moynihan to spin off merrill lynch or even to sell it where does merrill lynch fit in right now in your vision for this company moving forward? >> well, the issues facing the investment management business from revenue compression, passive investing trends, automation, robo advisers and all those things, we will drive that through, applying the technology in a way that's good for our customers and good for our teammates and you'll see us continue to do that. our merrill lynch is one of the fastest growing on that side of the business we're getting 1 million above investors. the question is how do you handle the between where the investment strategies and stuff have to be very efficient for the investor given the amount of money and revenue streams for that so andy and terry and keith and katie are all working on this. spinning it off would be not good for anybody and it's a valuable part of what we do and it's an integrated part of what we do. we'll have tremendous referral flow between merrill lynch u.s. trust, between the consumer business to merrill lynch, between the 401(k) platform

that was helen qiao of bank of america merrill lynch.omberg subscribers, catch up on the interviews with our function tv and watch us live and die intoanything -- dive anything we talk about. this is bloomberg. ♪ adam --- >> i am paul paul allen. seniornnounces its most leadership later. it will guide china's courts four-year -- china's course for years to come. president xi has had his political palazzi -- policy inscribed. the aussie dollar tumbled after third-quarter inflation fell due to lower costs for fuel and vegetables. cpi rose 0.6% from the previous three months against estimates of 0.8%. there is a willingness to tolerate weaker inflation. the u.s. is considering new sanctions on a myanmar after muslims fled to bangladesh which is called a crisis of epic proportions. it stopped short of backing a un description of ethnic cleansing. fromngton has been visits myanmar visitors. global news powered by more than 2700 journalists and analysts, this is bloomberg. on the market. asian stocks mostly higher. japanese shares looking

the bank of america merrill lynch and the world bank have announced a plan to offer world bank balance to. major banks and businesses have offered green bones a monetary product invented by the world bank. they have already issued tens of billions of dollars worth of bonds in order they say to redirect finance to serve the environment. what is the guarantee that this so-called green finance benefit the planet. likelihood that banks traders. will be developing the hardware and software of this new market in a way that benefits them rather than benefits nature. will be to say. as was the case in the financial crisis two thousand two thousand. these financial derivatives financial products that were being traded very rapidly were not helping house owners to safely finance their home now they were developed and used. to increase the profits that bax could make. this is where the financial crisis started the banks played on the dream of owning your own home in the usa they used the promise of the solution to modest households with precarious finances. once the families were no longer able t

bank of america merrill lynch was fined a record seventeen billion dollars by the american government on charges linked to the subprime mortgage crisis. j.p. morgan chase the largest bank in the usa had to pay a thirteen billion dollar fine for the same charges. citi group saved from bankruptcy by the same government paid hundreds of millions of dollars to escape legal proceedings by disaffected clients. we can even find companies set up by former employees of goldman sachs the same bank that made billions in profit by speculating on the crisis. can leopards change their spots. you might even think they're the bad guys maybe they even have been the bad guys in the past but sometimes they were the bad guys because they were making mistakes they didn't know better and see whether you can convert a bad guy or somebody who's just not paying attention into being an ally because if we can do that we can get so much more done that was the boss of one of the biggest nato protection agencies in the u.s. his remarks are somewhat surprising play the nature conservancy has almost one million memb

warning from bank of america merrill lynch which conducted an investor survey and what did it show? extreme bullishness at the end of september which typically means stocks are flashing a major sell signal. but really, haven't we been asking this over and over again are? the bulls running out of steam? let's bring in the traders. i hate to keep asking this question, the survey is news. jonathan corpina, what do you think? >> it is news. bank of america feels there say turn here, i feel the market needs a turn, we're not going to get it at this point. look at the last headlines over the last nine, 12 months. a lot of negative headlines. terrorist attacks, government shutdown, debt ceiling, not look moving forward not as bright as it used to be. the market moves higher and higher. sunday we get news of talks between north korea are not going to prevail to anything. we have the incident in las vegas over the weekend, too. market comes in, we haven't seen red on the screen yet. i don't think there's anything that's going to derail this market at this point. the one thing i think is the

