--on: paul eyes on jpmorgan all eyes on jpmorgan. we will hear from jamie dimon.or on the numbers. jpmorgan up in premarket. the top live blog is noting shares off highest gains in premarket. we will see where they go especially when the commentary comes out. the media commentary, let's bring in from south carolina, columbia, the high country, walter todd, greenwood c i/o. jpmorgan is one of the top holdings. -- cio. allison, let's start with you. what jumped out for you with these numbers? >> the bottom line the. beat. return on tangible common coming in at 70%, strong. the provision. credit continues to be -- a couple years ago jamie dimon said never, ever better. it continues to get better. jason: walter, you are a holder. is this what you are looking for from jamie dimon? walter: it is a solid quarter. not a home run. more like a double. given the market and shares over the past week, this is a solid moving higher. i was struck by the 6% core growth. that is solid, better than expectations. i'm not worried about the slowdown in ficc, given that the third quart

>> our top pick is jpmorgan.hare across all businesses and invested back into the business. topline growth can continue into next year. you know he can't say anything bad about barclays. later today on what'd you miss, we will dig into wells fargo results with their ceo. rolling the dice. we look at when it results. trade.rs was the worst analystsove fits, why are upgrading fitbit. from new york, this is bloomberg. ♪ i'm scarlet fu. this is a countdown to the close. you can find all of this on the bloomberg terminal. first of his facebook. the major hack announced two weeks ago affected 30 million people not 50 million as originally reported. resorts.nn their stock up is by -- their stock is up by a bit of a percent. those are your social climbers. the business process the head of esl as the next warren buffett. he in his fund's future uncertain. we are joined now by a professor at columbia university. sot did eddie lambert get wrong with his sears that? >> top to bottom. the whole thing from the macro picture. h

the expectation for jpmorgan is 225 a share.is is going to hit any second now, mike, you think this is going to be big enough to impact the broader markets mike: for sure big enough. i think what's interesting here, maria, the set-up into the earnings report, jpmorgan hasn't rallied and hasn't performed great all year. if jamie dimon and the team come in line with the numbers and he talks somewhat positive on the earnings call, jp jpmorgan could start big rally in the banks. maria: we have the numbers, 23.7 billion on revenue, we know it's higher than a year ago and it's right around the estimate, the mean estimate 27.5 billion on revenue. so it's a revenue miss fractional, but it does look light on the revenue. in terms of the earnings per share, we are expecting earnings per share of 225 a share but the results are just coming in and it is there better than expected on the earnings line it seems to me. the stock is losing some momentum here but you are still seeing positive showing even though revenue is looking a little light

we await jpmorgan first big bank earnings.the dividend growth rate. can they get the apple like growth rate? david: i think they are going to manage this carefully. it is going to increase at a slow rate. you increase your dividend small amounts every year and when you back thess cash, buy stock and that is what they are doing. tom: within this is mergers and acquisitions. assume we do see combinations. david: we do and it is not going to be in the realm of large banks. they are going to be able to because you can go to a higher anunt before you get to be important bank to the government. first small and mid-cap, it is fantastic. we own a lot of midrange banks, under the $10 million range. tom: wells fargo was in the other day. he was strong on the management changes. does management make that much difference in a big bank? these things are aircraft carriers. david: management does matter, no doubt. invest in a company, we are hiring that management to run our investment. it does matter. a large company takes a long time to ch

jpmorgan, citi, wells fargo all report next friday the options market implying 2 or 3% moving for thetocks dan says one of the names could run into trouble walk us through. >> i think a lot of them could wells fargo, we're going to focus on that one in particular because i think this has been the ugly stepchild regulators, the scandal, lending they can do to some of their money center peers this is the worst performing one, down 20%. mid january, down 12.5%. it's expensive to bank of america and citigroup. i don't see the prospect for these guys i have a two-year chart since late november 2016 when you look at this thing it looks like it's poised for a move back to $50 on poor guidance. let's talk about what mel just said w why did the group rally. we saw the two year not get crazy. that spreads between the 2s and 10s. that got wider that's how the money center banks make some money. i suspect through lending they borrow short and lend long i suspect kind of like what i was getting at with the home builders we see it down and trade badly wells fargo is the guys that make these loans i

