morgan stanley and goldman sachs are crushing it. bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. alix: morgan stanley and goldman sachs deliver. they trump estimates. what is the outlook? bank ceos lead saudi arabia. the latest to pull out of the future investment initiative. pompeo arrives. paul allen, the cofounder of microsoft eyes. he leaves behind a legacy of sports, a, and innovation. glad you mentioned jimi hendrix. he had a jimi hendrix guitar. he was a real renaissance man. he revolutionized not just gates, hewith bill gave us all the precursor to the iphone. he revolutionized the world of media. alix: i forgo

morgan stanley made a positive comment about that, i saw. we would say the same.from an m & a point of view continues to be quite healthy. whether total volume for the second half will be equal to, lower than the first half, i don't know yet we have a long way to go you're still seeing a strong flow of strategic transactions, whether it's the l3 harris transaction. we were not involved in that but ultimate strategic deal, comcast sky, which we were involved in, or other such things still strong flow on the strategic side and that's an important bellwether for overall transaction volume and i still think it's healthy. >> roger, are you guys still planning to attend the investment summit in saudi arabia this month with so many businesses pulling out >> well, we are carefully evaluating all the factors there. it's obviously a very fluid situation, as we can see even in the last few hours i honestly don't know the answer to that, sara. >> how do you make that? >> yeah, how do you make the decision >> i'm going to leave it at that it's a tough one but i'm going to leav

we upgraded morgan stanley today. we're now buyers of the stock. i was on your show for five years from 2012 to 2017. the stock tripled or quadrupled at a time the market didn't. the restructuring story we thought ran its course now they have additional restructuring left better than expected growth than we had forecasted before what you're seeing at morgan stanley is 21 years after the merger of morgan stanley with dean whiter, you see the full benefits of the brokerage, the wealth management part of the firm fully playing out the best ever pretax margin in history. we love that half of the firm and the other half of the firm, capital markets, they're executing better than almost anybody had expected really strong in equities. broader trading business ted pick is getting the job done trading at 1.2 times, that's unheard of we are now buyers again of morgan stanley >> why isn't anybody else? why don't people want to own bank stocks? you just painted the most beautiful picture of a bank stock that i've heard in a long time why don't people want to o

even morgan stanley ceo talking about the underperformance of the stock. even morgan talking about the underperformance of the stock. will this keep up? >> it has been a tough week before this. i think with financials in general, with respect to the banks, what people are thinking is the environment is good. things are good. what will get better next year? while these us stocks do for the fundamentals? we don't think the underperformance we have seen reflected anything that we saw in the market or problems. it's more what can they do for an encore? become a -- as far as that goes. we mentioned blackrock, it is tumbling today. this does have bad news, it looks like institutional investors are looking uncertain, at the level being the lowest since 2016. is this a place to avoid with this level of market uncertainty? the environment we are in should still be good for private equity and alternative investments. there should still be decent places to bathe. this is not sure -- places to be. they each got exposure as managers, and this is probably still a good pl

let's look at morgan stanley and goldman sachs.eatn stanley up 3%, they top and bottom line as did goldman sachs. the only be bank to beat on all three areas of the fixed income equities and investment banking, goldman sachs beat on the banking revenue. on the year, we have both banks the more than 14% despite fact that rates are rising, something to keep an eye on for the s&p 500. other earnings movers, a bit of a mixed with united help up more than 3%. domino's down 3%. they beat earnings and missed revenue estimates. also down three point 8%. the net asset flows weakened. that,en take a look at down 13%. investorsearnings but clearly not liking this at all. analysis on the major seen affecting markets today, we're joined here in new york. christina and london. we start with you because the top of the mind for many business leaders is the weagement consultancies, can continue to strengthen ties with saudi arabia and the middle ease though it may not be restricted -- respected and training. is no economic effect yet but obviously

matt: our chief cross assets that it just at morgan stanley -- cross asset strategist at morgan stanleyl with us. i wonder what you think of this in terms of italy, in terms of the euro, but let's start with the more specific question, andrew. 3.5% is a pretty juicy yield, and the italians seem to have these flareups quite a lot, and they never get completely out of control. do you go in and buy those bonds? >> well, so far, our right strategists are staying on the sidelines. as the previous clip just showed, this is still an evolving process. you still have some uncertain an outstanding issues with the rating agencies, but for the moment, i think the uncertainty is balanced by the fact that the yields have repriced. if you are an investor in dollars or other currencies, the hedge deals on the italian assets is very high. where we have been more focused is on the equity side. you showed a chart showing where the spread on italy was in the historical context. you have seen in the eyes of our equity analysts a much bigger repricing of italian equities relative to that history then you hav