the merrill lynch case, 12 out of 14 counts of conviction were reversed.ever mind the defendants spent up to a year in prison on an indictment that didn't really state a federal offense. mr. wiseman had yellow highlighted evidence that show they were innocent and hit it from the defendants while they were in prison and longer. >> shannon: interesting that there are scores of charges potentially decades in jail, hundreds of thousands of dollars were accused. at the end of the day, there is nothing in these documents that ties them to russian collusion with the trump campaign. >> absolutely not. >> shannon: something that manafort's attorney said that there is no evidence. yet people are running wild with these indictments today, saying, this proves everything, the president will be impeached. >> [laughs] it doesn't prove anything at all. the first place, an indictment is just a determination by the grand jury grand jury that essey rubber stamps mr. mueller's proposed charges, hearing only what mr. mueller and his team want them to hear. there is no presenta

>> i'm not seeing what merrill lynch is saying, unfortunately. i keep running into people on the street and they wish they were still in the markets, they get out. we ran into clients that got frustrated because we haven't had a break in the market and they can't get in. i don't know what they're saying. i will tell you something that's scaring me, i'm worngd how much of the tax that you're talking about, the tax reform is in the market, and when we get, it probably sometime in 2018, if that doesn't cause a break in the market because it will be inflationary as we put more money into people's pocket. i think now is the sweet time, and i question when we get the tax reform done, hoping it gets done, if that doesn't cause something of a tack. liz: cubbies are still in it, the yankees are still in it, but go tribe. >> no, no, no, no. liz: what do you mean, no? yes! >> no! >> go yankees. liz: bye-bye yankees. and by the way, i'm surrounded by the enemy in new york. >> go, yankees! >> thanks, guys, great to see you. all right, closing bell, enough of

bank of america, merrill lynch, that's actually the leader on the s&p.der in predicting a major heartbreak for investors by valentine's day. should you be preparing for an unhappy february 14th? market guru sam standing by to tell you. countdown coming right back. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. ♪ ca♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone ♪ can i kick it? ♪ to all the people who can quest like a tribe does... ♪ we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. . . . . ♪ liz: with five minutes to go before the friday closing bell.

but look at the other stories making headlines this monday in the world of business merrill lynch international has been find a little over thirty eight millionn eurosos by the uk's financial watchdog. feeling to report close to sixty nine million transactions between twenty fourteen and twenty sixteen. this is the first such fine under the european markets infrastructure regulation which was introduced following the global financial crisis provide greater transparency. south africa state owned transport utility company trance that is investigating it supplies for possible kickback payments the third parties. this follows local media reports of leaks emails that allegedly showed evidence of influence peddling in the issue of lucrative tenders. many of those documents relate to the wealthy gupta family were accused of using their friendship with jacob zuma. to win state contracts. in america and around co the company that controls saudi arabia's energy assets will have its initial public offering in the second half of twenty eighteen this was confirmed by the sea o.. i mean nasser this monday di

we will look at that with merrill lynch, next. this is bloomberg. ♪ ♪ this is bloomberg markets.ie quinn. sherry: i am shery ahn. unchanged at the moment. the nasdaq higher by .2. investors eyes are pinned on washington this week. republicans are set to unveil their long-awaited tax reform bill. who will take the reins as the next fed chair? how our markets pricing it in? we are joined by the head of u.s. equity and quantitative research at bank of america merrill lynch from london, savita subramanian. we know we will have an overhaul plan, the consensus seems to be that as soon as we get tax reform, there will be a boost for the markets. my question would be how sustainable the boosts be in the long run? great question. from an earnings standpoint, it is a positive. if we get a cut from 35% to something lower in the corporate tax rate, that would be accretive to earnings. the question is how much companies retain the benefit? that is ready you need to look at companies with pricing power. what typically happens when there is a policy driven earnings windfall like tax reform, com

