whereas morgan stanley is 1.1 times. jp morgan deserves the premium valuation. but not that much.not so much jp morgan comes down it's morgue loh morgan stanley goes up. >> i don't like morgan standry in the space the only wunl i like is jp morgan last time morgan stanley was here it caved at the level 15%. >> more for mopgss action tune in to the full show 5:30 tomorrow 5:30 eastern time. up the next, the final trades. >> announcer: "options action" sponsored by think or swim by td ameritrade i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ oh, there weren't enough intehours in the day to maintain are old data center. so we made a twelve a fifteen. three extra hours. but that really doesn't add hours to the da

morgan stanley's ceo's advice to the fed. and a $36 billion surprise bid. announces achange deal for the london stock exchange, buying $36.6 billion. and market whipsaw. jp morgan sees value rotation could last as investors reposition. david: welcome to "bloomberg daybreak" on this wednesday, september 11. today is the anniversary of the day 18 years ago when terrorist attacks took the lives of some 3000 people. a series of events commemorating the lives lost against at sunrise, with the unrolling of the american flag at depend on. there will be moments of silence. bloomberg will be covering those events through the morning. alix: 18 years. in the markets, you have seen the s&p hold steady, but the churn beneath it has been quite staggering. a huge, unbelievable shift, added momentum into value since value weeen -- into have seen since 2009. you're seeing some buying in the bond market. yields down by about two basis points. over in europe, couldn't decide on a bond bear or bull day. time now for the global exchange, where we bring you the market moving news

carol: and morgan stanley chairman and ceo james gorman.his is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek." i'm jason kelley. carol: i'm carol massar. you can listen to us on radio on sirius xm channel 119, and on am 1130 in new york, 106.1 in boston, 99.1 fm in washington, d.c. and am 960 in the bay area. jason: in london on dab digital and through the bloomberg business app. we continue with our special coverage from columbia business school, building on business week magazine's best school rankings. we went to one of the schools that is always on the list to speak with faculty driving the program and its high-profile alumni that are shaping the business community. carol: among them, lulu wong, a founder and ceo of tupelo capital management. she graduated from columbia business school in 1983. she has been in management for decades. we spoke about the global economy, unrest in hong kong, and bridging the u.s. and asia. lulu: i think it is a fraught situation and friends and colleagues on both sides are grie

i'm really excited to be part of the morgan stanley team. i'm justin rose.liding today after new tariffs went into effect this weekend, and tech is taking on the trade war head on the consumer technology association, which is a trade group representing over 2,000 companies, released a statement today condemning the tariffs and also calling for congress to take action against the trump administration's decisionss gar president and ceo of the consumer technology association. gary, you're asking for a tweet. >> i'm not asking for a tweet. what i'm asking for is some reason we're asking president trump to put down that smartphone, which we love, and start getting to the negotiating table. because he's promised us now for over a year and a half this is just a short tf term thing, and we have gone along with it, not happily, of course, but he keeps increasing he's increased tariffs so much, now on almost every product that consumers are going to feel it in fact, business is already feeling it "wall street journal" today reported small businesses, almost half of th

>> back in may we were all sitting in our seats wondering with uber flop and morgan stanley handlingusly didn't go well the first couple days, would it hurt them in a business snens here we are apparently with that result, which is the saudis being significant owners in uber bloomberg reporting they own at least 10% of uber and being less than pleased with the way that investment was handled if you had to pick between jp morgan and morgan stanley. >> the new chairman of aramco was the head of the pif, public investment fund. so the new head of aramco who will decide who the lead banker in the deal is a guy that's been personally burned by the uber underperformance. >> yeah. put together the pieces of puzzle i would think that morgan stanley is still going to be an underwriter in the deal. >> they need a ton of banks. >> lead left is the quarterback. they're calling the shots. they're in all the meetings. they're prooivy about when to list, if to list if energy prices crater, equity markets crash between now and november when they're thinking about doing this, probably hold it off. >>

next, morgan stanley's james gorman has a note of caution for the fed.ive interview is next. this is bloomberg. ♪ matt: 30 minutes into the training that. china unveils its first list of u.s. goods that won't be hit by extra tariffs. lubricanticals and oils are spared the corn, soybeans, and pork are not. morgan stanley ceo warns against the fed cutting to easilyan gives take on where rates set -- sit. >> i would have expected the 10-year around 3%. naspers debuts a new entity on the accident stock exchange, 29% about its reference price. -- above the reference price. i am matt miller in frankfurt alongside anna edwards in london. anna: let's have a look at the mov screen. 450 stocks to the upside on the stoxx 600. we do see some bias to the upside and that is reflected in the overall move higher. two to the gainers. some spanish banks we were talking about yesterday moving lower on the court ruling and are moving higher this morning. hammerson up by 3%. we had some big news out of that sector. casino is up by 3%. we will be hearing about the latest head

