david: at morgan stanley? james: at morgan stanley and she does a terrific job. does she call you up and she is worried that she does not do a good job for you that she might lose her job? [laughter] james: she is a professional. she treats me like hopefully all of her clients. i probably get a little extra care and attention, i suspect. they are a professional team and do what they should do. they do a quarterly report. we sit down with my wife every year and do an annual review of our total financial situation and we adjust accordingly. ♪ david: you told me a story recently that you went out to pick up some pizza. when you are the ceo of morgan stanley, can't to get someone to deliver the pizza to you? james: i don't regard the ceo thing as defining you as a person. you have to be able to, once you are not ceo, for that not to materially affect who you are as a person. ♪ ♪ david: what is the greatest pleasure of being the ceo of morgan stanley? when you go to a restaurant, do you get people to give you your seat right away? do you have people give you tickets t

coming up in the next hour of morgan stanley chief u.s.us, looking forward to that, michael wilson with optimism on the market. some of the nuances of the sector analysis very important. stay with us, in london, in new york, this is bloomberg. ♪ ♪ tom: this morning, three men arrested in connection with the manchester attack. prime minister may orders "static armed regarding at the locations." in rome, the president meeting people there and get, five books of martin luther king jr.. movies market down the chinese credit rating, china not happy. china moody this morning. this is "bloomberg surveillance. " in new york and guy johnson is aligned it with the news out of manchester shows us the broader and bigger investigation right now. guy: this was always the concern, security forces in the united kingdom, the individual was not acting alone and as a result, the news we have seen ,urther arrests is interesting given the fact the prime minister has raised the security threat level in the united kingdom to its highest level. you are looking at

five years ago, goldman sachs business was twice as large as morgan stanley and now morgan stanley isigger. what happened? >> at morgan stanley, the businesses are weighted in different ways. across a strong position divisions but one place where we are not as invested as morgan stanley is the business that has grown significantly in morgan stanley has a bigger position. erik: what do you do about it? >> it's a business that's not straightforward. there are lots of operational risks. we have been more cautious in terms of our investment in that business but building up that capability. morgan stanley has a platform that's a little bit larger. if you look at the institutional business away from that, we have a very significant institutional leading equity division. erik: can you take that market share away from morgan stanley? >> there is an opportunity with a set of clients to increase our market share. erik: how? >> by continuing to invest in and beogy and develop competitive and we are started to grow our market share with those clients and we will continue to focus on that. erik: a

morgan stanley is holding its third annual china summit in beijing.nzie is standing by for us. what have you got? we have 300 companies here in beijing as part of the morgan stanley annual summit come around hundred 900 investors working out the opportunities and challenges in the market. i'm joined by the chief asian economist for morgan stanley. ,e just have the pmi data out 51.2, which was in line with the previous month and above estimates, and in line with your view, which is one of a broadly positive chinese economy. >> absolutely. what is happening is that people are underestimating the role of external demand and stabilizing growth in china. china is tightening, you are seeing a pickup in exports helping to stabilize, and that is what is showing up in the pmi number, that new export orders picked up a bit. tom: exports, you are positive as well, 2017 could be the strongest year for export since 2012, and that ties into the demand picture as well. >>tom: absolutely. this is the first time we are seeing a synchronized recovery in global demand.

the 16,000 financial advisors at morgan stanley are about to get some cyborg help. machine learning algorithms will take over various tasks to help out employees. the bank is selling the rollout to wealthy clients as a more comprehensive upgrade compared to robo-advisors. for more, we are joined by hugh son in new york. how is this different than what already exists when it comes to ai helping human traders? hugh what already exists is: robo. a simple asset allocation algorithm. maybe it has tax law harvesting built into it, but a fairly straightforward platform for people who have less than $1 million in assets to invest. what's emerging as the cyborg ,odel is man with machine financial advisors equipped with algorithmic assistance, which will hopefully make them smarter to do when you think of a cyborg, you think of somebody who is faster and stronger and can do things better. the hope is this will keep the human advisors better equipped to handle the very wealthy clients that they have and keep them happy and sort of keep the robots at bay. emily: we were speakin

that would be a concern for a morgan stanley.ldman sachs, the model they have, that's why you might prefer a goldman sachs with morgan. everybody compares the two. that would push you more towards a goldman sachs for sure. >> right. the bottom line is you have to know in terms of getting financial advice who you're getting advice from and how they're being paid. >> right. that's key, right? in terms of the trade, morgan stanley has benefitted from having the advisers. goldman sachs looking forward might actually be the one to go with. >>> up next, pete says there's one big bank you want to bet on right now. the name when we come back. a naturally aspirated 5.0-liter v8 engine. a 10-speed direct-shift transmission. a meticulously crafted interior. all of these are feats of engineering. combining them with near-perfect weight distribution... ...is a feat of amazing. experience the first-ever 471-horsepower lexus lc 500 or the multistage hybrid lc 500h. experience amazing. >>> time for the final trade. pete? >> financials. goldman s

