a morgan stanley miss.

alix: morgan stanley falling like a knife, falling by 5%.en an ugly trading day for morgan stanley after their mess. they missed on -- after their miss. they missed on earnings and investors are feeling a little skittish. earnings came in at $1.93 billion. taking a little -- taking a little deeper, revenue coming in solid. they turned out more revenue than goldman sachs on equity trading. that is the silver lining within that. wealth management, no surprise also hit hard by a very difficult environment. comp fell as well. all of that will be weighing on the market this morning. coming up, sam zell. his take on the government shutdown, its affect on real estate and what the environment is now for valuations. it is a weaker open. s&p futures up by about 10 points. european bank stocks getting hit not only with the week morgan stanley results, click trading down about 20% for the fourth quarter. and in other asset classes, an old fund -- unfolding story. boj pretty much does nothing as you have a safe haven bid coming into play. expectations ge

morgan stanley disappointed just moments ago, missing both on revenue and earnings per share. nding the already red futures lower. morgan shares right now down better than 5%. that has futures worsening as well. take a look at the broader averages. earlier we were looking at a decline but that has almost doubled, down 105 points on the dow industrials right now. s&p down 11, and the nasdaq right now down 26 points. almost a half a percent lower on nasdaq as well. this after yesterday's reports from the other major banks sent the major indices to one month highs. dow industrials at the close was up 2/3 of a percent. the s&p was up a quarter of a percent and the nasdaq had a fractional move upwards yesterday. in europe the major indices are lower. the fq100 down 47, the dax index in germany down 50 points. asian markets mostly lower as well. the kospi in korea squeaked out a gain, a fraction. all the majors were lower, just by fractional moves though. our top story this half hour, trade tensions. china's top trade negotiator is set to travel to washington for talks in about two w

a morgan stanley miss. new concerns about the chinese economy weighing on stocks futures point to a decline of the pen. >> netflix is up 50% since the december slump. will the momentum continue >> and he brought wall street investing to the masses. we're going to pause to remember vanguard founder jack bogle. stocks are set to open hoer one day after closing at their highest levels in more than a month. morgan stanley is down the firm says net revenues negatively impacted by a volatile global market environment. the biggest drop of the five largest banks. >> the stock had the unfortunate experience of having run up into the quarter. frankly i am disappointed because this was the one that i felt that had the most stable. this turned out to be really not stable. >> surprising in the sense that we knew that there was a great deal of weakness in december without a doubt but we did not expect it to be reflected as strongly in their results as perhaps some others, given its focus particularly on fixed income bein

guy: morgan stanley has a history of this kind of thing. is this the morgan stanley of old?is a one-off? made -- this is not the morgan stanley of old. stabilityd more about in their activities and talked more about the investment management division. vonnie: faang stocks are down today -- bank stocks are down today. we have seen compensating factors. banks reported negative trading numbers, and everyone was expecting that. perhaps people are thinking, that vix trading would be dismal. have beenhe bank ceos talking about better operating environments. the market has stabilized and bank stocks have come up. it is about thinking whether the markets will come down. guy: let's talk about socgen. one is the pre-warning on the numbers. the proppedd trading units, that is set to be shut down. there is a surprise these things still exist. but they could still see huge quantities of capital. to come back to this refrain of terrible market conditions. we had terrible market conditions in the fourth quarter and they have been struggling to make money. also, this follows on another comp

we have seen morgan stanley plunging 30%. how does this stock up -- snuck up?> this was the worst result we got on the entire street. that is saying something. we already entered this week of earnings expecting that fixed trading would do well -- terribly after the market volatility we saw in december. as you mentioned, james gorman is also talking about interest in getting involved in some asset management deals here and there. not huge megadeals but a few to add on to his investment management group. course, we can forgive him for turning attention to that division because it tends to be the one investors are most interested in these days when it comes to financial services. how does morgan stanley asset management business stack up against its rivals? lananh: it sounds like gorman wants to add more because he sees that there are spots where the company can grow on the credit side of things, the fixed income side of things. that is one area where he wants to be more competitive. on the call, it was interesting, an analyst asked whether this was the morgan sta

