jpmorgan in the night -- we do the stress tests. we have my favorite stress test.s $500 billion in capital today. that is enough capital for all of the banks. the whole banking system in america has recovered. part of that is dodd-frank. dodd-frank in reality does its thing. i don't know anyone who would agree with dodd-frank. barney, frank, and i agree that some of the things put in there after the fact should not have been put in, so i don't agree with all of it, but it is what it is. unfortunately because dodd-frank, it is what it is. i have to deal with it. and that is the law of the land. the only thing dodd-frank did is it is not a legislation that has been passed. it basically says make the system better, do what you have to do to do it. so the regulators have a huge amount of authority to interpret these rules. the system is better, dodd-frank is partially responsible, but dodd-frank you know was passed 100% democrat, 0% republicans. and none of us can possibly say you can't make things better. one day, people, rational people should sit down and say what p

jpmorgan and bank of america dragging financials lower. executives at both banks saying trading revenue is likely to fall in the current quarter. shares of jpmorgan have fallen to a six-month low in the session. in politics, president donald trump is expected to the u.s. from the landmark paris climate accord. would the billl a campaign promise but is certain to anger allies negotiating the agreement. lots more to come on that topic. a lot moving around here. julie: we are seeing declines. we are seeing the selloff continue for the major averages. what is notable is the underperformance of what has been consistently outperforming, the nasdaq. it has been leading declines today. i want to dig into that of it, particularly the nasdaq 100 and dig into that a bit, particularly the nasdaq 100. it had risen for eight sessions straight before today's declines . if you lengthen this out and look over the past month, you will see that we fully add -- we have only had four down sessions during the month of may. session,ok at today's the big tech lag

goldman sachs off i 3.4%, jpmorgan off by 2%.cated that if revenue is down 15%, bank of america and merrill lynch, not in the dow, says that its revenue for the second order is going to be down about 10-12%. that is all weighing on these things. on the upside, you have dupont, pfizer, verizon gaining at least 1%. a little bit of the chemical names and the telecom names, telecom has been a star performer over the last couple days. in terms of individual movers, i want to highlight michael kors. that stock plummeted, down 8.5% after seeing store sales drop -- 14% last quarter, worse than projected. for this quarter, things don't look much better. perrigo with an increase after first-quarter increases beat estimates. it had gained as much as 12%, but reclaiming some of that advance. joe just broke the news that it is exploring a sale. joe: a possible sale, but interest is lukewarm. on the government bond market, .et's look nothing happened in the u.s.. at one point today, 10 year yield was below 2.2%, but ended up unchanged. interes

jpmorgan ceo jpmorgan, among the corporate a listers who dissented upon riyadh this weekend.imon spoke about doing business in the middle east. >> jpmorgan has been here for 80 so we're working with the company's here. they are having a big forum so , sponsored by the government -enhanced business. the president is here, so we are glad to be part of what is going on here. >> how much bigger will your operations in the middle east and saudi arabia get? >> my first trip here, we had one person. i think almost 30 are women, by the way, including a woman who's a receptionist for the first time. we are part of the banking system here. we are part of the broker system here. we bank a lot of companies and governments. >> you do let up on sales for them, as well. does it make a difference if the 2030 vision works out? >> we do about $27 billion of bonds, and we do it for some of their companies. yeah, it makes a big difference, and if they succeed here, it will be good for business. can you grow further? >> we are going to try. some areas, the answer is yes. it shouldn't be expected

frost all citizens, not just jpmorgan.rts understand i'm still optimistic there will be regulatory reform. after years of regulations, it makes sense -- you might democratic friends understand that makes sense to look at what was done, what can be done better, what can settle fed up as -- burden of businesses what can help people expand employment and grow the economy. norms asking for wholesaler throwing out of regulations -- looking at the light of day and to see what was done. >> jamie dimon their speaking with francine lacqua. president donald trump was also in riyadh this weekend, where he made his first major address to #$100 billionld worth of business deals in the region. >> yesterday we signed historic thatments with the kingdom will invest almost $400 billion in our two countries, and create many hundreds of thousands of jobs. that's in america and saudi arabia. >> let's bring in another voice to the conversation -- global equity funds manager -- manager 300 -- richard great to have you on the program. this comin

i could easily say bank of american over jpmorgan. no stock needs higher rates to fuel the next leg of its rally more than jpmorgan. i doubt that two rate hikes would derail the economy from this low level. yes, we're worried about credit cards, i articulated that last night. j prks m jpm has gigantic -- that red tape drag should go down, and dividends will go up, the same with buy backs. as we saw from cat's annal devel -- because they want the chinese to keep spending for fortune on infrastructure, it needs coal mining to stop shrinking while the dollar goes lower, and it needs to see it's u.s. order book grow with infrastructure spending, at least some from the federal government. so in the old days, a simple call, walter, mentioning my old beloved partner, how is jpmorgan and cat. if it was down, then i knew there was press pebospects for market. if cat and jpmorgan had -- zb k >> caller: i just want to thank you for your insight and devotion to helping all the investors out there, it's truly appreciated. >> i appreciate that. >>

