morgan stanley came out with the statement.ions came out, the bank essentially fired him. there were stories out there in the "new york times," and other places that coincided with a claim of sexual misconduct, something that harold ford, a guy i know for a long time, denied. then this is what happened jo a four-year-old claim, correct? >> four-year-old claim. i'm not disparaging the person who made the claim, i'm laying out the facts, or harold here. morgan stanley came out with a settlement that included a same that harold was not ousted for sexual misconduct, that he left for other reasons. there was a lot of issues with harold and the bank, including the fact his mentor, greg fleming, was out too, and a lot of run-ins with others. leave that as an aside. harold is a smart, good guy, or good rainmaker. he gets that statement now here's how we advance the story. i found this out recently. not only did morgan stanley make the statement. they gave him a monetary settlement. they paid him money, that reflected part of his compen

hence, morgan stanley sees a potential upside for the ftse at 10%.were going for long european stocks for the ftse 100, given the use of the words cheaper evaluation and a more attractive strategy. i love the chart. it is showing the gap of the ftse 100 and the s&p 500. -- for thee ftse and s&p. overseas investors, morgan stanley said, should still hedge the foreign currency exposure for long-term uncertainty, as the brexit continues to weigh on the valuation multiples investors are willing to pay despite the week boosting earnings for many companies. it comes as the brexit bill goes back to law today. ignore the fact that the u.k. stocks are unloved, and start buying them. guest, tv is where you'll find that. yes, i guess as much as it pains me because you are front and enter when it comes to the w cu p challenge, my brexit is destroyed but yours is intact. mark: it is never too late. you will rise through the ranks and supplant me. i am not sure i can get there. you are the winner. a very highly recommended runner-up. i am not sure icheck them

dividends >> these numbers we see coming through in terms of citi, jp morgan yields, that put together the fears for sachs and stanleystry's healthy, and, you know, they have a lot to pay out. i think this is a goldman thing that will be resolved, morgan thing resolved, and does not need to be done in public like this like high school never ended or something, but end of the day, economy's healthy, and that's why the economy's healthy, and one is leading the other, i think the banks -- this -- i come back to the comment before about is this something that has been good or bad for the economy since '08? fed came in, quasi-nationalized the companies, they continue to do it, it's helping the economy, keeping wall street open, rates low, money is flowing, unemployment -- and because of that, unemployment is low, market's doing well, and so i think it's helped. we just have a tremendous amount of fear now in the stocks in the market about rates and trade and all the other stuff, but that will be sorted out meantime, there's nothing like making a lot of money in paying a a nice dividend. >> yeah, antwan, going into this, c

some of the research reports notably those of morgan stanley.take a closer like with the chairman of henry schein mr. bergma welcome back to "mad money." i have been reading this morgan stanley research and they are concerned that the second half of the year may not be strong. concerned amazon making inroads with dental offices. the stock has been a tough one lately. >> thank you and thank you for having us on your show. we remain optimistic about henry schein we reiterated guidance for 2018, 12-15% eps growth. >> you are saying that growth that you projected when you last reported is still good, the numbers? >> we are comfortable with that, yes. so many good things that are going on in the company, the dental business is solid, the animal health business has opportunities. >> you know, i like the model, i like the diversity, animal health is one of my favorite businesses and so we felt it was a kind of, if dental slows, vet stays strong i like the mosaic but do you think the mosaic is not as good as going your separate ways? >> each of the busi

they conditionally passed the goldman sachs and morgan stanley cannot used payouts this year.re not alone. deutsche bank, the u.s. unit , we weree fed test talking about this and whether that would be the case. the fed doesn't object to the capital plans of 34 banks in the stress test and the fed ofecting to the capital plan deutsche bank. josh rosner. this is exactly what you were morganting, saying watch stanley and goldman sachs and of course deutsche bank. >> almost everybody, all the enemas -- all the analysts were expecting deutsche bank to fail. it would be shocking if they passed. in the results we got last week, their numbers on leverage came so close to the minimum, the mass didn't work. what's really interesting is they are still getting a little wereore down like people expecting. a lot of analysts looked at the numbers and said not only can they not increase, they have to decrease from last year. they're passing that actually allows them to stay at the level of the last two years. a little better than people were expecting. >> the thing that is important to think

and then, you know, again, i think the morgan stanley, i'm sorry the morgan stanley, goldman sachs decisionsnteresting. they were close to the border and the fed's results today reflected that. adam: danielle, you have been an outspoken critic of the federal reserve at times. i'm curious the grades or the rulings by the federal reserve that you see today. do you think the federal reserve gets it right or from an investing standpoint, does the federal reserve get it wrong and need to do other research on your own? >> well, i think investors should surely be doing research on their own. their own due diligence, there's a reason financials have been down 13 out of the last 14 trading days, some of it has to do with the fed's credit, they've been watching closely, that's credit card losses of the $558 billion of losses banks would sustain under a worst-case scenario, by the stress tests. 100 billion from credit card losses. so if you look at that relationship, they line up decently. i will line up to the goldman sachs matter for a minute and morgan stanley. i think they're really going to take i