morgan stanley out in a bit. the major banks after the trading shortfall? i don't think so because i believe you will see many of the senior management teams will see it as a rebound. as you know from some of the reports from goldman sachs and others who were seeing better equity trading. if it does not pick up, i am with you. i think there will be bodies out the door later this year. francine: talk to me about what you looking for. we may see a drop in investment banking and trading revenue. wealth management is pretty big. gerard: you bring up an interesting point. when you look at some of the wealth management numbers, whether from bank of america or wells fargo, both companies have lower numbers because of what quarter.in the fourth i would expect that to be the same for morgan stanley. we expect to see strong equity trading numbers. also strong advisory numbers for morgan stanley. tom: are there too many banks? gerard: when you look at our banking system, as you and i know, we used to have 14,000 banks in th

andid see morgan stanley reaction to their earnings being negative.inancial stocks managed to gain ground for another session. u.s. futures unchanged at the moment. let's see how we are setting up for the markets in asia. couldtralian shares extend gains point fourth straight day and we're watching to see if the gains can crack 5900 points. gains in tokyo and seoul. it may turn out to be another choppy session as markets dissect conflicting reports on u.s.-china trade talks. paymover in sydney, after climbed 9% after posting underlying sales of over 2.2 billion australian dollars in from $918half, up million, making december the largest ever month on record for the company. let's check in on currency, the extending -- the kiwi the losing streak to his fourth straight day on the yen is holding at a two-week low and the pound is steady after rising. palladium, in on 1400 for the first time ever, the rally going along. people run is not teetering out yet and they expect to be in a supply deficit for an eighth straight year. >> in hong kong, u.s. markets,

it was not the morgan stanley of james gorman. how did you talk your way into morgan stanley?i don't know. how today get a job with all those working kids? that's all those wharton -- all those wharton kids? [laughter] people, 75 partners. it was a really amazing time. a lot of partnerships die as we try to bring forward to general atlantic. they were terrific leaders and partners. jonathan: let's talk about what's changed since then for your world right now. i want to talk about the ability to exit, bring in a company from a private situation. has the incentive changed over the last couple of years? there's an argument that maybe these companies can stay thriving for longer, that they don't need to -- stay private for longer, that they don't need to go public. guest: there's so much private capital in the world that large-scale cap raising allowed buddies to stay private without having to go public to raise the money they needed to grow. that was a fundamental shift. that allowed companies to stay private longer. i think the pendulum went too far. i think there's discipline a

morgan stanley and american express on tap.he student loan debt is putting a big dent in young people's pockets. that's not the only thing it's dragging down. wait until you hear the new warning coming from the fed. it's a craze that swept the globe. looks like it won't be ending anytime soon wh soon. why pokemon go may be bigger than ever. you're watching "fbn: a.m." ♪ go, go, godzilla. ♪ to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪ lauren: let's get you caught up on what's happening now. president trump will head to the pentagon today after meeting with senators on the u.s. involvement in syria and afghanistan. rand pai paul said the presidens still committed to pulling troops. lindsey graham warns declaring victory could provoke isis. yesterday there was a suicide bombing in syria that killed four americans, inclu

got 140, morgan stanley, $211 versus $236.ising the state of play at apple. ♪ manus: 7:21 a.m. in london. what is the market going to make of the big announcement from apple and from next? cut, 723 versus 729 on the guidance. from 727on pounds million. one of the first stores to report christmas sales. after a disappointing november, trading in the festive period was in line with guidance. a bit of a silver lining and a small downgrade. what do you make of the numbers? >> it does not look bad given the pressure we have had on retailers from brexit. a small cut, but not as bad as some people are expecting. pricing, i of thought that was interesting when they talked about what they managed to achieve. >> there was a lot of discounting around before christmas. next interestingly does not go on -- it did a small black friday production. it did not go on sale until after christmas. that is not going to be the case for other retailers. it may look ok, but it is what impact that discounting have on the margins. manus: thank you very

particularly, morgan stanley disappointed today. in the s&p 500, we are seeing individual stories playing out. is the is flat as nasdaq. home depot, we are seeing home-building stocks and home-building-type stocks, so material retailers are taking a hit, like sherwin-williams. -- the we see housing did see better housing data, so go figure. western data is another underperformer dragging things down at 5%. some of the chipmakers are down as well today. investigation -- the investigation into huawei is not helping. the 10 year yield is worth noting. the dollar index, we are keeping our eye on that. guy: let's get some insight with the markets. is here.th . rally andieve this would you continue to buy this rally? tim: that is the question everyone is grappling with. i suspect the volatility we had at the end of the year, we thought the case was against u.s. equities. it was more sensible. whether earnings deliver is another story. again, we had substantial revisions lower that seemed to be aggressive. i think there are links to this.