growing, tracking ahead of morgan stanley's estimates.ack over to you >> all right frank holland, thank you and when we return, frank calderoni is with us on how the company's customers are planning ahead for more tariffs, fewer, sooner, or later >>> and later, the president's chief economic adviser larry kudlow joined us with his take on the jobs report lore on that a t more "squawk alley" still ahead, stay with us. >>> what if? that's what anaplan clients and everybody else asking themselves when it comes to tariffs using the company's financial planning software to analyze just how and when tariffs might impact their businesses. national economic council director larry kudlow joined us earlier this morning saying conversations with china on trade have been going well take a listen. >> the phone call night before last between secretary mnuchin and ambassador lighthizer and vice premiere lee yao hey went very well. that's important they have decided now the deputy's level, the deputy's level will continue in washington later this month.

. >> how do you make morgan stanley happy? >> first of all, morgan stanley is our customer already and we build much better service. we help morgan stanley improve employee vision. the company portrait is getting better that's whythey become happier customer after a while morgan stanley will see the huge value after they be part of zoom this is a way for us to deliver happiness to our customers like morgan stanley. >> sir, what is the best way to measure if you're a retail investor do we look at your rapid revenue growth because your actual contract strategy makes it a little bit harder for me to analyze it by deferred revenue or billings what's my metric here? >> i think you look at our camp based on idc by 2022 it's a $43 billion market look at our revenue today. as long as we keep working harder and make sure customers are happy, i think long-term value i think should be okay. >> why do -- people are leaving face time, they're leaving a lot of different little guys i mean, i always thought cisco's pure enterprise, but i am

she posts a study, survey of the morgan stanley summer interns asking them the most important features when you buy a new phone, number one. want to guess? battery life >> additional hour -- >> number two, compatibility with my other tech and number three is camera >> there you go. i wonder if those people shake hands, look them in the eye. >> they do they do. i had plenty of -- >> interns. >> my friends children now who i'm trying to help secure internships if i can, it is after junior year, very important, they serve during the summer and it means you get a job at morgan stanley or goldman sachs, they're an impressive bunch. >> they look you in the eye. they don't just text you >> they look you in the eye. they do a good job they have super days for interviews these kids go through that sound brutal them still want jobs at these places. >> i'm thrilled they actually -- the handshake is still in use? >> absolutely demand they sit down with me and i enjoy a rigorous discussion with them before i would even think about recommending any of them >> arrogance and ignorance has been a hallm

we are morgan stanley. >>> welcome back to "fast money.he xrt, retail etf falling today as investors worry that the recent surge in gas prices could hit consumers where it hurts look at nordstroms, macy's, kohl aeg's some of the biggest losers in the sector. really can it just occur to everyone that there is -- what's today, tuesday. >> that's a one brain cell trade joe. the bottom line is that trade is definitely -- i don't think the reason you see nordstrom trade off 9% you have seen a snap back in a lot of otto a lot the names. the department stores have semg secular issues if you want to see -- some of this- first of all the impact of oil on the retail sector in the short to medium term is inconsequential. when you look at these names they are coming out of an enormous rally what outperformed everything in the last few weeks? retail. >> i'm not impresswood knows names. and the reason i'm not they have to show us the money so to speak. ive this to show that they can survive in the market which we haven't seen yet, owe joe what names are

morgan stanley ceo speaking frankly about the fed. >> i've support the latest fed rate cut and i expect they will do one or two more. but then, it is time for a pause. managers apply unconventional wisdom to a changing financial environment. corporateent-grade bonds are an asset class that provides more risk than return. plain tot is pretty see that bonds are not a safe place to be. 17 trillion treasuries showing negative returns which is crazy. >> it's all straight ahead on bloomberg best. hello, and welcome. this is bloomberg best, your weekly review of the most important business analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. the tension between boris johnson and u.k. lawmakers ratcheted to new levels on monday as the him stuck to his stuck to -- as the pm his do or die brexit plan. british parliament is about to suspend its operations for a month at the request of boris johnson and the order of the queen. but not before legislation barring the prime minister from leaving the european union without an agree