that away from morgan stanley?e opportunities with certain clients that we don't do as much business with to increase market share. >> how? >> by continuing to invest in technology, and to make sure it is competitive. that is something we will continue to focus on. julie: in another excuse of interview this week, tom keene went one-on-one with former fed chair ben bernanke. among the many topics they talked about was tax policy. we victims of our cultural economics, almost our cultural religion where we cannot spend money when we need to? >> it is ironic because now we are talking about a tax cuts, at least from the perspective of putting people back to work. it would have made more sense to have more tax cuts and spending in 2013 or 2012 and i was asking for that. i'm that perspective, with unemployment at 4.5 percent, the case is weaker, though there is always a case to improve the tax code to make it more efficient and fair. in terms of adding demand to the economy, that would have been better of you years ago.

and now morgan stanley's is bigger. what happened?re weighted in different ways. we have a leading institutional equity franchise strong position , across institutional work, and high touch, low touch, also prime brokerage. one of the places we are not invested in morgan stanley is in quants. there is a variety of reasons. it is a business that has grown very significantly. morgan stanley has a bigger position in the business. erik: what can you do about it? >> it is the business we are investing in and, candidly, it is not a straightforward business. there is a lot of operational risk in that business, and while we are investing in it we want , to be in the business. we have been a little bit more cautious in terms of our investment in that business but , we are building capability. morgan stanley has a platform on quant that's a little larger. but if you look at the institutional business away from that, we have a very, very institute -- significant institutional leading equity franchise. erik: can you take some of that market share

morgan stanley has a platform on quant that's a little larger.stitutional business, we have a very significant institutional leading equity franchise. erik: can you take some of that market share and quant away from morgan stanley? >> i think there was an opportunity with a set of clients that we don't do as much business with to increase market share. >> how? >> we are focused on that. by continuing to invest in technology and make sure it's developed meaningfully over the course of the last year to continue to develop and is competitive. we will start to grow our market share with those clients and it is something we will focus on. julie: in another exquisite interview, tom went one-on-one with former federal reserve chairman ben bernanke and washington, d.c. among the many topics was tax policy. ♪ tom: are we victims of our cultural economics? almost our cultural religion where we can't spend money when we need to? ben: it's ironic because now we are talking about big tax cuts. at least from the perspective of putting people back to work, it w

james gorman, ceo of morgan stanley. yvonne: thank you so much.ng about what we were just talking about was i thought interesting, reflecting reality for the bank shares yesterday. not surprising. the guidance was a little lower than expected. they say it's not going to last. betty: that's right. he says absolutely few would expect that because the shareholders will have much more here on daybreak asia. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business

the fast food chain hired morgan stanley to look into theqdoba qdoba.tock sup 11%. >>> red robin posting better numbers than expected and issued strong guidance. up 16.5%. >>> bayer received approval for an experimental drug for a difficult to treat drug cancer. regulators will shorten the review based on results from a phase two clinical study. >>> urban outfitters the latest retailer to report disappointing results. the company blaming the weak results on heavy discounting. >>> lloyds banking returning to private ownership after the uk government sold the remaining shares in the bank. the british government will make a profit of about a billion dollars, 1.2 billion, after spending 20 billion pounds rescuing the bank. >> this has been coming for a while, but a significant milestone. this is, you know -- this was the real eye of the storm along with rbs. no one went bust in that sense. we had a few before that, but, you know, the fact that government ownership is done and dusted for lloyds is a significant step. >> and a win for the government. >> not b

even at morgan stanley who has security as a part of the revenue stream read it is still revenue.ere are a lot of places to hide in this market. they continue to be very robust. irony for the benefit of jpmorgan. the overall market 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 a

goldman sachs and morgan stanley are also trading lower.dman sachs at some of their activity is in line with the at the end of march or the middle of march. he thought that bank trading could decline and that could cause them to go into a correction mode which they are that to possibly even at bear market. take a look at the bloomberg, you can see at the market possibility could happen. anything can happen, when we take a look at the possibility of likelihood. and the blue we have the s&p 500 financial sector and the white we have the 10 year yield. election thethe banks shot higher, investors thought that could help with the lending activities. then we have this big area of uncertainty, the 10 year yield below that level of 3%. they thinkenheim they could see a measure of this area down to 2% or lower. they will now have the financial sector here trading in what appears to be a head and shoulders strategy. , people aresell getting and wait and we could see a breakdown of some sort. we could see some bear market, that will be interesting to