take the morgan stanley shocker. perhaps the rosy hue that would dissipate given a lot is based on overlooking the weak month of december nope, not at all the other bank stocks kept going higher like nothing like james korman didn't matter, the ceo of morgan we saw some weird crazy fabulous rally in pharma. something based on nothing we haven't heard much from any of these companies since last week's jpmorgan stock conference but allergan, which has been ripping since our interview, that's continued to claim. glaxosmithkline and amgen. even some of the companies that disappointed saw their stocks recover. ppg, which i just told you had a terrible quarter, that stock rallied fife points on the possibility that one of its shareholders, nelson peltz, the famous uber engaged investor is trying to force the company to split into two members that's an amazing move off a hissious report. that's nine points off the beat. get, this taiwan semi, down 20%, it went higher it rallied it was up almost 2% on the possibility that a

they got a buy was it morgan stanley? >> sure. >> there's a buy rating. jim i got your point fang is not dead thas bo facebook is flplaying offense. did you see it a savage fang piece. >> they'll never make money again. that's what they are trading like >> not only is apple best days behind but we never had good days never. >> they have good trading dollars. can you believe this stuff what is apple selling at >> nine times. >> is that right >> i don't think it is i own it i've been buying that. i've been buying facebook. i've bought a little more google today. fang has over shot >> let's do something fun. everybody hold up their phones or phone or tablet >> i got it hidden here. >> that's a zeus or something. >> apple, apple, apple apple, jim couple of apples >> he's got two or three of them >> jim, i know you had that long great conversation with tim cook did apple -- every one is focusing on things tliek b s lie battery and consumer in china. did apple screw up the marketing? i've heard tv ads and people on tv say the 10 r sounds like a nissan it doesn'

ean, morgan stanley's i.p.o. investment banking group said they could see an i.p.o.aluing them as much as 41 billion. this is a huge gap so it's not exactly clear how much they're worth. emily: right. morgan stanley, you mentioned, trying to build their bridges with palantir as a banker but they're also one of palantir's biggest corporate clients. what are these companies using palantir for? >> to pull disparate chunks of ata. either silos or real-time data, pulling it together to take business decisions about how to best run flair businesses. for example, chrysler-fiat, they're using it to do things like identify tiny fixes early in the manufacturing proceedings that could save them later by doing basics. like repairing one wing aetna costs maybe a couple of cents as opposed to something that if you wait six, seven months, it could cost a couple thousand dollars so going in and finding hat information. emily: is having a sales teem work income terms of gentle remaining revenue? > right. it's too soon to say globally. they pull their finances tight to them with you i

to some ofe speak the biggest names in banking including the ceos of morgan stanley, goldman sachs, ubs, all

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cbs's stock is up, up 1 1/2%. >>> now morgan stanley, their profit report fell short. ck is down at nearly 6%. that is a major loss for a very important banking company. >>> gary kaltbaum is here. kaltbaum capital management president. what does morgan's report tell us about the financial sector and the economy? >> i look at the weight of all the evidence and most of the other financials came in pretty darn decently and more importantly reactions have been good. jpmorgan numbers missed and so was pnc. we'll see what happens the next couple days. i think financials are fine. interest rates are stable. the economy at least here is still pretty darn good. i'm not worried about morgan stanley. really not at all. stuart: tell me about netflix. they report profits after the bell today. would you take a flyer, get out there and buy it today before the profit report? >> heck no. look, you know, i am not carnac the magnificent. i have no idea what they will report, more importantly what the reaction is. and the stock is already up pretty darn big since the recent low and we coul

how does this read through to the morgan stanley's of the world. we expect that to be pretty strong >> anyone who surprised by weak trading by, by weaked fixed income trading, we'll force them to watch the show. thoeb shou nobody should be surprised by recapital markets. that's a negative read through we already lowered our numbers for that the real question is, they said things have picked up a little bit so far in january. risk appetite come back a little bit. little prices have come back there's not a lot of read throughs >> good to see you the movie credits are rolling. we'll see you soon >> thanks. >>> here is what else is coming up >> next up, the call on ge that's getting a lot of attention this morning >>> the call on western digital that has chip investors running for the hills and etf edge the focus turns to retail. before the break, our partners on earnings fared. up 80% of the time fjs ha financials have had a tough time for more go to cnbc.com/kensho oh, and there's the closing bell. (sighs) i hate missing out missing out after hours.