how do you want access to services of a jpmorgan, chase?rancine: how are the animal spirits in the u.s. and world economy? >> pretty good. japan is growing more than in 15 years. europe is doing well all things considered. america is still chugging along at 2%. that is all good. even the imf, which is always worried about stuff, is now saying the world is going to grow faster than expected. saying the world is going toyo's president rouhani won a historic second term. he wants the world to know iran is open for business. this is bloomberg. ♪ ♪ yousef: welcome back to "best of bloomberg markets: middle east." president hassan rouhani promised to reach across iran's divide. this was dominated by arguments of widening inequality. he won a resounding victory as voters endorsed his efforts to steer iran out of isolation over a its landmark nuclear deal. >> i think president rouhani during his second term is going to be much bolder in terms of economic reforms. obviously, the expectations of the people have been mounting, especially the core. --

for instance this year you saw a big drop in twitter but see jpmorgan got on the list for the first time. there are a number of companies that are doing really welcome paired to their competitors and it's because they are investing in talent, they're out there,

jpmorgan's numbers to me were impeccable. they hit it across all levels. long growth was good. we all know commercial growth was down. there are probably seasonal effects for that. but i think the banks are as well positioned, if all the things we're talking about how policy is at least positioning, with an administration that will take the levers off of banks, or the shackles off of them -- >> that's not -- >> how can we say they're poorly positioned. if the economy is growing -- >> the banks are going higher, really simple. >> we all agree the regional index or regional banking segment is probably where you see the most bang for your buck if we're looking at regulation. dick bove is not often negative on banks. i can only remember this time. truly, i don't remember him being negative on banks very often. but cit group is the number one holding in the index, up a little over 8% year-to-date. >> all right. still ahead, apple shares hitting a fresh all-time high ahead of the earnings report tomorrow afternoon. the stock has added more than $160 billion in market cap this year al

jpmorgan and bank of america dragging financials lower. both banks saying trading revenue is likely to fall in the current quarter. shares of jpmorgan have fallen to a six-month low in the session. in politics, president donald trump is expected to the u.s. from the landmark paris climate accord. would the billl a campaign promise but is

shares of jpmorgan up 1.5%.or the discount retailer boosted its first-quarter earnings before the market opens. they've issued a path for the size of the lower prices. to compete with companies including wal-mart and amazon, shares down 1.5% in the premarket. america nickel outfitters, the teen apparel made to cause those results for its latest quarter due to the demand for men's clothing. fewer people shopping at the malls. finally, cisco systems will release earnings after the close. revenue to fall for the six quarter in a row her purse at this demand for the network equipment. nicole: coming out. stock market futures under pressure this morning amid concerns all of the news out of washington will derail the trump agenda, tax cuts and health care reform. unless congress calls from her testimony and widening investigation. >> my fellow citizens deserve to see the entire context of whatever conversation may or may not have taken place and quite frankly director comey deserves an opportunity to tell us how he he

will be back with jpmorgan ceo.ow, our viewers can get a roundup of the stories they need to know to get their day going and that is on today's edition of daybreak. it is also developed best available on mobile. you can also customize your settings. so you only get news on the industries and assets that you care about. hourg up in the next half we break the latest decision and the reaction from a bond market veteran. ultralongts on the bond floated by steve mnuchin. >> more with the ceo, the outlook for m&a in the region. this is bloomberg. yousef: this is bloomberg markets medleys. sophie: -- signing a deal with a units of air india for tenant regional jets. dubai aerospace enterprise provide 10visas to aircrafts to the delivery for the remainder of this year. the twin engine turboprops will be used to grow alliances as part of india's plan to boost regional error access. libya's 1.5 ilion dollar loss begins in london. six months after the similar suit against goldman sachs was thrown out. fighting to recoup billio

you have to watch jpmorgan.ecause -- because jpmorgan is a signal we won't have the rate hikes that make it so we have the quarter or the year of the real bulls but the bears came out in full force today. the bears are saying no rate hike sell. hedge, do this, do that. buy puts. i mean, it's like they're churning and burning. and that may be right if you're a hedge fund. if you're hedge fund, maybe today is the day that you buy and sell and then sell and buy bristol-myers. maybe this is the day that you go in and out and in and out and at the end of the day you go out and come in tomorrow. you know what? maybe that's not such a good strategy. >> usually not the way we work at home. usually. >> right. >> but you know the hedge fund guys, watch the 13-f. whatever they did on the 13-f is now wrong. right? except for buffett. >> usually irrelevant. >> but i'm just saying in the end -- >> that's not fair sometimes. >> i turn to you, maybe i sell my colgate because colgate is about to get a hundred dollar bid. >> they

