retail sales, upsides of price with jpmorgan. jpmorgan stock up by 2.28%.achs was of about 15%. on matte screen, it stays unchanged. we get to the other asset classes. wti crude retreating from a four-month high. salesdisappointing retail , yields were higher on treasury earlier in the session, but now on 1.17%. the euro weaker, at one dollar 1312 -- 58 percent of republican voters say the candidate with the most delegates after all the state contest are finished should be the nominee, even if he does not have a clear majority according to a new associated press poll which says 40% believe it would not be acceptable the delegates to choose a different candidate. nation's most the expensive medical marijuana and governor chris christie says that is just fine with him. he recently blocked democratic lawmakers latest efforts to broaden the list of treatable conditions. people who eat fast food have elevated levels of industrial chemicals and their bodies according to analysis from the federal interest in surveys. some of the chemicals with tony curran nature a

here onhave a leg up jpmorgan.rust accounting in the advertising technology space? brian: mostly. tom: what are the intangibles on the balance sheet? brian: it is more a question of what is gross revenue and what is net revenue. even revenue recognition is not the same with every company. thebook does not classify talk to martin sarao about this issue. orrell about this issue. tom: michael moore, thank you so much, in london. special thanks to jim beyond go and brian wieser as well. mr. bianco will continue on bloomberg radio. "bloomberg " will continue the discussion on bloomberg television. ," weloomberg surveillance will advance the discussion about the state of global wall street area friendly hints will join us -- of global wall street. bradley hintz will join us. he actually gave out in a. stay with us. "bloomberg surveillance." ♪ david: jpmorgan weighed down by that investors are happy with what they've seen so far, sending shares higher. global economic slowdown could oil demand.r this is a production c

that includes jpmorgan. a report says the announcement from the fed and ftic could come as early as this week. the decision could force the banks to scramble to change their plans for dealing with a potential bankruptcy. there's a lot going on there. meantime in a report yesterday, the nonpartisan government accountability office criticizing the regulators, saying big banks don't have enough information on how the living wills are being judged. >>> then a busy day for economic data. at 8:30 eastern time, retail sales and the producer price index for march. at 10:00 a.m., look for february business inventories. at 2:00 p.m., it is the fed's beige book. a lot going on. >> a living will, people get those. >> yes, but it's a little different with people. >> it is. they asked me the other day did i have one when i went for -- you know, katie couric on camera type, which is a little disconcerting. after your colonoscopy f you're a vegetable, do you want to be -- it's like, that's not typical, right? >> no, not usu

up let's get to jpmorgan. we are seeing jpmorgan shares leading banks higher, leading stocks higher, up three .2%. here are some headlines. net income down 6.7 percent. revenue down 3%, fixed income trading revenue down 13%. equity trading down 7.5% and earnings at corporate investment banks down 22%. each was a smaller decline than had been estimated by analysts. as we have been talking about in recent days, people have been cutting their earnings estimates going into this season. for jpmorgan, no exception. that is one of the reasons why it was able to come in and beat estimates. because of the list we are seeing today, we are more firmly in the green your today for the major averages. the s&p 500 and the dow jones of better than 1%, even as the nasdaq lags, but down less than 2%. it is important to note that there has not been the participation of the financials on the year to date aces. take a look at the bloomberg. i am looking at grr1. a little tricky to read, but the red are is a financial group, down f

>> for jpmorgan, yes.re proactive in terms of building reserves. 2% alone is not a big part of what they do. some of the more regional banks will report this weekend next and we will get a better sense of how big a piece of the pie is energy. scarlet: we need to ask you about the regulatory setbacks that the banks face. they need to face sanctions or revise. how important is the governor diss of -- government disapproval? bige don't view it as a deal today to the extent that the banks take action and mediate the problems the regulator's pointed out why october 1. as long as you make that deadline and fix things, you will be ok. if you miss the deadline, we think things get dicey. in the next round of submissions, i think the banks have to do a better job in terms of living up to the fed. you have seen other implementation like a stress test. with each passing year, the banks get that her and better at meeting government requirements and we think this will be no different. scarlet: let's look ahead to wells

so jpmorgan rising all of the sector yesterday. it's now on the other banks to follow suit. >> yeah, we'll see what happens later this morning. we're also watching oil prices closely this morning ahead of that important producer meeting scheduled for sunday. when you look at the oil board, giving some of the gains we've seen over the week back, but wti crude is still firmly above $41 a barrel. brent just flirting with that $44 a barrel level, down half a percent. overall, the trend has been higher. it's something we're also going to talk about with president kim of the world bank today, wilfred. that is the stabilization recently in commodities prices and how far that has helped emerging markets. not just the dollar that has started to weaken but the price of oil, copper, and other commodities is also going a long way to help some of these battered emerging markets. that's an interview coming up also on "squawk on the street." >> you keep dropping in all these great names of people you'll be speaking to. sara, therefore, i do under