we're the same about morgan stanley. after armstrong is still with us. you think is going on in the financial industry? is this healthy consolidation or are they battering down the hatches? it is relatively healthy if you look at blackrock and state street, their revenues are driven by market performance. last year was a down market, so it is a will be down big volume gain, both of those companies have huge volume and margins decreasing. automation makes things more efficient, you need fewer people. some of the companies cutting jobs are under threat of if that is the right phrase to use, or being strategically driven by increasing technology. that is certainly the fund management industry, and then you can talk about the ways that is changing is this. that a quantum manager was one of the ones we listed. it is not quite as simple as just the rise of the qantas -- quants and ai> -- and ai. >> it could be as simple as that. once they become better, you have nests -- less need for input. there's probably a bit of fat able to be taken off the bones. i don't

morgan stanley and action economics.ere's where we think we'll end 2018, 3.2% big slowdown here forecast by morgan stanley down to 1.7 the big differences are what happens to the consumer and what happens business spending. look at the consumer, a much bigger slowdown for the consumer they don't see a lot of extra help to the economy coming from either the tax cuts or from the better jobs and wages we've had. they have the consumer going down to 2% action economics at 2.6. look at this big difference, in the outlook for business investment, which again linked very closely to the tax cuts we think we'll do 7 this year, 1.8, all the way down for morgan stanley, action sees more tax cuts or the tax cuts continuing to give off. here's a quote from morgan stanley, though a growth correction does not mean recession for the economy, financial markets march to a different drummer and may respond like they are in recession. another difference, morgan looking for a much bigger dropoff in government spending than action. action thi

here's a quote from morgan stanley's latest report.ugh a growth correction does not mean recession for the economy, financial markets march to a different drummer and may respond like they are in recession. another big difference between the two scenarios, morgan looking for a much bigger dropoff in government spending than action. action thinks the market has this wrong, that government spending will continue to help growth through the first half of 2019 other factors we're looking for are those tweets, the trade war, and the government shutdown along with oil prices. all of those, morgan, have the ability to affect gdp as we go on we'll have to measure that we started one place and we'll see what the ending is for the year, morgan. >> oh, we certainly will from one morgan to another morgan. >> you like the optimistic one better, right? >> i do. i'm always glass half full steve liesman, thank you. >>> health care stocks were among the 2018 bright spots. the sector up around 4% for the year while nine out of 11 sectors closed in negati

we have the same balance sheet risk, assets that morgan stanley does.s the scale today to compete with the large american banks. you see that in gaining market share, activities and debt capital markets. if youdon't have scale, talk to any investment banker through a merger of investment banks, they will tell you they do not work. talk to someone from first boston, bear stearns, merger of investment banks does not work as a way to get scale. barclays, as we heard from mr. gorman and other conversations. brian moynihan yesterday. david solomon coming up. even them and their entourages, looking to germany. jonathan: far more constructive to the global banking system thean one month ago. tom: different in america. jonathan: the reason why the europeans have struggled so much, it is not just recapitalization, it is about negative interest rates of ecb. tom: setting this up for bloomberg tv and radio worldwide, one of the greatest distinction is how these press conferences work. mr. draghi will come out with comfortably brief comments, then q&a. what is the

let's get back to the morgan stanley 2019 investment conference.s there was a man who runs that fund. stephen: the company you are talking about is a capital partner and we have the cofounder and managing director, andrew west, with us here. thanks so much for joining us. about a 30% gain last year with many, many hedge funds that did not do so well. what was the secret to your thoughts? -- sauce? andrew: last year was one of those years where you needed to have your ear to the ground, to see what was changing. the macro cycle showed what was happening out there. we were early to identify slowdown capital investment cycles, early to identify the slowdown in tech. we saw what happened during the year. and we were early to get on top of some trade on the long side in companies with very strong, stable profit margins. stephen: on the short end, you really did well with the japanese factory automation a down, which was in cycle as far as. do you see that continuing? -- as far as capex. do you see that continuing? andrew: there is a lot of uncertainty.

tom, great to have you with us what's going on with morgan stanley? >> it because bad quarter. it was a bad trading environment. there is always one that will stand out. it will stand out on the positive side. one that stands out on the negative side. >> does it tell you something about the vulnerability of the overall franchise or can they say morgan stanley is down more than rivals now. it is a buy because it is fine relatively speaking? which is it? >> i think it's b. so the trading is such a volatile number. but over the long run trading revenues rise. capital markets activity rises so in any particular quarter it is a crap shoot. the core franchise will do just fine they had other ie techtems i will argue if you already have a quarter that will not be impressive you might as well get ahead of the curve for 2019. >> why is it that the banks are uninvestable right now it must be extremely frustrating. the stocks have been doing terribly now we have a little bit of a bounce but why has it been so toxic lately >> it is all emotion you know, there's beenin the last 30 years the