there's jpmorgan.ill likely see similar charts across the spectrum of the banks. >> when he came back from wisconsin, all of a sudden it's, hey, we're in a trade war with canada now because they're killing the farmers. you don't know if this is the last thing coming out of the bank meeting. there's really nothing to worry about now. >> here is a meeting with jamie dimon let's week and he says i'm considering breaking up the small banks now. stop, stop. don't base your portfolio on this news. >> you see how the market reacts. >> algore rhythms. >> they are not out there thinking trump's next big thing is to disrupt goldman sachs. >> what if he is serious? >> it will take years to have that breakup. >> it's very good, by the way, veering back for dunkin' donuts because the investment bankers will be up figuring out how do you break up the banks. >> the dow is negative now by about 12 points. we'll take a quick break on the other side. ♪ ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an e

jpmorgan chase and 7 followed by american express with four investments.xt with three investments. this is part of an overall surge of corporate venture capital. since 2013 there are more than 5,000 corporate deals and more than $100 billion invested in startups by corporate vcs, according to pitch book. while they have their total r & d arms there is something about the innovative ideas of startups that is hard to recreate internally. you can find out more about the big trend on cnbc.com. melissa? >> thank you so much. julia boorstin. pe have about three hours until the "closing bell" here. stocks are higher across the board. on track for the best day for the month of may. our final trades, next. the power of innovative thinking. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this informa

mark richards is here, global strategist to jpmorgan. questec did you see you.eeting, were you on the hawkish side? or were you on the neutral side and when you send out? -- stand now? i think what the market reacted to was the lack of an additional vote for a hike and what we found was that commentary of wage inflation. if we take a step back, a lot of them have been premature in their forecast of acceleration. we saw new zealand overnight a dovish statement talking about the lack of wage inflation and it feels like governor carney's a little bit removed from that global dynamic of very subdued inflation. mark: that is a polite way to put it. vonnie: i'm curious if he is factoring in potential for lower corporate taxes if indeed it looks like theresa may wednesday very big mandate the government can change all sorts of things. >> potentially the corporate tax rate or debate will have an impact. i think one potential angle thed be a drop off in participation rate. although, it is from a high level. there were some questions about secular trends and automation an

what this chart shows is jpmorgan backing local european companies. outperformed the basket of exporters, that is the blue line. that is a percentage point spread. they are up by better than 10%. the exporters are gaining about 6%. they both joined fairly well. investors have been sinking valley -- value and return in these. up his becauseck european growth on the whole is improving and the euro has been strengthening. that week dollar coming into play here. you can to that we have indexes in italy which tend to have more than in germany. retailers are outperforming era companies. >> let's look at the u.k. market. it is a similar story. foot, i'm not the showing you the chart. that is a record high. those.me just get rid of the i'm showing you hear is 100 index. it keeps popping up. the ftse line which is 100 index, then we have the pound. you're looking at the more exploratory and stocks. in the last 24 hours, you see the concern about the polls. this narrowing lead in the head of the election. ,he interesting part is that look at that, you have ster

i thought when i saw jpmorgan and wells fargo tick down for ail second and come back even harder becausenterest rates went up, i recognized and i think everyone has to recognize that the president aims to please but we cannot take it as gospel, simply because he likes to throw things out as ideas, but look, they can't even get through repeal and replace. you're certainly not getting a bill through or anything executive action which just says you know what? bank of america has to return to the way it was in 2006. it's not going to happen. it's a great talking point, but it's not going to happen. >> david, it certainly points to what you and the treasury secretary got to yesterday, this is mnuchin with faber yesterday talking about the top tax rate. >> you're lowering the top rate, so those people may not get a tax break, and we're less concerned about creating a tax break for people on the high end, but they're getting a lower rate, so we're lowering the rate from 39.6 to 35%, i think there's a lot of people that would say i give up my deductions for the lower rate. >> so we're going to h

they are not jpmorgan. it is important to understand that.ecure will have some regulatory reform. after years of regulations, it makes sense. even my democratic friends, it makes sense to look at what has been done come what can be done better, what can help people expand the employment and grow the economy. wholesale flowing out of regulations, just looking, improvement was done. >> what do you make of which i think, investors were confused as to what that would mean. >> no one i know says that was part of the problem. they -- saying them you regulate smaller banks and bigger banks, that is understandable. let them sort it out. jonathan: that was francine lacqua. jamie dimon. joining me now for moore, head of policy analysis, i want to go back to our interview with the republican senate leader. we have not paid a lot of since i've been here, why is this week -- this week's's budget is the third iteration. it is key because it is another expression of the president's priorities and largely the same as it was before. what the budget proposal i