. >> i'm looking at morgan stanley right now. we know the results had rang wage th - language wasn't great. it is the 52 week low. i want to think about your q 2 earnings if they cannot rally into the q 2 earnings, i think we will see new lows on all of them. if you think stocks will con to trade down into that earnings pr print. you can buy the july 44 or 48. selling one of the july on a quarter, your max risk is the $1.10. worst case scenario you're risking less than 2% of the stock price. i like the risk-reward in this trade. >> one of the things you look at for a trade like that is what the playout is and how much premium am i paying. this is slightly in the money already. so spending a $1.10, but it is part of the premium. >> and for this particular area, especially more so, and jp morgan and more cities. >> for morgan stanley and it is equally problematic. >> and not u.s. the u.s., it is global bank. >> homebuilders on shaky ground, many names plunging in the last few months they are taking 10% down they say one of these na

lisa is with us from morgan stanley. talk about the investment sphere as we come up on it. we will continue here on friday. coming up, this is an important conversation. this is the former governor of the federal reserve and the governor of regulation. he has an important regulatory update. i lean forward when he talks about regulation. we will do that at 7:00. this is bloomberg. sebastian: there is a warning for the u.k. if the country lanes that you without a brexit deal, it may: british investment. failure to says reach a brexit agreement with be catastrophic. disney is taking extra steps to win approval of its bid to buy my first century fox's entertainment assets. they will generate up to $1 billion in cash, twice what they offered. they are racing to see if comcast is raising its offer. the federals and -- reserve said the two banks have the lowest levels by one key measure in the latest stress test results. they say that may not effective in stock prices. that is the bloomberg business flash. tom: joining us now i

andrew sheets from morgan stanley. stay with us.nicredit is pushing for a merger with societe generale according to a report in the financial time" which this can times whichnancial says discussions are at an early stage. the deal would see europe's biggest financial institutions join forces. how likely is it that a deal can be struck? joining us now is jonathan. thank you for joining us. when you look at the probability of something like this happening , what is the rationale? >> compared to a couple weeks ago, discussing barclays-standard chartered, we don't think there will be a big deal. of all the deals that could happen, you look at the combination, they've both got investment banks that need a lot of work. get ag this together, you pan-european champion. francine: you saw what happened with btp's. a lot of italian banks got battered. >> i don't think anything is going to happen for 12 to 24 months. if you thitrategically, does this make sense, for a lot of reasons it does. -- why on earth would socgen even entertain that? it

sachs and morgan stanley received a lot of focus over the last weekend. had really got things down in the beginning of the year and came in at the lower rate. morgan stanley may have disappointed some versus expectations before last week that could be enough. you worked on the street. it you know these banks inside and out. i am curious publicly held of anxious fondant and what are you hearing from inside bank? how are people feeling about the tests and how they came out? they are designed to give the , and the negative side of things of that there is a lot of capacity around the test. wells fargo had his huge capacity to do buybacks but people did not know if they will be able to lounge or not because there is not a lot of insight in terms of that part of the process. we know the fed looks at a lot of different things. we saw that with deutsche bank. there is sort of not a lot of clarity. is thatr part of it sometimes, there is disagreement in terms of the fed results versus the bank results. that can very and back to more conservative or less. how much

book value in morgan stanley is now $39 and change.u just put -- what i think is a reasonable multiple on that of about 1.5 you get till about 53, $54 stock. i think there's something with deutsch bank that's causing systematic damage in our banks here. that concerns me. >> you think -- you think that's impacting the banks? >> the reason why these big money bank centers are lower is all because of european banks. the regionals until today have traded well which leads me to believe there's something else going on. >> even when the feds have said they're getting rid of these tests -- >> so much capital. >> they've never been better. >> i'm saying it could be potential systematic risk in deutsch bank. >> your heart looked like it was stucco. >> that's because our -- the last two days -- >> i know one man's who's leaving it, morgan stanley, that is, let's get to dan nathan out in san francisco. dan? >> oh, surprise. >> can we rename this game, laugh it or leave it it's laughable. the parade of bulls. the stocks do nothing but just go down