their work cut out this morning trying to predict third-quarter earnings from goldman sachs and morgan stanley. rivals reported mixed results. what can we expect? stanley berger joins us. we have seen a wide range of results. for example, investment banking --enue, we have seen come some companies keep their heads above water and some drop. >> i think that's why we might see a muted reaction in share prices. everything was there for banks to do really well. we have an economy strong in the u.s.. tax cuts are fresh. rising interest rates are helping more than they are hurting. we see that reflect in jpmorgan. they met interest income. the highest on record. are seeing,ces we some banks doing well in fixed income, others not, across the board. it is very difficult to know what we are going to see from morgan stanley and goldman. nejra: u.s. bank shares have been underperforming the rest of the market this year despite rising rates, global growth, etc.. , as we, morgan stanley look ahead, does what we have seen set them up to do well? >> the investment banking portion, analysts are skeptical. how

[laughter] morgan stanley is good. cannabis is becoming illegal and -- legal in canada. bitcoin has been beaten up that there may be a comeback for crypto. it's all straight ahead on bloomberg best. welcome. this is bloomberg test your weekly review of the most important business news, and analysis from bloomberg television around the world. questions continue to swirl around the disappointments -- disappearance of a journalist, and the u.s. reaction drew attention. there is an investigation, and .ould hope people accountable president said there will be severe punishment. >> we will get to the bottom of it and there will be severe punishment. what's this is the first time that the saudi leadership has caving into international have -- pressure perhaps. this is a difference from what they announced yesterday that they may use oil as a bargaining chip to. >> the president tweeting and our ago, just spoke to the king of saudi arabia. he said they are working closely said thereanswer and could be rogue actors that acted independently of the saudis, now all talk turns to thi

morgan stanley is in purple.ou can see it is the only bank among its peers that saw a double jump in both divisions. j.p.of america, citigroup, morgan all either went one way or the other. now, analysts had a field day, in a positive way, looking at what happened. 278 basishey saw a point jump in terms of positive operating leverage year on year. you can see analyst recommendations on your screen. 20 buys 11 holds, zero sells. barclays pointed out that expenses were controlled, and bernstein said that morgan stanley checks all the boxes bulls could have hoped for, and also they get a positive bump from low expectations. some analysts pointed out they had been in oversold territory, also below the 50, 100, 20 0-day moving average. the share price up the most in nearly two years. haidi: and when it comes to goldman, a more mixed bag? ramy: it was. in terms of goldman, while revenue jumped 4% year on year, if you look at sequential, quarterly basis, it actually fell 8% looking at it through that lens. better, but ad

that is why morgan stanley and goldman sachs stock rebounded like crazy. last night we got a great pre announcement from adobe. when frequent guest on the show, adobe's ceo gave a forecast for 20% revenue, the entire cloud group ignited from the get-go. last night when the market was really looking ugly, a sell program came near the bell almost as soon as it was over, minus seven oscillator fire. this evening's further fire. get this we had terrific numbers just now. remember all the obituary numbers for f.a.n.g, be careful, 32% better for international and 62 for domestic. if netflix is good, all of f.a.n.g will trade higher. will trade higher tomorrow we spoke to oscar munoz, and he told us that united continent tal is doing well, he should know, he is the ceo. lam research reported its first beat in ages it cowl be the encouraging sign for the lagging semi division. ibm declining. here is the bottom line, when the fed bears are away, the stock bulls will play, including health care, bank and most important tech the f.a.n.g haters are fl flummoxed. they

citi, jpmorgan all saw theirs fall to 10% year over year morgan stanley was driven by ipos morgan stanley tradings also stood out rising 7% year over year that's due to its big tilt towards equity performance while goldman sacks trading was in line it was flat year over year jpmorgan and bank of america had saw declines in trading. citi had seen gains. now both also have strong cost control and morgan stanley's wealth management division showed impressive growth operating leverage of its margin of 21.7% the single biggest reason why they're performing so well is that both goldman sachs and morgan stanley have underperformed the banking sector coming into earnings year to date. guys. >> thank you, wilf, for that wrapup we want to remind everyone to not to forget to tune in for the interview with david solomon >>> coming up, netflix out with earnings after the bell. one of our next guests says there are four key things he's worried about. he'll tell us what they are. plus, a dire warning on the housing market from the biggest money manager. the trump administration just proposed something t