jpmorgan, excellence.they lead. .- lag what is the urgency to get that vector moving up? frederick: operating leverage, getting some growth, topline growth, and keeping expenses to 1% or 2% of growth. jpmorgan is 221 roughly, tangible book. frederick: right. tom: where is bank of america? frederick: we are around 117. tom: can you go long bank of america. that those tangible book ratios consolidate? frederick: it is driven by profitability. compared toyour roe your priced to book their it -- book. deutsche bank is never going to have the price to book. tom: can we work with the script? bank haveamerican some ford of agreement which germany to bring american best practices to deutsche bank? it is whispered about. i know you're not doing this. you have been doing this for years. frederick: we have seen some of that in the u.k. they're disrupting the big banks in the u.k. we're starting to see that transition. in terms of deutsche bank, the structure of banking in europe is different. they have all the mortga

joining me now is diana, a portfolio manager at jpmorgan. good morning. seeing a rebound of gains in asia. european futures pointing higher. u.s. stocks gained yesterday. we are talking about what a bad month it has been for equities in october. has what happened in the equities market change your views at all on fixed income? manus: that is a very interesting question. diana: when you look at the u.s. equity markets, almost down 8% on the month. yet, the 10 year treasury is 10 basis points off the highest. what we are seeing in equities is not reflected on fixed incomes because i think there is dynamics that are weighing on rates. you have the end of qe and the a on its balance sheet. the u.s. remains fairly robust. for fixed income markets to get that sense of, perhaps panic we are seeing in equities, you would have to see a significant slowdown in u.s. market data. manus: good morning. yes, let's see where the jobs data on friday. i decided to take the ugly, the gruesomely underperforming and is abundantly performing. three things -- pmi, soft data. i'

jpmorgan posting better than expected revenue take a look at jpmorgan shares this morning they are upst mentioned as a result of those earnings i don't know if we're going to show where that stock is playing on the screen right now. up by 1.5% this morning. >>> meantime, steve mnuchin describing wall street's two-day plunge as what he called a natural correction he joined us in the last hour. >> in the bond markets four weeks ago, people were asking me if i was concerned the yield curve was too flat and whether that indicated recession for next year. and i said absolutely not. four weeks ago, i said markets aren't always efficient. you've seen a normalization in the yield curve which makes sense. so the fact that that's occurred at the same time is a correction in the stock market. >> for more on that interview -- >> i think jay's doing a good job. he is spending a lot of time here on regulations. we took bank regulations too far in the other direction i think that whether it's the occ or the fed or the fdic, we're now allowing our u.s. banks to be able to lend that's an important par

if you think earnings are going to save the day, today jpmorgan is down 1%. you were hoping you were going to kick the season off, you're not getting it >> my position has always been that there wasn't anybody who didn't know that earnings were going to befantastic and that was already discounted on the market. now what's being discounted in the market is guidance is going to disappoint and lower the expectations that we've had. however, the question is how much of that is now reflected in the market however, i still think that you need good guidance the from the ceos going forward in order to lift the market. we're basically in nowhere land right now. i believe the market is susceptible to selling off more. not the type of violent selloff we saw the last couple of days >> yeah, next week you've got ibm, netflix you've got procter you're going get a good read on there. >> and i think you're giving a lot of credit to the financials. it's been fierily out of favor and so for us to get a bounce of any magnitude off of some decent financials reports, i'm looking

jpmorgan saying by the dip unless volatility is back up again. saying volatility have had the systemic selling because of the vix picking up. e we see thew sudden volatility. how much of volatility would explain why we can nosedive lower? mayank: abbvie time is looking at fundamentals and half is looking at non-fundamentals which are factors such as the one you mentioned which are microstructure factors. these are not driven by earnings, they are driven by pricing. as the prices fall, not only the guys -- it is difficult for people to see the size of these and what the impact is, but it feels like that is part of what caused a 3% followed by 2% move in today's. there is quickly, rally in em currencies that have gotten beaten down lately. are we getting close to any sort of young bottom -- of e.m. bottom? mayank: i think the direction of high assets including the e.m. and sectors in the u.s., is tied together for the same mast. if u.s. markets can recover, it will result in a bigger at an em. the fundamentals take a big step back here in the short