jonathan: joining me for the next three minutes is matthew hornbach, morgan stanley, lisa abramowiczf bloomberg radio, and james barrineau of schroder investment. , i want to begin with you. how much of the trump element in the reflation trade has drained from the markets? matthew: if you look at the 10-year treasury yield, it has come down a bit. one of the ways i like to look at it is looking at term premiums. that is a nice measure of how people are looking at the trump presidency and its affect on markets. quite a bit has come out of the market, a little more than you would expect if you just looked at the 10-year treasury yield. i like to look at our 10-year treasury term premium measure, and what you can see is we have taken out quite a bit of the postelection jump in term premium. jonathan: lisa? lisa: you can look at the two-year, 10-year spread. it is narrowing since the election. that is a good measure of how the trump trade has been of operating. bond markets have not bought into this quite as much. jonathan: we will get to the curve in just a moment. fading the fed seems

speakingchir sharma there, chief global strategist at morgan stanley investment management.let: time for some of the biggest business stories in the news right now. sinclair broadcast is buying tribune media for $3.9 billion, marking the first big acquisitions since regulators easy limit on tv station ownership in the u.s. buying tribute would give sinclair access to big media markets like new york, chicago, and miami. sinclair may sell certain stations are currently owns to comply with antitrust regulations. blackrock is in advanced talks to fund and the infirm. blackrock and several other state run lenders will find the providerayment service $100 million. if completed, it would make the second startup with more than $1 billion from the indian's in tech industry. bill ackman is recommending howard hughes to investors. speaking in new york, he says howard hughes has "a huge start over the past six years," and that this is one of the most opportune times to invest. pershing square is the single largest shareholder of that stock. that is your "bloomberg business flash." joe:

know goldmann't sachs, morgan stanley, jefferies -- they will be important barometer's. dakin: that is true. if we could read into the commentary this morning come it sounds like it is an industrywide issue. marion lake talked about the volatility and clients not having the conviction. if that's the case, you would expect that to be a read across for citigroup morgan stanley and goldman sachs. vonnie: this will be a short selloff. dakin: it is tough to read too much into a singlevonnie: day's. nobody likes to see trading revenue one of the biggest revenue drivers at these firms being down quarter over quarter in double digits. vonnie: it was such a surprise. dakin: it was up quite a bit. except for goldman sachs, which didn't have a great quarter, the others were up 20% or more. that was exciting for people. a 15% drop,here's we are giving back what we got in the first quarter. the year is flat. dakin: mostly. brian moynihan made the point this morning that if you look at the first half compared to last year's first half of their trading revenue come equity and fixed inc

they hired morgan stanley and more to help with the process.ecided to not yet seek a direct listing or a more traditional public offering. and that is your bloomberg business flash. joe: up next, we will be looking at three different charts shedding light on the chinese economy. equities, yields, commodities. we will cover them all. this is bloomberg. ♪ scarlet: i'm scarlet fu. chinese stocks of the world worst performers over the last month. we know the chinese officials are cracking down on financial risk. they are investigating regulators, arresting officials, tightening rules, and writing new rules. this is the shanghai composite index versus the all caps world index. as measured, chinese stocks has lost as much is 5.8% over the last month. global stocks have gained as much as 3%. the last leg down over there. what that means is, this dirgence between shanghai stos and global stocks is now the widest since the late 2014. they have not trailed global stocks by this much since late 2014. it seems like it is a collective shrug of the shoulders

pour more i am joined by morgan stanley financial adviser.u brawk everything down for us. >> last month was a sad report. below 100,000, today, 211,000 jobs, the economy needs 100,000 jobs to break even. 150,000 jobs is okay. 200 plus thousand jobs is great. so it was interesting, some of the data that came out, product -- activity increased by 1%, that's like creating 400,000 jobs, it's just like doing that. that increase is good. and the unemployment rate is 4.4%, down from last month. a lot of it has to do with the baby boomers retiring. >> is the fed going to be raising rates. >> the fed wants to do that but the gdp report, the gross domestic product, was only .7. but we at morgan stanley see growth as being robust next quarter. you get about a 2.2 run rate on the gdp. that be the reason that the feds will raise the discount rate in june. probably another 25 basis points, maybe 50 basis points. that's good news unless you are doing short term borrows. >> i know that president donald trump is going to be boasting about this jobs report, ho

