happening in early european trading. i don't see any red on there up 1%. same for the ftse in the uk and for the dax in germany oil sinking 5% as tensions cool off for now. crude oil for u.s. based benchmark, wti up one quarter of 1% >> joining me now from uk wedge management let

francine: karen ward of jp morgan asset management.an's pro-democracy party wins by a clear majority. we will be in taipei with the latest. plus, tom and i have a pound chart. this is bloomberg. ♪ francine: this is bloomberg surveillance. tom and francine from london and new york. i have a new sterling chart that looks at the forecast. i like this chart because we spoke at length about what we saw in the gdp forecast. it is just at a time when a number of members have come in and said they would vote for a cut in january. dovish comments seem to have front run. we will have to see if the economy does warrant a cut. u.k.ll get to more on the and the pound but first let's get to the "first word news" with viviana hurtado. viviana: we begin with this warning, don't kill protesters, donald trump's warning at iran. protesters angry over the irani and shooting down of that -- over the iranian shooting down of that jet took to the streets. authorities say the jet was mistaken for a cruise missile. the trump administration is concerned russia

that is similar to news you have from the likes of jp morgan along with the rest of wall street.k's core equity pier 1 ratio is 16 point 1%, ahead of expectation. our editors have been parsing through the top line, and this is where it gets interesting. ecb starting to mitigate the effect of negative rates. that comes down to the remuneration, shifting dates and amounts. this is the cfo. obviously very alive to the considerations in our home market on these topics. look, compensation overall is one of the most important management processes that we run every year. that is for the whole company and also for the management board. we gave deep consideration to considerations and as a group. between recognizing the cost for shareholders and employees of the significant restructuring that we are undertaking and that are leading for the company but also attempting to align our interests with the long-term interests of shareholders. we think we struck the right balance both in the shareholder environment and as responsible stewards of the company. >> walk me through how you get to this

jp morgan and bank of america. >> i'm bearish we do a segment here, you have probably seen it numerous times called the power pitch we power pitch a stock and over the summer we power pitched citi and the reason why it was trading at significant discount, 62 tangible book with 69 and we pointed out how that is a huge opportunity. that proved to be correct. now here we are at $80 trading around now and book value and that is where it tops out at so $80 is book and citi and i think the stock trades lower back toward the low 70s dollars, high 80s so i'm in the bear camp. >> when he said we, do you have a mouse in your pocket it was you power pitched at 62 and it was a great call. >> nice job. >> it is a we -- >> patting yourself on the back. >> i wasn't patting any back i was -- >> just passing your mouse on the back. >> funny the mouse thing because they tried to staple antlers on the mouse and it comes back to bill murray again. >> he's a fan of the show. >> he's probably watching right now. >> of course he is in chicago >> keep watching well thank you all for giving us your bests on ci

taylor: that was my conversation with lisa gill, jp morgan research director and senior analyst., jeff bezos said "the 21st century is going to be the indian century." amazone company welcome and other big tech firms? more, next. also still ahead, ai, health care, and big tech backlash. we will talk about it all with the aol cofounder and ceo of revolution. this is bloomberg. ♪ taylor: u.s. big tech companies are trying to push into india, but not everyone is welcome. on his trip to new delhi, jeff bezos faced large protests across the country. meanwhile, india's attitude towards samsung appears to be rather positive. to discuss the influx of foreign tech firms, i spoke to a distinguished fellow at harvard law. >> if we look at what amazon does, they eat entire industries. look at the monopoly they have built in the united states. india is really worried about that. so what they are doing trying to restrict amazon is sensible. i know this may be popular, but i agree with some indian policies trying to hold amazon back because we have not done that here. taylor: what are some poli

return on equity 50.9% right in the middle of jp morgan at 15% and citigroup at 12% up about 6%.out 0.7% yesterday. similar to weak gains we saw yesterday. not as big a beat as jp morgan and citi but still a nice beat >> did they say anything about the health of the consumer >> so chairman ceo said in a steadily growing economy marked by solidly climbing economy, we produced another strong quarter. in general in terms of the numbers, very clear strong credit quality still no issues there. definitely a theme of all of the earnings calls loan growth coming through the snap shot take away is nothing to worry about there >>> the corporate picked up in q-4, particularly and that drove increased activity wealth management as well. obviously that helps because the economy has picked up, markets have picked up and you get a bit of the income from that. i haven't got the full comments. we'll listen about specifically the consumer but it seems like a nice healthy economy playing out too. up to 4% now. >> hey, wilf, thank you for that we'll talk to you more as well we want to bring in mike

at the same time, they are adding thousands of technologies at the firm. >> how much of this is jp morganefensive and extra careful versus seeing a real downturn in the economy? year, at j.p. morgan's investor day, th jamie dimon said he saw the risks ahead in the economy, and he is known for always wanting to maintain a balance sheet, so i think it is multiple things. i don't think this is reason to panic, but have always been sober risk managers. a very big focus on expenses within the firm, within the consumer bank, and he said he wants to keep, you know, efficiency, keep improving efficiency. taylor: thank you to bloomberg's michelle davis, joining us from new york. president trump unveiled his plan for peace in the middle east at the white house today. the proposal keeps jerusalem as israeli capital and offers the path to us two state solution. the palestinians rejected the plan. advisors to the president, jared kushner, led the effort to promote peace in the region. >> we have been working on this for a long time and over the last couple of years, we started the issue, the region, c

jp morgan will not raise bonuses it's corporate investment bank. best year since 2011. across wall street, bonuses will probably fall 5%. tom: let me do a data check. i will bring apple in. i usually don't do this, but the big focus this afternoon. futures up six. yields come in, very important. three years ago, apple $122 a share. now it has done a true double in a year, up 309%. what do you have on the data? francine: when you look at apple , the china virus, what does it mean for apple? some of the components are made in china and some of the manufacturers may be in lockdown, so i'm looking for an update from apple. i am seeing fluctuation on renminbi in china. stocks pulled back after we heard from carrie lam that china will restrict travel from hong kong to curb the virus from spreading. tom: we have seen that through the morning, and other announcements as well from japan in the last minutes. in the hong kong evening, so maybe not as much, but here is ms. lam. the key one to me with my little bit of experience, when you shut down a high-speed

. >>> jp morgan's conference is underway in san francisco but several attendees are reportedly complaining about the city's high cost and cleanliness and they want the conference to relocate. the state of the city and how it impacts business is something we've focused on very much. here's the story. >> reporter: it's that time of year when thousans from around the world descend on the six block radius around san francisco's union square for jp morgan's annual health care conference. with that comes this. a new bloomberg news report shows how attendees continue to plain about san francisco's high prices and the homeless crisis. one says she feels unsafe walking around at night. >> complaints we've heard that the city is ripping people off, there's thousands of dollars to get rental space for conference rooms at hotels and it's way too expensi expensive. >> everybody from the company was complaining it's hard to get hotels and prices were really hi high. >> reporter: would that make you guys second guess wanting to come back here? >> i think it is something that we consider. >> reporter: the