jpmorgan is so far missing its long-term target. is targeting $4.8 by 2017 from 2014 levels. jumpis jpmorgan's expected in loan loss provision in the first quarter. analysts estimate that jpmorgan than energy reserves more 60% from last year. a pretty big move up. is allisonng us now williams, a senior banking analyst. she helped us put together this preview of jpmorgan. what is the most important metric to watch tomorrow. allison: corporate credit. we all know that energy has had trouble. jpmorgan has already announced they will be taking a big energy reserve. about isle are worried credit contagion. is the pain spreading? there potential losses in other categories? joe: what is happening these days with legal fees and money set aside for legal issues? have putmany banks their largest legal costs behind them. have bigpeans still costs ahead of them. one is related to the department settlement.mbs jpmorgan, citibank, bankamerica -- already gotten behind gotten that behind them. wells fargo is putting a different mortgage lawsuit beh

jpmorgan's stock is down 10% so far this year. that's the backdrop for which dimon is going through the global concerns. he also talked about speed bumps coming in china's economy and its transition. >> lots of interesting international factors there. the biggest takeaway for me on the domestic front is he says he's not concerned about negative interest rate, particularly for a bank ceo. he didn't make quite such a clear call for that, which you might have expected. that perhaps quite an honest take on him. on the u.s. economy, he says it is growing stronger and it's far better than you hear in the current political discourse. he actually says the u.s. economy is relatively resilient, but he says we have serious issues we need to address. the united states does not have a divine right to success. so very interesting read. it's longer than normal as welt, just highlighting all those issues. >> issues on people's mind and the market. can it continue to climb the wall of worry, which is going to be the question going in. some stocks

jpmorgan and banks. adding some 40 points to the dow. to rick santelli with breaking news on inventories. rick. >> february read on business inventories was expected to be down just a bit. and it delivered. it's down one-tenth. minus one-tenth means it's kind of wild. you have them down last year of 0.1% as well. you have to go back to january of last year to figure down 0.2%. a little bit surprising. now inventories weak but weak as expected. carl, back to you. >> thank you very much. rick santelli. shares of jp missouri began as you said leading after prokts fell but beat expectations. paul, it's good to see you again. good morning. >> good morning. >> what can we ex-strap late from bank earning season? >> so many people negative on bank earnings. they hit a single and the stock is up because of thachlt there's so much negativity. even my numbers, they're beating me up and my estimates were way too high and they came in and hit my estimates. i think there's a lot of negative especially on credit costs, lower and what not. you're seeing

jpmorgan does. to bring you the numbers and reaction from wall street. >>> breaking overnight a surge in china exports. that's sparking a rally in stocks around the world. donald trump will put an end to that. >> and nearly 40,000 verizon workers are going on strike this morning. we'll get a live report from the company's headquarters in new york. it's wednesday, april 13th, 2016. "squawk box" begins right now. >>> live from new york, where business never sleeps, this is "squawk box." >>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. check out the u.s. equity futures. we are continuing to pick up steam this morning, with the dow futures indicated up close to 90 points this morning. s&p futures up close to 12. the nasdaq is up by 35. overnight in asia, china's trade data for march showed a surge in export that was much stronger than expected. that was offset by weaker than expected export data. still, it was enough to spar

jpmorgan today is expected to be bad.ch is the one without worries you the most -- the one that worries you the most? >>: that worries me the most is the one that is normally the bellwether. wells fargo. they don't have -- there are couple factors in the first one is that they are quietly building quite a major investment banking business, which is having an impact on the cost base. they keep banging on the top of that cost income ratio while everyone else is pushing down. we think it may not be bad, but it changes the risk. francine: this is still a retail bank, right? given where central banks are doing, it is probably the safest. >> if i look at the wholesale banking industry, about $11 billion, in may 2 $.5 billion of fees. that's about 18%. they are taking 500 thousand square feet in manhattan and i don't think that is retail banking. they also have $17 billion funded unbalance exposure. nearly all of that is noninvestment grade. you manage that big negotiation with chesapeake where they are trying to shift the empha