francine: thank you so much, nick gartside, officer for fixed income at jpmorgan.xt, continuing the cuts. saudi and russia agree to extend the production curb. we will talk about that next. this is bloomberg. ♪ francine: you are watching "bloomberg surveillance." let's get straight to the bloomberg business flash. here's nejra cehic. nejra: let's start with m&a. the penitent family's atlantia is bidding. the 16.34 billion euro offer would create the world's biggest operator of toll roads. atlantia, which owns rome's two airports, is seeking to boost earnings. rwe is higher this morning after it said profit is on track and it plans to pay a dividend for the first time in three years. germany's biggest power producers and efforts to boost plant efficiency and contribution of energy trading is helping compensate for our prices. the company finds a dividend of 50 euro cents this year. thermo fisher, the manufacturer of diagnostic and testing equipment, is in talks to buy raytheon. according to people with knowledge of the matter, an agreement could be reached as earlie

vonnie: jpmorgan and bank of america shares tumbling today as investors from both companies report trading in the second quarter dropped significantly. what does significantly mean. >> bank of america was not quite that bad. running -- brian moynihan said it will be down 11% or 12% or so. a fantastic first quarter we not affecting. >> last year's's first quarter was terrible for all the big banks and the second quarter was a huge quarter and actually the wet quarter the entire year are seeing it down a little bit. one thing bank of america pointed out today is look at the first half, up 3-4%. a little bit is -- is the mismatch, a little strong this year and last year. it does not look like trading firms are doing better than they did last year. >> we are awaiting to hear what it will say. >> we have not heard from goldman sachs and they typically do not give us insight into trading numbers before they lowrt jpmorgan today cited .olatility you remember that in the first quarter, goldman sachs also cited low volatility for why their numbers for so that in the first quarter. if the markets ha

jpmorgan? >> yeah, because today is the 2:00 fed notes and jpmorgan needs those rate hikes.you know that stock has fallen 10 points? if you get the fed saying, listen, we're still on course. jpmorgan would have to lead any rally. if they lead a rally, it's a rally that will be of significance because the financials have not led a rally in months. >> you see it there. that's one of the better perform earns. it's flat year to date. 32% plus gain for the last 12 months now. let's not forget that these stocks were all up sharply. >> it's been -- >> going into the -- >> but we need -- remember, that's a deregulation play. that's the lower cost compliance. that's maybe a big dividend or buy back. most importantly, they need the rate hikes. so you need to see this and it is incredible, david. goldman sachs, not the key to the market. down big. jpmorgan has done great. it's the one to watch. >> goldman had the poor quarter. not a good quarter. jp was a good quarter. >> it's a puzzler. >> although we have talked to david solomon about it and others. here's the opening bell. here at t

jpmorgan plans to move hundreds of morgan -- london-based bakers -- london-based bankers.comes as they prepare for the u.k. to lose easy access to be single market after brexit. ceo warnseferendum u.k. in one ease that as many as 4000 could be relocated in the event of brexit. thank you very much. let's talk about the president of the united states. donald trump has said he is actively contributing -- considering breaking up wall street banks and reviving the glass-steagall act. sitting down with a trump supporter and tom derek. he asked if he has had conversations about breaking up the banks. i think the president has been looking at that for a long time. respects, just looking as we talk about what the glass-steagall does. is it wise to have investment inking and banking together or is it more prudent to separate conservative of investments by federally insured depository and scale the marketing. i think he is seeking advice from his advisers and make a good decision. >> what advice would you give? as a bank board director which i have been for the last 15 years, i am no

not just jpmorgan -- very important to understand that. optimistic we will get some regulatory reform. 30 years of regulations, it makes sense and even my democratic friends understand that it makes sense to look at what was done, what can be done better, what can simplify burden of businesses come what can help expand employment and grow the economy. no one is asking for a wholesale throwing out of regulations. just look at it in the light of day. francine: so glass-steagall, and talking about a modern glass-steagall -- investors are confused as to what that would mean. jamie: glass-steagall wasn't part of the problem and no one i know things that was part of the problem. i think talking about glass-steagall, would you regulate smaller banks for bigger banks? that is understandable. let them sort that out. francine: would you be opposed to any foreign acquisitions? are you on the hunt to buy something? jamie: not right now but i wouldn't take it off the table down the road. francine: i don't know if it is a region you want or some specifi

irony for the benefit of jpmorgan.is weak, it is improving over the course of last year, speaking we are in the process where the outlook is going to see this most pressure. julia: thank you so much for your insight there. covering the sector for banking on bloomberg. our banking coverage does not stop here, you can catch our interviews with the ceo of kong asking him whether -- scarlet: coming up next, college football teams that rely on charters, they are increasingly finding themselves without pay. we will explain. this is bloomberg. ♪ ♪ julia: this is bloomberg marketsjulia:. football teams or be left on the sidelines, airlines cutting back on charter planes and that is sending some college and pro football teams scrambling to find other modes of transportation. let's bring in our sports reporter. demand about high treble but there was a conference realignment three years ago that also tells part of the story. >> college sports have chased that tv dollar and's brother conference so far, then you have teams like wes

