i own jpmorgan. the steady eddie, then i also have citi group and bank of america, a little more beta. it we get a bank ral toy continue they will outtomorrow jpmorgan but i can sleep at night owning this company for sure. >> pete? >> from the beta perspective, a bank of america along with you, painful, sooner or later we'll get rewarted i think. morgan stanley today look at what's going on with the value act, that gets more and more attractive to me with the potential of if the execution isn't there they'll act. for now, more passive. jpmorgan, though agree completely with plik. look at the name, what it's done. i'm not in the name, because because i see less up side. somebody easy got to be in bank and three, jpmorgan woulden one because of the balance sheet what they look like right now and i get a 3% yield in terms of execution nobody is better than jamie dimon. >> look at financials now, takes me away from jpmorgan and sort of the big banks, and i want to look more at the exchanges. look at asse

prior to joining jpmorgan chase, rodney hood was appointed by president george w. bush and confirmed by the senate as vice chairman of the national credit union administration. the regulatory body for america's credit union system. while there, he served on the board of directors of neighbor works, maybe works america along with counterparts from fdic, occ, federal reserve and hud. jpmorgan chase in collaboration with the word institute on disability recently launched the conference accessibility initiative which aims to fully integrate disability access issues into the content and enable people with disabilities to fully participate in critical national discussions of economic opportunity and inclusion. i'm now going to turn the floor over to rodney hood who is going to give an example of taking the accessibility to the next level. >> great, thank you, everyone. good morning. on behalf of jpmorgan chase, i am absolutely thrill today join you this morning at the respectability summit. jennifer, hats off to you and your fine team for really this morning assembling s

and jpmorgan adding today to sell any rallies.n funds, tom lee, is scared of the end of summer calling for its downturn in toks in august and this as we head into one of the worst months for stocks and also one of the most volatile. but there are some stocks that typically survive amid the august swoon. paul is with us to tell us which ones. everybody wants to know this, paul. gl i think to the point is if we get a rally if august, it's going to be earnings related because we're going to be reporting earnings and so far, we're seeing good numbers in the eps revenues and guidance has been strong with even between upgrades and downgrades, which is not common. you typically see more down lower guidance and we haven't seen companies menging brexit in their quarterly calls. less than half of companies have mentioned it and in most case, they've been saying it hasn't been affecting us. let's look at companies that typically do well in auction and typically react well to august reports. the first name is nvidia, the top performing stock

i expect jpmorgan will continue to cut costs. and if rates do go up because of the new requirements and liquidity requirements. the federal funds rate of 1% would generate 1.4 billion to pre-tax profits. >> that's incredible. >> you always have a few esoteric names in your portfolio. anything out there you could suggest to us? >> we have that and we have names people want to throw up when they hear we own them. valeant is down 90% from the peak. we didn't own it then. but we own it now. maria: you are not worried about a criminal investigation? >> i'm always worried about a criminal investigation. but companies have been investigated criminally for a long time. it looks like if there was any issue there, it was more on the philador side than the valeant side. if they could figure out the relationship between valiant and philador, so cot insurance companies. but the stock is too cheap in the low to mid-20s. we think both of those could double in the next two to three years. the second largest holding we have is atr earks xon which

jpmorgan, you know, jpmorgan gets downgraded today. it's a fact tu was downgrade but citi -- -- citi pushed. jpmorgan. i'm seeing a shuffling of the banks. give me a break. these banks are so cheap on a relative basis. aig, we had peter hancock on is chairman and ceo of aig. i'm saying the banks aren't quitting yet. the banks have been a little bit -- a bit underneath the sfwoonks a little life. >> as the 10-year got a little life itself. i was wondering are the chinese selling the 10-year. >> they may be. >> selling the 10-year. >> i think their reserves. >> came out. >> $3.2 trillion. >> i thought the reserves were low. >> i think the number was $3.2 trillion if i recall. yeah. 3.2. right in line with consensus apparently, jim. >> well -- >> though they were running of course a current account surplus. >> right. >> so money coming in and going out. >> true. but i'm looking at, yes, the citi downgrade of jpmorgan down to neutral. i just think that the treasures if they go higher, you're going to find more buyers of the banks. when it