an upgrade from morgan stanley on friday on its switch console forecasts.asting a ¥90 billion operating profit. there is good movement in the tokyo and seoul sessions. otherwise it has been a fairly muted start to the trading week. haidi: i would say, for some of those yet it companies. let's get you caught up with the first word news. paul: the san francisco fed president said taggart should be approached carefully. saidwilliams is shed -- they should work towards a goldilocks policy. he added he expects three or four hikes in 2017 overall with investors seeing an 80% chance of a rise next month. >> when you are docking a vote you don't run as fast as you can towards short it hope you can reverse heart later on. -- hard later on. instead, the rule of docking a vote is never approach a dock faster than you can hit it. ,imilarly in sustainable growth the best rule is to close in on the target carefully and avoid substantially overshooting. paul: so threatening local trade health -- strengthening global trade health china. that builds on a -- helped china. na

morgan stanley. ♪ to err is human. to anticipate is lexus.e lexus rx with advanced safety standard. experience amazing. ltry align probiotic.n your digestive system? for a non-stop, sweet treat goodness, hold on to your tiara kind of day. get 24/7 digestive support, with align. the #1 doctor recommended probiotic brand. now in kids chewables. >>> remember, stay away that the epicenter of the blast zone. there's always a bull market somewhere, i promise to find it just for you. i'm jim cramer, see you tomorrow. >> welcome to the shar, where entrepreneurs seeking anr, investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first into the tank is an entrepreneur with a revolutionary new bike accessory. hello, sharks. my name is kent frankovich. i'm a mechanical engineer from san francisco, california, and co-founder of revolights. i am seeking $150,000

plus, morgan stanley plus analyst has been relatively bullish but conceded that analyst day yesterdayas a bit disappointing, so those shares fell. we also have amd down. the stock has been week after its rocket ride over the last year, but more recently down, and the cause for the weakness today, citi saying it's unlikely the expected intel deal comes through for amd. we saw a selloff for the stocks in april. it did weigh on the major averages. we see a beautiful one-year uptrend for the stocks, but on -- that uptrend has started to reverse, but the stocks below it, which tells us buyers are starting to fade. if sellers decide to aggressively move then, it could cause more volatile action. perhaps a decent declined to the downside. as you know right now, technology is the top sector this year, so it is important that the strength in chips holds up. there could be some volatility ahead, and very quickly after our post-market trading, we have shares of intuit popping sharply after the tax and accounting software maker boosted its full-year forecast. investors are clearly chairing this.

i just quoted morgan stanley. in 14 years. to be some sort of momentum right now back stopping this european stock market. just putting aside the things you just said, would you agree? patrick: we are seeing from a cyclical point of view some resergens in the european -- resurgeans in the european economy. there's no doubt about it. we're seeing it in earnings and seeing it in economic numbers. the biggest concern is long term, and for me you can see it in the youth unemployment numbers. the fact that you got aging populations that are going to be increasingly dependent on young people to support them and yet those young people for year after year after year don't have jobs. that's a crisis in human capital. it's a crisis in the ability to deliver the standard of living that a lot of people in europe are going to expect. vonnie: so what will macron be able to do, and what does this mean for the e.s.b., patrick? are you changing your results on investing in europe? patrick: so macon does not have an agenda. he is not le pen and

morgan stanley out with a note on refiners same there is downside risk to u.s. refining margins into the summer. folks over at morgan stanley are upgrading and downgrading valero nearlyl weight, down by 2%. there is a deal in the energy industry. the world's second-largest offshore rig contractor or market value buying that would oceanic -- buying atwood oceanic. we are talking about the value of 10.72 per share. one of the reasons this is an important deal is it is the largest we have seen since the oil market crash nearly three years ago, specifically offshore companies have been hit hard by the downturn in oil prices, so notable we have that big deal today. mark: we are down for a fourth consecutive day, the worst losing run since only march. digesting a dovish ecb president's, mario draghi, molding the prospects of the elections in italy, but we are down about .5 today. london and u.k. stocks, this is the ftse, the white line, blue line, germany, dax, purple line, the aramex at -- the xmi. despite the manchester bomb attack and despite the upcoming election,

adam jonas over at morgan stanley has been a bull on tesla for quite some time.e is downgrading the share to equal rate by about 2% today. jonas is saying there is a bulk case on tesla that has it going up against or becoming the next amazon or apple but he boosted his 2017 cash burn investment on the stocks and goldman-sachs cut second quarter deliveries estimates by 1,000. so that's something to watch as well. and finally today, it's 13 ap day. the deadline for various firms to file their changes to their investments. so there's just an early sampling of some of the stocks moving on that. e've got value post -- baupost reporting a low. eaton park adding a small stake, about 200,000 shares. 2,000 in to shutterfly. vonnie: thank you for that mark update, julie. it was a rocky decade for a.i.g. but the company is starting to show some signs of stability this year. just in time is the company named ryan diva roe as crowe. was a part amid inefficient -- insufficient porter from investors. >> one analyst says that brian duperreault is the white n.i.t. -- knight. peop