not just jpmorgan. i am optimistic of some regulatory reform. in a sense.ven my democratic friends understand that it makes sense about what can be done better to simplify the burdens of business and grow the economy. no one is asking for wholesale running out of regulation, but look at it in the light of day. francine: what do you make of glass-steagall, and it was talked about making a modern glass-steagall, which investors were confused about. >> glass-steagall was not part of the prom. no one i know says that was part of the problem. regulate smallou banks differently from bigger banks? that makes sense. i don't think that is when to stop our ability to compete. francine: would you be opposed to foreign acquisitions? >> we are not on the hunt to do anything right now, but i would not take it off the table down the road. is there a region you want tobeef up or specific operations? >> there is no area we cannot grow organically. we can grow private bankers, corporate bankers, ranges in the u.s., overseas. there may be acquisitions in technology and countr

jpmorgan has agreed to buy an office building in dublin that can hold more than 10,000 workers.00 capital. building is not finished yet. about $137ll pay million. dublin is among the cities that jpmorgan is considering for an workforce after the brexit vote. that is the latest bloomberg business flash. vonnie: time for our bloomberg quick take where we provide context on issues. today's topic is china. the name silk road conjures images of caravans and adventurers like marco polo. adaptationern-day known as the one belt, one road routes exploit those with pipelines and highways. critics are wary of the chinese push to spread its influence further west. the president of china has outlined a decade-long drive to police the fields of trade with infrastructure prosody -- projects causing death costing hundreds of billions dollars and he said more than 40 countries have signed formal agreements with china. thechina government created $40 billion road fund in 2014. other funding sources include the brics development banks. tradingalled original routes were established more than 2000 y

jpmorgan is preparing for the u.k.to the market after brexit. they plan to move hundreds of bankers from london to dublin, frankfurt and luxembourg. deutsche bank says they may move 4000 workers and goldman sachs say it probably will begin relocations next year. trump'ste has confirmed choice to run the securities and exchange commission. clinton will be the first major wall street regulator to take office. --awyer whose fiber clients former clients include goldman sachs. and in saudi arabia, the government plans to spend at least half of the money it raises on domestic investment. the saudi deputy crown prince says they will use some of the ipo proceeds to develop arms manufacturing, mining and the entertainment sector. the saudi economy is in the worst slowdown since 2009. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. i am taylor riggs. this is bloomberg. tom: thank you so much. he is in new york city but his key expertise is on china. -- i'm going to

this: i want to talk about one etf launched by jpmorgan in september.s like there is an etf for everything these days. this one is a multi-strategy hedge fund etf, so basically, it is doing better than the actual hedge funds on wall street, right? eric: it has more volatility, but that said, it is doing good. look, the bottom line about this product, which i think is compelling, is you are getting jpmorgan hedge fund management and actively managed, for about one third of the cost of an actual hedge fund, so they said they want to democratize hedge fund investing. the question is, for who? retail investors have not really alt crazy buying liquid s. it is unclear whether they would be able to peel off and an endowment and use the etf instead. it is decent for the first year out, but that is nowhere close to some of the bigger hedge funds. anchor: hitting closer to asia one, i want to get your take the etf market in japan in particular, because it has been seven years since the boj has essentially become a whale in the market there. after they doubled dow

this is the jpmorgan domestic play, what is the white line versus the jpmorgan exporters basket, whichs the blue line. it's because the euro is beginning to rise. how is it looking over there?? julie: bouncing between gains and losses with volume 20% below the moving to average. trends that has really taken hold a little more from has been the air coming out of the reflation trade here. looking at the treasury spread between the tens and the twos. that particular yield curve has been flattening here. a ratio of value to growth that has also been coming down and both of these have been gaining steam over the last couple of months. the two best performing groups on the s&p this year have been tax and consumer discretionary. definitely more of a growth thirsting environment. one of the stocks that has contributed most to the gains is amazon. it is up 32% year to date and getting very close to $1000 a share. it has been pretty rapidly going there. finally, a quick check on the low prices over the past couple days. wake oftioned in the the opec meeting and some disappointment over productio

that has hurt all citizens of these countries, not just jpmorgan.till optimistic they will have some regulatory reform. after years of regulations, it makes sense. it makes sense to look at what can be done better, what can simplify the burden of business, what can help people expand employment and grow the economy. no one is asking for wholesale throwing out of regulations. just improve what was done. francine: what did you make of glass-steagall? confusednvestors were what that could actually mean. jamie: glass-steagall wasn't part of the problem. no one i know says that was the problem. i think they are saying, deregulate smaller banks differently than bigger banks. that is understandable. i don't think it is going to stop our ability to compete. francine: would you be opposed to any foreign acquisitions? are you on the hunt? jamie: i wouldn't take it off the table down the road. francine: i don't know if it is a region you want to beef up or specific operations. jamie: there is no area we can't grow organically. we can add bankers in countries,