let's talk about jpmorgan.ef executive, jamie dimon , he has revealed his thoughts on a range of suspects. his rates, brexit, in annual shareholders letter. nejra cehic is here. he has got to say about the fact. nejra: what he is saying is that he is less worried about negative interest rates, but he is more concerned the rates might rise faster than expected. he also said that the market won't be able to rely on the biggest buyers of u.s. debt. we're talking about the fed, foreign countries, commercial banks. he says that, if this scenario were to happen with interest rates on ten-year treasuries on the rise, the result is unlikely to be as smooth as we all might hope for. treasuries, of course, had their biggest quarterly gain in the first quarter of this year. jamie dimon is really worried that that rally could turn around. manus: he also talked about brexit. he talks about it in terms of real risk for europe. he certainly didn't hold back, did he? nejra: he said the outcomes of a brexit are large and potent

mike: jpmorgan's bankruptcy plan is not sufficient.ve enough money on hand to cover a failing of 31 banks across the u.s. was he speak to go this, i wouldn't be surprised. i think they should let the businesses run themselves and right now speak to go jpmorgan, if you want to own the stock here, if the other banks are weak, i think that shows how strong t -- it puts other banks in light. maria: bank of america is going to be watched tomorrow and thursday. mike: absolutely. maria: stay with us. back in a minute this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may

this isn't just about jpmorgan. you say in your note on jpmorgan there's a general panic concerns bank stocks and that the capital market weakness definitely is there, as you just said, but this is across the board then. >> yes, it absolutely is. i think to say that jpmorgan beat its estimate is a bit of a stretch at this point. every analyst, myself included, were in a race to get the lowest number out concerning what jpmorgan, goldman sachs, morgan stanley, bank of america, et cetera, would do in this quarter. if they didn't beat the estimates, it would have been perhaps more surprising. >> how about loan losses? are we still looking at increases in loan losses? >> absolutely. i think that loan losses in the american banking industry for the last three years have been well below normal. i mean, in fact, in the this could of 2013, they were the lowest as a percentage of loans in the history of the numbers. it would have been irrational to assume they were going to stay at that level. i think you should expect to se

because in 2005, jpmorgan did $5.9 billion in trading. in 2015, they did $10.0 -- $10.1 billion in trading. they doubled the size of their business almost in this ten-year period. that was the highest level of trading revenue that jpmorgan has ever had. so not everybody missed the boat. not everybody didn't understand that dramatic changes had to be made. in the case of citigroup, you knocked off 26% or roughly $1 trillion worth of their assets. in the case of bank of america, you have gone through this massive restructuring of the business. in the case of wells fargo, you have doubled the size of the company because of the acquisition of wachovia. in the case of morgan stanley you are doing as much in trading almost in 2015 as you did at the peak. so yeah, other companies went through the same process that goldman sachs did but not one of them stood its ground the way goldman did and not one of them refused to do transformational changes which would have ameliorated the blow. you can't protect goldman sachs by saying everybody else was w

today, a report suggested proceedings move ahead but jpmorgan tells investors that

i'm going to show you a bunch of other retailers getting downgraded by jpmorgan. jpmorgan saying bearing her incrementally cautious because they are cutting their first quarter cop sales to street lows across the board grade -- board. carol: let's get a check of the headlines. mark crumpton has more from our news desk. mark: bernie sanders is backing away from an earlier suggestion that hillary clinton isn't qualified to be president. appearing in nationally broadcast interviews, senator sanders defended speaking out harshly against mrs. clinton, fight quote, we've got to back. when asked whether she was qualified for the white house, sanders said of course, and that mrs. clinton on her worst day would still be an infinitely better candidate than anyone on the republican side. an associated press poll finds 55% of americans say they have a negative opinion of hillary clinton. nearly one half of registered voters say they would at least consider voting for mrs. clinton, while 63% say they would never vote for mr. trump. a senior u.s. official says an airman shot hi

jpmorgan was the bellwhether. numbers include three cents in reserved build for its portfolio but a five sent game that may not be recurring. >> if the stock uncharacteristically, people that bought it at any time in late 2015 or this year, they are under water. is at any time overall operating environment? is it the negative interest rates environment? is at any time tough trading? what is it that has people, you know, selling stock instead of buying it? >> sure. so the bank index is down 9% year-to-date. the s&p 500 is up 2%. so pretty much in line with the bank index. couple things weighing on wells and some of the other banks. one of them energy and the risk of the energy loan exposure to some of these banks and the interest rate backdrop. if you go back to december expectations were for four rate hikes in 2016. now we've gotten through the first few months of the year we're down to maybe expectations for two rate hikes this year and here at raymond james we've actually removed any rate hikes from our model th