citigroup, wells fargo, jpmorgan, pnc, two of them down. jpmorgan and pnc. citi's higher by a full percent, then we have wells fargo up 3.25%. citi reported better than expected earnings, citing the fall in its effective tax rate to 24% in the third quarter from 31% a year earlier, helped profit growth by 21.8% year over year. scandal-ridden wells fargo got it together here. they saw profits rise 32% last quarter as the bank continues to cut costs and tries to move past regulatory problems. that stock as i said moving higher but the three-month picture is not a pretty one. jpmorgan, they did report better than expected earnings and revenue with profits rising 24%, but it's sort of one of these what have you done for us lately scenarios. results were offset by weakness in bond trading. that caused shares to fall so they are down 2%. that three-month picture is not the most gorgeous, either. nonetheless, jpmorgan having some good numbers today. pnc hitting a more than one-year low. what happened here, disappointing loan growth, loan guidance for the fourth qua

we only bring props for jpmorgan, is that the deal >> i would have but i did not get the memo you're supposed to say what memo work with me here. >> joe started off badly -- we're going to get right to it why morgan stanley now the joke fell flat >> for the large banks the cycle is not over, down 10%. when you see that the resiliency of the banks is stronger than it's almost ever been, you have the best earnings stability in one or two decades the cycle is not over when that happens and the concern we hear is peak earnings this, peak earnings that, it's not peak earnings for the largest bank. we'll hold up our earnings model against anyone else's. we upgraded morgan stanley today. we're now buyers of the stock. i was on your show for five years from 2012 to 2017. the stock tripled or quadrupled at a time the market didn't. the restructuring story we thought ran its course now they have additional restructuring left better than expected growth than we had forecasted before what you're seeing at morgan stanley is 21 years after the merger of morgan stanley with dean whiter, you see the

>> i actually got out of jpmorgan a little while ago. it has not dipped enough for me to jump back in quite yet. i did buy morgan stanley sorry, i'm not cheating on jamie. i'm giving mr. gorman a shot here as well i do think a lot of the moves morgan stanley has made have been significant and, again, you hit near a 52-week low on a name that is just a staple. they are crushing it as you think about interest rates rising, you think about volatility coming back into the market, you're going to see core investment and capital markets activities continuing to boom and they'll start making money and trading again. >> tell us these other areas you're buying right now. >> in addition to the financials, i picked up a fair amount of facebook as you know, i've been a huge fan of facebook for a while. i know steve is on the desk. we can go hand-to-hand combat. >> it's difficult while you're in chicago >> don't tempt him, please >> you can give a remote smackdown. i don't think any of us would shut that down >> steve knows i love him and, jon, i kno

us now is the head of european equity strategy at jpmorgan.he 10 year yield is having its highest since 2011. -- 30 yearrope's yields are also hitting a 40 year high. is this a game changer for equities? the fed is moving from outright extreme accommodation still accommodation. powell is implying they are not even neutral yet. rates are still stimulative. i think we need to get to positive territory for real rates. manus: we've put together the rerating by tehe market. it's beginning to price a slightly more aggressive path into next year. fed is being too u.s.-centric and not global enough. would you agree? .> it's interesting is a comedy easing gas is characterizing an extraordinary accommodative -- extraordinarily accommodative monetary policy. there are few signs of strain in the system. it's something we need to be aware of, given the dollar has strengthened so much this year. >> the two-year yield is also hitting its highest since the pre-crisis level. we have private payrolls -- we did we get such a spike offset data -- off that data? w

but earnings season kicking off on friday with crucial bell weather banks, jpmorgan, wells

maria: why is jpmorgan saying a recession is on the horizon? >> because i think the business cycle, the fact we are in the longest business cycle and longest expansion we ever had people tend to believe it is an easy bake oven, a batch of brownies and after a certain time we need to have a recession. there is 0 data on the horizon that could remotely predict a recession. if we have what it is from data or things that happen. maria: it is easy to be negative. dagen: you don't take any risk saying there's going to be a recession two or three years from now. it takes a lot of guts to say we are tween 9 years into a bull market, 91/2 years and we don't see anything that will get in the way of that. that takes real guts. maria: particularly market selling off. dagen: people so worried about inflation. look at the unilever numbers

were on theights bottom line at jpmorgan, that was a big help, better than expected credit.ome provision sales, but in general, it continues to be stronger for both jpmorgan and citi. the credit card business coming very well. that's the key positive. one year ago, people are concerned about that business. the companies have guided to hire losses versus previous expectations, but the numbers are coming in well this quarter and the revenue margin, the net credit margin coming in especially better for citigroup, jpmorgan, those numbers have been improving for a a while due to the nature of their books. still ahead, as we review the week on bloomberg best, an exclusive conversation with exhaust cheap -- with microsoft's chief executive. what political volatility is doing to prices and up next, top businesseek's headlines. italy insisted will stick with its spending plan the matter what happens. >> slovenia is talking about taunting the gentleman. matt: this is bloomberg. ♪ matt: this is bloomberg best. i am matt miller. let's continue our tour of this week's best business stori