much, michaelu so bell, a global market strategist at jpmorgan asset management.nie: we are once again waiting fothe national security adviser, general h.r. mcmaster to hold a press briefing at 11:30 eastern. newly organized with this time, we will bring it to you, live. more on the trump disclosure from washington, d.c. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. mark: and i'm mark artan. with the european close about five minutes away, a quick bloomberg business flash. theiran factory show strength last month, boosting up by 1%the most sie february of014. tot indusial productn so rose the most in more than three years. -- possible collusion to rig bond prices. according to a person familiar, the banks includlocal units of nk of america, jp morgan, barclays, citigroup, authorities investigating whether or nothe parties coordinated is a price -- suppressed prices and increase yields. no one is commenting. steps todss taking shore up sagging stock prices and boost profits. its will cut about 10% of global workf

i will speak with jpmorgan's head of media and telecom banking on monday in boston from the jpmorgany media and telecom conference. look for that on monday. this is bloomberg. ♪ scarlet: it is 2:00 p.m. in new york, i am scarlet fu. julia: i'm julia chatterley. welcome to bloomberg markets. ♪ we are live at bloomberg world headquarters in new york over the next hour. let's start with the top stories we are covering from around the world and on thebloomberg. president trump getting ready to ta off on his first overseas unwanted with some baggage intel. we examine the challenges facing the president and where this leaves his agenda at home. speaking of his agenda, the president's plans for tax reform have stalled with gop leaders lit and democrats are fusing to sign on. we will hear from you i will he on why comprehensive reform is so critical to this business. plus, hedge

jpmorgan did warn this ahead of brexit that if it happened, 4000 could be relocated.ossibly the beginning. >> absolutely. 4000 was the number mentioned, now they are giving us more detail with frankfurt, dublin and luxembourg. with the way that the negotiations have started, it is clear, we already have lobbyists from frankfurt and madrid and you name it, trying to win business. on top of that, we have the kicking off of the euro denominated clearing debate, france being very local about -- of being very vocal about it. >> a slump in the auto industry in the u.s. showing no signs of letting up. declineshonda showing around 7% each. gm sales falling 6%. and chrysler around 6.6%. >> not good for the industry, but these are the three biggest players and they are all down, more than they had anticipated. definitely softness playing out. there are some bright sides, gm retail sales are up a little bit. there is not a lot to hang your hat on. car sales have been falling and suv sales making up for it and what we see today is there is not enough growth in the suvs to make up

you mentioned goldman sachs and jpmorgan financials are getting hit hard., also the laggards there. they're accounting for over half of the dow's drop as well. the vix fear gauge which has been somewhat stagnant was at 93 lose. 1993 lows recently is surgg, 26%. we're seeing everybody running to gold and treasuries just for the safe haven trade and also comparison everybody is looking back to the early 1970s and watergate. you can see there when the dow went from roughly 1050 to 6 and change, a 40% loss over a couple of years, and we're showing that to give you historical perspective but in no way saying that is what's happening now. on the contrary neil, as you talk to the traders, they're saying look, we've seen a very stagnant market. move of half of one percent in 15 days. we haven't seen that since 1969. we're near the record. a breathe ser just fine. it's what happens going forward. for right now, they're taking it in stride. neil: nicole, thank you very much. nicole petallides. >>> republicans have expressed concerns about this and whether it could ge

we have seen something similar here for jpmorgan, right about the time of that interview, the trump couldroduce what he is calling a 21st-century glass-steagall act, jpmorgan went negative but is recovering nicely. very interesting is the fact that this will not affect the regional banks, they have been higher all day. they took an initial -- initial up more than 1% now, again this potential breakup is less likely to have much of an effect here, david. interesting actions here for the financials. very much.k you let's continue our coverage of the milken institute global conference in california. erik schatzker is with edina adena friedman, nasdaq president and ceo. erik: thank you very much, david. you and i were just on the panel together and we began talking about something that i think we should actually finish here. which is -- there is so much capital trapped in private markets, backing companies that have become name brands now -- , but it isn't finding its way to the public market. why? and presuming you would like to see it come to the public market, what can be done about that? v

goldman sachs, jpmorgan, apple, dupont and microsoft. melissa?: rushing to judgment, democratic congressman al green calling for the most extreme punishment for a president. his removal. >> i rise today, mr. speaker, to call for the impeachment of the president of the united states of america, for obstruction of justice. i do this because i believe in the great ideals that this country stands for. liberty and justice for all. melissa: here now is aaron elmore former campaign spokesperson and mark shtek. how does he know there is obstruction if he hasn't seen the memo or anything. >> exactly he doesn't. democrats have been crying for impeachment since november of 2016 since president trump was elected and now throwing around impeachment and collusion and the word they should be focusing on is evidence. they have no evidence of this. they are destroying the stock market today. shame you on, democrats, i'm going to call you drama-crats, we heard from sally yates monday, james clapper where. is the smoking gun? there isn't one. melissa: seems in all