goldman and morgan stanley were hit by a one-tile capitme capitl reduction due to the tax plan that wasassed. db usa failed to receive a pass due to material weaknesses in capital planning of those banks that garnered approval, jpmorgan raised its dividend by 43% and acknowledged a $27 billion buyback program. wells fargo announcing the largest buyback program at 24$2. billion. citi raised its dividend by 41% to 45 cents a share. >> so there is a middle ground, almost if you get a report card, you get a "p" or a pass, or do not pass so there's a purgatory, middle ground there between yes and no? >> basically what that does, that conditional non-objection, it's a middle ground but it accomplishes the same thing as failing these tests. you can't raise your distribution you can't return more capital to how old shareholders in the form of dividends and buybacks, which accomplishes the same thing as a failing grade without the black mark on your record. that's -- according to senior fed officials we spoke with, that was the rational for giving them this middle ground. for state street they b

jpmorgan, citigroup, morgan stanley up. the xlf is a basket of financial stocks and itan finallyed to snap a 13-day losing streak as the federal reserve released results of the latest round of bank stress tests. remember,alech and finan are the two largest sectors in the s&p 500. they have been massively oversold for months. in particular have been oversold. for the year the s&p 500 is up just about 1.5%. its worst showing since. 20 sectors that led the chart through most of the quarter weakened as the second quarter has come to a close. that sector is le small cap stocks, russell 2000, facebook, apple, netflix and semiconductors. there is a lot of good news for the second half. buybacks are showing no signs of slowing down. tax cuts are continuing u.s. earnings. growth is strong. the markets have been shrugging off a slight downward revision for first quarter gdp today. the watersre a little bit muddier now. for "nightly business report" i'm bob pisani a the new y stock exchange. >>> it is time to take a look at some of to

deutsche bank failing, white house deficiencies and mismanagement at the bank, morgan stanley pass thatther bank will raise dividend or share buybacks, they must may taken payout levels in order to build capital. jpmorgan to raise dividend to 50 cents a share to 80 cents a share with buyback of $20 billion in stock. shares of jpmorgan were actually up in afterhour trading, bank of america, wells fargo also raised dividend. gerri: great stuff. california setting precedent by doubling down on data privacy. cheryl: tracee carrasco with that and more headlines, good morning. >> the law which takes effect in 2020 gives people complete control over their personal data by giving them the right to know what information, companies like facebook and google are collecting, why are collecting it and who they will share it with. people will have option to end, this could serve as model for other states. cheryl: facebook is in support of this. tracee: they are, they are working with policymakers, approaching it with open mind and trying to working with. gerri: amazon sending pharmacy stocks tumbling,

with what's going on in the climate, morgan stanley is taking note of that.he top line, but what about fuel costs? kailey: that's obviously an important input, using diesel fuel. they are trending opposite of what they were, earlier in the decade it would have cost them lower, with oil prices weakening of it as opec is likely going to start rolling back those supply cuts that had placed president trump in the u.s., asking them to boost one million barrels per day to bring supply back into the market. the -- it is not something that is going to change immediately. looking ahead, fuel costs are going to weigh on the margins of it, cutting their estimates for this year and because of that, 2.5% cut for the estimate, carnival is at 6%. so, a lot of issues at play. david: global outlook for cruise kailey: rgh waters. [laughter] you here.d to have eight states are holding primaries and the biggest of them, california, may prove to moste most -- the confusing. for help in sorting it out, we welcome sahil kapur. what is going on in california that is different? all e

that same analyst at morgan stanley downgraded brett gold from equal weight and the firm said the stocks underperformance looks set to hrntinuegh the rest of the year, price target now $12 and that stock fell a fraction to $13.16. >>> twitter price target ras raised to $50 in morgan stanley and one of the highest and the nall sites the potential for higher advertising revenue and the firmaintains the over weight rating on that stock as well. shares rose 5% to $43.49. still ahead, the biggest problem facing small business owneri >>> general motors is watching development on trade very os y. gm ceo said today the automaker has not altered its investment plans but she did add that the uncertainty will have s somet of impact eventually. >>e we seeing cost increases but again i think there is still -- depending on how decisions were made will have an impact on that a we're working hard to understand the impacts to working to offset to the extent that we can but i think it is early days. >> as we have been reporting, gm make more than 1 million vehicles in canada and in mexico annually, most o

yalman, whatow, happened with goldman sachs and morgan stanley?tio, very important for the banks, they came very close to the passing mark. this is not the stage. next week we get the results. when you're so close to the minimum numbers, if you're trying to increase your dividends and buybacks, it is likely you cannot do that. we were all worried about it. that is what the headlines and stories were and they came out with goldman and morgan stanley saying don't read too much into this, we will be able to increase our dividend buybacks because the numbers don't reflect reality. we were all confused. we are still confused. apparently, analysts estimating there might be something with the tax reform and how that has impacted not the lost scenarios but the taxes impact on capital and what it does. it is complicated. there is something going on behind the doors. we will hopefully find out more next week. alix: and some weeks it is -- in some ways it is no surprise. they have the strongest capital market divisions? yalman: we were expecting goldman and