control it with paper so as i said mario draggy is some say responsible for this you know this merrill lynch high yield bond euro bond collapsing so that now it's yielding two point one six percent. against the u.s. treasury which is two point three three percent as of last week here's another chart and that's a tweet from daniel kahl the monster bubble b.c.b.s. purchases are currently seven times issuance and this is what it looks like this is the huge gap in the euro zone this chart is from deutsche bank and the e.c.b. is buying up everything that's issued all the national bonds all the sovereign bonds across europe and some beyond so seven times issuance across europe they're buying it up and gobbling up old stuff old junk well let's again look at history and let's look at the why more republic in germany in the one nine hundred twenty s. that issued and then bought back seven eight nine ten fifteen times the paper that they were issuing in a debt monetization scheme that resulted in a hyper inflationary collapse germany says that they remember dearly the hyper inflationary days of the tw

morgan chase is the merrill lynch's and bank of america all of these major banks they are the institutions that invest in the businesses that are doing the projects that are having an effect on biodiversity positive or negative. so that is who is behind the ecosystem marketplace who was interested in these markets in their potential and who sits on their boards and committees. and. well say. twenty years ago we still feel that nations and politics could save the planet one hundred heads of state attended the summit in rio the world's largest gathering just a handful of corporations will present. at the time the idea of business companies helping protect the environment occurred to no one back in one thousand nine hundred two in that there are summit there were mainly representatives from governments and a few from civil society and they actually all thought that business was the reason for all our problems business was bad business was damaging the environment or whatever other negative implications there would be. there were business council first thing that will develop a group of some t

but bank of america merrill lynch analysts sell to buy, didn't give a whole recommendation did it after the stocks already rallied 40%. fought this all the way up because of and i quote concerns about high valuation, risks from val spar acquisition -- and expectations of slowing volume growth admits it's elevated no kidding up huge where he told you to sell but turned on lighter items? it's not good, not peaking no slow in volume? that's right rest is refutation of himself. it's towel throw so benefit from the hurricane, no doubt about it. boosted demand but this deal was always going to be positive when you merge two of the largest paint companies together, better believe get massive synergies and step towards hypercompetitive oligarchic pricing that's the point total towel throw, capitulation of the i can't take it anymore variety. microsoft update beyond the obvious, the case for long-term acceleration to buy. i read the report, almost written by captain obvious azure cloud. only thing that was black t-shirt look how do i know towel throwing upgrade? because the analyst tells you so

we are looking at the merrill lynch saying index versus the index versus the s&p 500.% to about a 15% gain in the s&p 500. the ratio of the two is on the bottom so you can see whether the fangs are rising relative to the s&p. lately we have seen a little downtick going into earnings. facebook reports wednesday, amazon and google reporting this thursday so we will see how that affects the direction. if you look at the overall information technology group in the s&p, analysts are projecting 10% growth in shares per quarter and is expected to accelerate in coming quarters so we will have to keep checking this chart. have such an enormous influence on the overall market. bite out of i think outperformance would be a great song title. given we are all closet fleetwood mac fans -- julie: not so closet. mark: we are out there, completely out there. wins by the smallest margin, but i love both of your charts. breaking news, president trump making comments on nafta. he says we will have to do a whole new deal if talks fall apart. comments from the president on nafta. he says we

but for bank of america, which owns merrill lynch, it would be very important, as it would be for j.p. morgan chase and the regional banks. interest rates would be very important depending on the bank. but for the pure capital market players, you are right, it is not as important. vonnie: i have to ask you about the $2.2 billion share buyback for goldman sachs. are you surprised? what does this mean for investors in a gs and the other banks? gerard: gerard: this is a critical component of why investors should own the banking group. it is an overcapitalize group. it will continue to give back excess capital through chair repurchases, like you describe for goldman sachs this morning. they came out and give the total number of $800 billion there will be stunning on return of capital today, a new number for them. what i would suggest is this is very important to why somebody would want to own a bank stock. you will see the dividend payout ratios can we believe, get 40% of earnings, and the total combined payout ratios, by back and dividend, exceeding 100% of earnings for some of these ban