jpmorgan asset management. i want you to share, please, al alex, the stance you provided us with the top -- since the -- top central banks have cut interest rates between them 672 times. that works out as an interest rate cut every free trading day. they've combined that with $24 trillion worth of asset purchasing. >> 50 central banks, they have cut rates 672 times between them. >> unbelievable. >> which leads you then to say, if we hit further headwinds at the moment, what's -- >> i think one. things i've been saying to investors is post brexit, the central banks have been given the mandate to get behind the steering wheel again and they'll be driving the bus in the second half of the year. cutting interest rates more. that number will move higher before the end of the year. in short, this search for yield going on since the start -- well, the last couple of years is going to continue to intensify for the next six months. definitely entering into a period of heightened monetary policy. >> thank you, alex, for

we mentioned jpmorgan ceo jamie dimon's comments.sat down with wilfred frost on the trip to california. >> hi, kelly. yes. we spoke to jamie dimon saying he wasn't concerned about oil prices falling below $40 a barrel today. in fact, he was fairly upbeat about the long-term outlook of the u.s. economy. in a message to the presidential candidates, outlined what he thought should be top of the next president's agenda to deliver growth. >> what i would worry about more is the next president, whoever it is, focuses on the right things. i think we are going to 4%. okay? and those are why things are proper immigration reform, proper infrastructure spending and road, bridges, tunnels, hospitals, schools, airports, would be great for the united states. you know? we need corporate tax reform. i would also expand things like the earned income tax credit to help the lower pay. >> reporter: despite that positive outlook, he did express some concerns about bond market valuations. >> i'm not a buyer of 10-year bonds. i would be worried about drast

jpmorgan's decision to include islamic runs in its more investorsw and this trading of the debt, this inclusion comes after barclays made a similar move last year. how much interest is there anyway? is getting queries from clients and these are clients who have not invested before. they want to find out more about the product and this could lead to a greater acceptance of -- for investors. the market is pretty big, worth $370 billion. with jpmorgan including it in its index there is a sense in the market that it could be five worldwide interests and offerings going forward. i want to show you this particular chart. k sales. global suku 2016 has seen the lowest sales in five years. interest has come mainly from traditional markets like malaysia, the middle east, little from elsewhere. two years ago we saw first time -- there likes of luxembourg and the u.k. and south africa but it has gone quiet. the revival could happen. some: isn't it true that countries -- the attempts have not realized. haslinda: it tried to accommodate sukuk. christian groups voiced their opposition. even though t

you mentioned that call at jpmorgan is a call on jpmorgan out of bernstein. the only two big banks that bernstein has is outperformed b of a and citi. you're waiting for this macro catalyst to come out of the fed, and valuation will argue against some of these higher-performing banks in the near term. >> they say winter is coming back that we're six years into the credit cycle, so eventually it will weaken. on the opposite side, these are financials that have under performed this market all year long, i think they're flat for the year and are at low, historical valuations and it's hard to find a group like that in this market. >> that's absolutely true. if you say jpmorgan trades at 1.3 times tangible book, cita trade at 70%, and bank of america, at 80%. also i've noticed some technical analysts, jpmorgan stock has out performed with yields dipping. yp morgan was getting essentially more credit than that of yield curve. >> and fed fund futures imply a 51% chance of a december hike. 51. on monday, it was 42. >> i was going to say, it went up past 50%, notable.

alexander dryden from jpmorgan is still with us.dity currencies, funny enough, had been doing very well, the big ones. as we have seen, the backup in oil and commodity prices as well. is that something that you think has legs? the dollar is down and that is part of the story, but commodities have been rising from a very beaten up position. when you look at your emerging-market story, when you look at what is happening in commodities, do those two things tie up? global not get much further and perhaps, copper will not either. -- gold does not get much further and perhaps, copper will not either. >> there's not a lot of upside for a lot of people beyond this. re seeing this bear market. the bloomberg commodity index was down 17% at the start of the year. what we are starting to see is a sense of splintering of how different commodities are behaving. some of them are going sideways, but there are still areas where you can see deterioration. the markets are still massively over supplies. the nextnow entering phase of the commodity stabi

anthony chan of jpmorgan chase. around about 20 seconds ago.hat's the top of the agenda. >> china trade data. seeing how market responds and inflation tomorrow. >> oil prices dip below. but positive territory today. that's it for worldwide exchange. "squawk box" is next. >>> happy monday. opec members call for an out put frooz. reaction to the market -- deal news. walmart set to buy jet retailer. or retailer jet.com for $3 billion. we have an announcement expected today. business travelers, listen up. delta airlines suffering a worldwide computer outage and flights around the world are grounded. monday, august 8 pt, 2016. first week of the olympics is under way. i'm celebrating as you can tell. "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 not sure why we're playing this song. but i'm becky quick. andrew is to the right of me, joe kernen is off today. >> i don't want to be -- >> sitting in for us this hour is steve fo