morgan stanley blue chip award winner for 2018. ley a conversation on the american economy. we do this 20 days before the midterm set of elections. please stay with us worldwide. this is bloomberg. ♪ ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. tom: this morning simply, is it a market bottom of 500-plus points? is there an underestimation of the resiliency of earnings and cash flow? is there an underestimation of the strength of the american economy? memoji -- netflix -- they kill it. if it is wednesday, it must be ankara. the secretary of state -- with the election 20 days away in america, there is an underestimation of the i

morgan stanley, goldman sachs out this morning.an stanley is the biggest winner in the financials but financial etfs still doesn't have that oomph. still looks relatively flat compared to health care, real estate, still not leading the way. what's wrong with the financials? >> couple things. from a broader perspective we would not be buying etfs, we would be buying stocks and would be concentrated on those stocks. not all banks were created equal. the primary theme for the next three to five years are wealth management and commercial banking. you want to buy things that have scaleable businesses. that's the biggest problem. the other thing, too, the majority of analysts frankly who are analyzing these companies have less than ten years experience. all they remember is the credit crisis and that stocks only go up because of interest rates going down. people are having a hard time understanding financials can, will and should do better in this type of environment. >> overall, i have to say none of the financials did anything that the

morgan stanley setting the tone for this earnings season. the fed announced a rate september, the s&p 500 has fallen more than 5%. the markets are under stress and it is likely investors will be especially keen to work out how much more policy adjustments is in that pipeline. today, it takes us to our mliv question of the day. i suppose it comes down to this. the fed minutes, do they matter to you? that is all we're asking you in terms of the question, and what about the fed tying all of that back to the emerging-market? viraj petel is our guest host this morning from ing. ofiously, any kind readjustment by the fed policy could have a huge impact on p.m.. we have a bloomberg survey. -- on e.m.. we have a bloomberg survey. we have hit a bottom in terms of emerging markets. view?t the case in your have we hit the bottom of the emerging markets fx-wise? viraj: not quite. we see two faces to the dollar. toughnk they have been against reserve currencies like the yen, but we do not think it is quite up against the m, and one of -- e.m., and one of

the fact it joined the party that's curious. >> morgan stanley is the next stock. in week up 7%. steve grasso. >> easy. this whole space has a headwind. down 11% year to date. even with good news the entire space -- sorry, fade it. fade it. >> you can't -- the can't rally the space this should be optimum time for these guys and the rest of the field you can't trade it you can't trade it tough fade it. >> okay. but i know i'm not getting dan's support but i tried it and that's the point the sentiment in the sector so poor. morgan stanley announced numbers yes fee income compression but the bfl is the valuation is interesting. i think the banks if we are in the environment if we are concerned about a stronger economy with higher interest rates. i don't like the chart nothing about it other than the valuation. the sentiment is so poor right now that suddenly the guys are going out of business with the best balance sheet and best capital return in years. >> i don't think the chart is bad if you are talking short term it held up relatively well with everything else in the market this

from also with us is lisa morgan stanley. what is it in europe?the european has gotten extraordinarily cheap this year. expectations had been for decent growth coming into the year. we had disappointments on it gdp growth. now we are coming into the earnings season. we thought we could see a stabilization of earnings. we have had some more disappointment on the european side. tough. the ecb wants to exit and move forward and 2019 with a hiking cycle. the inflation numbers seem to be supporting that view. scenario forinto a europe if they can't get the growth going. that's been a disappointing factor. we want to own some stocks there. we want to be a stock picker. alix: the value trade is not as appealing. lisa, she will be sticking with us. david has some breaking news. they are signing a power deal. david: when the ceo said he's not going to go to the conference they are having over there. maybe this is why. not: if you had companies putting their money into the country, who does? what is that lead saudi arabia? david: normally there is somebody

goldman sachs and morgan stanley are both strong.ive to six years ago? alison: the shift to wealth management. he improved the margins. tom: not only during wealth management, but not doing other things. alison: there is a lot of talk about moving away from trading, but trade has been booming. courtside has been every for a couple of years. tom: you do great earnings without a computer. you don't need one. thank you so much. bob nardelli, thank you as well. jonathan ferro will break this down on bloomberg surveillance on radio in a bit. this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. they blow past estimates. ba