will it get worse when stocks like jpmorgan and bank of america and citi report next week so let's gete money and find out. mike? >> you know, well, i think obviously it does matter. prices for the banks actually indicate that people are really concerned. i mean, if you take a look at the banks on a fundamental basis right now what you're seeing is what would look like very low valuations. take a look at a name like bank of america. this is an interesting thing about fundamentals. people like to look at the multiple and say stock is cheap and schlickial stocks typically trade at the cheapest multiples right before fundamentals actually start turning south so if you're looking at banks the same way and you're taking look at the valuations, price to tangible book, they look awfully cheap and what they are telling you the market doesn't believe that the market is continue. >> we think about next week and have q1 earnings and looking for commentary for the balance. year, the problem is that expectations aren't particularly high at this point and when we think about it already heard from jp

>> jpmorgan and goldman, and they're all up.i bank, wells fargo, but we're also seeing a big short squeeze. that's what's really going on. all that the usual stuff, but i think the short squeeze is propelling most of the underlying stocks here. >> what are you looking for then? >> i think we'll go another month of small gradually getting bigger and bigger, maybe 2100 in the s&p, the dow maybe 1850, up in that range, but i think it's going to stall. i think we're going to come to the summer doldrums. the volume hasn't picked up much, but come the end of may here, you're going to see it kind of stall. >> what about oil? >> i think oil will stay okay. i think you have the summer drive season. there's a glut, though, worldwide, so we're have to watch it, about you i think for the most part it's going to stay in this kind of range. >> oil up, stocks up too, but it seems like all the formulas are changing around, alan, watching it daily. >> absolutely. >>> thank you. >>> heading to the close, the dow holding on to the gains right at t

and we are seeing higher expected moves in the names like jpmorgan next week.basically selling that elevated premium if you do that. >> look, it gets down to rates, doesn't it? if rates aren't really going to move, this is not a good place to have capital. and it's a risky place, in fact, if things really get bad because there's beta here, and these can make shocking, new lows, just as deutsche bank is threatening to do and as hsb is doing. >> so, you'it's not that you're advocating against the trade when you say it's not worth the capital, but if you're going to do it, do it this way? >> right. >> okay. >> because if there really is problems -- this is the second biggest sector by weight in the market and it's the lifeblood of the system. and the way they're acting, not good, you know? >> right, right, right. >> i'll just say this, and we've talked about it a lot at this desk, jpmorgan, they talk about the dimon bottom, they announced a $2 billion buyback after he bought $27 million worth of stock, but the stock acts like garbage. it's not closed above $60, wh

jpmorgan kicks off this morning. take a quick look at fair valuations and what they are trading. looks like we are mostly in positive, mostly green on my screen. let's check in with caroline hyde at the touchscreen. caroline: hans, thank you. asia is on a tear. we are up to the highest level in three months. six straight days of gains for asia. will we continue to see this uptick? denting that risk appetite flowing into asia. we are up 3/10 of 1% on the ftse. tinto,ers in vogue, rio bhp at the top of the leaderboard. lower, though it was expecting some uptick. we will talk about that later. cac 40 opening flat. look at that. i wonder if there is not one single stocks falling on the cac .0 it is those related to commodities that are on a tear. let's check in on commodities and on oil. coming off those four-month highs, speculation is swirling about what will be achieved on sunday in delhi. -- in doha. will we see a realigning in terms of the supply glut? on thestill above $43 bridge contract. elsewhere, metals pushing

yesterday jpmorgan chase earnings boosting the dow to a 2016 high. we get more big bank earnings this morning. how will they affect the stock market? kobe bryant ending his 20 year career in storybook fashion. we will tell you about it, stock market futures ahead of "the opening bell," thursday morning, dow futures giving back big gains, dow 37 points, nasdaq futures down 10 points this morning. nicole: citizens against government waste released their pig book which highlights what they consider the worst porkbarrel government spending project and there have been quite a few of them. remember $15 million devoted to catfish inspection? the latest report finds nicole: one of those is for a $120 million upgrade of the abrams am 1 tank which got opposition from the pentagon. there are 2001 part in the california desert and the pentagon would rather create a new generation of tanks than upgrade the m1. for more on the government's outlandish spending, gerri willis has this. gerri: remember when the government spent tax dollars on this project? that is the