lastly, i sat down with liz myers global equity head at jpmorgan.ve this market is when it comes to new deals, including those billion dollar ones and the companies that carry a lot of that. >> we have over 20 ipo's slated for launch on the jpmorgan calendar and some point in september globally. alix: this is the back half of 2016 event? >> correct. we have a full pipeline for toy 16 and 2017. it is financial services, consumer retails, so a pretty broad swath of deals ready for lunch. alix: speaking of tech, we did see duels in japan and the u.s.. we have seen -- do you think we have seen the next multibillion-dollar tech deal or was this it? >> the question is when will they come. we have over a dozen technology ipos expected before the end of the year. the size of the larger ones that many think about probably more in 2017 and 2018, but there are a number of interesting segments. i think this year and early 17 will be around software and disruptive internet. as you get into 2018, more of the virtual reality and artificial intelligence, robotics,

in jpmorgan chase. [cheers and applause] >> a preacher always has his sweat flag.[applause] >> to signify that we are working so damn hard to save your souls, children. all this hard work and we hope that as the plait comes by you, you contribute generously. we are working hard in our church. i'm sorry, we have some people from west virginia today. i didn't mean to cast disbursements on anybody, amen. i'm not proud to be politically incorrect, amen. it just happens because i'm such a thug. will we survive the the choir. ♪ ♪ ♪ [singing] >> will we feel the hell in this shopping list. neighbors fade into the super mall. the oceans rise but i -- i must buy it all. [singing] >> what's happening? i'm in a -- it's a shopacolipse. i'm depressed. i got the blues. i'm feeling down because -- why, because i shop too much but that's not really the problem. [laughter] >> it's that damn convenient ♪ ♪ ♪ >> amen. [cheers and applause] >> watch out for convenience, children. watch out for convenience. convenience is the devil's little helper. be careful. be careful. i think some

liz: jpmorgan, decent numbers. >> a lot had decent numbers but, read, when you read those numbers, jpmorganch more diversified bank, when you read those numbers you see they're making them a lot on cost cutting. goldman is in a position where its traditional line of business of trading and investment banking, investment banking is a low margin business. they can't do it anymore. they're really under the gun. they have essentially a business model problem. we should point out this, they're not alone. this is just what i'm hearing from people inside. i happen to pick up the phone at the right time and i heard from some people there. what we have here, it is going to happen at other banks i hear. every bank is looking. from what i understand, people are walking around goldman scared to death about their jobs. that is no doubt. liz: speaking of scared to death, you were coming down here, charlie got a tip from inside of the trump campaign. >> what we understand, they're obviously worried about his message, postconvention. the fight he got into with the kahn family. the fact he is not hitting on

the finance minister revealing that jpmorgan, citi bank and .n.p. paribas received some 18 roposals from lenders. abu dhabi cutting as many as 50 jobs as growth has slowed. they join the likes of n.b.d. in letting staff go. emirates are said to be in preliminary talks to sponsor a number of nba teams allowing advertising on uniforms is a new initiative for the top basketball league. it is expected to generate $150 illion a year. the name would appear on a 2.5 square inch patch on the team's shirt. let's get back to oil prices which posted their longest run of gains in more than a year. joining us now is a middle east strategist. great to have you back on the show. i put the chart back up as well for our viewers to get a sense of the latest numbers that came out of the u.s. the glut easing not substantially but a slightly more bullish report there and then you have ufrle this chatter of a possible freeze. what do you make of it? where is oil going from here? >> the market is more at an equilibrium than a few months ago, that is clear. with saudi arab

jpmorgan fought over who liable for claims from the collapse.ed $10 million lawsuit over losses allegedly caused by defects in wamu's mortgage under writing. sued for fdic to endemify claims. complicated. >> no small sum of money. >>> entertainment news, returns at box office haven't been as hot as temperatures outside, taking sales down by 12 with% from 2015. landon dowdy with more on hollywood's sluggish summerland. >> good morning to you. hit the theaters with super team of super villains still on their minds. warner brother's "suicide squad" killing it again taking the top spot at the box office for the third week in a row. the firm starring will smith and margo robby earn $13 million bringing domestic total to $262.3 million. animated feature "sausage party" $15 million a drop in second week. paramount's "ben-hur" a major flop, didn't register with faith-based or general audiences collecting only 11.5 million in its debut weekend. the movie reportedly cost $100 million to make. "ben-hur" is the latest disappointment in what's been a terribl