morgan stanley down.ats, it's surprising to see a jump in the share prices this morning. guys >> all right, wilf going to see what happens throughout the trading session thanks >>> coming up, a new proposal by the trump administration will require drug companies to include prices in those television ads that run nonstop. health and human services secretary alex azar will join us after the break to discuss the change stay tuned the sun comes up. the sun goes down. you did a million things for your family today. but speaking to pnc to help handle all your investments was a very important million and one. pnc. make today the day. >>> welcome back to "squawk box," everybody. take a look at the futures we've been building through the morning. s&p would open up by 9.5 points if we were to open here. remember this is after the s&p has closed down for seven of the last eight sessions. nasdaq indicated up by about 45 points >>> the trump administration's unveiling a new plan that would require drug makers to discl

you're sitting there, i don't do this all the time, i am a morgan stanley investment banker!d. ina joining us, have a lovely weekend. in a moment, we will be looking to the business pages, but this is how to get in touch. stay up to date with all the business news as it happens on the bbc‘s business live page. there is insight and analysis from our editors right around the globe, and we wa nt editors right around the globe, and we want to hear from you too, get involved on the business live web page at bbc.com/business. 0n involved on the business live web page at bbc.com/business. on twitter and on facebook as well, business live, on tv and online, what you need to know, when you need to know. let's look at the paper stories that the business headlines have been talking about, james bevan, let's start talking about this story in the japan times, it is also, as if by magic... i know what is going on in there!japan by magic... i know what is going on in there! japan struggling with plastic waste, china has stopped imports of plastic waste from japan, you would think it is good

morgan stanley rallied the most in nearly two years. goldman jumped the most in six weeks. y.rt with morgan why are investors celebrating? >> why wouldn't today be celebrating? they beat revenue, fixed income, investment bank across the board . most interesting relative to the banks in terms of revenue for banking, they were the only bank to beat on both of those counts. take a look. it is in purple. bank of america, citigroup, j.p. morgan went one way or the other. only one,as the excuse me, the only one to rise on both. in terms of what analysts have said, you can see what the recommendations are. kbw, aside from the positive i went through, they said they had rise in termsint of operating leverage year-over-year. barclays says expenses were controlled. bernstein said if you were in investor, they checked every box a bull could four. -- hope for. revenue.beat on that was year on year. take a look at what happened in terms of the quarter. they fell by 8%. let me walk you through the numbers. they were lower in terms of the advisory fees. fixed income trading was lightk b. .

morgan stanley shares were down 70% -- 17% year today.ill keep its focus on coffee and not cannabis. tomorrow canada will become the second country in the world to legalize cannabis. and that's your latest bloomberg business flash. extending gains today. we are joined by john authors. very happy to have you back. pound traders are really grasping at straws. . brexit is really the issue that's going to decide the level of the pound in the coming month. yes. there's no other possibility. we are now allegedly within five months of the deadline. of course the european union is extremely good at setting deadlines and extending them. plainly some fairly major someions are going to have major market impact have to be made in the next few weeks. i suspect at the moment there is a degree of excitement because it looks there is a pretty good atnce of a european deal that level that the british representatives in the eu representatives can come up with some something. the very difficult issue that's always hard for foreign exchange markets to way is

morgan stanley and goldman sachs are pitching to underwrite uber's public offering as lyft chooses

goldman sachs and morgan stanley.omberg has written a great story with about five key takeaways from all the bank earnings. what would you sum up? >> so far it says to me that the u.s. economy is still in a sweet spot. the banks are able to make more with the higher interest rates, lending money to people, but those people are confident about their jobs. not many people are defaulting. most of the big banks are setting aside let's for -- less. if you are an analyst of these things, it's a question of whether they are at peak profitability or whether the headwinds of the global economy have yet to come home to roost. manus: i will give you an option here. you can either talk about what does it tell us about the health of donald trump economy which he claims of victory lap on that -- the other thing about american output yesterday was all about the remuneration within the banks. and competing for talent with -- those are the two big issues at play. which do you think is the most important one for equity market? -- marke

