goldman, morgan stanley, goldman off 2.5%. morgan stanley, still waiting for clarity.is the unknown. how has this been handled. the exposure and what is left unwind. tom: staying on 2% down versus 4% down. are you done? jonathan: you have permission to continue. tom: we are making up it as we go on this monday. 6.56 on remember the. a little bit of foreign-exchange movement. david kelly of jp morgan will not talk about margin calls, and then we are thrilled to bring you michael nathanson on the backside of this half-hour. thread hard not hurrah should has led our coverage -- sridha -- we just had a technical difficulty. sri just hung up the phone and said i did not want to talk to them. we will get sri back. what does the management of morgan stack -- of goldman sachs or morgan stanley do? jonathan: a lot of people waking up and saying i remember, a lot of people saying i've no idea who that is. he set off on his own or once upon a time. started have a family office, which translates to we are hedge fund but we cannot take outside money. we are an investment firm. he p

morgan stanley up by 0.2% in the premarket. is down by about 2% after a 13.83 percent move lower yesterday. we trim another couple of percentage points off of credit suisse. tom: to bounce off the pendant, i did not get back to february levels, but it has reversed halfway back down. what is amazing here, on eu banking, particularly the swiss view, they are the compare and contrast at ubs versus credit suisse. it is stunning, the differential. not enough is made on this. credit suisse just isn't there at 0.59 percent. there's not enough discussion. everybody talks about deutsche bank and their travails. credit suisse is a train wreck. jonathan: in lisa's piece this morning, i think what she gets to the heart of is something further down the page. when you get to the former ceo, who had a stated goal of de-risking this bank, the credit suisse at the epicenter of the saga around >> green sill and the blow up there, and once again at the epicenter around archegos. is this coincidence? some would think not. tom: it is a partition aw

we'll talk to morgan stanley's head of investment, daniel simkowitz and oakmark portfolio manager, bill nynygren >> getting back pretty much all of last week's losses. the s&p 500, this is a similar move to what we saw in late january. it touched a 50-day average and slingshot high what we do have, though, it is coming right up in this zone where we spent much of february. 3925 or so we haven't really gotten past that on a sustainable basis, so there are people who say this doesn't necessarily have the look of something automatically off to the races in terms of new highs. we talked about growth versus value. take a look at march 1st of last year through september 1st of last year in terms of the nasdaq 100 against the high beta which is cyclical stocks that's more than 40% performance, right look at the subsequent six months it's exactly the reverse you have high beta outperformed the nasdaq 100 by about 30-some-plus -- higher than that, more like 48 percentage points if we're at a place with yields backing off and everybody kind of acknowledging the economy is getting better, as to wh

if you are morgan stanley or goldman sachs, and it appears those firms have been able to escape this fiasco without any losses, then there isn't a good reason to change your risk-management practices because they worked. you were able to unload the stock in time ahead of credit suisse, head of numerous, head of deutsche bank, head of others, wells fargo is another name out there offering blocks. those other firms may have to examine their risk-management practices and say are we going to allow any individual or family office or private investment firm to lever up to this degree because we've have demonstrated we can't manage it properly. tim: how does one entity build up such a concentrated position and in equity without notifying anyone? erik: this is a good question. he was not a hedge fund and did not have reporting obligations. all the stock was owned or held by the prime brokers. they engaged in total return swaps with bill hwang. he would either owe them money or he would pay profits or a share of the investment profits. that is how he never had to report anything to the ftc or

morgan stanley and goldman sachs were the first to do so.friday alone. something that they transmitted to their clients and so i think this is just a case where everybody is heading for the exits. risk management dictates that you act fast >> so, bethany, i have a feeling we've seen this movie a couple of times together over the years. the question is what do regulators do about it the sec calling a meeting to discuss it >> i was just going say some things never change and as much as goldman has changed over the years, here's an instance where they haven't changed goldman was well coullateralized so, i do think even if the fallout from this seems contained at this moment it does when you look at the complexity of some of the financial instruments that were involved here like these contract for differences that really aren't that well understood and all these years later prime brokerages don't have that much insider visibility into what a big firm could be doing across its relationships and this firm was unique in the extent of those relation

tom: would you change to buy or sell on goldman sachs or morgan stanley?d: not on this news alone. when you think about what they are doing every day this type of risk is there and if you have the controls and procedures in place to mitigate the risk, we will find out if that's the case and we could separate these dealers like morgan stanley and goldman from the others if they are exposed and there's minimal or no loss that sets them apart from those with sizable losses. jon: one of the many questions is just how many bill hwangs are out there right now. what do you think the banks that fall under your coverage are doing? a reappraisal of their clients to look for more billhwangs? -- to look for more bill hwangs? gerard: they will do a deep dive to make sure their books are in order. they will make sure there are not exposures like this to other customers. they are constantly monitoring brokerage accounts, but may be a more in-depth review is warranted considering what happened ryan day. -- friday. jon: what is your topic? gerard: bank of america. you talk