jpmorgan started this trend. here they are. >> i thought they -- >> where do they -- your eye doesn't know where to go, you have no idea. and look at ge, by the way. i just picked that one , too. i mean, come on, guys. give me an old-fashioned press release like wells fargo, all right? i can read it! i can actually read it. stop with this newfangled press release that basically is designed to make you not want to read it. i don't like it. >> look at unilever, since they have a model on every other pitch. >> okay. >> by the way, you can't rely on these press releases for anything other than basics. read the cues -- >> you want this, right? >> yes. yes. >> that's nice. >> swimsuit edition. >> sure. >> i mean, this is a guy whose stock is going up. >> jpmorgan will put her on the front of their press releases next. anything to divert your eye from the actual news. nonsense. >> it's got my eye. >> coming up, sara eisen's exclusive with treasury sec jack lew on the sweeping tax inversion tracrackdowns and earnings, de

blythe masters is best known for helping credit default swaps at jpmorgan. those instruments which featured very prominently in the financial crisis to say the least. now she's pioneering a new product with the potential to change wall street all over again, as she says. i caught up with her at money 2020 and asked about the big banks interest specifically. >> your average financial institution will be trying to squeeds in any given year 5% or 10% out of its cost base to reinvest in new technologies in order to grow for the future. in an environment where you are consistently and structurally returning r.o.e.s that are below your long run marginal cost of capital, 5% or 10% per annum is just not going to cut it, especially when revenues themselves are structurally depressed and capital requirements are exponentially rising. in that environment, you're looking to cut tens of percentage points of cost, and the way that this technology facilitates that is to allow institutions to imagine a fundamentally new operational post trade work flow where many of the zer

jonathan: with the exception of one bank -- jpmorgan.of yours. it is the one cell of 29 buys and six holds. that belongs to you. why? charles: our mantra has been by credit, sell rates. these banks sold off heavily in january and february and we do not think we're going to have a recession. when we got the deep discounts the book, we thought those with would disappear. we do not think the rate structure would be impressive. argan on the other side was premium to vote and still has a rate bias built into their earnings estimates. we think that could disappoint. vonnie: what about energy sector? is a going to be much of a headwinds? charles: i think will continue to be a headwinds. atare at an inflection point the corporate credit cycle where corporate credit is going to get worse. the banks are different stages of building the reserves. jpmorgan is on was at 10% reserves. they are ahead of the pack. bank of america is at 5% reserve. eventually we think based on our studies of what happened in texas in the early 1980's, they will have to b

to a certain extent with bank of america and jpmorgan. they're all the same, very similar companies to me. if you're asking me where i want to be in the banks, it continues to be in the banks that has more modest managements and conservative managements. i mention this, gdx, look at that today, another 52-week high. up 4%. >> pete's talking about it. >> there's clearly something going on in the gold market. >> riding that gold. >>> don't look now, but old media stocks like time warner and cbs are killing netflix this year. >>> tesla shares tanking on a "consumer reports" article that says the model x has some serious quality control issues. what is the problem? the writer will be here to explain. >>> yahoo! out with a beat. intel cutting 11% of its work force, some 12,000 jobs. the stock's falling as well. the latest headlines from both conference calls when "fast" returns. a fair price, quality service, and that horrible smells are really good at hiding. oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an ex

there's a bit of talk about a note from an analyst, it could -- clsaor jpmorgan or jpmorgan saying theying ad sales. there is maybe a stabilization of ad sales, if not the kleins. -- if not declines. david: the company putting a big emphasis on virtual reality as it hold its annual developer conference. mike came out with some interesting to us that sticks about his speech. ininteresting statistics a his speech. i saw pictures of him wearing the oculus device, putting his photograph on a virtual reality landscape. why are they banking somewhat on virtual reality right now -- so much on virtual reality right now? emily: i will be speaking to the cto of facebook in about an hour. he asked a simple question. what does this have to do with the future? what is oculus rift nvr have to do with facebook? vr have to do with facebook? he laid out how oculus fits into facebook. we saw him hold up what may be the first selfie stake in virtual reality. in virtualtick reality. for the try oculus first time. it is still rough around the edges. it will take a lot for facebook to get from game to social

scott darling the regional head of oil and gas for jpmorgan here with me.hese are the stories making headlines around the world. myanmar's auks is to cut back on her government responsibilities just days after taking on four ministries. she is giving up energy and education portfolios but will remain foreign minister and head of the president's office. parliament has also proposed giving her the role of state counselor and this position is said to be similar to prime minister. no reason is given for the changes. authorities are suspending the peak time requirement of three people to one car to see what happens to traffic flow. abandonning the policy will be . d news for jockeys an international study says jakarta is the world's most congested city. and the blue origin space project has been completed. the reusable vehicles blasted off in texas and returned to earth with an upright touchdown. he says the capsule apparently ade it to the ground and the rocket was intended to slow descent. there will be a sub orbital flight before returning to earth. this is b