jpmorgan paid $89 million to the european union as part of a settlement related to libor.om: terrific news flow this morning. we did want to speak with chris quiet, barthe chilton with us as well. the bond market, quiet. foreign-exchange market, not so. let's show the three-week agony of the s&p 500. such lethargying in the market? chris: do not short a doll market. following what i thought was impressive breakout, the last three weeks have been the narrowest range and about 75 years and i think this is a consolidation of a good move. as we come out of the weaker seasonal. -- weaker seasonal period, this is a market that goes up. there has been no evidence of distribution during this pause. tom: i agree with you theoretically on that. what i see is almost uncontrolled go to cash in motion. i get the gloom crew and there are some going, though to cash. chris: we see it everywhere we go. we wrote a. aboutiece called angst all the anxiety among our clients. i think it reflects an environment where economic cycles have taken a backseat to central-bank cycles and that is diffic

larger than jpmorgan. opening bell for this wednesday. 500, back to the cnbc real-time exchange. composing itself. >> that's a cloud. >> right. >> company for life sciences doing well. i have mark ben kneeoff the original cloud -- >> i want to talk about that. >> at the big board ringing the opening bell center for social innovation celebrating the opening of the women's lab to benefit girls and women around the world. at the nasdaq, affects networks, celebrating the third season of his show "you're the worst." >> i watch everything but i haven't watched that. >> i have not seen that. >> what are you watching right now? i'm on "strike back" season three. >> i'm still working on the hbo show in the night -- the night off. >> i got away. watched four shows. >> we watched the profit on cnbc. i got to tell you, marcus, love that guy. >> you are a great -- you are a house man. >> i am not a homer. love that show. >> everybody cries. it's unbelievable. he gets everybody crying. love him. >> there you go. >> i'm telling you. >> we do it on deman

and this desk made in england for the family in the 1800s belong to jpmorgan. it's his original mahogany desk. >> one of the best. >> reporter: i feel the what do you keep in there? >> secrets. [ laughter ] >> reporter: the sunroom faces the long island sound filled with furnishings from denmark. >> matched marble floors. >> reporter: the dining room includes a morgan family heirloom a table from england that dates back 200 years. the family spends most of its time in the kitchen a cheery renovated space with a double height ceiling. another family favorite, library filled with antique books. upstairs we took a peek inside the master bedroom. >> the woman who built this house was a rockefeller and they lived here from the '30s through the '70s. they lived here for many, many years. >> reporter: the next owner, john morgan, who we sat down with in the breakfast room. >> i first saw it, i went by it on a boat. and, um, it was very simple. and easy to get to. about 50% of the asking price. >> reporter: to live large in stamford, connecticut, the home's listed with

international cio at jpmorgan asset management. let's take a closer look at the stocks. it's raised target price by 11% to 56.5. analysts at the swiss bank are upping their -- from neutral to outperforming. air france traffic numbers. declining by 0.6% in july on the annual basis as the airline was hit by strikes. solid demand helped to dampen the decline. >>> launched a formal investigation into airbus's use of consultants. the probe based on allegations of fraud, corruption and bribery in the civil aviation business. they'll continue to cooperate with investigators. >>> history was made in the golfing world as american golfer jim furyk got a 58 at the travelers championship. he's the fir ever player to shoot a score that low on the pga tour. >>> history of a different kind is about to be made when he becomes a manchester united player for a second time of 105 million euros. the italian club bought pog ba for 800,000 pounds in 2012. they'll be returning him for 89 million pounds. the french 23-year-old is a perfect fit for thinks team he says. i can do that. >> meanwhil