you know, you've got goldman sachs and morgan stanley also serving as lenders. according to reports, morgan stanley was offering 45 million shares of viacomcbs on sunday for an uns disclosed -- undisclosed holder. goldman down about half a percent and morgan lower by 2.25%. but nowhere near the hit that nomura, japan's largest investment bank, is hitting. it is looking at a potential $2 billion in losses from this forced liquidation. this estimate ising of course, subject to change, but i want to bring in our floor show traders right now because even if you don't own nomura, goldman or sweat suisse, it is affecting -- credit suisse, it is affecting the market. have the losses been contained, or do you think there are more shoes to drop here? >> if you look at the s&p, the s&p's almost flat and not even down 1% on the year, so all this hoopla around what happened isn't affecting the individual investor if they have a monthly plan to put money into s&p funds. if you trade for a living like i do or if you're trying to invest in individual names, you need to know th

morgan stanley, still not yet. we do not know the full impacts to them.ertainty weighing down on the kbw index today. down as much as 3.4%. the question is how much of this trade is left to online? that is adding to weekly losses for these major banks after what had been a stellar performance year to date. the second-best performer within the s&p 500, part of that re-inflationary reopening trade. easing some restrictions on dividends on the part of the fed. yields rising this year. that was good for goldman sachs, allow them to have a boom in their profit map. matt: not only are people worried about there could be more to come from this leveraged, overleveraged family office, but are there other big leveraged whales out there? >> it just shows the risk of these highly leveraged bets that they are making, because archegos had swaps set to exceed 10% on some company shares, so that has a huge impact. that inducing other banks to sell their collateral holdings as well. you can see the ripple effects this kind of thing can cause here, matt. matt: thank you, r

morgan stanley become the first big u.s. bank to offer some clients access to bitcoin funds. we have the exclusive details. right now it's show and tell or if you're on the radio, we call it tell and tell we'll show you a chart and tell you a story. today's chart is disney. stock making a move after ceo telling julia when disney land in california will reopen. here he is >> after a year of being closed, i am absolutely thrilled to say that we're going to be welcoming our guests on april 30th back to disney land. it's been a long, long time since we have been able to create magic for our guests and put our cast members back to work and help the associated businesses around the anaheim area it's going be a great opportunity for us to bring the magic back to everybody involved ♪ ♪ it's a wishlist on wheels. a choice that requires no explanation. it's where safe and daring seamlessly intersect. it's understated, yet over-delivers. it is truly the mercedes-benz of sports sedans. lease the 2021 c 300 sedan for just $449 a month at your local mercedes-benz dealer. ♪ ♪ bike shop plea

and morgan stanley's name was bandied around as one of the players in that.swaying you, you still think that morgan stanley is maybe a deep-value stock. why? >> one, financials are one of my favorite sectors within the value basket they're in general, the sector is trading at about a thrust% discount in valuation. which is unusual, financials typically trade at a discount towards the bottom market but it's more like a 20% discount in a low-rate environment so there's still room just purely on valuation appreciation basis. and i actually think that morgan stanley, particularly was a little harder hit yesterday, is -- presents a real buying opportunity. i think they have -- being diversified financials are my favorites because they're able to take advantage of lots of ways to make more money with higher yields. higher yield curves. as well as being one of the earlier traders -- or earlier companies that got out of the block trades on monday i think they were overhit yesterday and that makes them more attractive today. >> the market has spoken and the market has

an offering for viacomcbs, also from morgan stanley. all of that raising questions in the market as to whom much more needs to be offloaded, and how much more selling might we see. that is the permeating micro thesis here. credit suisse off a touch by 15%. s&p taking it a bit on the chin, off by 0.5%, but we closed really high on friday. the vix still relatively calm. crude up by over 1%. the ship in the suez seems to have shaken loose, but is it really free up the suez? let's get more on those individual stocks that have really been impacted by the hedge fund, in terms of the blowup of the block trade. abigail: if we take a look at the shares of nomura, down 6.3%. the shares of credit suisse plunging down 15.5%. this on the unknown exposure to those bad bets made by archegos. lots of derivative action -- oughts of derivative action here. -- lots of derivative action here. viacom one of the stocks linked, the banks. both credit suisse and nomura saying it could result in losses, possibly showing up on the quarter. as for the stocks invo