anybody suggesting not go back >> you know who's been right on this whole run mike wilson from morgan stanley. he talked about this going from a rolling bear he was talking about that. he was talking about the early cycle names are the ones you want to look at. oil. he brought up financials housing. different names that are the names you can be in now. i will tell you one thing. the one caution we talk about, everything we're seeing like the last couple of weeks is extremely short term in duration everything we're seeing. they are not going outnd saying we want to buy the ju calls in this and whatever they are literally staying january, february and barely, maybe a bit a month. >> is there anything to suggest this is thnothing more than a be market bounce? >> not really. i do think when ceos talk -- here is my ob vags servation. it discounts things double, twice. information moves so quickly you get the discount then it ignores it we saw that going down to 140 trading up to 170. we saw it with apple then the news comes out again and it's like it never happened before and it comes down that's

you should get behind biotechs morgan stanley with three picks they're telling you to buy now >>> andst stephen tusa writing about ge again. the bulls aren't going to like it new buys and sells from bill nyegren and jim cramer all of that when halftime report starts at the top of the hour. carl, i will send it back to you. >> that's a show, brian. see you in a few. >>> let's go to the cme for the santelli exchange. >> good morning, carl. welcome my first guest of the week as we were talking off camera, the real issue is there seems to be something missing we know there's not a systemic issue slowing the economy, but we are slowing globally. we don't seem to be going back up to 3% growth. what is it that is our impediment, do you think >> i think the first thing, what's still there is consumer spending consumer spending with and without auto, 4% type of growth rates in retail sales. what is missing and has been is acceleration of capital spending from mid single digits to something higher that gets us and keeps us above 3% growth levels the capital rates spending, it is muted, there's

we can see morgan stanley seeing something similar.o guiding to profit levels materially lower than consensus. and this is the same story we are hearing, let's see. we see below consensus guidance. have a new bloomberg news story on the terminal talking about whether the u.s. auto market is in recession. one final flip, and i can tell you for u.s. like to vehicles -- light vehicles, versus suv's and crossovers, it has only grown 0.3%. you can hardly see this. in the fourth quarter of 2018 the small and light vehicle sales was the worst for any quarter. toyota and others are saying for 2018 we saw 17.3 million vehicles sold. they say they will be got -- they will go below 17 million. seeing gm optimism, but there is a lot of animist pessimism. haidi: ramy inocencio -- analyst pessimism. haidi: ramy inocencio there. this is bloomberg. ♪ is is bloomberg. ♪ shery: i am shery ahn. haidi: i am haidi stroud-watts. you are watching daybreak australia. oman is predicting the oil outlook will hold. the agreement between opec and the independent

morgan stanley giving up the gains of the week today. bob?morgan stanley, a specific story, not dropping the other banks. >> absolutely. goldman sachs, citi, bach of america up 10% this week. >> that's right. very important for that trade story here, we got as high as 2644 on the s&p 500. that's a -- where we were december 14th, exactly a month ago, from 2644 to 2350 and back to 2644. it's a perfect "v" and quite remarkable two thirds of the decline we saw has been retraced overall. now people are stable on the earnings situation the numbers are about 5%, 6% for 2019 people were going to zero. that's gone away a little bit. i think it's premature to get resolution on trade. >> nice close, though. up 155 on the dow. around 0.6% s&p. not too far from the session highs at the close, up 161 on the dow. sara, back to you. >>> welcome to the "closing bell." i'm sara eisen wilfred joining me in a moment with mike santoli. let's take a look at how we finished the day on wall street. up across the board. the dow closing higher 162 points or .6% and of

within morgan stanley, our view is the fed will still hike two more times.ed to play a word game. yness and we make it fedyness. the market with the fed is an ongoing narrative. lisa is right. at issue is the markets don't understand the fed balance sheet size issue. the fed has never come out and said here's the optimal size of our balance sheet and here are the pieces. so much for treasury, so much for bank reserves, so much for currency. i see reserves that are a couldon wide best the fed give us that clarity tomorrow. alix: they will be asked. i have no doubt. david: not sure if jay powell wanted to be real clear at the moment. the u.s. sends, the world a message, escalating attacks on huawei in china. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." devastating wildfires in california bringing one of the nation's biggest utilities to its knees. pg&e filing for chapter 11 encryption protection, seeking billion dollars -- in bankruptcy -- chapter 11 bankruptcy protection, seeking $50 billion in liabilities. deep cost cuts in the last 2019, of 2