for jpmorgan and wells fargo, there is a little bit of a positive lift. interest margin may fall by about two bits. islysts say the future probably more important than the past. a veteran bank analyst says the third quarter is an example of ancient history. haidi: i guess we should look ahead to the fourth quarter then. ramy: with that, we will take a look at two major things. interest rates and the impact to banks bottom line. not only that, also loans, specifically. i want to show you what's happening with loan growth for the big three banks that are expecting. wells fargo is below the line, it is contracting. we expect more of the same. u.s. mortgages may decline 6% year on year. this against the backdrop against rising mortgage rates. i will put this up once so you can see where mortgage rates are rising. already at a seven-year high, jumping the most since donald trump was elected. this has a negative not effect for banks. we look ahead to tomorrow. haidi: thank you so much. of course, that's it from "daybreak asia." our markets coverage continues as

that means a smaller fee share for jpmorgan.hey are consistently third behind those two other firms. having a lead less plot on what could be one of the biggest ipos of the year is a good look for them. that seems to be some of the hind the scenes imaginations going on. for lyft, it seems like the get one of the top buy you synthetic things except is what is happening. emily: this is the international story developing by the second, but there is a lot of concern about softbank's connection to saudi money despite that the government continues to deny they are behind the disappearance of the journalist. eric: at this point, uber has the money. so much of the money is tied to the saudi's. they have 3.5 billion directly from investment funds. softbank is only a small part of the trouble. it is about managing those relationships. i would love to be in the board meeting where they have to have it out over his decision to leave the saudi forum, but i do not think they can give the money back at this point. it's keeping the distance whi

jpmorgan chase leading the way.ially rose 2% but as you can see, they are down now after the bank reported earnings 24% above a year ago due in part to lower taxes, which offset slowing revenue. meanwhile, reports of higher loan activity could bode well for other companies reporting as quarterly earnings season gets under way. we are looking for a strong quarter with consensus estimates forecasting 21% improvement in earnings across the s&p 500. mr. cavuto, back to you. neil: thank you very, very much, gerri willis. monitoring all these developments. foreign markets did stabilize here. asia still down a lot but not as much today. elizabeth macdonald, moving to 6:00 p.m. eastern time starting on monday, you would argue there's no talking points, right? >> as if i never brought any on your show, right? neil: you just sort of nod at each other. >> that's right. neil: it's a great show. >> thank you. neil: help me with these markets, miss encyclopedia. what is going on? >> we're trying to figure it out. as gerri pointed

a global market strategist at jpmorgan asset management.hart that shows the lower in someis, of these numbers they are talking about over at the imf. they are talking about trade tensions and emerging markets. do these trade tensions make you want to turn to your portfolio? we are keeping a more cautious stance in our portfolio. there could be a degree of risk. the story at this stage of the year is that there could be more risk. lower growth in emerging markets and europe and japan. trade tensions are having a huge impact on global trade volume. when you look at gdp data in the negative impact is there already. if we don't have a revolution -- resolution of the dispute ,etween china and the u.s. there could be a time for more caution. anna: lots to talk about. manus: good morning. we've another chart about earnings and estimates going into this season. i want to get your take on this citigroup chart. downgraded, the lowest level since 2016. we are expecting and earnings-per-share growth of 19.5% in the united states. are you repositioning

jpmorgan boss jamie dimon says the u.s.china are moving closer to an all out trade war and terrorists have already damaged the chinese economy -- tariffs have already damaged the chinese economy. he said the actual tariffs are small, but the wider effect is diminishing confidence, and businesses are not sure whether relations will turn for the worse. >> i call it a trade skirmish because the tariff effect is very small, but the secondary effect is oddly far bigger. the secondary effect, confidence, supply lines, with a get worse, what are the odds of a trade war, of something going south, of that retaliation? that is more negative than the tariffs. paul: the italian economy unexpectedly stalled in the third quarter, showing no growth for the first time in almost four years. the news was a blow to the populist government's expansionist plans, and ministers acknowledged it could be a problem. italian bonds fell after the numbers, showing the nation as the underperformer among the major eurozone economies. president trump visi