bank of america and merrill lynch saying the company is accelerating some of its expansion opportunitiesey have solid truck sales. in focusing on the possibility of electric vehicles and seems that all the stars are aligning and we now have gm breaking out of this range. it produces a measured move, it could take gm a measured move to the upside, it could take shares of gm to $50 or higher. gains may continue. shery: abigail doolittle, thank you. former equifax ceo richard smith answered questions about them massive database breach. he defended executives who sold stock after the breach occurred. collects all the new at the time was there was suspicious activity. >> it could be a breach, right? it was deemed suspicious activity. we had no idea that the pii was that compromised. we had no idea if data was extricated at that time. shery: joining us now is elizabeth deck summer. the executives who did those shares honorable men. tell us some of the highlights. elizabeth: we learned that echo facts messed up. -- equifax messed up. there were systems in place the companies did not follow in t

remember we took merrill lynch's business merrill lynch invested and merged it with black rock and thenthat board for a year so these are businesses that i'm familiar with, very comfortable with, great businesses, higher return businesses, they fit well together and under the rockefeller brand it's an exciting growth opportunity on top of what they have. >> and you believe with proliferation of etfs and index funds and the giants out there, whether it be black rock or vanguard, for example in that area and generally that there's still an opportunity for you to add value. >> but it does start with advice you're providing the advice to the clients and that might include some of their portfolios invested in etfs asset management and active management done well can be a nice add on alongside that but one of the keys is the advice and intellectual capital behind that. >> viking big informso oinvestor i think of viking, i think of big lock short equity. what are they doing and what is their goal. >> vieblging h iviking has nearn in their pe fund today it's a big fund. these guys are strategic

it will be interesting to see how the former xerox ceo and former merrill lynch ceo decide to vote hereer to vote on the slate of governance reforms. vonnie: take us through some of what will be up for vote on the day. some of the measures will include a $10 billion infusion from softbank for example? >> there are two pieces. the government reforms which would create the board, taking one of travis kalanick's board seats and giving it to soppy so that they could have a board seat as part of the deal. the governance reforms and then the deal. the deal, the last we heard it 69 dollars -- $69 billion valuation and somewhere around $9 billion in secondary, buying from existing shareholders and ,hat price would be tended around $45 billion. then there are a number of governance changes meant to restrict travis's role. example, a former officer of the company wants to become chief executive, they would need two thirds of shareholders and two thirds of the board to support it or it that creates a big barrier for travis to come back as ceo down the road. d soy: uber has face many problems. what

trump set to make that announcement this week joining us is michelle myer from bank of america, merrill lynchare not expecting a move out on fed policy tomorrow, but they should lay the ground work for a december hike if that's what he they're they are expecting >> i expect them to express optimism for a december hike they are probably content with market pricing the expectation is for them to hike again in december they made that clear in the september meeting with the dots, which showed the vast majority were looking for that third hike, which means that december hike so i think they tweak the language they sound more optimistic about the economic outlook they dismiss the recent data as noise as a result of the hurricane. they set the stage for a hike. >> do we get a reminder over the next couple of day that's fed is a long way ahead of other central banks in terms of tightening, given that the bank of japan maintained loose policy tightening, and does that mean this two months in a row of dollar bounce back can continue? >> it's possible given the data in the u.s. has been strong. we have

trish: andrew weissmann, as well, sent five executives of merrill lynch to jail for a year, until their cases were overturned, disrupted their families and careers, disrupted them as well. >> had several prosecutions. he is a typical, aggressive tough prosecutor. when he is prosecuting your enemies you love him, when he is prosecuting your friends you point out the problems. trish: you don't care. you say i want to stand for what is right here. this is getting out of hand. let me ask you about this. we're getting word manafort and gates are pleading not guilty to the charges. surprised, not surprised? >> they're in negotiating posture. you don't immediately plead guilty. that eliminates your negotiating position. you send your lawyer in. you try to make a deal. the other person who whose indictment just revealed today, he already pleaded guilty. that means he probably already made some kind of a deal. now when it comes to manafort and gates, they have two options. they have three options. one to go to trial and probably get convicted to go to jail. their lawyers don't want to pursue tha