financial sector earnings continue with american express and morgan stanley. netflix reports its quarterly results just days aftersi incr prices on its streaming services. economic data will focus on the labor market with the release of jobless claims. that should be interesting. that's what's coming up tomorrow. >>> incredibly it looks like sears will stay open. ccording to multiple reports, theretailer's chairman, eddie lampert, won a bankruptcy auction aft sweetening his offer twice to more than $5 billion. lampert's last-ditch plan must first be approved by a bankruptcy judge. if approved, it would keep about 400 stores open. but the company is not out of the woods yet. there e reports that some creditors still object to lampert's plan and would a total liquidation of the retailer. >>> the departmeneof agricults recalling workers to temporarily reopen an agency that provides services to farmers and ranchers. about 2500 farm service agency workers hale beend back to work without pay, by the way, to process existingns farm l and to provide tax documents. the

. >>> and then there's morgan stanley, which many say was the most disappointing bank earnings report this week. both profit and revenue came in belowta expons because its two biggest businesses, trading and wealth management, suffered declines amid what it calle a difficult market environment. but on the earnings coerence call today,ceo james gorman said the most recen quarter is not indicative of things to come. >> we do not believe the fou ih quarte a new normal. in fact, while it's early days, e first quarter has started on a similar path to the start of the first quarter of 2018. >> but shares of morgan stanley did fall 4% in today's session. >>>se ere, the state department today recalled most of its furloughed a workers said it is taking steps to pay salaries despite the partial government shutdown. ther agencies have also recalled some of their workers as well, but without pay. and they did so by expanding the definition of essential servntes. sa brewer has more on that from hackettstown, new jersey tonight. >> reporter: after 27 days of a partial government dosh, the doors of

look at morgan stanley today while they missed beak all metrics, it's one quarter. over 2018, what they reported then, they killed every quarter. i'm more invested in the market than i was in november going into the crash in december so to speak. but there are always going to be air pockets in the market. i think those are the air pockets and when you see that volatility which is not riskis you put money to work. >> does anybody disagree joe, do you have a beef? i think beef is a verb do you beef with this report >> listen, i've said multiple times in the last couple weeks, we had tom leone last week he said he believes the market in 2019 is going to be up double digits okay there's a big difference between being up 10% and big difference between being up 20% >> happy and really happy. >> no, 20% gets you bob last year's highs you make a new all-time high 10% takes you up to 2750 we continue to have this debate as to whether the bottom is in i believe the likelihood is that the bottom is in the top is in. and to borrow jack bogle's phrase which we're all talking abo

morgan stanley reported, it was a disappointment.hey're having a little bit of a struggle, sort of wrapping their arms around volatility of the previous quarter here and you do have morgan stanley going lower at the moment. it has been a real checker board i believe for earnings so far. jpmorgan, goldman sachs, killed it. and you know, then you got bank of america, citi, all of these names. this checker board has people wondering do we go into financials? >> i think you do. i mean at the end of the day the banks that have embraced new volatility did very well. the other ones got caught flat handed on it, didn't adjust to it didn't do very well as to morgan stanley. if you look at the amount of money banks are making right now it is incredible and i think that is going to continue. even though you have one bad quarter of trading and volatility i think banks as sector really look solid. if you're in this environment right now, it is the best of both worlds. you have potentially interest rates that are off the lows. they may not go high

what a session >> today it is morgan stanley that says we're going to retest december lows.y crowded in defensive they say once we get there, you buy cyclicals. >> we'll go down -- i don't know if we retest that would be something to buy the cyclicals. we saw it upgrade just now upgrade on emerson, which is a company i like, fairly levered to china, sell to hold at citi downgrade, one of the biggest weaknesses in the industrial world is -- i don't -- i like the take i like the take. i want to see this rotation, i want to see stocks go down i want to see stocks go down on good news like the retailers that are just emphasizing macy's i want to see oil stabilize. if these happen and we see facebook go up, because there is a note this morning saying that facebook is going to be making a comeback, that is, wow, facebook >> mkm says perhaps the largest upside because of the uniqueness of the network they make comparisons to tv, where the audience peaked and the industry continued to grow for decades. >> i ask everybody outthere, who you to lido you like, who d like what ceos are a