and analysts at jpmorgan say actually, eve fn this amount is charged, ultimately, it won't have an impact on o apple's share price, but t are far bigger. what does this mean for u.s. firms operating here in europe? there are ino amazon and mcdona too, what we're looking at is one heck o f a legal battle between apple, the irish government and between european officials over w could have greater ramifications going forward. >> back in the u.s., politic qu decision and not many were happy with the outcome. >> the obama white house's concern if apple has to pay billions in back taxes to irmd, american taxpayers may ultimately bear that burden. zpl the koens consequences for that transfer were that it could be fretreated system. as a cur that would allow essentially apple to deduct that eu tax payment from the taxes. that wouldn't be fair to u.s. taxpayers. >> international trade experts say the eu decision is an additional challenge to the sovereignty of the individual countries in a post brexit europe. and they sa. zpl coming off brexit where you know, you have countries who feel l all of a

jpmorgan lowering some price targets. putting a bit of pressure on that sector. japan's growth is stalled april to june annualized gdp grew coming in below expectations. this marks the second quarter of consecutive expansion. a slower pace than the first three months of the year due to weak cap x and -- abe economic policies whether they're able to produce sustainable growth. let's check on that data and the markets. we're in -- >> there are a couple of things that dragged on growth. the external position continues to look very, very sluggish indeed. not seeing the export growth. japanese context, stronger yen is partly to blame there. capital expenditure. corporate japan simply is not confident enough in the economic cycle to really spend and deploy capital and reinvest in the business. that's why growth has been anemic. it's been sbeg ral -- let's face it, they've proven incredibly elusive in the japanese context. it was in mainland china equities outperforming 7-month highs for mainland china. property in the financials, off of the leadership today. the growth

>> we want to see if jpmorgan can break out. bank of america started going. jpmorgan has not yet.n had a great quarter without fed rate hikes. this has been the best performer of the group. let's watch that stock. a breakout there is going to trigger big move in the rest of the group. >> you've been saying, the banks have caught your attention. >> i've been wrong. i point out i kept thinking they would move. >> you have. >> jpmorgan had a nice move off of the jamie dimon when he bought at 53. >> i don't believe it's ever traded that low again. >> my hat off to him. >> right. >> but doesn't mean it's been great for investors as we hear the opening bell this morning. of course, the real-time exchange back at hq looks like we'll have a bit more green on that board than red when it composes itself. ringing the bell the movement foundation providing health and fitness programs for young women. and over at the nasdaq assure software a workplace management software provider. >> david -- >> a lot of young women here today. >> i go over the charts like, like to do every weekend, apple, i t

coming up on "power lunch," exclusive interview with jpmorgan's jamie dimon and keeping an eye on oilcrude hitting a 3.5 month low, the top oil man tells us where he sees things headed from here. later, while uber's deal with didi is yet another big win for china. first, back over to the "halftime report." >> melissa, thank you so much. >>> welcome back, by the way. i want to show you shares of ge. it's about to make a round trip. it had a streak of ten straight up sessions. now it's on pace for nine it straight losing sessions. there is ge. $31.14. josh brown, i know you watch this one. >> yeah. >> you own it. >> well -- >> and talk about it often. >> i own it. >> what do you make of the round trip? >> the range is within $1.50. it's really much ado about nothing. stock's finding support at the rising 50 day, will be fine. only issue with what the company has to say now is in the oil and gas segment. about 11% of revenue. 7.5% operating profit. down almost 40% year over year, but the world is aware it's been tough to sell equipment in the oil and gas space. so the issue is not about

david: well a lot of big companies like jpmorgan chase and starbucks patting themselves on the backs, raising some cases doubling minimum wage for their low end workers but what about smaller mom-and-pop operations for a doubling in labor costs could wipe out their already small profit margins? for details i welcome apple metro chairman and ceo zane tankel. you're not a mom-and-pop franchise. you have quite a few of these things but you know the mom-and-pop operations well. >> yeah. david: their major costs are much larger percent of operational costs than big companies. they can't afford to do it much less well or easily than starbucks or jpmorgan. >> you're right, david. i hate to quarrel. it is scalable or proportional. for example the wage increase this year cost us $5 million. there are only two places it comes from, price and the whole space, fast casual, casual dining is bumping their head on price. david: here's my point. the political argument for doubling, in some cases minimum wage is basically saying, this is to help out the little guy but the little guy mom and mop stores