the bank simply jpmorgan chase, anchored near cleland, state street, bank of america.ving wills were required after the financial crisis and that preventing another bank bailout. lauren: we will start in asia. as you can see here comes back then green. the nikkei in japan at 2.8%. look at the hang seng in hong kong. 3.2% gains 2% gain from the coffee and south korea added half a percent. trade to china had a great export numbered year over year in march but it is clouded because the comps are pretty easy. paris as well. oil helps everything over the last 24 hours. the ftse up 1.5% in london. the cac in france at 2.5%. the german dax up 2.2% in germany. lauren: the ballot 164 points yesterday adding another 94 this morning looking at features. s&p futures higher by 12 points. not that teachers can her decide. train to a big surge in oil yesterday pulling back down 50% to 4163. gold done 13 bucks. lauren: kyl bass says its impact on the u.s. navy to a recession on the upcoming wall street week. maria bartiromo asked about the chance of recession. >> a credit bubble they'

to buy a bank like jpmorgan at this price with a 3% dividend. the ten-year treasury is paying 1.7 something percent and i can own jpmorgan at a discount, that's compelling. >> all right. we'l leave it there. the third pick was goldman. appreciate it. good to see you. >> thank you. >>> on wall street today, stocks gave up gains on this unofficial start to earning season. dow jones has been up as much as 154 points finished down. the nasdaq dropped 17. the s&p 500 was off five and it's now lower for the year. oil prices climbed back above $40 a barrel for the first time in nearly three weeks as hopes rose between an agreement of producers that will produce global supply. the average cost to fill up your tank nation wide climbed 8 cents in the past three yeweeks. a gallon of regular grade costs $2.10 a gallon. that's an increase from mid-february. far of the reason is u.s. refiners are converting to summer gas. that costs more to make. if you're in tulsa, oklahoma you can find theheapest gas. the highest is in los angeles. that broader decline in c

jpmorgan saw a 7 basis point increase. citiwas flat. any strength is thanks to the december rate hike. if we can get more tightening down the road, the numbers will get a lot better. what about the takeaway from each bank in particular? first of all, jpmorgan with the standard. a strong top and bottom line. very robust. 17% loan growth. things could have been ugly but they sure weren't for this best of breed bank. it really delivered. next up, morgan stanley had a very difficult first quarter. management indicated the improvements toward the he said. meanwhile the companies got very aggressive. i like that. how about citigroup? like everyone, citiwas playing by lousy trading results. but things improved in march and april. it is the most international banks and the overstretched oil companies the holdings could be gone by the end of the year. bad bundle as bad as it could have been. i like city. if you exclude games, the revenue decline year after year. the trading business a horror sown. peering where the numbers, the some shocking cos

this is kind of more evidence that they are for real about this and bringing in jpmorgan is -- jpmorgann what is assuming to be the main banker on this. is now in his own boutique shop. it seems like he has more of a strategic role in this. but this is a strong team and more evidence that the saudi's are serious about doing this probally before the end of 17 they say. tell me more about the relationship between j.p. morgan and the saudi arabian family. michael kleinen and the royal family. what kind of background can you give us as to how it was selected? matthew: aramco used to stand for the arabian american oil company. the original owners were exxon, mobil. that relationship goes back decades and decades back to the rockefellers. chase has been a long time anchor -- banker for ramco. jpmorgan seems to have had the pull position here. they have been working on this for a couple weeks and they are well into it. betty: so when are we going to get official news on this ipo? is there any sense of a timeline? matthew: the man behind this is the king's youngest son, second in line to the th

jpmorgan earnings. this is what's interesting about it, right? profit down 7% year over year but if you look at stock last may jpmorgan was probably about 7% higher than it currently is right now and the is is probably exactly where it was this time last april/may so the math at a certain point does work. i thought it gave people the green light to say you know what, valuations make sense. clearly through the levels that i thought it would stop at the s&p 2025678 the only bogey out there, if you're bullish, is what could possibly happen in the meeting on sunday. >> opec meeting you're talking about. >> so for financials, let's connect the dots. jpmorgan was good or good enough. sent the bank stocks rallying. banks the biggest sector in the s&p 500. we see that translates into gains on the s&p and see this rotation on top of that. we see money coming out of gold today. we see money going into small caps, into transports. these are all bullish signs, dan. >> all bullish signs. they doubled the performance of the s&p. banks finally participating and