the jpmorgan, those numbers have been improving for a while due to the nature of their book. matt: still ahead, as we review the week on "bloomberg best," an exclusive conversation with microsoft's chief executive satya nadella. plus, leaders in the commodities sector discuss what political volatility is doing to prices and up next, more of the week's top business headlines. italy's government insists it will stick with its spending plan no matter what happens to bond spreads. >> slovenia is talking about having the spread for breakfast and he has been taunting the gentleman of the spread. matt: this is bloomberg. ♪ matt: this is "bloomberg best." i am matt miller. let's continue our global tour of this week's top business stories in brazil, where a populist outsider showed surprising strength in the first round of a presidential election. >> jair bolsonaro is closing in on brazil's presidency after dominating the first round of voting. bolsonaro wound up with 46% of the vote, just short of the majority he needed to win outright. he will face the workers party candidate ferna

that sounds similar to what we heard from jpmorgan.y did see higher in commodities and currencies. want to go back to the advisory feed. those revenues look pretty good. they came in a $916 million. when you look at m&a, there has been a lot of the virgins. bank of america was down. you had morgan stanley down 8%. bank of america was down 30%. what do you make of that? >> one of the things we saw this quarter was a lot of strength in announced deals. pushed might have gotten to the fourth quarter. lumpiness ine more the numbers. bank of america is the outlier just because they had such a strong yet last year. now it looks like there is some give back. the pipeline looks good heading into the fourth quarter. there could be some recovery there. it's more important for goldman sachs. they are a leader in m&a business. that's a good result for the leader in the business. capital markets are down 6% year over year. it looks like morgan stanley has the biggest increase in that business. overlooking the investment banks? they have jumped up o

one way to remedy that, i would put jpmorgan analyst steve tusan on the boards. all right. much more "mad money" ahead. which semi should be inside of your portfolio i am going off the charts to find out and my exclusive with the company paychecks. where does the company stand now? i'm talking with the ceo after earnings and was the obituary written for the off price retailers too soon i am giving you my take. so stay with cramer. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. >>> we spent all last week in san francisco talking about the cloud stocks with turbo-charged growth what about the semiconductor industry lately the chip stocks

let's talk about those banks with jpmorgan city, wells fargo what are you expecting from the earningsh. absolutely yes should be a good week for financial this is week you know jpmorgan -- has stocks up over 7% year today they should have a great earnings report so interest rates were rising that does affect what we as consumers pay for loans and mortgages but it is great for financial specifically insurance company banks. citi group beats consensus over four times over past year and should see that perform well. wells fargo a lot to love with rebranding effort dividend looks great and for wells fargo so should be a positive week for financials. >> what about if i'm talking thunderstorm next few months or within the next year or so given the amount of corporate debt even for these banks will interest rates hurt them as much as other companies? >> i think you will see some effect there. as far as corporate debt goes, but you know, earnings will be offset just with net interest margin so as rates rise, especially with insurers, the yield on their bond port foal you should cover any inte

on friday we did see jpmorgan come out early and beat but sell off by the end of the day. questioned whether we had peak earnings for the banks and we did see jpmorgan while revenue grew year over year, it fell 2% quarter over quarter this hasn't happened for bank of america. if you look into the individual lines, most of the core parts look pretty good deposits up, loans up. overall down half a prt ercent the premarket. >> wilf, thank you >>> coming up, our guest host mohamed -eanelri he'll join us in a moment. on at. oh really? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. ♪ ♪ fight security threats 60 times faster with ai that sees t

i want to type back to what jpmorgan are saying. the worst-performing one is the performance in china and the eurozone. jpmorgan asset management says global growth is going to slow. it will not take much to bring about a recession. a spike in oil. would you agree? are we one step away from a real economic reversal? >> i certainly agree with those three risks to the global economy. tightening policy, higher energy prices, trade wars, of course, do present a threat in particular at the moment. a slowdown seeing is in chinese activity. beijing taking action to make sure that some of the impact from slower trade is being offset by stronger infrastructure spending. fiscal stimulus. have cut the required reserve ratio. we expect further cuts to ensure liquidity. from the chinese perspective we are confident is going to be around 6% this year. that is not bad at all. large blockhe other in the global economy, europe also going at an above trend pace. i would not be calling for global recession anytime soon. anna: what kind of landing or g