i'm really excited to be part of the morgan stanley team. i'm justin rose.tanley. >>> welcome back to "fast money," global central bank has been on a rate cutting binge this year. there has been a whopping 32 rate cuts this year alone. according to the markets that's right swap market pricing it at another 58 cuts around the world. how could this rate cutting craze impact equities worldwide? >> i don't think it is bullish i love the carpenter by the way. >> fantastic >> one of the top ten voices of all time >> and she was a drummer i digress. when 30% of bonds have negative yield, that has to be by definition problematic >> it leads to high equities >> exactly >> you are looking at money flooding into equities that's where we have seen. ta it is a win-win. when we see rates go up fract e fracturely it is a win-win, i don't think rates are going as low as those 58 >> well, it is for right now a win for you as equities. if you look at japan and europe. >> and we say relatively higher because you have that kind of relative value trade, radight so for the u.s. i

goldman sachs, morgan stanley and j.p. to grease their wheels with saudi arabia coming raincoat. there hittin hoping to get paydn billions of fees. usually hundreds of millions. but now it's billions that could be associated with oil joint market debut. charlie gasper arena is here with exclusive an info. >> a year ago in october, the journalist was murdered, assassinated and a lot of people believe the crown prince had something to do with it. this is coming on the one-year anniversary. this is interesting this is interesting that wall street did not care, they put it aside and they did for the deal. here's what wework know in terms of the size, they will value saudi arabia, the big oil company which the train to bring public because they want to attack and other issues. it's to flow the deal and get capital. they were value the whole thing a $2 trillion. i can't tell you how much the do initially. they will understand this year is going to be the first one, this week will know the underwriters. here's what i understand f

this is the ratio morgan stanley tracks between gold and the s&p 500.s it widens in a significant way, an 18% change, the folks at morgan stanley are pointing out that could ignore bearishness about the value it -- that could signal bearishness about the valuation of the s&p 500. course, one of the top stories moving all of this markets remains the federal reserve cutting rates for the second straight meeting, as has been widely expected. the benchmark now lowered by 25 basis points. the range, 1.75% to 2%, with chairman powell stressing that the cannot look -- the economic outlook is solid but they are divided over the need for further easing. here to take us through it is achieved u.s. economist at oxford economic. in, kathleen,iced but what is next? i want to focus on the balance sheet and what the federal reserve is saying about what we can expect. they are not saying qe, but should we expect some coming our way? think we should expect the fed to be open to the idea and the likelihood of more rate cuts. i think there is still a lot of risk out there

we are morgan stanley. >>> welcome back, everyone i am sue herera.e's your cnbc news update at this hour. california will let college athletes hire agents, make money from endorsements, defying the ncaa, setting up a likely legal challenge that could reshape college sports governor newsome signing the law. >>> a new law barring teenagers buying tobacco products, including electronic smoking devices goes into effect tomorrow the law raises the age to 21 they'll focus on sellers of the products, not the underage buyers. >>> the fda warns pet owners to throw away performance dog frozen raw pet food bought after july 22nd. a sample tested positive for salmonella and list teeria >>> and dozens of current and former world leaders attending the funeral service of former prech president chirac in paris. macron was in attendance along with putin and former president bill clinton >>> you are up to date that's the news update this hour back downtown to "squawk alley." jon, i will send it back to you. >> thanks, sue >>> european markets closed a few minutes ago.

nejra: morgan stanley ceo speaks frankly about the fed. >> i've supported the latest federated cut and i suspect they will do one or two more. but then it is time for a pause. nejra: asset managers apply unconventional wisdom to a changing financial environment. >> investment grade corporate bonds are an asset class that provides foreign risk than return. >> i think it is plain to see that bonds are not a safe place to be. >> you have 17 trillion treasures at negative returns which is crazy. nejra: it is all straight ahead on "bloomberg best." hello and welcome. i'm nejra che pitch. this is "bloomberg best." let's start with a day by day look at the top headlines. the tension between boris johnson and u.k. lawmakers ratcheted to new levels monday as the pm stuck to his do or die brexit plan and parliament came together in opposition. >> the british parliament is about to suspend its operations for a month at the request of prime minister boris johnson and the order of the queen, but not before enacting legislation barring the prime minister from leaving the european union without an ag

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. - stand up if you are first stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life. >>> welcome back to "fast money" the countdown is on apple gearing up for its key annual event taking place tomorrow. josh lipton is in palo alto laying out what to expect. >> reporter: the star of the show tomorrow will be the iphone and we're look for three new iphone models. some updates could include faster processor, an improved camera system. that's often an important reason people do upgrade. maybe some stronger waterproofing and shatter resistance big question is the price. what is tim cook charging you for these new models one is expecting apple holds these price constant no real change from the current lineup we're looking for wearable, a new watch. air pods the fact if you combine wearables and services, accor

nejra: that is james gorman, morgan stanley ceo speaking to bloomberg in new york. joining us, the global head of that strategy. great to have you with us. let's talk about what has happened in rate markets the past couple of days. you said fixed-income markets have gotten ahead of thlves in terms of the underlying fundamental outlook. are we more realistically priced after the moves of the last couple of days? >> i think we are getting there. weeks, the big story has been central banks pushing back on expectations. you have the rba, bank of canada, riksbank, and behind the scenes, the bank of japan buying a lot less fixed income and particularly at the long end of the curve. central banks are telling you the price -- fed has priced too much. confirms what was get a sense in terms of liquidity, if we see bond markets spin around as we did, negative to positive, 1.20 5 trillion, 10-year at a one-month high. not take much to push these yields much higher, is it? we've learned the fat -- last few years is liquidity and market is less than it used to be. that was the ca