morgan stanley and goldman, they had an initial rejection. goldman said they needed to go back and look at the average of their previous two years. those are unchanged here. overall a pass. nike is having a positive read through as well. nike coming in with a positive earnings report. north american growth for the first time in four quarters. upgrade. profit double bitcoin, you can see how much it is off trading below the $6,000 level. it has been a rough start to the year for bitcoin. mark: the stoxx 600 bank index, industry today, every group rising. down by 2.1%. the biggest monthly drop since industrymay, second in a row, t and since march. the 2.7% gain is the biggest since the second quarter. , the stoxx 600 is onn by 5% since closing generate 23rd. it is going to spin off refocusing on prescription pharmaceuticals. they will buy back up to $5 billion in shares using proceeds from the sale of its stake. shares up 7% today. the ecb keeping an eye on inflation. level. symbolic the first and we have that level for a year. the core rate is

scarlet: still ahead, as we review the week on "bloomberg best," exclusive interviews with morgan stanley.o. james gorman canadian prime minister , justin trudeau, and st. louis fed president james bullard. up next, more of the top business headlines. canada's government spends $3.5 billion to buy a pipeline. >> they hope to be able to flip it, like a really expensive condo or something. scarlet: this is bloomberg. ♪ ♪ scarlet: this is "bloomberg best." i'm scarlet fu. we focus now on turkey, where the central bank took steps to reassure investors and shore up the nation's plunging currency. >> central bankers to the rescue. the volatile turkish lira is leading currency gains. rising as much as 2.6% against the dollar after the country's central bank said it's planning to simplify its monetary policy system as of june 1. give us an idea of what the central bank has done today, benjamin. benjamin: what is interesting about the decision today is they raised most of the main interest rates significantly, but it is not referring to this is a rate increase. at the same time, what they have don

goldman sachs and morgan stanley came closest to the edge.t is the third straight year that every bank exceeded capital demands, assigned with increased comfort with reviews that once triggered headaches. melania trump made an unannounced visit to a child immigrant detention center in texas after president trump signed in order to end family separations at the border. she said she planned the trip on her own. the president has called for federal agencies to reunite families divided under his previous policy. on friday, the house will vote for an immigration bill that seeks a permanent solution to separations. >> we have to house them safely. them,y, we have to house then we should return them back home. that is what we have to do. >> global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. rishaad: having a look at hang seng futures, the premarket underway. let's have a look at what we have there. lurch lower 1%, the for equiti

it's are interesting that goldman sachs and morgan stanley weren't allowed to increase for the time beinghe changes to the tax law didn't get the black eye of failing the stress test like deutsche bank did. >> we're watching shares of constellation. the biggest loser on the s&p down 5%. they miss at 220 versus 243. revenue is ahead, interestingly. operating margins down more than 200 basis points on shipping costs, on currency, and had a discussion about margins being the key to the earnings quarter. we'll see if it becomes a trend. >> it's been a pretty good performer. i think investors arehave a run about materials cost and margins. didn't necessarily change the long-term story but i think it was interesting the street is not giving constellation the benefit of the doubt and beer sales continue to be speck already. it was the beer margins that were disappointing and the wine and spirits sales came in light for constellation. checking shares today of walgreens after, boy, that blood bath for some of those companies in the pharmacy yesterday from cvs to rite aid. walgreens is a little bit

morgan stanley. 3w4r57. >>> facebook is on a tear the last two months. shares up about 20%.hat are the options traders betting on next? pete, good to see you, pal >> good to see you i'll tell you. it's pretty interesting because just a couple of days ago on facebook, we had some upside call buying aggressively as the stock was actually moving towards this 200 and above that 200 level. they are aggressively going after the august 230 calls now they're coming back again. and so we're seeing this aggr s aggressive movement in the stock. they're putting on a spread this time let's focus on the 230s. paying about $1.70 for these things this is a large trade. this is a large trade when you look at the dollar value of what's going on into this trade right now. somebody expecting over the next month, two months for this stock to actually make a nice move to the upside not just this breakout we've seen so far, but maybe something further. i'm in the august calls from the call buying just the other day so i'll be holding onto those. here's another one for you halliburt halliburton. th

morgan stanley. >>> time for a final trades. >> yesterday you saw stock down 6% because of ad pricingnd stick with momentum >> and fdx, bought it. >> still in service now. >> everybody have a great weekend. see you yyou monday >>> i'm melissa lee. bracing for a trade war, president trump slapping china with massive tariffs on up to $50 billion worth of goods china says it will retaliate is getting tough on trade the right move plus the president also holding an impromptu news conference waring in on trade, ig report and immigration. and plus another key departure at the white house and sealing the deal for time warner and the ball now in disney's court in its battle with comcast over fox. who will rule the media landscape? "power lunch" starts