plus from london, fixed income portfolio manager at jpmorgan asset management. want to begin with you on risk assets and fixed income. high-yield finally started the fracture. what do you see on that? >> the move in the treasury market really caused that. the market was happy with the yield curve. at 320 plus puts fear in the system that rates could move higher. that leak into equities. not rally immediately which put a further spook into the market because that risk offset wasn't there. we think it was rate-led. jonathan: given that risk offset, treasury is doing well .do you take some comfort from that ? >> i do, i also take comfort from a significant amount of auctions. hard to draw ay line in the sand. action, not very comforting. we did not have a great reporting rate. this week, we've actually seen rates managed to rally. the front end is very interesting. it has a lot of value. tightening,nditions a bit less excited about raising significantly above neutral. want your view on what is happening in credit. there seems to be little room for error. we are sti

thank you to nandini ramakrishnan at jpmorgan asset management.be joining me on the bloomberg radio, "daybreak europe" program live on dab digital radio. that will be the top of the next hour. charles evans, president of the federal reserve bank of chicago will be joining the bloomberg team at 11:00 a.m. london time. later, the president of the federal reserve bank of philadelphia will be joining the team. let's talk about oil markets. oil prices have studied, but at high levels. near the highest level in four gears. lingering fears of global supply outweighed a gain in u.s. stockpiles as president trump slammed opec for ripping off the world. >> we protect saudi arabia. would you say they are rich? and i love the king, but i said king, we are protecting do. you might not be there for two weeks without us. you have to pay for your military. anna: president trump, piling on the pressure. russia energy weak kicks off in moscow today to the great good of the oil industry. annmarie hordern has followed that event. she is there for us this morning. wha

long growth, jpmorgan raising the dividend 43%.think ultimately financials this year have been very contra market. i believe you can't have it both ways. if you think interest rates are going higher, that widening yield curve is good. charles: they have gone higher. banks underperformed. gone higher last couple weeks. as far as widening out of yield curve. recent fa many no that. not reflected in earnings. charles: almost every brilliant mind said this is the year rates go up. no-brainer you should own the stocks, bank stocks. large money center kind of banks. they have been a disappoint. >> they have. part of the problem with that prediction believing all banks trade together to begin with. you go back to 2011. some banks are basically same price they were there or very close to it. jpmorgan i believe is up 250% since then. all these banks are different operating businesses. that is something i think a lot of analysts have missed. i would rather buy the regional banks if all you're trying to buy is net interest margin, net yield c

last week jpmorgan pointed out 45%. software company out of germany, taiwan semiconductor a big disappointment that set the tech sector lower. alsoon and united rentals a big disappointment. united rentals creates a lot of equipment for the construction industry, so the downturn in housing construction is playing out there. so you got the bad news out of the way, what about the good news? we got some positive earnings from paypal and american express. leading on earnings and exceeding in terms of their forecast. look at how they are trading in after-hours. this will give some earnings strength going into the friday session. apl exceeded analyst estimates and it shows they are making a lot of progress toward venmo.ing then mow -- american express continues to expand. they're known for pitching their products to more affluent market. your today charts for these companies, you can look at how they have done so far. both are expanding their partnership, american express and paypal, and that extends the market for each. earn

coming up, we are back with jpmorgan that management. indices higher after the dow set a record yesterday. up again today, the s&p 500 is up one third of 1%. intel has something to do with that, though some semi conductor stocks are down one third. the vix is lower today. the dollar index continues to strengthen, 95 point zero. this is bloomberg. -- 95.60. this is bloomberg. ♪ from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson. let's return out to karen ward, chief market strategist for the u.k., europe, and jpmorgan asset management. to take you slightly out of your business cards and your title on it and talk a bit investments.. it's a crowded trade. a lot of people on this side of the atlantic are investing on that side of the atlantic yet as the quarter emerges we are seeing small cap and over, the s&p continuing to hair ahead. it looks pretty good. what should i read into that small cap move off and is it something you would invite -- you would advise your clients to continue with? karen: there's nothing at all t

here on the phone, dick bove, citigroup, jpmorgan, wells fargo report earnings tomorrow morning this is the story what in terms the market does next. dick, great to have you on. what is the outlook? what will they report? >> each one of these companies should report pretty strong numbers not because they're doing better but because the tax rate for them has been cut by, you know, roughly 1/3. the he pretax number will not look anywhere near as good as the after the-tax number. net interest margins may be flat, flat to down, consumers may not take it anymore. they're being treated extraordinarily badly by their banks because the banks have not increased rates on deposits, therefore consumers i think will be pulling money out. i think the second thing you have to watch is the something called other comprehensive income because as interest rates go up, the value of bank assets go down. which is something that people don't talk about too much but the fact is that you know, if you look at the one sliver that they give you of what happens to their assets when interest rates go up, you can