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. >>> if you have questions for me or the halftime crew except for pete, of course, send it to cnbc.com/halftimereport and we'll get to them at the end of the show. go to cnbc.com/halftime or get us on twitter with the hashtag ask halftime. >>> welcome back. i'm sue herera. here is your cnbc news update. british prime minister visiting a hospital rebuffing allegations that he is whipping up divisions with charged language about his brexit opponents. >> can you use words like surrender to describe a certain act, a certain bill? and quite frankly, i think that you can. and if you say that you can't, then you're kind of impoverishing the language and political debate. >> rallies continuing in hong kong, a day after the city's chief executive faced an antagonistic audience. many protesters said they wanted to know about the fate of protesters who were detained during earlier demonstrations. >>> egyptian security forces completely sealing off. the epicenter of the arab

we are morgan stanley. >>> welcome back to "fast money.re may be some health care hurt ahead for a few names united health and humana was downgraded joining us is matt borsch. >> thank you great to be here. >> it's the fear of a democrat and specifically is it elizabeth warren >> it could be elizabeth warren, it could be bernie sanders i don't think investors necessarily see a big difference there. and actually we're not -- we're not betting that we'll get something like medicare for all. we don't think medicare for all can get passed this is about the investor concern that you go from having an administration that is about the friendliest you can get to for-profit managed care companies to an administration that would be a really tough regulator, tough on these companies as i think would certainly a warren or other progressive candidate administration. >> so let's be clear you're not making a call on the election but you're making a call on the volatility leading up to the election as perhaps people get more concerned when they see who th

this is from morgan stanley.ll change in financial conditions that's blue line you see dramatically from december highs when this line is high, financial conditions are tight. when it's going down friendlier, less tight they point out it's almost all because of the decline in treasury yields. if you take out the treasury effect it's really not that much different from where it was back in the spring. still not at a bad level but shows you how much has been hinging on the fact treasury yields have collapsed. oil, stocks, dollar other things here corporate debt spread. this is the spread between highest level of junk bonds and lowest level ofinvestment grade. this is pretty steady. it's not telling you there's all that much to worry about risk tolerance in the bond market we're holding at a range but not at the best level from 2013 and '14. >> such an important analysis. it applies even more so i think to europe which is that financial conditions have actually eased already this year and yet we're talking about fur

i'm really excited to be part of the morgan stanley team. i'm justin rose.e morgan stanley. - stand up if you are first stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. i will tell you this, southern new hampshire university can change the whole trajectory of your life. >>> we're talking about individual investing and how to teach you how to analyze stocks you might pick you can keep watching but invest in index funds, not vindividual stocks i want you to have an edge of catalyst or experience to match it with homework, research and from the company's website but recognizing must be skeptical at all times. now, though, let's get to the final piece of the puzzle that eludes so many of you and make the process far more mystical than it seems. let's talk about heinz, the company bought not that long ago. when i decided to leave goldman sachs after four fabulous years to open my hedge fund, the first stock i bought was heinz why? buzz i was looking to own a stock that represented a call and great

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we will be speaking to a morgan stanley chief executive. that interview coming up at 7:30 p.m.ondon time, but first, let's get straight to new york city and the bloomberg first word news. of the chineser communist party taking aim at comments from a peter navarro, saying they are unconstructive lies. the presidential advisor is considered a hawk. he has repeatedly accused china of seven deadly sins. the people's daily says such comments are preposterous. te winningster con the first of two confidence votes in the italian parliament. withomised to work closely brussels on a 2020 budget featuring lower labor taxes and a minimum wage. later today, his government faces a senate vote. factory prices in china for the 0.8% in august compared to a year earlier, threatening to add deflationary pressures to the global economy. china saw a runaway price gains for pork. rosell consumer prices 2.8% year on year. hong kong leader carrie lam has rejected caused by protesters requiringegislation annual -- of the city's special trading status. lam told a news briefing that such for an intervent