goldman sachs and morgan stanley urging folks not to get stressed.he two banks had the two lowest capital levels. dividendsot affect and stock buybacks. disney is taking extra steps to win regulatory approval to buy fox entertainment assets. that is your business flash. vonnie: time for our etf ride a segment. -- friday segment. julie: etf's have exploded -- here is james from bloomberg intelligence. a closed by that you can't get out of here you can't return your shares regularly. in a daily into them basis. they will offer redemption for your shares you have divested. that creates a liquidity risk you will not get your money out when you need to. julie: what are some investment strategies? >> they will go into strategies that regular public funds cannot. examples are direct lending. people go into private companies and take the place of a bank. typically small. julie: thank you. we're out of time unfortunately. from new york, this is bloomberg. ork, this is bloomberg. president trump is threatening a 20% tariffs on cars coming in from the eu. barri

even in the fed's rosy view there were some points of weakness mega bank goldman sachs and also morgan stanley pushed close to the edge of the fed's supplementary leverage ratio the fed's minimum is three percent the fed scored morgan stanley at three point three percent on the metra goldman sachs barely cleared the fed's bar rating three point one percent. and now we turn to housing and specifically to housing affordability to help us out we are joined by debbie boyd the c.e.o. of deal b. financial debby's great to see it thank you for coming back. now thanks for having me so we have seen a point four drop in new home sales to a four month low of five point three million units and housing cost of translated into lower purchases by first time home buyers and those those homes are actually less expensive while that may not seem like a lot to folks the numbers in other data have led the national association of realtors chief economist lawrence yun to warn that quote the housing affordability issue is becoming a crisis and should we be concerned. yes but you have to look at that study that study

it's lower than where i bought it >> would you buy the utilities morgan stanley upgrades those todayo overweight. there was a selloff because of rates mong higher. to your point and josh's point of things that have sold off, whether they present good buying opportunities, morgan stanley today suggests they are. >> i would not the principle reason is he thinks rates have peaked or are naer peak i near peaking i don't think rates haveeaked. depends on the holding pd. there's not a n side to them you have a nice coupon don't mistake a yield for protecting your down side. >> you could always find a home for defense in a portfolio i would argue and i agree with steven when you look at the valuations of cyclicals versus defensives, right now cyclicals are trading 15 times on a forward pe defensives are trading 19 times at a forward pe. defensives are actually now rich ner terms of v richer in terms of valuation we will see a significant unwind there's no reason now to move away from cyclicals. the last thing on naials, it's a topical conversation, i'm stuck in bank of america of america. i

morgan stanley raising its dividend and buy back $4.7 billion worth of stocks. and goldman raising dividend to 6% and announcing a $5 billion buyback program. important to note goldman and morgan stanley of course received that conditional nonobjective from the fed meaning those payouts in totality should be similar to those in recent years. >> thank you for that roundup. the banks did manage to snap its longest losing streak in decades today. are these results good enough to spark the rally in the banks that wall street has been waiting for a very long time for? >> i'd like to say this is wha people have been waiting for so why wouldn't you have priced in city bank had a 2.8% dividend yield last week? which by the way, i think is pretty impressive. i think citi's the most impressive of all of them. so does this change things for the banks, no, but i'll also tell you, the banks, if you had a thesis three months ago about why you were low on banks, to me i've seen nothing that changed and i'm still bullish on the banks. >> hadthe banks been where the were six wee

just other businesses are going to stay, this is notjust bank of america, we are talking about morgan stanleyss exodus? small numbers, we're not talking about the mass exodus —— the end of the metal industry in the uk, sure. let's talk about the world cup, vicki yukoner begin your house. in our house as well. yes. this is about diego maradona, after that big win for argentina, by the skin of their teeth really. this is about their teeth really. this is about the focus on diego maradona, of course the very famous former argentinian football player. tell us what happened last night. well, he enjoyed himself i think is the safe way to say it. it had a good time, argentina won their game and they we re argentina won their game and they were right on the knife—edge, they had to win the game. they have been underperforming massively, they had to win this game in order to go through. argentina not winning the gi’oup through. argentina not winning the group stages kind of unheard of in world cup or all, but diego maradona obviously enjoyed himself. he has had his past issues with certain su bsta nces

morgan stanley equity strategist.♪ this is bloomberg. ♪ ♪ julia: this is "bloomberg markets." i'm julia chatterley. julie: i'm julie hyman. there is no place like home. that is what investors have seemingly been thinking. if you take a look at this chart, this has been one of my favorites and julie's favorites we have been enjoying frequently over the past several years. the performance of small caps in the form of a russell 2000 versus the s&p 500. you have seen a surge in the relative performance. that is on the back of corporate tax cuts, stronger dollar, and reduce geopolitical risk. the idea that these companies are more insulated from trade concerns. our next guest is small cap outperformance is here to stay but the risk reward might look less appealing. joining us is mike wilson, morgan stanley chief u.s. equity strategist. we had a debate on this program recently about whether these are a true haven in this kind of environment. mike: it is all relative. clearly, trade tensions are the concern of tay. small cap