i was on the phone with jpmorgan chase. they're saying compliance industry is full bore on the banks. they feel like the dmv is taking over the banks. are we talking about really high-paying jobs here? looks like wage growth is kind of flat? that leads into investor confidence. >> that is an interesting question because we saw that weak gdp figure from q2. we have seen weakness in manufacturing. we know manufacturing, higher paying jobs, seeing good job growth which suggests that the lower-paying service-paying jobs are taking the lead. nevertheless we saw pretty good year-over-year wage growth, 2.6%. mind you historically in the good times, wage growth is growing 3% or more. still not off to the races. liz: thank you, david and jack. really appreciate it. david: driving the market today as liz was saying was the jobs market. the u.s. economy created 255,000 jobs in the month of july. that marked second month in a row of better than expected job growth after very weak numbers in month of may. june numbers were graded up fro

today's must reads and this afternoon, a cnbc exclusive, don't miss wilfred's interview with jpmorgan'samie dimon. >> this morning, a mixed picture with some of the italian banks under pressure. stay tuned. you're watching cnbc. first in business worldwide. [baby talk] [child giggles] children: "i," "j," "k"... [telephone rings] man: hello? man: you may kiss the bride. [applause] announcer: a full life measured in seats starts with the right ones early on. car crashes are a leading killer of children 1 to 13. learn how to prevent deaths and injuries by using the right car seat for your child's age and size. >>> must reads. the story standing out to us. the "washington post" today has an op-ed from khan, the mother from the fallen iraq soldier whose husband spoke at the democratic national convention last week. trump responded on abc saying that why didn't the mother speak, sort of implying she wasn't speaking because she was muslim. here she is speaking out. not only with her husband via skype. she's writing a note, he criticized my silence. he knows nothing. for all these years, i have

why wouldn't it be looking at a goldman, a jpmorgan, a wells fargo? very well managed companies. >> you need 50 bips to make it work. 50 bips. two hikes, september, december. if we get there, so right. another 10% on investments. >> best place to make money, not in equities public, long duration vehicles investing in the void that's been created by regulation. by dodd/frank. that's where the money's being made. that's where the margins are the fae fattest, fewest dollars chasing and valuations lowest. where you make -- >> we have the perfect segue. if not the financials, which sectors do the street's top strategists think are best set to outperform? don chu crunched data and he is at the wall. hey, dom. >> talk about the biggest sector. two others make up the top three. look at it overall, sentiment on wall street now among strategists is tilting towards the more cyclical plays. say just to point this out here, look at technology overall. asked analysts on wall street what they thought about overweights and underweights, technology, generally speaking

zion, jpmorgan. berkshire hathaway. insurance names.ixture of names and as the bret breadth strengthens out. >> making the point none of the other large financial institutions are on your view list of saying they can go higher? >> it's got to -- >> regionals have been well thought of for a while. >> right. >> i don't hear you saying, okay, i like morgan stanley, jpmorgan, goldman, this, that, the other, citi will break out? >> think of by the time every stock in a sector looks great it's probably a little late tactically to get in there. right? put it on radar, pick away at the better names and as it proves itself get more involved in the sector. >> so here's what worries me. maybe you can make me feel better. we're in this moment now where market breadth is the best i've seen it in years. right? you actually have cumulative events leading the s&p. when was the last time we've seen that? banks looking better than in 16 months. some of the charts you show, european cds prices collapsing. so a lot less stress in the system. you've got sma

i know that's start to go change largely because of what rodney hood and jpmorgan chase are doing to at least make national meetings accessible but also the disability organization which there's more than a hundred different really good national disability rights organizations or service organizations largely around one particular disability. every single one of ceos is white, every single one. so the first question is how do we break down the barriers so that people who ha disenfranchise can work together toward making that greater success in the economy and in other places like criminal justice reform where people thought that's a black issue and they didn't realize no, it's a disability issue also and here is how and if you're minority or immigrant and you have a disability, all the more likelihood for the school -- the first down is how to break down barriers and the second is we have felt great success with the questionnaire. hillary clinton and jeb bush gave incredibly thorough answers. donald trump hasn't answered it yet. we would like to see senate races and governor races fo

everything is wonderful, but this is a sector that was so beaten up and i look at the chart and jpmorgan getting back to up 66 bucks, this is where we've seen seeing this thing fail the third time. yet the momentum going in, i think is actually much more powerful than at other times. >> sit there and just own any stock. i'd rather play from the long time to short side. getting valuation. >> what kind of banks? >> wells fargo. i think it's a great bank. these are names that i love to be involved in. >>. >> they have worst set of earnings in q2 and it's really one of the worst performing ones if you think about it in 2016. citigroup, up 4%. that stock had been going down for the last two weeks. >> the sentiment shift means something. it's a massive underpositioning. >> sorry, the dash for track has been you wanted to get. so if you're saying wells fargo is one of the least quality, those are the ones that have been outperforming. since the last payroll number, we have two in a row. i would argue that banks financials and tech and em and high cyclicals, this isn't a one-day trade. >> i thin