i'm really excited to be part of the morgan stanley team. i'm justin rose.n stanley. ♪ yes ♪ hey sean hey dan ♪ >>> in our national lead today, president trump is arriving in california this afternoon for a series of high-dollar fundraisers for his re-election campaign but doing so in a state the l.a. times said has embraced its role as chief anning to an -- antagonist. as kyung lah reports from los angeles. >> i won't roll over. one thing i won't do is capitulate. >> reporter: california's governor gavin newsom clutching tighter the leader of the trump resistance. >> we are nothing less than a progressive answer to a transgressive president. >> reporter: this week the president is fundraising in his backyard, enemy territory for the trump agenda. >> look, stay out of our way. let california continue not to survive but thrive, despite the head winds, despite everything you're going to try to put sand in the gears of our success. >> reporter: california is involved in 60 lawsuits against the trump white house, jamming the crow bar in trump's agenda, from immi

i'm really excited to be part of the morgan stanley team. i'm justin rose.are morgan stanley. >>> it is time it is time for the "lightning round. >> buy, buy, buy. >> sell, sell, sell! [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round. let's start with robert in new york robert >> caller: hello, james. so i bought domu 18 bucks, and all the while hoping i could have bought more i find i was in that position. do i load up >> that quarter was fine, but the guidance was really awful. but there has been a lot of insider buying i would not sell it down here, but i know you're going to have to wait a full quarter before that puppy comes back. wow. let's go to michael in arizona michael? >> caller: cramer! >> yo! >> caller: hey, ten years ago, gm stuck it to the taxpayer and everyone else. four did not they took care of their shareholders to an extend, and their customers. they make an excellent product line. >> right >> caller: and don't forget arizona is ford country. >> that's right. i forgot that. okay h

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.the human brain, billions of nefor people with parkinson's, some neurons change their tune, causing uncontrollable tremors. now, abbott technology can target those exact neurons. restoring control and harmony, once thought to belost forever. the most personal technology is technology with the power to change your life. >>> welcome back to "the halftime report. check out the u.s. dollar climbing right back up to two-year highs ahead of tomorrow's big european central bank policy meeting. let's bring in our traders, scott nations and anthony grisanti scott, if mario draghi cuts rates deeper into negative territory, what's that mean for the dollar >> it's going to be great for the dollar just in the past ten days, we've seen the ten-year yield here increase by 30 basis points, 1.73%. that's not a whole lot, but it's a whole lot better than investing or putting your money into europe and paying them for the privilege of doing so, and the ecb looks like it's ready to unleash another smorgas

morgan stanley did recently turn positive on the industry.during the past 12 months, european auto makers have slumped nearly 7%. things could get worse. bloomberg intelligence estimates that a no deal brexit threatens at bmwet euro sales because so much of the market is in the u.k.. that is problematic for renault and peugeot, the french automakers. there unhedged the currency. it appears they are pulling back from the u.k. markets but had can the kit still escaped the global downturn. an matt miller doesn't speak to psa groups ceo shortly. bluebirds dani burger. when you're traveling to work tune into bloomberg radio is live on your mobile device and in the london area. the team will be bringing you news on the auto sector from the frankfurt motor show with regular updates. this is bloomberg. ♪ this is bloomberg "daybreak: europe". anna: i am anna edwards in london. manus: i am manus cranny in abu dhabi for the world energy congress. >> a signal of production cuts ahead of the j mmc meeting. minister, welcome to bloomberg. good to see you.

mike wilson at morgan stanley had a note today talking about jay powell. as the u.s.t outlook deteriorates, analysts looking at a 3% drop in third-quarter profit, that was supposed to be when the rebound was going to begin in earnest earlier in the year. everyone was expecting 10% growth in the third quarter. now we are expecting a decline again. it is this dynamic between when will this weakness in profits and certain parts of the economy start to affect the consumer, start to affect the labor market? it looks like we could be getting closer to that. vonnie: it bears repeating that factory activity data we saw, it is the first time it has been in contraction territory in three years. and 2016 turned out to be a false alarm. we do not going to recession, but it was a week period for the economy. the oil market was weak, credit markets started getting nervous. it is hard to imagine this not recovering unless we do get some sort of closure on the trade deal. based on everything we have read and all today, we are further and further apart. .uy: talk's to us about btp's t

jason: james gorman is the ceo of morgan stanley class of 87. james: i remember most the interest rate on my student loan, 24%. which i think is a world record. i thought i had died and gone to heaven because america welcomed me to come here, learn, grow, and it was unbelievable. i arrived in august in the classic sweltering heat. it was just so excited. this university is just extraordinary. i could not have been happier to be given that chance. and i am still here 30 plus years later. carol: let's talk about the market, there are so many stories out there. and how do you view the global market right now? james: it is a conundrum. on one level, record low unemployment. the world is performing strongly. china is performing strongly. europe is mixed it has been mixed for two decades now. on one level, the fundamentals are quite strong. at the other level, there is a sense of confidence and inevitability. statistically, there is a recession every seven years. but it does not have to be. in australia, they have not had a recession for 28 years. car