jon jonsson from neuberger berman europe and david stubbs from jpmorgan.p next, we speak to the u.k. shadow home secretary, diane abbott. this is what the pound is doing. this is on the back of a new poll. pound falling on this tighter poll. the poll actually says the conservative party's lead over the labour party has narrowed to five percentage points with two weeks to go until the june 8 election. this is bloomberg. ♪ francine: welcome to our weekly brexit show live from london. i'm francine lacqua. let's get a roundup of the big brexit stories. here's nejra cehic. nejra: u.k. general election campaigning was suspended in the wake of the manchester terror attack. 22 people were killed by a suicide bomber in the city. police have made several arrests as the investigation spread to libya. the u.k. independence party said prime minister theresa may should share part of the blame for the atrocity as it launched its election manifesto. deputy leader suzanne evans said that may allowed high levels of immigration and failed to prevent the spread of fundamental

jpmorgan upgraded it to overweight. you both own it.already got on you. >> this is another roller coaster stock. the time you own a stock like this is when you're having issues with a supplier like a apple did with nokia. it has 14 times and they're about to make their largest acquisition which the market is telling you this is about to close and when it does it diversifies their chip business into something other than just mobile. this is going to be a good thing for the stock but a lot of people will not buy it until, "a," apple is over and the acquisition. >> jpmorgan says you try to look past the risk of the apple dispute and focus on the valuation. and that's what the call is. >> and history tells you, and we've been talking about when this happened the stock was below $. it's $58 or $59 now. there will be negotiations but i think it will come through and the stock will head higher after that. >> how comstock come stockholders, the bulls are value investors and they like the royalty stream and they like, i don't really know, and th

dimon of jamie jpmorgan opens up.

. >>> jpmorgan chase says it's back online after an outage last night. customers could log into the website or mobile app, but they were not ability to transfer money or pay bills. it also showed not available where account balances should be. they apologized saying sorry for the stress and thanks for your patience. is a -- sam and chris, back to you. >> "no funds available" will freak you out. >> a flashback to college days -- oh, no,s i'm a grownup now. i do have a little bit of money. >>> actress melissa mccarthy says she feels pretty. ♪ such a pretty face ♪ such a pretty smile ♪ such a pretty me >>> a one-minute tease for tomorrow night. she sinked "i feel pretty" from "west side story." she dancens datzs her way to the --, the character debuted in february, you can catch the show right howaere. >> it's the last few impressions didn't go well with the administration. i can only imagine the reaction to that. >> i wonder why we haven't seen him in a while. >> it has been a few days. >>> a check in with carrie and the breezy school temperature. >> as we

francine: stephen macklow-smith, ande for jpmorgan, trevor greetham stays with us. a disastrous dinner, or just brussels gossip? this is next. ♪ did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. ♪ you are watching bloomberg surveillance. i am francine lacqua in london. here is nejra cehic. sebastian: president donald trump says he is actively considering a breakup of giant w

back on the dow, goldman and jpmorgan basically accounting for almost 65% of what the dow did today. so banks rallying. chances of a fed rate hike next month, currently fed funds future rate, 83% chance. higher interest rates means better profits for banks. so the banks today, which have been beaten down just a little recently. gaining background today. other interesting story yet again, battling the u.s. government. u.s. justice department filing a lawsuit again today claiming automaker was cheating on some of its software for diesel engine cars, specifically the jeep grand cherokee and ram pickup trucks. fiat chrysler saying no way, we didn't do it. we'll fight this vigorously. you can see the stock moving slightly lower but a day where we traded in a tight range, guys. back to you. melissa: ashley, thank you for that. david: look at oil ending higher for the fifth straight day ending at 51.47 a barrel on growing optimism opec will extend production cuts next year when they meet on thursday. look at gold moving in the opposite direction. it is down 10 bucks falling from a three-wre

attemptedded assassination of jpmorgan and expulsion ever two german diplomats from the united states for acts of sabotage against american interests. he later went to become very important figure. last chancellor of germany before ascent of adolf hitler. the detonation after depot in jersey city, new jersey, worst terrorist ate event in american history, only surpassed by the events of 9/11. there were also allegations just to prove to you that there is no new idea, there is only old books, there were allegations that the germans were trying to rig american elections. and also, that the germans were the ones behind pancho villa raid into new mexico into 1916. there is wonderful cops and robbers story of a german commercial attache fell asleep on snorkel straighted train line in summer of 1916. woke up realized he was at the wrong stop. jumped out of the zuck way car, elevated car. american secret service trailing him, grabbed his briefcase and ran out the other door. literally secret service age sent is running down the street with his gun flagging down a taxi. those showed clearly t