morgan stanley was talking about the china demand critical for chemical companies.ive picture than the last couple of years. matt: thanks very much for that. germany made its trading debut in frankfurt, listing expected to generate 4 billion euros from -- valuing the maker of truck and trains of 13 billion euros total. joining us is bloomberg's markets reporter. jp, how does the first price quote compared to the ipo price? how is sentiment in general right now? it took longer than the plan to get the first price this year, 80 euros and $.10. right now they are trading at 80.60 euros. not very exciting, but a solid opener. anna: we seem to be seeing a few ipo's out of germany. a lot of talk about whether ipo's might be delayed and yet we see them coming. guest: that's true. the equity market is in an advanced cycle and some of the companies are seeing the door slowly closing going into the market and getting investors intention and money. that's why some of them are pushing ahead even though the market environment is currently not the perfect thing for going public.

hsbc, morgan stanley had it right for a while.e are see if you take a look at they moving averages. ? 75% is going to be a pretty important level. above that, you're looking at 3.5% on 10 year yields. one of the things that is important is tomorrow's auctions. we have three-year and 10 year bills auctioned tomorrow. if they see strong demand, it could mean we hold this level. given how weak the market has been, there is a risk you wind up with weak demand and higher yields and you wind up being in , up to 3.6%. something else important to note is that most of this move has been in real yield. this is not because people are worried about breakevens. people are worried about supply, faster growth, and larger deficits in the future. if the democrats take one of the houses of congress. david: the auction will go stronger because the price is higher. see if is difficult to they market is well set up for the auction. i suspect it is. one of the things that has happened with auctions ever since the treasury department started to increase

goldman sachs and morgan stanley reportedly delivered the proposals last month.hat was not tuesday's only ipo talk to readlyft hasn't collected -- talk. lyft has selected j.p. morgan chase. there valuation is to top $15.1 billion. for more, let's bring in alex barinka and eric newcomer who covers this for us. eric, what do we know? >> these ipo's might come on top of each other early next year. the uber's ceo says they are targeting the second half of next year, i think they are both in a hurry to get out and they could be right on top of it. emily: i thought lyft would be first? alex: that made sense for lift but it seems like uber might try to rain on the parade. uber is the bigger company and when lyft goes out, i bet investor questions will be what comes next. look at it over, they have food delivery, scooters, and other things. lyft wanted to head off those questions by getting out first, what if uber jumped the gun and pulls the trigger, they could cause a narrative problem for call up they could other problems. alex: the valuation -- eric: the valuation is

morgan stanley, help with a note on airlines. back of a weaker currency and higher oil prices, they are cutting their price target for all of these airlines stocks with the exception of spring airlines, which is still their top pick within this market. essentially what morgan stanley is saying, as far as positioning, neutral on currency and oil, spring air but as far as the top three are concerned, you are looking at china eastern and china southern. let's see how much they have cut, air china by 14%. 36% for china southern and 27% from theirastern previous price targets for the stocks into where they are now. we are seeing substantial losses on a day where markets are trading higher. that is a quick look at what has been moving across chinese markets. benign, not a big deal so far. we will be back. this is bloomberg. ♪ yvonne: time for our battle of the charts. they will pick their best charts against each other. rishaad: you can asset -- access their charts using the bloomberg function on the bottom of your screen. today -- cha

. >> morgan stanley's numbers are really good. >> bank of america and all the banks solid quarter. >> cannabis legal in canada. a huge potential and pot. $200 will be a billion opportunity over the long term. >> and a comeback for crypto. >> we have seen an acceleration and demand. >> q1, q2, new highs. >> it is all straight ahead on "bloomberg best." ♪ hello and welcome. ," your "bloomberg best weekly review from bloomberg television. let's start with a look at the top headlines. questions continue to swirl around the disappearance of the journalists who had then an outspoken critic of saudi arabia's government. the u.s. reaction drew particular attention. king salamon of saudi arabia has ordered an investigation into the disappearance of a prominent journalist and could hold people accountable. willdent trump says there be severe punishment for those found to be behind the disappearance. >> we will get to the bottom of it. there will be severe punishment. >> this is the first signed the saudi leadership is starting to cave in front of international pressure. ,hey may say we found no