coming up later today on "the gorman, morgan stanley ceo. now to your bloomberg business flash.oining in an antitrust investigation into google. the propyl focused on the search giant's business and its advertising practice. states attorneys general citing concerns google is raising prices for advertisers. they also questioned whether consumers are getting the best information from search results. british airways were forced to cancel almost all of its flight on the second day of a two-day strike by pilots. british airways thing the strike is costing almost $50 million a day. another walkout by the way is set for september 27. the ridges americans could see their fortunes shrink under a new wealth tax proposed by democratic presidential candidate elizabeth warren. that is according to two french economist who helped her devise the plan. billionaires such as jeff bezos and warren buffett could have lost hundreds of billions of dollars in net worth over decades. that is only if they have done nothing to avoid the proposed tax. i am viviana hurtado and that is your bloomberg busine

. >> still ahead as we review the week on bloomberg best number and isuzu conversation with morgan stanley chairman and ceo james baldwin. plus, one of the most influential voices in chinese media shares the latest developments for trade. and come up more of the weeks top headlines. john bolton becomes the latest to lose a position with the trump administration. >> there were issues we would never see eye to eye on. >> this is bloomberg. ♪ this is bloomberg best. let's continue our global tour of the week's top business stories in china, were the latest trade data puts more pressure on the government to increase stimulus. >> bonds reacting to the bad data we had, in part of trade numbers from china, shrinking last month. shipments plunging -- amidst to the u.s. plunging. , almostslumping 5.6% -- $35lion to edit billion. [inaudible] >> the bad news from the manufacturing sector is you have additional sectors in the and the pmi data suggests it is an contraction and external demand will continue to remain weak. removing one more hurdle for investment into capital markets, scrapping the billi

i'm really excited to be part of the morgan stanley team. i'm justin rose.e morgan stanley. >>> welcome back uber and lyft drivers protesting in new york over the new app and how long drivers can use the app. this is different. congestion prices earlier this year was something uber supported. this is symptoms of what is happening across the company who is responsible for the changes and the new rules? joining us is josh moore founding partner of global capital. jed, drivers shut down the fdr in rush hour traffic something we are seeing across the country. what do you think? >> shutting down traffic is not a good way to bring anyone to your side. ultimately, unintended consequences of laws created with good intention. ultimately, if lyft shuts down their app, uber has to respond it is more of a utilization that really take away the flexibility that drivers join. >> it is about saying if you are going to use a car on the road, it has to be used x percent or 70% of the time. sometimes the cars will be less used and more used the city has been implementing thing

we have a hold on morgan stanley. >> why is that >> it has become more reflective of the bismarck et see the upside i think the street is closer to what they can earn with respect to goldman >> i appreciate it smaller vendors can do big business on amazon but many have been afraid to speak out publicly for fear of being suspended. as investigations into big tech have started, we are hearing from one big seller next great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i

i'm really excited to be part of the morgan stanley team. i'm justin rose.e morgan stanley. >>> good monday morning. welcome back to "squawk on the street". we're at the new york stock exchange oil is front and center but markets trying to climb back we've got s&p 3k we've got china data, the strike and more. >> stocks are trading on the heels of the saudi attacks, so in addition to energy stocks, it's defense stocks to keep an eye on in terms of outperformance our road map starts with the oil surge rising after those attacks on saudi facilities. we'll speak with energy secretary rick perry and get his thoughts in just a few moments. >>> plus new york moving to ban some e-cigarettes. what this means for the rest of the country. >>> and oxycontin maker perdue pharma files for bankruptcy protection we'll hear from the chairman steve miller is what he's hoping will be a settlement with all of the plaintiffs involved. >>> oil is the big story of the day notching the biggest i intraday spike ever recorded rick perry will join us blasting iran for the damage done

this week, morgan stanley chairman and ceo james gorman spoke effusively with bloomberg about the ratethe economy, that policy and the global trend towards negative interest rates. he joins on the council of columbia business school in new york. james it is a conundrum. : at one level, we have record low unemployment and we still have global growth. the u.s. economy is performing strongly. china is performing strongly. europe is obviously mixed, but has been mixed for two decades. on one level, the fundamentals are white strong. on the other hand, in the sense of confidence, there is a sense of inevitability we are at the end of a cycle. statistically, there is a recession every seven years, but it doesn't have to be. in australia, they have not had a recession for 28 years in a row. >> why then, so much pressure on the federal reserve to continue cutting rates? does that make sense? james the economy is slowing and : the job of the fed is to balance monetary policy with economic outlook and fiscal policy. job whenld -- their the economy is getting hot, they should raise rates and the