goldman sachs and morgan stanley agreed to freeze payouts at previous levels.ause of "widespread and critical deficiencies in its planning." a bloomberg survey sees china stepping in to support the yuan once it approaches 6.7 to the dollar. jeffries says while the dramatic dissent has traders on edge, there is no panicking. the u.s. and russian presidents will meet in helsinki on july 16, days after what could be a tense and nato meeting. the president has accused nato of irrelevance and called for russia to be reinstated to the g7. trump has met with putin twice before, but this will be their first formal summit. u.s. police say the man who shot and killed five people at an american newspaper may have made threats by a social media. a single gunman fired into the newsroom and shot several employees. gunman is ahe maryland resident in his late 30's. the white house says it strongly condemns the attack on innocent journalists. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries.

speaking to morgan stanley's economist.store for the thai and philippine central banks, both meeting this week. the market open coming up. this is bloomberg. ♪ s is bloomberg. ♪ yvonne: 8:00 a.m. here in hong kong. welcome to "daybreak asia." on the test with the u.s. and china on the pre- test on the brink of a trade war. may be delayed with markets closing today. having a battle of attrition. the u.s. president said he is ready to escalate. from bloomberg's global headquarters, i am in new york onre it is passed 8:00 p.m. sunday. opec is divided over boasting output with iran leading rebellion against saudi arabia's plans. can japan's first startup unicorn make it in the u.s. .? ♪ yvonne: ramy, there is trade today, given the fact we have seen the tit-for-tat between the u.s. and china. talking about it swiftly after the announcement of tariffs on chinese imports. we are seeing markets headed lower here this morning in reaction. in markets that will be affected. hong kong and china missing out here today. ramy: we will se

goldman sachs and morgan stanley can closer to the edge.s the third straight year every bank exceeded defense minimum capital demands come a sign that industries increased comfort. the trump administration wants congress to remove the federal charters for fannie mae and freddie mac as part of a plan to release the mortgage giant from yours control. the two companies which have been under conservatorship since 2008 could have their market, and it's challenged. fannie, freddie and any rival would be overseen by government entity with power to approve guarantor, chief regulation and ensure market participants are adequately capitalized. -- share buyback to 2.2 billion u.s. dollars. the comes after the melbourne-based lender sold a number of assets. according to bloomberg intelligence research, the proceeds left the strongest capital position among australians banks. airbus may pull its investments amid caps off events. the aerospace giant says if the prime minister fails to broker an exit deal, it would lead to severe disruption and interrupti

morgan stanley. wlet's do it. ? ♪ come on. this summer, add a new member to the family.e mercedes-benz summer event. lease the glc300 for $429 a month at your local mercedes-benz aler. mercedes-benz. the best or nothing. no one thought much of itm at all.l people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. >>> welcome back to the halftime report this is futures now. crude oil prices soaring 3% despite a decline in inventory now at its highest level since 2014 scott nations, this follows yesterday's impressive rally as well what do you make of the move. >> i think the draw we saw, at 9.9 million barrels surprised everybody. how much is that that's about the amount of crude oil that saudi arabia produced in a single day. that's a huge number you add it to what we saw yesterday with all of the iranian crude 2.2 million barrels per day coming off the market surprisingly by the mid

goldman and morgan stanley come very close on the leverage numbers in the first stage, which tells usy are asking for their capital planning for the next four to eight quarters they have less , wiggle room to ask for huge increases. actually, according to the analyst estimates i included in my outlook this week, goldman is probably going to decrease the amount of capital it's distributing in the next two years. so that is why when you are that close, you cannot really ask for too much of an increase, and in goldman's case, they will probably decrease. morgan stanley which is also close, might not ask for too much. >> the philippine central bank has raised its benchmark for the second straight week. should it be necessary the , governor says the bank is ready to take further actions. what prompted the second in quick succession rate hike? >> we have really seen a deterioration in inflation outlook in the philippines, and that has been the main concern of the central bank. the bsp yesterday marginally reduced its inflation forecast for this year down to 4.5% from 4.6%, but that's still