david stubbs, strategist at a jpmorgan.up -- a big week for the stock side reported and bank decisions. rate decisions from canada, sweden and turkey. what do they have to say? that will be interesting. and the roll call. a heck of a week. president's out. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." it dead a flat. talking about brexit, theresa may is said to be facing a revolt in her own party after saying the transition period of brexit could be suspended. it has been a busy weekend "the reporting that lawmakers could vote against the prime minister. manus: a rebellion in the house of commons. m,ayter written by ms. where she promises to carry on even if she risks losing her job. the daily telegraph said the prime minister held a conference call with ministers to shore up support ahead of the 1922 committee. manus: pretty aggressive writing. discussions, let us take a look at the rollcall. things get started on tuesday. and donation expected to leave their rates on hold. canada central bank will hike

ralph lauren was upuated at jpmorgan. pr etarget, $150. ralph lauren shares rose 4% to $126.51. lululemon's leadership team was called best in class. price target $176, shares rose a fraction today to $144.46. >>> still ahead the retailer that changed the way americans shop weren't his its next chapter, bankruptcy. enter ente . >>> create a $33 billion military technology giant.e it would bec the country's sixth largest defense contractor and the market clearly approved of the deal. today's announcement resulted in both stocks trading sharplygh . >>> walmart is hoping to grow sales with its latest e-commerce deal. the nation's largest retailer said iwas buying online luggage ray bare necessities for unclosed amount. the portfolio already includes jeb.com. >>>ow from the nation's largest retailer to one that used to be.ba led department store sears holdings filed for bankruptcy today just before a $134 million debt payment was due. b sears hn struggling for years to increase customer traffic and stem a decline in sales. not at all whatbe might hav expected back when that company

also today jpmorgan chase cpl jamie dimon talks about the economy and financial policy with american enterprise institute president arthur brooks at the headquarters in washington, d.c. watch live coverage at 1:15 p.m. eastern on c-span. looking at our campaign 2018 coverage of this week, tomorrow at 7 p.m. eastern virginia democratic senator tim kaine faces his republican challenger cory stewart in the second of two count health events. >> watch all these live on c-span, the primary source for campaign 2018. >> debate and discussion on the nomination of brett kavanaugh continued on the senate floor. while we're in this break we will show you some of that now. >> you can practically hear the democrats try to move the goalposts on judge kavanaugh's nomination to the supreme court. remember, before judge kavanaugh was even named, several democrats on the judiciary committee indicated they would oppose whomever, whomever the nominee might turn out to be. the junior senator from california, for example, explained on television that whoever president trump chose would bring about quote, t

jpmorgan had a very solid quarter.hat they are moving across their businesses and credit was a standout surprise for them, however, given where we are in the cycle it is hard to extrapolate that and continue, especially when it is coming from reserve releases. vonnie: they were excited about this. we got a nice bounce. is there a level at which it is not profitable for jp to lend a nd not offset gains? alison: there are a couple different factors. bakeries and short rates has been helpful on the funding side of things, expanding margins, and as long-term rates go higher and rates overall go higher, that can demand for financing. on the trading side, it is volatility. rates moving up has an impact, the old curve has an impact, but to the extent we get volatility, given the moves we have had this quarter we could be getting that to help with trading. kailey: -- guy: cit hasi had a good few weeks. itthis repeatable, because looks like it was generated out of this recent move we saw up in yields that moved fairly quickly?