morgan stanley ceo james gorman says he is surprised at the current level of interest rates.also warns that the fed should be cautious in its approach to rates in the current economic climate. jasonke with bloomberg's kelly and carol massar in new york. lows: we have record unemployment. china is still performing strongly. europe is obviously mixed, but it's been mixed for two decades now. so at one level, the fundamentals are actually quite strong. at the other level, the sense of confidence, there is a sense of inevitability we are at the end of a cycle. it doesn't have to be. statistically, there is a recession every seven years. but it doesn't have to be. in australia, they haven't had a recession for 28 years in a row. carol: why is there so much pressure, then, on the federal reserve to continue to cutting rates? does that make sense? james: because the economy is slowing. rates when feather the economy is getting hot. her job is to raise rates, slow it down, and the reverse. i suspect they will be one or two more. but then it is time for a pause and really absorb this.

he later became the vice president for security at morgan stanley in the world trade center.n the day of the attack, rick died while leading countless others to safety. his selfless actions saved approximately 2,700 lives. today i'm honored to announce that we will soon be awarding he late rick rescorla, the presidential citizens medal for his extraordinary sacrifice. though rick has left this earth, we will ensure that the memory of his deeds will never, ever be forgotten. his memory will forever endure. thank you. thank you, rick. [applause] thank you, rick. here on the western side of the pentagon we saw brave men and women rush into the fire and race into the scorching flames to rescue their colleagues. when evil seeks to do us harm, the incredible men and women of the united states military answer with unyielding valor and unstoppable resolve. navy admiral david thomas crawled through live wires and helped lift a wall of debris to save the life of a colleague. as admiral thomas remembers, it was the worst day of my life, but the heroism and selfless disregard i saw that

shery: morgan stanley had james gorman has warnings for the federal reserve. with caution on future rate cuts. his comments come as markets cement bets on more easing from jerome powell and recession fears mount. he spoke to us about how he sees the global economy holding up. james: at one level, we have record low unemployment. we do still have global growth. the u.s. economy, the most important economy in the world, is performing strongly. china is still performing strongly. europe is obviously mixed that it has been mixed for two decades now. at one level, the fundamentals are quite strong. at the other level, the sense of confidence, there is not confidence and inevitability we are the end of the cycle. statistically, there is a recession every seven years. 15% chance of recession but it does not have to be. australia did not have a recession for 28 years in a row. >> why do you think there is so much pressure on the federal reserve to continue cutting rates? james: because the economy is slowing. the job of the fed is to balance monetary policy with econo

shery: morgan stanley has slashed its evaluation of alphabet's waymo saying self driving technology ising longer than expected to develop. worth $105says it is billion, well below his $175 billion valuation 12 months ago. he says autonomous driving faces a series of hurdles, adding that morgan stanley had underestimated how long human safety drivers would still be needed behind the wheel. plenty more to come. this is bloomberg. ♪ paul: it is 8:30 a.m. monday morning in sydney. market open 90 minutes away. futures pointing weaker at -- by 2/10 of 1%. this after u.s. equity markets closed a little lower at the end of last week as well. i paul allen in sydney. shery: i'm shery ahn in new york where it is 6:30 p.m. you are watching "daybreak: australia." let's get to first word news with su keenan. su: we start with u.s.-china trade talks. beijing has confirmed top negotiator leah her will travel to washington next week for new trade talks. the ministry of commerce as the chinese team will fly to the the after golden week after 70th anniversary of the people's republic. u.s. treasury offic

he later became the vice president for security at morgan stanley and the world trade center. on the day of the attack, rick died while leaving countless others to safety. this selfless actions saved approximately 2700 lives. today, i'm honored to announce that we will soon be awarding the late rick the presidential citizens medal for his extraordinary sacrifice. earth,h he has left this we will ensure that the memory of his deeds will never, ever be forgotten. his memory will forever injure. thank you. here on the western side of the pentagon, we saw brave men and andn rush into the fire raced into the flames to rescue their colleagues. harm,vil seeks to do us the incredible men and women of the united states military answer with unyielding valor and unstoppable resolve. he helped lift a wall of debris to sell the life. as admiral thomas remembers, it was the worst day of my life, but they hear was him and selfish disregard i saw them on that horrible morning is forever burned in my heart. admiral thomas, america salutes you, and every patriot who defied evil that day, thank