at some point, goldman sachs has been involved, merrill lynch has an involved. at the firms that are most active in bankruptcy court right now we found or what are called vulture firms. mentioned, these are firms, hedge funds. they specialize in high risk assets. so troubled assets. so they are going into places where there is a risk of a default, a risk of a bankruptcy, and buying up the stuff and selling it to investors who tend to be very high net worth people. we're looking at investment thresholds of $1 million to $5 billion stephen buy into these .irms although there are a lot of debt holders, this is who we are seeing fighting tooth and now in court to try to get this money back. juan: jessica, there was quite a bit of difficulty on the part of the center for investigative journalists to even get the government to release some of the original folks who bought the bonds. not necessarily want to have them now. can you talk a little bit about the legal battle that went on for, i think, a couple of years? >> sure. carla can tell you more, but i certainly know

bank of america merrill lynch had a survey that suggests investors are switching out of bonds and intong stocks. with us now is the cio and founder of latitude investment management. freddie, what do you think about this story? >> i think it is good news for the banks. we have been invested for a year or two now. not on this thesis particularly, but can yo generally that it will drive it in the future. true, it reduces the .uture burden that is only a good thing for the future. guy: speaking of bank of america, the survey shows investors are beginning to switch out of fixed income and they are looking may be to chase the banks more aggressively. that came out in the later survey which has just been released. how crowded do you think the bank prostrate is right now? freddie: i don't know. at stocks are trading all-time highs, so other people have got the memo now. i believe they are trading incredibly cheaply. the latter of these two points is most relevant because the banks are better than they were in history. better capitalized, more liquidity, higher-quality assets, and more improvi

we have a chart on the bloomberg that shows how well the fangs stocks are doing, this is the merrill lynchg index. what do you make of this? is it sustainable? mark l: what i make of it, usually mid-quarter we have people coming on your show are other shows and worrying about the trade and it is very hard to call the market top when you see revenuea acceleration. we have been very cognizant of that. aboutleague was talking just that -- what they are doing in cloud, what they are doing in other areas. they are redefining other areas. there is chatter in the health care arena. stocks hasf the fang not diminished. it has accelerated. it is very hard to call the top. i think there are people, frankly, who shorted the stock. they are coming back into it today. you will see followthrough. they are talking about health care -- you have heard them talk about getting licenses. there are large parts of the economy they have not touched or are barely touching. you will want to on the stocks because i do not see accelerating at all. abigail: there must be something -- that you do watch something that

you look at bank of america merrill lynch survey, and managers are sitting on a lot of cash, so theyhis with the mliv guys as well. doesn't the market come straight back in because it has this cash position? i think that is interesting that is what we are seeing in spain today. there is no onward move here. markets have got a lot of cash knocking around. it is looking for opportunities for a big selloff. let us go. peter: there is a spanish bond auction this morning. i would not expect the market to be rallying before the bond auction. it is. we had to accept that the market perceives it has gone too far out. it will be going back in. now i agreed. this mentality is not going to be going away. that is why when we had the center selloff of all of the major government bonds, it was a dip. it was bought. this mentality is going to mean that 10-year german yields from around 45 basis points currently, they are going to end the year at 20 basis points. more money is coming into the system. it is going to mean that that gravity yield just gets stronger. guy: let us move on and talk thet th

despite the fact that a merrill lynch survey shows cash holdings are currently fairly low, you saw someit put to work yesterday. this was the s&p yesterday. i cap over here with that cap was filled pretty quickly. does that tell you about where we are? not feeling that nervous. willing to step up and make that trade. the tech story have much to do with that? 500 crawled up another 4/10 of 1%. we have trading already on ftse futures. we are going to open up around three or 4/10 of 1% up. we're waiting for the rest of europe to fill in. what's going to go on with the banks in spain. in 25 minutes time, that will be a distant story. highlight the british pound. it is weakening or week. i could be a factor playing into the story but is happening with the ftse this morning. the pound is a factor. the wind -- the yen weakening into the election. the nikkei is fairly flat. back to you. anna: thank you, guy. it's important what happened in that u.s. session yesterday. let's talk to the bt group chime in -- chairman. good morning to you. discuss the business and how bt is doing but also the poli