plus, morgan stanley said alphabet could be worth more than $70 billion if it spunoff.ng whether the self-driving car unit could be a threat to tesla still to come on "closing bell." there's nothing traditional about my small business so when it comes to technology, i need someone that understands my unique needs. my dell small business advisor has gotten to know our business so well that is feels like he's a part of our team. with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ ♪ [ inhales, exhales ] [ announcer ] cigarettes are not just dangerous when they're smoked. [ rat squeaking ] they're dangerous long after. cigarette butts are toxic. they release chemicals that poison our water... and harm wildlife. and millions... are polluting our environment. [ sniffing ] [ seagulls squawking ] >>> welcome back, see how he finished on wall street, a gain of less than a quarter percent, same for the russell, and s&p less than that up 4.5 points, and the nasdaq lagging, only up fi

the 16,000 financial advisors at morgan stanley are about to get some cyborg help.e from team tax -- tasks. the thinking is that humans with out a rhythmic assistance will be a better solution than mere software that allocates for the masses. jetblue is about to launch a first of its kind boarding program with facial recognition. they will get their picture taken at the gate. the image will be matched to those on file with u.s. customs and border protection. jetblue will start testing it on flights between boston and aruba. alix: the s&p, finishing the last seven of -- seven of the last eight days higher. for companies making up 25% of this year's rally -- four companies making up 25% of this year's rally. facebook, amazon, netflix, and alphabet. joining us now, frank cappelleri . how overbought are we in the big tech names? bill: no doubt that they have had a huge influence on -- frank: no doubt that they have had a huge influence on everything. they have done it very well. in terms of understanding technology as a whole, we need to look at how broad the has been.

stock got upgraded to overweight at morgan stanley. they see it as a buying opportunity. what do you guys think of this? it's a bold call to give any upgrade the overeight on apparel. it's one of a handful of stocks that have buckeded the trepd, so tjx, ross store, burlington, have all enjoyed a respite from what's been going on with the rest of the industry and they have premium multiples because of it. when you get one miss like this, it's kind of hard to come back. scott, we were talking last month about tract eor supply. that was on my radar list. they missed and just day after day, go down. i don't think today's bump and today's report is going to recover the stock which is finally feeling the effects. >> would anybody buy anything that has to do with apparel? it's home goods. everybody loves it and in the research report we're referencing today for morgan stanley, they ask consumers where they plan to spend the most with different outlets and furnishings and this company was number three out of ten or 12 names in the slide. i think this even in my own life, i have t

this is in fact true for morgan stanley as well, initially taking a step lower, now recovering. tail wind for the banks today is the fact that yields or treat -- trading higher. at last check it was up 4/10 of one percent, which is considered to help the banks with lending activities. despite the possible breakup of between thenks consumer lending portion and the investment banking side, we do seem to have them recovering off of those initial losses, though not so much for citigroup, bank of america still of 1%. david: thank you some much, abigail doolittle, on the heels of that interview with the president of the united states. let's get more insight into those comments from the president with kevin cirilli. what do we know about the president's thinking on this issue? how is it changed in light of the conversation he had with our colleagues today? kevin: this is an incredible interview from my colleagues, who just interviewed president trump inside the oval office. these headlines already having a market impact. look, this is what candidate donald trump said on the campaign tr

now, we also have the ceos of jpmorgan chase, citigroup, morgan stanley, blackstone and dow chemicalgation and taking part this discussions about how to strengthen economic ties with the saudi kingdom. business is back. our next guest recently returned from riyadh and served as the top diplomat from 2001-2003, ambassador robert jordan. great to have you, ambassador. thank you for being here. >> hi, good to be with you. liz: it sure looks like it's the start of a new day and a new way of dealing with a arter in in the middle east -- a partner in the middle east. >> i think this is a huge breakthrough. some of this had the groundwork done, of course, during the obama administration, but it's now coming to fruition. and i think this shows that the saudis very much want to be part of the global world economy. they want their recognition. they are now the 19th largest economy in the world, and they have ambitions to be even more significant an economic player in the future. liz: we can tackle two things here, the oil deals with the companies we just mentioned, and then we'll get to the ar

morgan stanley's chief u.s. strategist and let's begin with the markets and his call that the s&p 500 can reach 2700 over the next 12 months. welcome. that's quite a way come out of the box today. >> why not, right? somebody's got to be the bull. >> how do we get there? >> this goes back to last year. this has been a very sink nous, from 15 recession, 16's recovery was born from that. when i say recession, i mean global recession, it was pretty harsh. i think the distractions of brexit, the election here in united states. ref rerendum of the month in europe. that has really distracted people from what's going on and now n the first quarter, we see the proof. the earnings have been spectacular. i think if you would have asked me three months ago if the first quarter would have been this strong, i would have been more positive ant how this would play out. roll into that the fact rates haven't moved. i think now where people are on board with the earnings story, they're not still not board with multiples expanding.