. >> morgan stanley's numbers are really good. >> bank of america and all the banks, solid quarter.ishaad: cannabis legal in canada. a top ceo sees a huge potential in pot. >> it will be a $200 billion opportunity over the long term. rishaad: and bitcoin has been beaten up lately, but some are still betting on a comeback for crypto. >> we have seen an acceleration in demand. >> q1, q2, if the institution starts coming in it will put in new highs. rishaad: it is all straight ahead on "bloomberg best." ♪ rishaad: hello and welcome. i am rishaad's element -- -- salamat.mat it this is "bloomberg best," your weekly review from bloomberg television. let's start with a look at the top headlines. questions continue to swirl around the disappearance of the journalist who had then an outspoken critic of saudi arabia's government. the u.s. reaction drew particular attention. david king salman of saudi ordered an internal investigation into the disappearance of a prominent journalist and could hold people accountable if the situation warrants it. president trump says there will be severe punish

morgan stanley abandoned its call for flattening of the curve. italy's budget standoff.et to defend his fiscal targeting parliament. it is said italian debt can be seen as too risky. good morning, everyone.

morgan stanley shares mosee tan 5% today to 45.94. and sales tommen os weaker than expected underscoring increased competition for food delivery these days. the company has stepped up its efrts to better compete with third party delivery companies like grub hub and uber eats. and doo dash. and earnings for the recent quarter did top estimates. e still wasn'ugh though. domino shares fell nearly 5% on the bigp day to 259.63. >>> granger says tariffsrond imports china are expected to increase costs by 2%. the industrial supply company is considering raisi prices and finding alternative sources for its products to offset the higher prices. ww front ranger reported a decline in profit and weaker than expected revenue in the most recent quarter. the shares fell nearly 12% to 280.01. poefz isew yor reporteding that billionaire investor carl icahn has taken a stake in dollar tree. it was unclear whether icahn plans to push for management or strategy changes at the company. doll tree shares popped 6% on the report to finish at $86.50. and unit

that is keeping analysts like morgan stanley bullish on the stocks. the story as far as oil counters are concerned. oil prices down, it was a big move overnight. thing, you have earnings out, they look good. resultss are lowered on . speaking of cutting the price target on a stock, jefferies out with a cleaver here, 62% price target. when you look at the lens business, and the risk that that poses as the bigger pie is concerned, what jefferies did to give you an idea what the price target is now, they cut it from $169 to $65, and that is where we are trading at the moment. you get an idea of what jefferies is up to their. a lot of sharp moves. rishaad: slashing it. yvonne: [laughter] david: 62%. singapore is taking a different approach. yvonne: the managing director spoke exclusively to bloomberg about how the central bank is working with tech players and managing risk. >> if you cannot get innovation right or regulatory, and in the regulation space we are where in a framework players,ers -- fintech we regulate commensurate to the risks they pose, and

reporting ahead of open united health johnson & johnson, goldman sachs better than expected on mover morgan stanleybanks stock is up almost 3%, on morgan right now united health up almost 2% broader markets stronger as welcome take a look we are at high of the morning, we are expecting a gain start of trading, to the tune of 160 points on dow industrials that would be two thirds of a percent, nasdaq stronger up 60 points right now that is almost % higher s&p expected to open up 15 points a half percent higher this after a tough day on wall street but it was really the volatility, that was most striking the dow industrials went back-and-forth crossing the unchanged line, more than 100 times yesterday, the nasdaq if worst performer at close down 66 points yesterday. in europe this morning, as you see, market mixed the ft 100 off the lows, it is still negative territory, down two points but cac quarante in paris, up two-thirds of a percent the dax up three quarters of a of a percent in asia overnight best japan nikkei average up 1 1/4% elizabeth warren dna in doubt democratic senator stumped about wha

we'll have a morgan stanley guy who says sell on the strength.e're in a bear market >> the question becomes if the leadership stocks are giving up, where does the new leadership come from? >> there's no good answer in terms of a chunk of market value. financials were up yesterday i don't know if you want to see a lot of hope in there, picking up the wreckage just yet maybe if you need some kind of a real all-out flush, we didn't get it put it that way. boeing yesterday, especially after -- >> let's get -- i didn't need to stall, but i wanted to set this up because it was about china yesterday. trade war worries resurfaced yesterday. a new report said the u.s. could announce tariffs on all remaining chinese imports as early as december. that's what happened sparked yesterday's selling. boeing among the hardest hit companies. president trump talked about the potential for a deal last night on some other network. >> china has been really hurting our country economically you'll see we'll win that one. >> how confident are you about the deal >> ithey'