merrill lynch is in hot water. this isa merrill lynch is in hot water.of two years. it can slip your mind, right? it has earned the anger of the sca because they say companies must be meticulous in reporting deals, otherwise we will not have proper transparency —— fca. michelle fleury is at the new york stock exchange what were the deals they forgot to report? it involves the word derivatives and before you scratch your head, in simple terms you could say it is a bet that people can take. in some cases it can be used to hedge against a loss. even a homeowner, if they are worried they might not be able to repay their mortgage, they might inadvertently bya mortgage, they might inadvertently by a derivative to protect against that, like in a job when you are worried about losing yourjob, in the us you have something that can protect you against the loss of the job. this is a more complicated version of that that can lead to speculation and in the wake of the financial crisis regulators introduced a role that would essentially force financial institutions to

the one to watch on that i think that would be a signature move would be "b" of "a"," merrill lynch, about merrill like that these days as if it's this jewel -- >> that's right, within the event. for a while it wasn't part -- >> right it's interesting you say that. we'll see. there is actually -- that's not the only company bringing itself into three parts maybe today daimler is actually doing it, the mercedes-benz parent company announced a plan to split its cars and vans business out from trucks and buses with mobility and financial services being the third unit so perhaps we are seeing the start of deaconglomeration after all. >> it always makes sense on papers very discreet -- >> outperformed and done quite well. >> they've done that for many decades. it makes sense also when you have businesses here that maybe if they're not at odds, you know, mobility, the kind of forward-looking kind of parts. >> the growth. >> may be at odds with some of the older ones. >>> all right. finally just in time for the holidays, amazon has an early christmas president for doormen, ones who seem to

nay got an upgrade from a buy to neutral at bank of america merrill lynch.hat's a one month home builder's. lennar, dr 40 horton at 52 week highs. then you see the yields moving up, banks are at new highs this is a rarity that you see all the big banks, every one of them, all four, at new 52-week highs today. then you have of course, that reflation trade the global reflation trade and the industrials are doing better, honeywell has been on the new high list for a while, illinois tool and of course all of the defense stocks, lockheed martin, northr northrop, all high >>> our next guest is going to help you pick stocks that could power the next technology boom apple not one of those stocks. let's bring in brad slingerlan the manager of the janice henderson global tech fund they're outperforming all of their peers. congratulations on your performance. i'm sure your shareholders and clients are happy, we appreciate you joining us in your view is apple a stock of the past and not the future. >> thank you and thank you for having me on we think that although apple

fundd the merrill lynch manager talking about 10 year shorts being a popular, crowded trade.ngre we get tax cuts through, the more activity we get and the more we get short rates up, which flattens the curve, not steepen zip. s it.ve -- not steepen from theet a reaction fed. it will be largely negative for the yield curve. if yout also flattens have a hall get as fed chair. comingwe understand him out, trump saying he likes taylor, powell. how do i understand that? where he isows going to go and all the moves. he likes this process. he likes to play it out. state secretary interviews, he had a lot of people coming in. he wants to showcase the different candidates, having them come to him to trial balloon the different possibilities out there. it sounds like folks like the idea of powell. republicans in congress don't toe janet yellen if he wants reappoint her. jon: is the senate confirmed fed chair different to the nomination we get in the next week? shawn: i imagine he would call up senate leadership and talk this out ahead of time. given the fact it is happening at the same

results were solid across the board their expenses were in fact the lowest they have been since merrill lynch years ago. the important 2018 $53 billion total expense target was reiterated while shell's shares fell 1.4% yesterday in light of elevated credit costs for jp morgan and citi, bac's credit cards exceeded expectations. on cards, while they did build reserves, they did so by less, $200 million but this is a trend that will important to watch in coming quarters for the sector as a hole credit for wells fargo was also very good. back to bank of america. amazing stats for their digital payment solution zel they processed $4 billion in payments this quarter, up 68% year on year which is roughly 50% more this quarter than venmo finally, on the earnings call, the thing that had been weighing on bank of america's share price was comments on deposit pricing. not getting the boosted margins from rate hikes in june as they expected and having to pay out for deposits in the last five minutes, bank of america has jumped about a percent and a half but the wells fargo call starts in just about an ho