instead jpmorgan knocks it out of the park. remarkable revenue growth, robust loan book, terrific increase in the net interest margin, what they make on deposits versus what people are thinking about thanks to the fed's rate hike and no real jump in it at all. a fantastic month of march. ♪ hallelujah it suggests maybe we have seen a trough in all things banking as jamie diamond told me today. we have built a first class institution that cannot be duplicated anywhere. after the quarter i agree. so instead of the stock being obliterated or opening up and trading down sharply during the morning conference call -- a pattern we have had in the last year. jpm opened up a dollar and popped another dollar and a half on top of it. that's classic bull market behavior. it gave people an added benefit. next thing you know, the whole group which features many stocks that have been in the dog house for years suddenly catches fire. goldman sachs jumps five points. wells fargo moves up more than a dollar. bank of america more than 3%. the othe

then bank earnings, jpmorgan, let's call it good enough. that's my phrase. people were expecting downbeat commentary. we didn't get that. that helped move the financials and the overall markets. high cash positions forcing a lot of people into the markets, short covering going on. look at the china trade data. the news on china has been relentlessly bearish for a year. everybody said, oh, my heavens, maybe the news isn't so bad. short covering rally and hang seng, up 3%. japan up, france up, everything up 3%. that's a nice move for all the global markets. it is spilling over into our markets as well as europe, china trade data, helping things like material stocks, all been strong, so you're steel stocks like midtall, bhp billiton, glen corp., all those stocks up here. banks in the u.s., jpmorgan strong and all of the other stocks in that group up about 4%. key point here, banks underperformed throughout the whole year, under 10%, underowned and unloved. this rally today is a nice reminder that there might be some value out there. back to you. >> bob, thank y

jpmorgan's ceo says investors should be prepare for u.s. rates to go negative.etherlands as euro skeptic politicians hailed the result. means.iscuss what it so, welcome to "the pulse"

earnings kickoff this morning with jpmorgan. it looks like chinese data is goingy behind the markets higher. the imf is not impressed. the donors on this economy, saying that the numbers are not as rosy as they seem. later this week, we will get gdp . we talked a lot about japan, but we could end up talking a lot about china and that is a positive story. guy: breaking news coming through from peabody. saying the majority of its u.s. 11.ies filed for chapter more details on that story as we work our way through the story. we will get the chapter 11 details coming through. we will come back to that

jpmorgan has reduced headcount 30its asia-pacific unit, positions eliminated, or 5% of the jobs. the move comes as the bank tries to refocus staff on serving clients with higher investment thresholds. the bank reports earnings late this morning. more evidence of stabilization in the world's second-biggest economy. in --exports have jumped have jumped the most in a year as imports have narrowed. stocks rallied on the news. shipment's were up 11.5% in dollar terms in march from a year earlier, compared with a 25% slump in february. that is your "bloomberg business flash." francine: joining us now from hong kong, enda curran is with

take out jpmorgan, and this company can't be compared to jpmorgan. they're not a bank.at goldman sachs is. they're essentially, like guy said, a premier hedge fund that happens to be traded out in the world, in my opinion. you can't compare them. they're not like jamie dimon and -- >> they're not a hedge fund anymore. >> that's the core of it. >> that was their bread and butter. >> that's part of the lag. >> when the crisis was there, they had to technically become a bank. that is obviously really hamstrung them. i think it is the premier franchise. it's a lumpy kind of business. it's not working right now. but i think over time it will. >> real quickly, the advisory business that morgan stanley is involved in, it's been a score. but i've got it tell you something, there's department of justice stuff coming down that will put the cramps on that entire industry. so again, don't be so fast to judge goldman sachs. it may appear -- >> well, they're wrong. >> he's wrong to criticize goldman sachs' lack of -- in the last decade. compared to morgan stanley, it's not even close

of how important this issue is to jpmorgan is -- and jamie dimon. run an american back. , he said heedged did not know whether it would make the european union stronger or weaker. brexit is one of the major concerns in the market, will it impact u.s. equities? paul: the unintended consequences, you never know, about this letter, the commitment to brazil. you see that big money is made in their markets and the tendency is for companies to pack up and go home when things look bad. we saw that in the asia financial crisis, russia, brazil in 2000. that is when the money is made. stick with it. erik: it is what people choose to say is as important of what they choose not to say, he flags china and brazil and argentina as three other countries that they are mentioned in this report in addition to britain, and that is it. he said jpmorgan could lose $2 billion in brazil and they are still in. >> talking about the great recession the front and center of people's my comment increases their instincts to run for the exit and that is an issue, a sentiment in a