morgan stanley, everything is down there it is.eah >> they have a fortress balance. >> i heard that. >> i think that -- >> jamie dimon right in there on the whole we work thing. he's, like, he's going to get them to market nothing can stop jamie. >> jamie is -- let's say he's got the longevity going for him. >> he does >> by the way -- >> good salesman too. >> what are you hearing about what solomon is doing at goldman? we talked about it yesterday >> glossed over it i did more digging >> tell me give me more insight >> you don't want to hear it. >> yes, i do. >> the apple card -- >> with the apple card, you and that apple card. >> have you looked at national card -- >> tell me >> it is -- it is the easiest sell in the world. we don't know if it will be used but i got mine yesterday many people are getting them if it is used, it is just money in the bank, if the algorithms are right. i think that the idea that goldman -- expense structure will get better now that the people are leaving i'm just saying, goldman is the stock to buy i

he says autonomous driving faces a series of hurdles, adding that morgan stanley underestimated how longld still be needed behind the wheel. breaking news. we are seeing softbank falling to the lowest level since february. this would be to pre-buyback levels. losses of more than 2% in the past two days. this taking the stock to a level we have not seen since earlier this year, when softbank announced they would be buying back more than 100 million shares over the next 11 months. this would be worth about $5 billion of stock buybacks. we are now back to those levels we have seen earlier this year. paul? paul: let's check on how we are trading right now. we've got the nikkei in japan off by nearly 0.4%. south korea weaker as well. australia, kind of flat, and a similar story across the tasman as we saw equities a little bit weaker at the end of last week. plenty more to come on "daybreak asia." ♪ devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your h

are likely to be passed along to consumers, the riders the bigger concern is what happens next morgan stanleys could california be the beginning and will similar legislation be proposed or debated nationally throughout the 2020 election cycle? this morning both companies expressing disappointment in a statement, uber says california is missing a real opportunity to lead the nation. lyft says we are fully prepared to take the issue to the voters of california. guys, back over to you >> i realize this is a fluid situation and there's still a lot we don't know here but are the carve-outs specifically -- would they be if we see them materialize, are they specifically for uber and lyft there are a number of companies, including other delivery companies, that would be affected by this legislation, right? >> right so uber and lyft are looking to carve out specifically ride-sharing drivers other gig economy companies are working on their own carve-outs. uber and lyft, it gets a little tricky because they're now working with door dash on that ballot measure so the point that you take away from this is

. >> morgan stanley sort of reiterates this view that we're past the point where the fed can do anything. you disagree with that >> yeah. there's a question -- there's a question whether or not monetary policy, big rate cuts will send the equity market to 3,500 in the near-term. i think i important that we continue to get this sort from global policymakers. it's not just the fed. it's also the ecb. >> the ecb is all in. >> it's targeted fiscal in china. this combination of adding liquidity, adding support.uts, s the environment. >> what do you think lagarde does for the ecb >> there's people who are better experts on the ecb than i am a lot of expectations around moves next week are priced into the market one thing we've been talking about and my boss and i have talked about a number of times is that there's a possibility that the ecb changes their asset purchase program to include nontraditional assets or perhaps equities something dramatic like that might restoriere risk appetite the market >> even how the global economy is now -- i think you could say it's impacting the u.s. economy i

with us still, dan suzuki of richard bernstein and michael kushma of morgan stanley.buy energy value trade? is there catch up, or is there still too much risk and supply. dan: we are not huge fans of oil or energy here. you are talking about cyclical assets, so i think our view is that growth is pretty strongly sling and weakening, and that is not a time to go oil assets now. it is a very news driven sector. it will have a lot of ups and downs and short-term movements. that is not going to be good for oil demand. i think that is the bigger issue. people always talk about when before the cycle turns, there is tight supply. you always underestimate the impact of demand slowing when things really get bad. david: that's energy stocks. what about energy bonds? michael: same issues. a lot of the big oil companies are obviously very well-capitalized and high quality, and they are pretty safe overall. a lot of the smaller, high yield companies, suppliers of equipment in the shale business in the trucking business, it is a very volatile business, and you have to be very carefu

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley., cramped and uncomfortable. we can arrange a little upgrade. which is why i wear skechers... wide fit shoes. they have extra room throughout. they're like a luxury ride for my feet. try skechers wide fit shoes. >>> welcome back to "squawk box. big day tomorrow. apple hosting the launch event what will the new iphone look like and what should investors be looking for joining me is jim daranpo and he's the founder at the loop covering apple and other tech companies. also is gene muenster and larry bossidy. jim, what are you expecting? is there a surprise here >> well, i think that there's always a surprise when it comes to apple events as much gets leaked, they always have a surprise or two for us tomorrow is not only going to be about iphone but apple video and apple tv plus. so there's a lot of things that apple can bring out tomorrow that are going to help them both in the market and financially. >> hey, gene, it seems like most investors and analysts are not expecting something fabu