the new survey by morgan stanley finds 92% of iphone users are somewhat likely or extremely likely to upgrade to a new iphone in the next year. that's a from last year when apple held a retention rate of 86%. morgan stanley also found that samsung had a 77% retention rate. >>> google's upcoming smartphone operating system android o includes a whole new cast of characters. every, single emoji is getting revamped. round smiley faces are replacing the blobby kind we have long known. and the already realistic faces are set to become even more detailed. >>> and i'm dennis the boston r come calling. did pablo come with 'em? and draymond green gets an award and gets mad. find out why next. ,, >>> good morning, everybody. the a's next 28 games will be in the eastern time zone beginning last night against boston. minus pablo sandoval who has been on the disabled list since april 25. chris davis trying to break out of a two for 32 slump and this ain't a bad way to start. after jed lowrie homered davis hit an 0-2 pitch over the rickey henderson sign. his 12th home run and if the a's are going to

he is the head of auto research at morgan stanley and joins us now.efore we get to the full case, i want to start off with a decline here, is it because the confusion between the s and the 3 which seems like a strange thing, if people were buying the 3 thinking it was a watered down s, that means usually some of those three says e reservations will never come through presumably. >> i think the reason thing to is down, personally, what drove it up so much? right? there was not much increment ally new during the call and kind of the point of your question, a lot of details of the call were kind of in the minutia about reservation and a line out of balance. they continue to burn cash again and spending even more money. so if you were already short the stock, we don't think there was much on that call that made you reconsider your short' and for a stock that ran so much so fast, you know, it was due to take a break. >> the flipside of it, though, if you were running long the stock, was there much on the call to make you even more convicted about that posi

the 15,000 advisors at morgan stanley about to get cyborg health. -- help.nt's birthday is coming up. morgan stanley is thinking human with al gore it mick assistance will be better for the clients. -- al gore rhythm assistance will be better -- algorithym assistance will be better for the clients. last year they won a chance to buy the team. but according to people familiar, they want to change terms of the deal to give bush complete control as business and baseball operations. that's the bloomberg business flash. tom: how about a foreex-report and then we'll get to jens nordvig. the index under 100 and weaker dollar over last week and weaker sterling on the way to 0.90. sterling at 1.27 and rebounded in the last two hours because of emas ross thomas in london index. e's a stronger a fabulous book was written a few years ago on euro and was biting and passionate and unfortunately a lot of it has come to pass. mr. nordvig is with exante. you were ray out front on 140-120. will europe fall further because of the societal attention you grabbed so well? jens: i

morgan stanley said it can rally 40% from here. if you want to trade it against this 150 level, it's interesting. that's where we bottomed out in october. my point is, when you see how poorly ibm is doing. it makes you realize how quickly microsoft is. >> i have a notion. weren't we talking about the same phenomenon with the biotech index money lifted all boats and we saw that quickly evaporate when there was one tweet, it took down all, even a quality name you could name, baening the table. >> wait, let me push back on that table case work. the valuations were, i mean, in a whole other kind of math. i don't even know how you growt the got there, right? i don't think that's the case at all when you look at these businesses that have tremendous cash flow. a biotech story aren't the same story. >> the gileads. the hot, the biggest ones in the index t. biggest waste of the index. were they unreasonably valued at the piece of the ibb? >> i don't know that they're necessarily unreasonably valued. >> that shows you the power of the tweet

morgan stanley hidden in every swing, every chip, and every putt, is data that can make the differencecrosoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. the microsoft cloud turns information into insight. the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. >>> we're back now with our breaking news. votes are being counted right now in montana's special election tonight. my panel is back. i want to put them up before we discuss this and other things. gianforte opening up a wider lead there. 49.4% to rob quist's 44.8%. that is 56% of the votes counted. and the votes that are in. so we'll continue to follow this breaking news story. >>> let

morgan stanley said more cut back on using recruitment bonuses to -- establish financial advisors todayerica -- expressed similar moods. this will honor existing criminal deals but in 16, and include -- by september 1. morgan stanley is developing new policies for recruiting and will roll out digital -- to support advisors. that's your business flash update. julia: interesting story, isn't it? lower tier banks have artie abandoned efforts to provide a sign-on bonus for recruiting traders or brokers. joe: of course, the big technological changes affecting this industry, you see the news that they want to build on existing brokers clicking keep some of his other -- julia: vix will do it. it, levelill all do the playing field. it's still nuclear for the big guys, but it makes sense financially. joe: definitely an interesting element. coming up, what you need to know for tomorrow's ♪ trading day. this is bloomberg. ♪\ ♪ w scarlet: coming up, president trump continues his european tour, meeting with pope francis in the vatican tomorrow. joe: looking at fed minutes for those main meeting -- w