goldman sachs, ubs, and morgan stanley cutting their target.nings fundamentals are coming under pressure. this is in the context of waning signs around some economies. this idea that six months ago synchronized economic growth. it's getting very testing with evaluations having run away in the early part of the year. >> it is not just asia at large. i'm curious why is goldman sachs advocating buying some local currency bonds in particular which places? this hastely a lot of to do with what we have seen over the past weeks weeks or so which is an almost 180 degree swing in terms of the argument are emerging markets shepherding the tightening cycle. the sense of being in the bullish standpoint from people willing to be positive on emerging markets was that they can look through the fed tightening circle that has now swung and people are starting to question with an incrementally , can assets fed stand up to the pace of this tightening? we are seeing a lot of pressure in emerging-market accept. some ofdman favoring these bonds, a lot of it has to d

morgan stanley yield results.n says the firm's goal of generating a billion dollars of bond revenue a quarter is a conservative estimate. he was open for rent. southhampton home rentals surge. david: nice shot of shinnecock. joining us now is jason kelly. let's start out with tim cook. tim cook talked about their plans for investing in the u.s. listen to what he had to say. a neware going to create campus within the united states that is in a different location than ever to current campuses in california and texas. we are going to hire 20,000 people. we are going to spend $30 ex over the next two years. we are investing a ton in this country. to yes, we are also going combine some of our stock because we view our stock as a good value. from a shareholder point of combine view wy stuffrom woh ss than we do, then that is good for the company. it is good for the economy as well because it people sell stock, they sell --pay taxes on their gains. seeing david rubenstein without a tie on is like seein your teacher at th

michael zezas is with us for morgan stanley.re we are and the important 7:00eeting, ubs and the hour. that is a good thing. stay with us. this is bloomberg. ♪ i am taylor riggs. let's get your bloomberg business flash. unilever has given a muted outlook for sales in the first half and said it is unlikely to remain in the ftse 100 index after it consolidates its headquarters in the netherlands. leading the index means it might be less included and fund manager portfolios. apple making the police unhappy with its latest move, closing a technological loophole that let a authorities hack into iphones. police have used it to get information they hoped would help them solve cases. apple said criminals can exploit the same flaws. promising to get back to basics after posting a $1.5 billion loss. will continue to review its will continue to review its route. that is your bloomberg business flash. francine: thank you. "unbelievable" that opec and its allies would agree to boost output next week, according to the saudi arabia energy minis

morgan stanley reckons that for 2018, the peak for 10 year yields is in the rearview mirror. portfolio manager is still with us, hani. we are at 2.88% now? hani: we think that yields will go higher, at a gradual pace, given that there is a global savings glut that is not going away anytime soon. we saw the ecb delaying any kind the fed ises, and going to continue to be on its path.ization of the other hand, we think of global growth will accelerate in the second half of the year, which will keep yields rising the other gradual pace. bonds have had the worst start of the year on record, is that the end of this? saying that they expect a big rally going into the second half of the year? ani: some pockets of the em really feel overdone, and i think it is a great time for investors to be sharpening their pencils, creating a big shopping list of assets to buy and using this trade risk and all the talk around it as potential buying opportunity. currencies, hard definitely look to be getting much more attractive than before. anna: and the equity space, and other you like indian equi

economist for morgan stanley. and later in the hour, we will hear from the c.e.o. of investments, his outlook on deutsche bank and the european inancial sector. we are 30 minutes into the trading session. abigail is here, and we're continuing as we began the week. abigail: we have a selloff on our hands at this point. we are at session lows for the major averages. we have the dow down 1.5%. the s&p 500 down 1%. the tech-heavy nasdaq right now on pace for its worst day since the end of april. all of this, of course, on fears, concerns around developing trade tensions, continuing trade tensions between the u.s. and china. of course, the dow has been hit by this the most, finishing down more than 1% last week, lower yesterday. this is a six-day chart of the dow. this is the first time the dow has dropped six days in a row since march of 2017. and over these six days, losing 2.8%, the worst stretch since the end of april. so investors are very concerned that a potential trade war could really dampen global demand for various products. if we look at some of the movers a

morgan stanley says they should trade at a premium both morgan stanley and goldman sachs says they couldrade for roughly double apple's value. taking its foray into hollywood one step further with a right in feature films. they say they're close to creating an animated film. joining us from l.a. with the latest is our reporter. know that apple has been in talks with the irish animation studio. and that is quite a well-known animation house that made things like breadwinner. it has received many academy award nominations for their films, very high-caliber. so apple is getting in with a high quality producer of content. we don't know exactly how the but well be distributed know apple has been talking to people in hollywood over the last couple of years to build out a team to make content and five content for streaming. but it is unclear if this will be part of its apple music streaming service, though that seems unlikely. sense of ahere a shakeup to come in animated movies? ofen the potential exists john lasseter from pixar? this week, we have incredible stew which is on track to do really