joining us here on set in mike bell, labor market strategist from jpmorgan. to have you on the program with us. wee us your thoughts as brought this conversation into emerging markets. what do you make of where turkey is at the moment? interest rate decision coming so soon after the military coup and the negative commentary from rating agencies. do you see a continuation of the cycle? mike: we think it might be cut 8.5%, but we are relatively constructive on the growth outlook in turkey. it does not seem to have bled through the leading economic surveys. the consumer confidence seems to be holding up well. given turkey's growth has been driven entirely by consumption over the last few years, that should support 3% this year. anna: there were high hopes after the demise -- they don't command quite the headlines that they used to and the environment has changed. many investors have moved on to countries. where do you stand on what the best way to get exposure to that type of investment story? out becausewidening you have seen a sharp fall in tourism. that happe

jpmorgan is saying, do not worry about intervention. get to 94 -- 95 or 96, chances are japan is not going to intervene. dollar-won, one of the biggest movers to the downside. manus: thank you very much. david ingles in hong kong with the latest german ppi data just hit the tape. prices fell 2% in july from the same time last year. is backor angela merkel on the campaign trail ahead of next month state election. joining us for more is our government editor in berlin. paul, i want to turned you on the data. ppi comes in better than expected. >> yes. these numbers are relatively volatile, but they do tell the story that inflation is coming back into a system. it is coming back very slowly. the breakdown of those numbers shows that energy prices for the big drag the further you go up the value chain. slow.incredibly this is in germany, where you have record low unemployment. you have a pretty robust economy and falling debt levels. even then, you are going to get inflation picking up. anna: -- is the eurouch area? where germany goes, it ha

scarlet: total peer-to-peer lending you called one quarter of profit at jpmorgan.rket could reach $290 billion worldwide. this is bloomberg. ♪ scarlet: this is bloomberg markets. it we will be expecting results from news corp. and lending club among other. let's begin with news corp. because you have volatility and advertising turmoil taking a huge turmoil. it is very telling because the revenue comes from newspapers, book publishing, digital real estate. it is 4% on average over the past five quarters. this is after they spun off when he first century fox. fox.st century in 2005, advertising in u.s. newspapers have plunged to $14 billion in 2015. losing share to digital media will continue to go. estimateshere are that newspaper advertising could only taken $5 billion. matt: do you still read paper newspapers? joe: this weekend i read the new york times. scarlet: i started to get the wall street journal online's obstruction and i got the actual paper. it's a way for them to ensure they have actual circulation. joe: advertisers like the print subscribers. matt: i l

i think jpmorgan will go through 66 on this. the stock has been a strong stock. think bank of america goes over 15. start getting closer to book value. >> the banks are a berbry of the idea we may get a rate hike -- >> more money. >> net interest -- >> where you want to buy today that and the consumer stocks you're willing to take the risk on that will not get hurt. maybe buy some of the insurers that have been hurt. don't want to buy met life. they seem not to pull the trigger correctly on the bond portfolio. >> life is a tough -- also the annuity business these guys have. >> glad you said that. >> the annuities. >> i mean, i think the market is wise to that and i think i like chub. i think they have a better book of business. and i know i've been telling people in my travel trust i'm going to buy this one, but i lofl travelers herep. >> you love travelers. >> travelers is the one in 17, when it goes to 120 on this number. this is a number that is going to impact stocks. now, don't buy the opening. opening will be too robust. long day. friday. >> long day friday

bob igor doesn't want to hear that but there's a moment on the conference call, this alexa from jpmorgandrops down the duck in the room, that all these things, the hulu, okay, the direct tv deal with at&t, the bamtech, make her more worried in terms of the notable shift away from linear tv. david, i'm going to hand it over to you, because you know how much better linear tv is for profit margin. everything else is -- >> right. >> the subfees from espn are still the driver of a great deal of profitability at disney, not to take away from the parks by the way which were very strong, not to take away from the movie studio, which we've known and we have spent so much time complimenting over the last year has been a great profit center but espn and the subfees are the big deal. the question as to over what period of time will the bundle of video programming that goes to the home come apart so more and more people are able to avail themselves of streaming services that include enough networks at a price point they want, how quickly will that happen and undermine the ability of espn to get those