that's significant remember jpmorgan? what on the 12th their earnings great numbers. straight down practically. 6% since -- below since where they started it's just been a mess. this is money flows, people deciding they don't want to be in the banks and finally, a point i'm making all day, people talk about contagion, and i just look at it and i say i don't see recession, i don't see credit disruption talk and despite vague concerns about liquidity i don't see it spreads are very tight in the stock market maybe a few small sectors of the bond market, but buy and large the contagion is stocks in the u.s. and particularly stocks in china. that's clearly a problem guys, back to you. >> we should note in just the past four minutes or so we have lifted across the major averages session highs right now, s&p, dow, as well as the nasdaq thank you, bob pisani. tech is getting wrapped in the sell-off nasdaq more than 10% from its recent high. it is now down by just under a percent. kate rogers is there tracking the big movers kate >> hey there, melissa, that's right. the nasdaq

stephen macklow-smith of jpmorgan asset management.banks i hear our that american banks have not really moved in this market even though they are generating piles of cash. is the same true in europe? in europe you face a different issue depending on which country you are looking at. in europe, the issue is the holding of sovereign debt. in the context of the italian budget discussions, we are paying a lot of attention. there has been a pickup in credits resulting from the european banking union. the pickup in credit has slowed slightly this year. there are signs that that is turning more positive. you are seeing a recovery in banking earnings and banking margins that are looking pretty healthy. tom: this chart is pretty compelling. european banks, u.s. banks. white and blue, underperforming european banks. there is a dividends difference. do you grab that fat dividend in europe or is that not enough to compensate for eu banking challenges? stephen: one of the interesting thing about european banking is that all european banks are not c

jpmorgan and goldman sachs they are a better company today than they were a decade ago. liz: bernie sanders says they are alan average of 80% bigger than just before the financial crisis. >> but it's not about size it's about soundness and risk. they are less levered today and have more underpinning equity and they're not in the proprietary space any more they are more diversified. liz: required to keep more dry powder on their books? >> when i ran ubs we were $2.3 trillion balance sheet 55 times levered. when we went into the lehman weekend lehman was 35 times levered. today banks are under 15 times levered and they have a real underpinning equity. it's not just goodwill. what the fed did to these systemically important institutions was make them more safe, more sound, and i think if you're going to say banks why not other companies that we couldn't actually -- liz: but he said, berkshire hathaway, i believe -- >> i think i just heard you say apple was a trillion dollar company so are they breaking up apple too? i just think that it is too arbitrary. i do think we have

jpmorgan's jamie dimon warning geopolitical problems are bursting out all over and the markets went haywire this week. but the media went on a meaningly wild blip about kanye west. the only news is how vicious and how low they went. we've got details. thank you for joining us, thank you for watching. money, politics, we've got the debate behind tomorrow's headline. i'm elizabeth macdonald. "the evening edit" starts right now. . liz: the dow bouncing back nearly 300 points to the upside ending the day at 25,339 led by tech and consumer stocks. still has lost 4% on the week. it is the worst week for stocks in more than seven months. they're up year to date, though. more on your money in just a second. first a big trump victory. turkey ordering the release of american pastor andrew brunson from house arrest after nearly two years of imprisonment. the pastor is wheelsup from turkey flying into germany for a medical checkup and flying into andrews air force base by noon tomorrow and heading to the white house. the trump administration not letting up on turkey. it has yet to say whether or not it

. >> earning season kicks off with jpmorgan chase and p and city and citi group setting the stage forext week with a handful of financial imnays reporting including bank of america american express, morgan stanley goldman sachs black rock travelers and progressive. for major banks it is the most profitable first quarter thanks in large part to the tax cuts. however, investors and analysts are now concerned about the banks future growth even though the economy is strong and interest rates are increasing which is normally good for banks. people are not borrowing so legending activity is slower than expected. we should say wells fargo is interesting today because that is the one bank where the forecast for revenue to drop. we know, obviously, that bank has had self scandals as we've been reporting. >> all right tracee thank you very much. >> the president trump describing the federal reserve as crazy loco and getting too cute stock market continues on with its october slide. >> i think the fed is out of control. i think what they're doing is wrong. i think that fed is far too stringent a

alix: anastasia amoroso of jpmorgan and lori calvasina are going to stick with us.what happened -- this is bloomberg. ♪ david: time now for the bottom line where we look at three companies that are worth watching this morning. sears has just declared chapter , they say they have $10 billion in debt. who has beenht backing this thing forever is no longer ceo although he is still chair. they're going to close 142 more stores. alix: and they have some good assets like kenmore and their auto centers. wonder whether you get a better price now? david: another complicated location is a lot of transactions with the fund, a back and forth between sears and the creditors. alix: this is a bankruptcy that was coming for years. softbank here. softbank stock got hit really hard because saudi arabia is a huge investment -- investor in softbank. that was a good thing when it happened. it was going to be a good thing if saudi arabia was going to end up helping tesla. ,ith all the geopolitical risk how do you assess an investment like this? david: the investment went both ways. softb