our top story this morning, jpmorgan releasing ceo jamie dimon's annual letter to shareholders last night. among the highlights, dimon says he's not worried about negative interest rates in the u.s. that's because the chief executive notes housing is in short supply. car sells are at record levels. consumers are spending what he calls the gas dividend. dimon is more concerned about rates rising faster than people expect, which is odd for aening baaing ceo to outline that rue. the banking ceo also warns high

we saw some of that yesterday with jpmorgan. i'm not sure that this earnings season is necessarily going to be that bad. in many ways, i am more interested about what companies will say about what we are seeing at the start of q2 htathn q1. we have a lot of indicators showing an uptick; china pmi's were better, and there were improving trends in the u.s. for me, the interesting bit of this earnings season is what happens going forward. francine: and what companies -- they're cost-cutting and what they will say, but they have currency to deal with, and currency is the only game in town. this is with central banks are playing on. >> well, currencies are moving around a lot. i think it's understandable, because i don't think currently markets know what to make of central-bank policy. they're often moving in the reverse direction in terms of what the central banks are trying to achieve. i'm not sure central banks are actually being very successful. the way in which they are trying to approach the currency market. perhaps they would

jpmorgan, focus on deutsche bank struggling as well. the banks, and in particular, can you buy thank leader jpmorgan? tony: i think you have to. so many people want to go away from it because the yield curve is flattening. and 1994, 1995. ,oth of those flattenings without recession, you had an extraordinary outperformance of the banks. tom: looking at challenges for one or two years, and it is suggested that the major banks will mint money 3, 4, and five years out as well. statement in the empire today. coming up, we look at the new york state primary. they can murphy will join us from our what -- our washington bureau chief. she is in new york, as are ms. clinton, sanders, trump, and ted cruz. ♪ francine: i am francine lacqua in london. tom keene is in new york. let's get straight to the bloomberg business flash with nejra cehic. nehra: investigators are looking volkswagenvestors -- investigators are looking into -- codesions scandal work -- code words were used to turn off emissions controls when the cars were on the road. there will

jon: marko kolanovic of jpmorgan, thank you very much.intel is cutting 12,000 jobs. deepest cutbacks in the decade. ♪ matt: coming up at 10:30 a.m., i will speak with harley davidson ceo matt levatich. vonnie: you're watching bloomberg . the largest health insurer in the u.s. is cutting losses when it comes to obamacare. united health is dropping out of government organized health insurance markets in at least 16 states. helmsley says the obamacare market is proving to be smaller and riskier than the company expected. united continental is shaking up its board as part of an agreement with investors. former air canada ceo robert elton will be the new chairman. he replaces henry myers. united is giving award seat dashboard seats -- firms have asked for a chairman with airline experience. the european union is opening a new front in its fight with google. regulators have sent google a formal antitrust complaint over its android mobile phone system. the company is accused of using its power over smartphone makers to crush competition for

banks start reporting third-quarter earnings with jpmorgan. it kicks off things tomorrow before the bell. a bank analyst at cls a. here is how he defined the quarter last week. >> a little bit of an ugly quarter for u.s. bank earnings. you have pressure on net interest margins. the 10 year has come down. you also have cap markets being sluggish in the first quarter. trading down one fourth year over year. that hurts the wall street banks more than the main street banks. mark: let's bring in michael moore who covers the structural changes reshaping global banks for bloomberg news are you thank you for joining us. what do we know? does it seem as though nomura is closing down its european equity operations? michael: it seems like it is significantly pulling back from that business. a still going to be a presence here in terms of japanese stocks and clients. certainly this is a significant cut in the european and u.s. businesses for nomura. mark: back in 2008 it bought lehman's european and asian office. since then it has been expanding and contr

>> yes, and first on jpmorgan, and while i was close to alphabet, the real choice came down to jpmorgan&j, and i picked because the multiple is so low and i believe that they are going to be open. >> i am open to the trade. >> and no. in terms of the citi, i sold the first tranche of it when we had the rates going up in the 50s and frankly, i know that it is historically cheap and discount to book and all that, and it will go up, but two things, i wanted to take the risk off, and that is one that i wanted to take off ax and the stock is up after reporting, and the whole bank sector are better than worst quarter so it is not like the earnings are growing, but loans are growing, and the other reason is that i have owned the stock for three or four years, and it is just a frustrating hold i holding, and now that i am finally positive on both tranches, i said, let me get out. so it is a good trade or the good investment, and not a trade, and i will be back in the financials, but maybe something like schwab, and little bit more leverage and not as difficult regulatory oversight as citi. >> w