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

shares of ford are lower after it's downgraded by morgan stanley. phil lebeau is in chicago.rapped up for us. >> reporter: the general feeling on wall street these will be pretty ugly numbers, the numbers coming out wednesday after the end of day trading take a look at shares of ford. morgan stanley cutting the company's rating to equal weight, price target moved down to $10 at the same time jpmorgan cut q3 by 36% a number of issues here when you look at slowing global production, china sales down 40%. it's european sales are softening. the company reports earnings next week. it will be significantly below expectations the profit warning is due to issues, the second for daimler take a look at the model 3 and the reason we're showing you the model 3 tesla ceo elon musk announcing on twitter they're going to introduce a lower priced version, what they're calling a mid-range version that will start at $45,000. when you look at shares of tesla, how can they increase production and increase deliveries and, oh, by the way, go back to when they introduced this in april of 2016. the

david will talk to morgan stanley vice chairman robert kindler, what to expect as we get to the end of year. dow down about 76 points. don't go away. think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp >>> take a look at this morning's worst performing names on the s&p ji them along with coty dow is down. we'll get to stop trading with jim after a break. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. >>> let's g

these are your headlines fashion fail europe's luxury giants take a tumble on the catwalk after morgan stanley cuts the sector to underweight and lvmh's third quarter sales figures fail to convince investors. >>> italian banks trade lower as salvini says europe's institutions are ganging up against his country. >>> and the global bond selloff cools as treasury yields retreat from multi-year highs after president trump blames the fed for moving too fast. >> i like to see low interest rates, the fed is doing what they think is necessary, but i don't like what they're doing. >>> sterling rises on hopes of a brexit break through as british minister dominic raab says it is time for the eu to match britain's pragmatism >> we should stay resolute and focused and i feel confident we will reach a deal this autumn. >>> there's been a bit of soft start to today's trading the stoxx 600 is down more than a tenth of a percent as you can see, if we look at the individual markets behind the numbers, the major indices in europe reflect that the ftse 100 down. the xetra dax in germany is down a quarter percent.

yvonne: morgan stanley and others report next. they follow j.p. oup who revealed lower bad loan costs. american borrowers keep meeting obligations even as interest rates go higher. this could benefit now in a healthy retail season. david: ramy inocencio has more on the outlook of lenders. rates,mpact of rising loan growth and macro risks like the u.s.-china trade war will be key points to look out for with bank of america, macon -- morgan stanley and others reporting. bank of america reports on october 15, and eps could jump 29%, but revenue could fall 2%. that's as the bank delivers on cost targets with expenses expected to be in line at trading revenue could be muted compared to a year ago with a stronger u.s. equities prices to help. morgan stanley, fees could bolster it with strength. earnings could rise 15%, but looking at other regions and products, weaker trends might way. a stock and bond a selloff is raising questions about near-term revenue outlook. that is a concern over at goldman sachs. the closings of m&a deals could push revenue into

andrew sheets at morgan stanley and guy stear at societe generale.surveillance" continues in the next hour. tom keene joints me out of new york. we will bring you from the turkish president, due to speak shortly on the death of journalist jamaal schuck show the -- jamal khashoggi. we also bring you our interview with giuseppe conte and ask about his fight with brussels, yields, and whether the budget law can be resized in any way. this is bloomberg. ♪ francine: saudi scandal, the cia director is scheduled to travel to saudi arabia. the nation is going through a crisis. the selloff is back. asian stocks sink. bank of america calls time on china's equity rally. assets under management tumble, shares fall two 2009 lows. i am francine lacqua in london. tom keene in new york. we have a busy day. we are waiting for president erdogan of turkey to talk. he is to mention the death of jamal khashoggi. we are waiting for the fii conference to start. later we have an interview with the prime minister of italy. we have gdp in the u.s. later this week. tom: the ma

and by the way, goldman sachs and morgan stanley in large part are asociety managers.dman likes to emphasize that goldman sachs asset management is a big are part of the mix than it was. so the market isn't giving them credit for that in this environment. >> mike, thank you you're always welcome here. >> you don't need to be voted on just vote yourself. >> sloongs the hyperloop from the new york exchange gets me mere. >> >>> options trader are betting a on a pounz for the asset manager. brian here to blake it down. >> not blackrock but plaque stone the put activity was huge there. trading 1.5 times that in calls in blackstone. typically two times the amount of calls versus pots now it's squud the other way a little rough but with we saw a seller of 250 oh november 43 puts for shurps they were selling insurance not buying put insurance what that meant is trader picking a level long to get the stock basically at process 59. with earnings on thursday for blackstone they expect about 40% year over year growth. they are saying if it stopgs after earnings i'm willing to buy