the lawsuit targets but please, citigroup, jpmorgan, where bank of scotland, and ubs. u.s.egulars are reviewing possible payment of violations stemming back to an internal probe that started in 2015. the currency transfer company is in acquisition talks with jack ma. rivers could raise national security concerns by allowing chinese companies access to u.s. infrastructure. disney could be heading once again to the top of the summer box office. the studio hopes to capitalize on the power of proven franchises, rolling out sequels to "guardians of the galaxy, was quote "pirates of the caribbean ," and "cars." volumeans of the galaxy, two" could clear $1 billion of global ticket sales. that is your bloomberg "business flash" update. oil this is to blessing after a selloff but the vti is -- stabilizing after a selloff but did a vti is still on pace for a decline. the citigroup head of commodities research says the slump is driven purely botanicals and supplies getting tighter. -- purely by technicals and the supply is getting tighter. nothing has changed in the market. expectatio

we look at data compiled by jpmorgan as a last week.ke etf growth in europe is twice the pace of the u.s. now. if you think about the cheaper valuations you are also getting, that bodes well for this big rotation we've heard about back into european equities. saw 562 million go into french equities alone, the biggest inflow since we started tracking data. you can dig a little bit deeper. there is no doubt about it, when you look at this, the growth in earnings has been on the oil side. anna and i have spoken to a couple of these ceo's, the oil and gas producers. ofn you look at this moment a shakedown in the oil market, down 11%, it shakes confidence, doesn't it? >> it certainly does, but like i mentioned, we've seen some companies learning to cope with this new environment. at least for now we are seeing some support. we have to see whether that really sustains into the next quarter. anna: justina, thank you very much. justina lee joining us there. busy week in terms of the commodities space. we've had a lot of focus on commodities, ir

they didn't roll over. >> you telg me jpmorgan gave back the 25%? did i miss that? >> jon, you're picking one or two stocks. >> energy -- >> i'm not picking sectors. >> best in financials, which i talked about over and over again and i'm pick iing my infrastructure stocks, which happen to be your infrastructure stocks, they have not rolled over. so if you want to tell me u.s. steel and free port rolled over, you'd be right, but you're not right about these others. >> b how about energy? >> that's not one of my picks. >> we're talking about apples and oranges here. you're talking -- >> you said trump stocks have rolled over. >> a lot of the trump stocks -- >> when did that happen, stock? >> ron. okay, yes, in a certain sense, energy stocks have become trump stocks in so far as he's been auk tagging about expanding the opportunities for the companies to drip on shore, offshore, but let me make a point in addition to the trump trade, there is an emerging g trade. when you look at this silk road infrastructure plan that china is rolling out, a trillion dollars in infras

jpmorgan. >> yeah, i think to his point. as a sports fan, sports analogy, when you're watching a baseball team you want all nine guys in your lineup to be contributing to the team. reality is it's typically two or three that carry the team. the reality is as much as you want all the different sectors to participate, it's only usually a couple that really drive the markets higher and that's what we're seeing now. what is interesting? if energy were to catch up, interesting day today, trump talking about potentially selling half of the strategic petroleum reser fs. oil was up and we talked about halliburton yesterday with tim. they had a decent day. you might see the up side. >> to me i looked at kre today. i haven't bought it. i mentioned last week i'm waiting for the market to prove itself. part of it is the 2400 level that steven mentioned. he i'm looking for that break of the down trend. the banks seem like they want to do it. at the very least i know the bottom what appears to be the bottom, that has formed over the last

people depositing their money into jpmorgan and jpmorgan suddenly making outside bets. >> it is a bithave a 21st century epa that allows companies to dump their waste am to rivers and lakes. epa protects the environment. i'm excited to see what steve mnuchin has to say about this. >> what do you think about steve mnuchin thinking to this goal of 3% above gdp growth and they're going to balance the budget at 10%. >> 3 is very hard to get to. it takes good immigration policy and through the demonstration of health care and that bullet pointed tax reform thing they put out has not demonstrated the wherewithal to get us to 3%. >> you didn't think 200 words on that piece of paper was sophisticated. bite your tongue, ali velshi. >> show me how to get to 3%. >> be sure to watch him tomorrow "velshi & ruhle." >>> coming up, deputy attorney general rod rosenstein has just arrived on capitol hill. you saw him to brief the full house. we'll have more on that, next. with type 2 diabetes a lower a1c is a lot about choices. but it can be hard sometimes, 'cause different sides of you struggle with w

it's jpmorgan's matthew boss. matt, good to see you again. >> thanks for having me. >> it's hard to find standouts in retail, but you sure did with pvh. >> the story here is i think they have diversified their distributions. 75% of dollars of outside the u.s. they have stabilized the u.s. marketplace and international has a huge runway ahead. we think they could triple their european business with calvin klein and double their business with china with tommy hilfiger. >> the stock has done quite well, it's up 19% year to date by the numbers i see. how much room do you see ahead? >> you have a stock trading at 12, 12.5 times earnings for what we think is a 13% to 15% earnings growth algorithm which could be the next five to eight years. layer on cash flow yield and now they have the balance sheet back to 2.5 times ebitda. potential optionality is this is a platform acquisition model. i just think there's a number of ways to win. numbers are too low, multiples too low. this thing to me has a lot of opportunity from h