goldman sachs and morgan stanley, they received a lot of acus because they had lot of things in sightt goldman came in at the lower range of expectations. morgan stanley, they may have disappointed some versus expectations last week, but i think it is enough. the result of the stress test, what it tells you for deutsche bank is that they have plenty of books. on the the fed said that there were material weaknesses in the capital planning process. they talked about issues with internal function which includes management. at wasn't a surprise, the fact that the issues really points to do process, and not something that is balance sheets related, that should quell concerns. ♪ >> italy's new prime minister has negotiated a package of measures at the eu summit to stem the flow of migrants in to europe and to spread the burden of handling arrivals. >> two main points is that european leaders will agree to camps.migrant control or centers, as they like to call it essentially, to vet migrants. basel qualify professionally for asylum will be allowed to stay and those who don't, will be sent ba

goldman sachs and morgan stanley, their numbers will not be as strong because their capital ratios areery good they may be required to be tempering what they give back to shareholders >> so many of these banks may be oversold and look good as longer opportunities? >> i agree with you. to your point , the regional banks look really attractive if you don't believe the u.s. economy is going go into recession, it's the time to buy them >> gerard, thank you very much that xlf, there's about 70 stocks in them, but it's not a diversified etp. b big banks will move that. >>> amazon announcing a new last mile delivery service. the company will offer incentives entrepreneurs who set up their own small package delivery business. hey you, become a mini u.p.s. or fedex. amazon unveiling a dark gray van with a prime logo that it would lease to businesses. it would also provide uniforms and insurance programs for fleet operators and offer classes on taxes, payroll this is all a part of the effort of getting goods the last mile >>> and shares of chipotle are feeling heat after the ceo announced some b

goldman and morgan stanley come close on the leverage numbers.g for their capital planning for the next quarters, they have less wiggle room to ask for huge increases. actually, according to analyst estimates in my outlook this week, goldman is probably going to decrease the amount of capital it is distributing in the next two years. when you are that close you cannot ask for too much of an increase. goldman says they will probably decrease. morgan stanley, close but not as close, will probably not ask for too much. >> the philippine central bank has raised its benchmark interest rate for the second straight month. the governor says the bank is ready to take further action. what prompted the second in quick succession rate hike? >> we have seen a deterioration in inflation in the philippines. that has been the main concern of the central bank. the bsp marginally reduced its inflation forecast to 4.5% from 4.6%. that is way above the inflation target, 2% to 4%. we have seen inflation pick up strongly. that is exacerbated by the currency slump. the

with the morgan stanley analyst who covers walmart. vonnie: the stock is up .8%. taylor riggs reporting from arkansas. stuff.reat the meeting in canada upended by the announcement of tariffs from the u.s., canada, and the eu. amanda has an exclusive interview. amanda? >> i am here with philip hammond, i would like to start with the tone into these meetings. around trade. a bomb thrown by the u.s., retaliatory tariffs from canada from the eu. how does that change the atmosphere as you meet with your compatriot? >> it does change the atmosphere and we feel very disappointed as a close ally and partner to the u.s. that they have taken this step on national security grounds. we are close security partners with the u.s. we continued to talk with them. leaders are meeting here in canada in a week. we know president trump's way of doing business is personal and he will have direct interaction with the leaders of the countries. that are most affected by these measures. it is the hope that we will focus this weekend on trying to calm the situation down and look for ways fo

mega banks goldman sachs and morgan stanley have been told to halt any planned additional dividend payouts perhaps more seriously the u.s. unit of deutsche bank failed the second round with finding of quote widespread and critical deficiencies in the bank's safeguards and recordkeeping the official fed findings will similarly keep deutsche banks and banks u.s. unit from shifting profits back to their corporate home office six banks preemptively scaled down their wish list of the stress test process revising down where the dividend plans they submitted to the fed presumably opting for a proverbial bird in the hand and hoping to avoid the stigma of a possible denial on dividends the fed's vice chairman for supervision summarized the general favorable tone of the second round saying quote the largest banks have strong capital levels and after making their approved capital distributions would retain their ability to lend even a severe recession. and amazon has finally made their expected move into the prescription drug market and they are going all in the saddle based online retailers buying o

coming up on bloomberg surveillance, we talk fed ahead of today's decision with hans from morgan stanley. we are also joined by vicky morgan from the house of commons and we are joined later by david rubenstein from the carlyle group. talked the trump kim summits, and we talked to him about his interview with tim cook. let's get straight to bloomberg first word news. >> north korean leader kim jong-il and says -- kim jong-un says trump offered to lift sanctions. that comes as trump repeated his believe that he can do a deal with north korea, saying he is certain kim jong-un is on board. we have developed a good relationship in terms of getting something done. it , it's a starter, but a terrific document. there are things we negotiated that are also very important, getting rid of certain ballistic missile sites and other things. >> at&t has won approval for their 85 billion dollar pursuit of time warner and says the deal will go through within a week. the deal will create a media powerhouse that can go head to head with netflix and amazon. the court rejected the justice department's reque