equities strategy at morgan stanley why worse? why wasn't that it >> well, it's in process, okay, so the things we've been working for, rates going up too high and putting cap on valuation in the much rich parts of the market which is tech, growth stocks, that's beginning, and unless rates come down we're capped, right, so to me that's the issue here today is what are you playing for at this point at index level, right it's getting harder. 2780 is kind of as far as we can go unless you went to bet on another meltup, so it's going to get worse because of liquidity what steve said is spot on is that the qe, the qt is what people are underestimating i agree with you, karen, it's not a surprise, but the problem is we timely flicked so the combination of qt accelerating and ecb started tapering on october 1st and this is the blackout period for share buybacks so all three of those have created less liquidity in the marketplace at a time when we need more demand for supply and that's why rates spiked so now you're in a bad situation. th

morgan stanley abandons its call for the flattening of the yield curve.ontinues to be tested. italian debt could be seen as too risky. sets targets in parliament. anna: good morning. this is "bloomberg daybreak: europe."s what we are expecting to see on the futures as we start equity trade, we need to get to breaking news that is coming across the bloomberg with regard him at the insurance business here in the u k, mark wilson steps down as ceo. the search for a successor will start immediately. wilson will remain with the 2019.until april of this is a man who has been with the business long time. he has been a guest on this show many times. he has been at the business for a long time. for -- a lot of interest from outside on the story, bringing up the various functions on the bloomberg to check out the 10 year. mark wilson has been 5.8 years in the job, he started on the first of the first of 2018. manus: this is a man who transformed, he delivered in data,of the performance 5.8 years in that state, a big believer in digital transformation, it is one of

mike wilds from morgan stanley saying the same thing. now is when you hunker downing and look at stocks you wanted buy the last five years but inable to because they got away. now into range be maybe it makes zbleens the problem with that guy is i appreciate the rational view on this i think we are going lower too. except for the fact that the velocity is picking up steam down 17% on semis in the month 14% on the transporting. the dollar going higher. macrodata across europe and rest of the world telling us it's gets worse faster opinion the irony is here. after the bell we had good numbers and fell back on earnings which are strong here but we talked about the divergence and it's catching up. >> i felt panicky for the first time. >> why. >> i felt panicky because in the beginning people were saying what are the levels we should step in and buy. today was where is the support they're looking for 25, 32, the february low zblos 25.32. >> 120 points blee are below where we are. >> i had guys telling me sport is 2,100 bears are throeing numb

morgan stanley and goldman sachs report next week. banks fixed income revenue has likely slowed in the last three months. global trade concerns and the effects on economic growth are seen as the biggest risks of global investment banks moving forward. let's bring into the conversation keith campbell. very good to have you with us. part of the conversation with banks is always around the interest rate and how deeply we are going to be able to see interest rates go. tell us your big picture story for the banking season. >> the biggest picture, you wonder if the ceos might secretly agree with the president that the fed is making things hard for them. in some ways, we are working backwards. an extremely profitable sector by some measures, the most profitable in a long time. jamie dimon has called this a golden era for u.s. banks. amidst the positivity, you have to compare that with plunging stocks and what that tells us about the way investors see things. if this golden period can last. --a: after leap reading after reading all kinds of t

and then we also got a bunch of pretty solid earnings reports from banks like goldman sachs and morgan stanley but also especially from the health care industry from health insurance united health from johnson and johnson beating earnings expectations all those were some factors why blue chips popped up by more than five hundred points can talk of the world's largest ever i.p.o. is also getting louder what's the latest over technologies the right sharing company got some proposals from banks for their planned i.p.o. old that is probably going to happen at some point in twenty nineteen and some of the bangs see a value for. next year at one hundred twenty billion dollars so that's quite a breathtaking number if you consider that the company only a boy about thirteen thousand people is not profitable and won't be profitable probably anytime soon but investors keep pumping money into over and just to put to get an idea what one hundred twenty billion dollars means there was that over would be worth more then for it to general motors and ford chrysler so the big three u.s. carmakers combined. ther