morgan stanley. >> welcome back to "fast money". we are live at the nasdaq markets.t was a bult day as a turmoil rocked the markets t. dow dropping and the s&p saw their worst sessions since september. meantime the nasdaq saw its worst day since the brexit. here's what's coming up in the second half of the show, brand-new data, hitting those stocks you see there. our own mech terrell is monitoring the mood. plus, victoria secret parents l brands surging in the after hours session. could this be the zbening of a retail resurgence? we'll explain. the d.c. drama was felt in all markets of the area. bob. >> hello, melissa. the broader stockmarket has held up. but there have been cracks developing long before today, for example the transports are at their lowest level this year. the truckers had lower prices for services and used trucks. the ten-year bond yields are at their lowest levels in a month. wait a minute, they have been dropping since march. that's when the bank stops popped out. j.p. morgan closed today at $84. it's already down almost 101st from its high t. do

it has retained morgan stanley to do so.t investor in the stock that had been prompting it to sell. you heard from him earlier today. talking about century link. this seems to be the path that pandora has chosen. we're still listening to more of robbins' presentation. we'll get back to you with his justification for urging investors to buy those three stocks. melissa? >> leslie, thanks so much. interesting names. ones that we hardly trade here on this desk. >> fmc is an integrated company, in the fertilizer space. this is a brutal place to be investing. i've been long a couple of these names in the last few months. it's not been easy. a name like this comes up at a conference like this, and they've done their work, it's worth taking a look at. >> the ftc is interesting. it's a name we're active on the desk recently. they've got no bid for this as far as covering their shorts. here's a name i think is a consensus short across the board. nobody wants to stay long this thing. they think it's basically a zero shot. >> news alert

one person said morgan stanley has also received a subpoena.gan stanley, the justice department, and the treasury department declined to comment. the chief executive of elian's walking away with $99 million as questions remained about the shakeup to the asset manager. they agreed to purchase 4.3 4 million stock units already beneficially owned at $22 98. -- 22.98. they were awarded under his contract. a hundredw ceo employees over the next year in a push for growth. speaking to bloomberg at the milken institute said that instead of focusing on cutting company intends to spend on hiring and technology to become better. that is your business flash. twitter has said a bump in activity to trumps, but it would love other world leaders to get more connected. announcing an expansion of an existing business partnership for streaming video. , emily and interim cfo chang asked him. sayhe first thing i would is i live with the leadership team. we approach running the company is a team and divide and conquer those priorities. day, we dividehe of the priori

the morgan stanley and others will have to say -- [speaking simultaneously] joe: what you need to knowow's trading day. this is bloomberg. ♪ >> you have the st. louis fed president speaking in tokyo at 9:45 tonight. joe: and we will be watching q1 gdp and more. julia: don't miss this, donald trump speaking to g7 members in sicily. it will be interesting. scarlet: that does it for bloomberg -- this is bloomberg. ♪ >> i'm alisa parenti from washington. this check with the -- what some of the check with your first world news. nato is stepping up the fight. spoke afterneral annika meeting in brussels. and he said nato will expand the global collision -- coalition but will not engage in combat. president ronald that's president trump -- president trump finished nato and is headed out. stop headed to the final overseas. barringutive order euros entry will remain on hold. a federal repeals -- appeals the legality is being weighed. joe lieberman is withdrawn. lieberman works at the same buffer as a lawyer retained by president trump. former president barack obama is appearing side -- aside ang

morgan stanley first.e them a lot and if you buy it here and have a time, reasonable time, do just fine. half that company makes the same amount of money every day between their investment management and wealth management firm, but a day like today, not a lot of buyers to be found. it's going to be all one-way traffic and people removing, like we said, some of the trump-related optimism from november december, but, yes. i actually think now's the time when you start lining up your ducks, pick your spots and average into your favorite names like a morgan stanley. >> great to see you. thanks for your time. >> you, too, melissa. >>> at session lows. dow down 335 points or thereabouts. goldman-sachs, apple, big draws on the dow industrials and while stocks are down today, it's still been a good run so far this year. which means that wealthy people should have plenty of money to spend on art. that's what they're hoping at kristy's where robert frank is today. robert? >> sure are. this could profess more than $5