jpmorgan today has a sell on it. started the 2016 estimate at $4.62. then they cut it to $2.74.hey're using a loss of 32 cents for the year. this is incredible. my favorite line in the conference call, very enterta entertaining, musk talking about going to some supplier this weekend and explaining the way of the world because he's ruining the assembly line. he's doing cars per hour. that's an interesting measure. i hadn't thought about that. my favorite line in the call, if you exclude model -- sorry, this is funny, if you exclude model 3 capital expenditures, then, in fact, it really for q3 and q4 tesla will be profitable excluing the model 3 capex rate. if they didn't have to build factories and cars they could make a fortune. >> can they adjust for that? >> i think you have to adjust for factories. >> yes. >> that's not -- >> no. >> that's not capex. >> not part of the business. >> people understand obviously he's selling cars and building new cars. but can you imagine if ford came out tomorrow mark field said listen i have to redo the company. we're building all these factor

joining us to discuss is jpmorgan global market strategist. expect these guys to finance the european economy and do anything to stimulate the when yout a time getting hammered by monetary policy, regulation? david: the real question that we should be asking is, how far is the ecb really -- willing to push on this string before they identify what you just pointed out. it is difficult to grow an economy that credit is not being created and banks are not lending. maybe the air incentivizing, but they are undermining the profitability which is pushing in the opposite direction. jonathan: the conversations we have, these are smart people. they know what is happening, so what is the real story? they acknowledge the negative consequences. david: i think it would extend, we need to keep in mind that europe is over banked. there are entirely too many financial institutions, so maybe they are trying to play a survival of the fittest campaign and see who can stick around in these situations. out of japan, we are seeing more of a fiscal orientation and w

jpmorgan saying this would be a positive step for the company.e will see what happens after the bill. vonnie: we will be watching for them. let's check in on the bloomberg first word news. >> former fox news ceo roger ailes is quickly making his presence felt on donald trump's struggling campaign. he urged trump to overhaul his campaign leadership. the head of the conservative website breitbart will be the new campaign ceo. a pollster will be the campaign manager. they will do away with efforts to have trump transition to a more formal toned down approach. stock is dropping with americans who have money in the market. registered voters with investments in stocks and bonds narrowly picked trump over hillary clinton. clinton does better with those who have more than $50,000 invested. in june trump lead among all investors. angeles aast of los wildfire has forced more than 80,000 people to flee their homes. several thousand buildings have been destroyed. part of the interstate has been shut down. turkey wants to free up prison space for the thousand

officers -- offers have come from jpmorgan and morgan stanley.lionans to sell $3 to $5 billion in international bonds. first to develop turkey's fighter jet has been delayed by the uk as it assesses the aftermath of the field coup -- failed coup. bae is competing with airbus for rights to develop the plan, which is targeted for completion by 2023. tech startups are facing a shortage of funds as the government spends less. scientist did not receive a $63 million round of additional funding to finish the year as it has in the past, which is 16% of the annual budget. israel's finance ministry has declined to confirm the shortfall. yousef: still with us from london is the head of sales side research for foreign capital. fors put up the chart viewers to get a sense of how five-year swaps have developed off the back of additional liquidity to ease constraints. when we look at the benchmark rates, interest rates for the kingdom, those are up 45% just this year. salman in control of the situation? higher loan tod deposit ratios. the point is the majority

the stock was upgraded at susquehanna and jpmorgan this morning as a result. nejra: thank you.have noble laureate and economist joseph stiglitz saying the eurozone should split up if it cannot go through reforms. this is bloomberg. ♪ avtk"0 vonnie: from bloomberg rolled headquarters in london and new york, i'm vonnie quinn in new york. nejra: i'm nejra cehic in london. let's check in with the first word news this morning with elisa parenti. germany says their relationship between day euro some and the u.k. requires refinement. what is clear, the u.k. cannot expect access to the common markets unless it allows the free movement of workers. the british government wants to use a sugar attacks on soft drinks to fight childhood obesity. the money raised would pay for school sports and healthy breakfast clubs. their treasury report called for food and drink companies to work with the government to reduce sugar levels by 20% in products most eaten by children. in southern louisiana, the death toll from that massive flooding has risen to 13. floodwaters have damaged more than 40,000 ho