of a company stock hasn't run big the one that is the battle ground is lamb research, added to merrill lynch.s. route 66, something going there, it's october 17 and which last i looked is today, it's up 1.60. and here's the problem, last time they were on, they came on understated ceo and stock went down 14 points after a blowout quarter. now look at it, it's up huge be careful the ones that are running into the quarter have had some problems and the ones that haven't, haven't had fewer problems have you seen granger? you know, granger has run anywhere. >> granger, yeah. >> for lowering and lowering, they beat the numbers. granger works. ever been to granger >> fabulous place to buy equipment if you own a restaurant. >> i haven't had the need, haven't opened a restaurant unlike you. >> you come in with me on my new one? >> sure, done. >> i've got a new one. small plate italian. >> really? >> that's on the drawing board. >> back to netflix, one moment as we watch it down, $8 billion next year in content spending dwarfs any other of the companies out there. i think amazon may come in second an

this is the merrill lynch saying index. to the downside, a decline. five days of declines for the stocks ahead of any of those companies reporting earnings for the third quarter. bit of selling pressure. the worst streak since november of last year. season tech earnings kicks off soon. jon: another record high on the record. 54th closing we have john stoltzfus from oppenheimer & co inc. still with us, gina martin adams . i want to talk about this old economy versus new economy story. tech results come out later this week. caterpillar is delivering in a big way. john: a lot of people have given caterpillar up for dead if years ago -- a few years ago. the chairman was giving dismal guidance looking ahead. they are benefiting from a global economic recovery and stateside poised for some kind of infrastructure spend starting in 2018. what we are seeing here in terms of technology, tech has had a tremendous run this year. you of profit, skepticism ahead earnings results. if we get surprising upside, fasten your seatbelts. jon: d

that's a new high for gm they went public in 2010 43 is a new high upgraded at bank of america, merrill lynchbetter numbers and highest levels since march for ford but it is this reflation trade that the market has been talking about. for weeks now. it is still going. reflation is about firming inflation, somewhat firming inflation, central banks being more hawkish, tax cuts, but the effect on the market is broadening breadth and rallying very select sectors, small caps, banks, energies, look at the russell 2000, fabulous month in september, potential tax cuts, there you see it moving up here. the bank stocks have all rallied as well as the ten-year yields started moving up. people would like to see the yield curve steepen a little bit more we have seen rallies in those stocks as well these are weeklies that you're looking at what will kill this reflation trade, which is the primary topic for the stock market in last month or so you get the fed unexpectedly more aggressive than they thought. you get dollar head winds, you have tax cuts stalling out, that's a big issue august and september, we

the financial conduct authority has fined us investment bank merrill lynch £3.5 million.ransparency of financial markets. good news for cheese lovers in china. the government there as its reversed an import ban on several types of soft cheeses — like roquefort, danish blue and stilton. the ban was imposed because the strains of bacteria used to make the cheeses weren't approved in china. there are now more than 2,000 breweries in the uk for the first time since the 1930s, according to accountancy group uhy hacker young. there's been a 64% increase in breweries over the past five years boosted by increased sales of artisan beers in pubs and supermarkets. quick look at the markets for you, the ftse continues to thrust away. shares in spire, the uk private hospital chain, jumped 11% after it rejected a takeover bid from south africa's mediclinic. pendragon — which owns the stratstone and evans halshaw car dealerships — said it expects a fall in demand to affect its annual results. all the life of around the world will be affected as the oceans become more acidic due to carbo