>> and morgan stanley says that-- they have this other, what do they call it shall the other bets.tuart: yes. ashley: a whole slew of mo moonshots and there's a possibility, they believe waymo could be here. >> there are other teams work on these self-driving cars. it's not a done deal. stuart: okay, okay, $70 million. that's right. >> insurance companies liability. stuart: another story on google, it's not just tracking what you buy on-line, a new tool what you're buying on bricks and mortar. and use that to sell ads, no wonder the stock is up. new york city mayor bill deblasio has a shot at donald trump. he says it will kill children. kill children. i'm going to call that what it is, pure demagoguery. we'll talk to the guy who water board boarded, and you'll hear from him after the break. first, the new york yankees honoring the victims of the terror attack in britain, playing god save the queen at last night's game. ♪ at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity,

>> i do like that we saw maybe for the first time in quite mile, morgan stanley trading revenues were doing better tan goldman sachs. okay, they have the asset management. if i was going to look at these two, i'd rather own morgan, dan's trade cap cures earnings, this thing isn't going to decay as quickly as short dated options typically would. i think it makes sense, if you look at it on the basics it looked cheap, one times two times tangible. i think this trade makes a lot of sense. >> it's not specific to goldman sachs. if you look at regional banks, other investment banks or brokers, if you look at dan's pattern again, not only is that air pocket there, there is a minor head and shoulders pocket. the burden of proof is on the goal. gold has performed since september 11th. it hasn't gone up. it's going down. >> would you apply this to the regional banks? >> i would. i guess what got me going is stocks pulled up 5%. that was huge number after the q1 earnings. if they put up another that resembles q1. >> now to gold, the precious metal hitting high in the month. what are you looking

the morgan stanley economists are expecting north of 3.5%.onnie: in order to get the earnings -- david: in order to get the --nings, you need to people the people to spend the money. if you are actually going to spend what you earn to realize those capital gains. that effect seems to be waning in little bit parade we did have some good news on the business side. it is the consumer that is week right now. the three and a half percent growth. david: this economy is largely dependent on the consumer. >> probably, there is some waiting on that. also, the demands on the consumer side is really important. jonathan: we have some of the data there. in the price index. upyou want earnings to put while margins are going to be compressed, it is the prices are they? >> absolutely. at the end of the day, there are two ways to growth revenue. i think the fact that inflation has picked up, that helps the boy inside. there is pent-up demand and someately, there is investing and longer-term. the most significant is the federal reserve cost index. >> they tend

numbers look more similar to what you might expect. , butr one is still goldman very close is morgan stanley morgan in number three. citi falls down to fourth. that speaks to citi's global reach. vonnie: can i ask about the "other" category? in the u.s., 15%. fattery, other is a chunk of the total. alex: there are other big banks that are listed. they are little further down this year. still a decent amount of time. think about credit suisse, ubs, not just the, boutiques that make up the other category. then you get your livelazars evercorps. vonnie: there will be a lot of annoyance that citi has risen -- alex: as long as you don't work at citi. vonnie: is it luck of the draw? alex: they have a good health care practice, and also the surprises the intel mobilize deal. i spoke with bankers at other firms, and they were surprised that citi landed advising intel. citi not really known for its tech practices. it is known for medical instruments and health care. i think they had strong relationships at intel. they often work with bigger banks. gohaps, this was citi's around, but i think they have

you have morgan stanley, the financials you like. how in the energy space and apple. but talk about morgan and total and in a period where the market is not favoring these players. >> let's take it in reverse order. total is a french super major. i love them for the current oil environment. the only support to it is the deal between saudi arabia and russia, two strange bed fellows that will have a hard time cooperating and getting the deal together. i doubt it will last. i think $50 is here to stay. super majors are the first to return to profitability and they're stable at this range. morgan stanley another good example of a financial different from other major banks. their biggest earnings driver is fee-based wealth management, which is different. you are not depending on getting a new client in the door and trading every day. you're trying to get assets in the door and managing a client's wealth and that's an important business. >> we'll see if they like the fed rate hike. thanks very much for your time today. >> about 50 minutes until the close here. dow is down 43

i had a job interview at morgan stanley. goldman sachs was a different firm.ot turned down by all of them probably for a good reason. i didn't know much about it. there were a lot of people coming up. there is no reason to grab onto me. it may have been acquired by goldman or was about to be acquired by goldman but it was a separate company and it was managed separately. eventually, as a result, i was integrated into the goldman sachs firm. david: did you ever meet a person who turned you down at goldman? lloyd: i knew who it was. david: are they still here? lloyd: no, this is 36 years ago. for many years after i got there there would be no one threatened by being at odds with me. it took me a while to work my way up the letterhead. david: did you feel like you are ready to be the ceo of goldman sachs? lloyd: i never felt like i was ready to be the ceo. i've been the ceo for 10 years and i still don't feel like i'm ready to be the ceo of goldman sachs. ♪ ♪ david: you wound up as the vice chairman of goldman sachs? lloyd: well, you know, it took a couple of yea