we are pleased to be joined by phone tech expert joe duncan who formerly worked at citibank at morgan stanley joe welcome we're so glad to have you with us on the program we appreciate you spending your time and expertise with us mark when big going burst onto the scene a decade ago it was really the guts behind the block chain that was really it wasn't just because it was the entered the block chains that nearly everyone embraced it seemed that block chain was going to lend itself to like every single sector out there joe and in some fashion or form so where are we today in the development and deployment of blocked change technologies joe. you know i think you know that a common analogy we hear about where we are in the stage really of any new technology is baseball right when inning are when i think about a more useful analogy is actually a relay race what stage are we in a baton being passed from one to the next the first stage was in this case was the technologists they were working on a novel solution novel solution to a problem which was double spending because in the digital is a it's

which which sectors stand to benefit the know the most jodan could formally have citibank and morgan stanley and a fin tech expert thank you so much joe hope you'll come back soon. you're very welcome love to thank you. and last week gold prices hit a key thirteen hundred dollar level and it seems to have released a lot of balls and gold here to talk precious metals and dr copper is todd bubba horwitz the chief market strategist at bubba trading who comes to us from chicago todd we can't thank you enough for spending some time with us and you know gold was up around thirteen hundred sixty five dollars about a year ago and then last april right around the time the president trump announced these trade tariffs on aluminum and steel it took a deep dive which continued for months in august it was below twelve hundred dollars per ounce to something like eleven sixty five sixty seven something like that and had hit some real lows near that in october but since november it's been above twelve hundred and had been closing in on what many thought was this key resistance level of thirteen hundred now

generally speaking morgan stanley slapping a $110 price target on the stock. stanley also downgrading william sonoma to an underweight. the firm cutting its price target to $49 per share. shares of williams sonoma down by 2 % in extended hours trading. >>> well, coming up on the show, some more stocks on the move this morning, including two cops and a drop today's stocks to watch are ahead. first, a double play in the sports world one legend is in while one legend is out. we'll explain when "worldwide chgerernafthr is ♪ and if you feel, like i feel baby then come on, ♪ ♪ oh come on ♪ let's get it on applebee's. now that's eatin' good in the neighborhood. (voice) (danny)know what impressing the heck out of me. also, giving a shih tzu an updo. pet care ain't easy. 12 hours? 20 dogs? where's your belly rubs? after a day of chasing dogs you shouldn't have to chase down payments. (vo) send invoices and accept payments to get paid twice as fast. (danny) you deserve a treat. and by treat i mean cash. bacon-wrapped cash. josie...it's time to get yours! (vo) quickbooks

morgan stanley embrace the buy at ubs. olympus up 6.5%.climbing to him a one month high. is heavilye pharma undervalued and has raved the stock to outperform from neutral. earlier rising by 4%. goldman sachs upgrading the stock to buy on the idea that inventories will be resolved. for factory automation equipment by march and april. a lsaast check on samsung which eased earlier losses, now down by .04%, as preliminary results to disappoint. the stock has been under pressure over the past year, down 26%. now trading at 6.6 times estimated earnings. over the past three musk, analysts have been lowering their price targets to 15% for samsung. shery: thank you. let's now get the first word news with jessica. jessica: thanks. slowing chip demand in the u.s. china trade war left samsung with first quarter profits below expectations. 65erating income fell to $9. billion below the forecast of $12.3 billion and a third below the figure announced a year ago. trade tensions have hit demand with shares down a quarter last year. amazon is now the most

morgan stanley indicated there was an improvement in the market.ve certainly seen the volatility that the markets in november and december seemed to 2019 has gotten on. foray get better from here the global banks. there might be some idiosyncratic events that might royal the markets again. that is something we have to keep a close eye on. as the quarter gets underway. nejra: we are also hearing the french banks could be cutting bonuses on macro gloom. could the pain spread to the rest of european lenders? >> that seems to be the case. we already know deutsche bank has decided -- or has indicated it could cut the bonus pool by as much as 10%. we know from the french banks those conversations are ongoing. presse heard from local that ing is considering moves this morning. all of the banks across europe will be having similar moves as 2018 and the full extent of the moves from 2018 become apparent and as earnings season starts in europe starting next week, we will see all of those decisions be more apparent as the banks report earnings. nejra: thank y

we have the same balance sheets that morgan stanley does.cale to compete with american banks of any see that in terms of market share and activities. and if you don't have the scale, if you talk to any investment banker who has been through a merger, they will tell you they do not work. you talk to someone from doj, from j.p. morgan, merger of investment banks do not work as a way to give scale. that was the barclays ceo, very animated on the subject of m&a. , justan equity markets under one hour into the trading day. we see modest gains. u.s. futures point flat or higher, technology could get a boost. missing micro and other names headed higher. the london market being weighed down by vodafone, a big weight. today, in davos, we speak to some of the biggest names in banking. all of that live coming up from the world economic forum. don't forget, the ceo of the biggest automaker in the world from volkswagen coming up as well. "surveillance." is up next with more from davos. this is bloomberg. ♪ place, the xfinity xfi gateway. and it's strengt