cutting the price target by over $100 at merrill lynch.e aggressive wall street valuation for the stock. moving up by 1%, it beat on consensus, but the full-year outlook is slightly under consensus. medical device yields more than doubled, we are seeing that playoff in all of its four units as earnings continue to trickle out. john? johnathan: thank you. the number, 23,000, the dow reached is this round the past atmonths and with stocks record highs, the prospect of tax reform coming much into question. the trump administration has been linking its success to that of the market. they have a warning for the market. in an interview with politico he said "there is no question that the rally in the stock architect baked into it expectations of getting tax reform done. in that case it will go of higher but there is no question in my mind that if we don't, you will see a reversal of a significant amount of these gains. andng us now, scott wren dani burger. scott, let's begin with you. what do you think of those comments? scott: we have to rememb

on the news the had reflected they had delayed their signature shoe and ank of america merle -- merrill lynchs. equities doing relative to of the chart. three, four, four, zero a 2008, erm chart there is 2009, at the time of the financial crisis just to give ou a sense then we have the bull market for the s&p 500 relative to the rest of the world. the world isest of outperforming u.s. stocks and that is somethi interesting. i'm betting a lot thereafter is on the dollar this year down 6%, bloomberg dollar index on pace for the worst year ever. index on anticipation for the worst since 2007. hat is probably the story of the u.s. stocks versus the rest of the world. always.n: great work as in ing us from l. afpa. on set block.e weighing europe versus the nited states, europe political chaos but r -- by saying what is appening in spain and in the united states what is going on with robert mueller's probe but disciplined you need to be to look through the politics of the next couple of months. to focus on eed bottoms up analysis. you have to look at specific decide which are gaining sharon and gro

carter page with his lobbying for russian figures, the former merrill lynch work, that is not coordinationpaul manafort with the lobbying for eastern european countries, that is not really coordination of the campaign. , becausef donald trump he relied on his previous business, so much on getting funding. a lot of -- pretty much all of this new york real estate developers were receiving substantial all-cash payments for scott rise -- sky rise condos in new york and had a duty following sanctions from people like iran or asia. host: you were pointing out areas that did not necessarily mean coordination, even if coordination is not found, is it important for the mueller investigation to investigate the extent of efforts by russia and actors to interfere with the election? caller: i guess i think it is two separate things. it is parallel. you can show that russia tried to mess with the election. and that therefore russia is a bad actor. i think that the reason we are trying to delegitimize the president like we have tried for every president, whether current wanted donald trump or barack obam

liz: basically is they got a down grade from bank of america, merrill lynch and bank of america sayingy is paying its workers too much. so sheriff brown is saying, corporations to short term, short-sided profit returns. he's forgetting that chipotle has severe e. coli outbreaks and companies, this is a fast-food company. and the policies out of democrats have not created higher-paying jobs like manufacturing jobs. there's more to the story than what brown is saying. stuart: toyota and lexus, they lead consumer report reliability survey. if you look at the list, there's only one american car company on the top 10 list. now toyota has gone up a little bit on that news, there's only -- which car company was it? buick. buick, that's a mark rather than car company. what do you make of this? >> i believe when i was just starting to drive decades ago, the japanese -- the japanese revolution was taking over car manufacturing, u.s. caught up and now we are slipping back again. it's disturbing because all three of the worst brands, stuart, were u.s. brands. stuart: really? >> cadillac, ram truck

. >>> bank of america and merrill lynch downgrading the chain to under perform from neutral labor costso the new york stock exchange jim cramer joins us now. we've been scratching our heads, ibm will be up you've got schroeder on tonight but what else in the dow 100 points i thought if we hit 23,000, we needed to pause. >> we got j and j, more price targets boosted and united health we're seeing good numbers, predictions out of visa, goldman sachs was overdone on the sell side yesterday we're seeing money come back in. i do think that the banks when we talk about that two-year, it's a really good sign that there's going to be rewriting the banks. jp morgan goes to 100 and ibm was much better than expected in terms of saying that the fourth quarter is going to bring the inflection in revenues and i think that stock up nine, ten, that's a lot to pay up but it's justifiable if q4 ends the drought of 22 straight revenue declines and it will and martin schroeder pretty much ensured that. >> it's not the third quarter, it's fourth quarter. >> yes, fourth quarter and there's a lot of bears try