time for our call of the day walmart getting a boost from morgan stanley upgrading the world's largestailer for the first time in four years to overweight the stock will be one of the only retailers with earnings growth this year it is up 6% so far so is walmart the champion of retail >> you know, i understand where they're coming from on this call the problem i see is i think they waited far too long to get to where they are. the talk is back up to 98 from the low 80s. i think it's late. they did raise the price target from 107 to 110. they talked about e-commerce and the strength they have there and how things are getting better. i think there are other retailers that have proven it and i'm looking specifically at target. >> shocker. >> take a look, when you look at e-commerce and look at the growth, they actually put up a number for holiday sales of 5.7% higher when you look across, it makes sense to me that you've got a higher margin business with target than you do with walmart. when you look at pay and some of the input costs going into this thing, i think target has a better opp

morgan stanley and scout 24 did not comment. just eat to the downside.e on the way out, plum is out as ceo for the company. they are dealing with some activists investor can draw. -- kent's rock. revenue numbers seem a bit strong. anna: thank you very much, annmarie hordern with your movers. let's talk brexit. theresa may is said to give up cross party talks. bloomberg sources say the eu is split over how long the u.k. should delay its departure, some pushing for an extension as much as a year. goldman sachs says the chances of a softer brexit have increased, in fact. i'll get a chart ready for you and a moment. let's talk to peter at rbc capital markets. he is still with us. i'm going to find that chart right now. goldman sachs basically saying ais morning that they see number of softer possibilities for the pound. they like the pound. they say brexit is going to come later, softer, or never going to happen. do you share their optimism around the pound? not all roads lead to softer brexit, do they? peter: yes, indeed. in principle, yes. there's a good a

equities strategist at credit suisse and a public policy strategist at morgan stanley michael, sinceward in any way after his oval office address last night when it comes to ending the shutdown >> i don't necessarily think so. i mean, you really have two sides that are pretty well dug in i don't think this is sort of a real, meaningful disagreement, and -- and i think for markets really this is more kind of evidence of the problem than the problem itself, right, so the gridlock that it's evidence of is basically telling us that the types of things that the u.s. government could have done in 2019 that would have alleviated some of the pressures that markets are feeling now from policy choices in 2018, ie, putting in fiscal stimulus and, therefore, putting pressure on the fed's dual mandate in 2019, those things are very unlikely to happen, right so i wouldn't look at the government shutdown as problematic in and of itself even though it doesn't seem like there's a resolution coming any time soon. >> is there a point at which it starts to matter more for the markets? >> yeah. well our

morgan chase morgan stanley citigroup and wells fargo who according to a statement confirmed that they have ample liquidity available for a lot of lending the calls came as u.s. stock markets experienced their worst week since the two thousand and eight financial crisis uncertainty over the partial government shutdown has added to concerns key indices tough wiped out all their gains for the here. and for more on what's driving the markets in these last few days of the year i'm joined by chip on the chin ballou my colleague of course will phone call do you think come markets well i mean if the reaction is anything to go by so far it's not doing any of that likely or reassurance that isn't quite the reassurance now investors actually thinking about whether they have to be concerned about the liquidity that he had to discuss with those six banks yolles in the u.s. that he spoke with yesterday and of course today he'll be having a meeting with the leading market participants in the u.s. regarding the current market volatility among other things and saw investors are wondering if there's mo

other financial centers once britain has officially left the you big players from overseas like morgan stanley or bank of china well no longer be able to conduct business inside the block from their london bases even if bracks it breaks it hasn't happened yet it is already having a very real impact frankford started a multimedia charm offensive to track bankers fleeing braces britain. nice to meet you the name is. frank. frank. head of uni modern architect the video was posted online several months ago it's aimed at the family of the briggs it uprooted banker who's not so keen on moving away from a world class city like london viber nightlife the british capital is europe's finance center and home to some of the world's biggest banks but to keep doing business with the e.u. will have to be located in the block and that means more than just a shingle on a door or a mailbox at least according to european regulators. it means moving personnel and capital about forty banks have already received a license in an e.u. city. a few of them went to dublin some to luxembourg and others to paris but the v