and i don't think morgan stanley was much in the line of fire here by the way, look at morgan stanley's chart. it is not the same as viacom, but morgan stanley has had a massive run and sometimes you don't need a lot of reasons to take profits and maybe this is enough of a reason to say i'm a little concerned about systemic risk that is always one of those hind site and i think that is the question here. to what extent is leverage run amok, when liquidity is absolutely free and then you throw in the derivative element which are swaps and in some cases you don't have to show ownership when you have more than minority positions and so that is a case where i think in some cases you don't really know who are behind a lot of trades and in fact part of the reason for using swaps is so you can be anonymous. that is why big hedge funds use them, because they are trying to do this away from the street so, look, i think this -- what i would call the risk factor for the last couple of days, what worried me is the vixner 20 and the ten-year is breaking out and the dollar is up 4.5% and doesn't show

brought up a good point of them wanting to go after clients that are younger, as you think of morgan stanleyjp morgan client as older. you also don't want current clients to migrate if they think they need bitcoin as part of their portfolio. interesting they have that limitation on it do they have limitations on other asset classes, i don't know it's interesting. >> i don't know if they have it on gold for instance yeah it's an interesting limitation there there's all sorts of limitations on this, but still, first one to move in this direction coming up, billions of dollars of taxpayer money has gone to help the struggling airline industry in the past year, has all of it been needed? we take on that debail and williams-sonoma numbers after this te and williams-sonoma numbers after this mom and dad left costa rica, 1971. and in 1990, they opened irazu. when the pandemic hit, pickup and delivery was still viable. and that kept us afloat. keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that. gohealt

michael kushma, morgan stanley global fixed income cio. in about five or six basis points, a bit into this bond market. lisa: the uncertainty michael kushma was talking about is really important, this idea that emerging-market nations are raising interest rates. we saw that in turkey of course, a unique story with the recent ouster of their head of the central bank. but they are not alone. this is the story, tightening policy for ultra low yields around the world. do we see a story where yields can creep higher because you don't have a race to the bottom? that is a huge shift. jonathan: and a fiscal impulse as well. how permanent is that fiscal impulse? is it something that stays with us? that comes down to politics and elections which is why we should continue to have that conversation with kevin downing washington. -- kevin down in washington. lisa: although i will say you are getting more people talking about how to pay for it, and the more this seems like a temporary impulse. that is the reason why you've got some of the democrats tryi

at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we seepanies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. ♪♪ into strategies fodad, i'm scared.. ♪♪ it's only human to care for those we love. and also help light their way. ♪♪ it's why last year chevron invested billions of dollars to bring affordable, reliable, ever cleaner energy to america. ♪♪ your doctor gives you a prescription you could use free 1-to-2 day delivery from cvs... but aren't you glad you can also just swing by to pick it up, and get your questions answered. that's healthier made easier. from cvs. >>> shares down 10% after he sold his stake in the company. virgin galactic calling nearly 27% this week. pete, you traded this one. >> yeah. and i open the stock still, mel. it's been a great trader now me and part of the reason is for option people, and you know i am, the i

morgan stanley, at least its rich clients, with bitcoin. what about the poor clients?lly the rich clients can get access to bitcoin. and that has been the story for a while, people talking about the diversification. even saying, this is the new 60/40. romaine: who said that? joe: i literally made that up when i saw the chart. i want to bring in coin shares team strategy officer, milton. is this the new thing, just add 1% of your portfolio to bitcoin and everything suddenly takes care of itself? >> j.p. morgan says wind and we did some research where we saw you are better off with four, so i'm going to be aggressive and safe for, which is four times one, believe it or not. romaine: this is interesting move here, we have already seen this sort of move already with folks adding this to their portfolio and has a legit asset and as -- if you have a big portfolio and also trying to balance out the risk, do you think there is adjustments that still need to be made given some of the volatility we see in crypto right now? >> absolutely. our research team has found in a 60/40 po

ellen's and near of morgan stanley will be sticking with us -- ellen zentner of morgan stanley will be sticking with us. secretary janet yellen is now speaking with imf managing director christine georgie abba -- director christina georgieva on the age of ritika: let's check in on the bloomberg first word news. goldman sachs predicts the u.s. is on track for unemployment boom this year. the chief economist says reopening the economy, fiscal stimulus, and pent-up savings should fuel very strong demand growth. the jobless rate will fall from the current 6.2% to 4.1% by the end of the year. president biden will formally create a gender policy council within the white house, part of two executive orders he plans to send today to mark -- to sign today to mark international women's day. he will also direct the education department to re-examine a trumpet adminstration rule that deals with the way sex discrimination in schools is handled. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gup

morgan stanley updating revisions. morgan stanley doing the same., deutsche bank doing the same thing. what does that all mean for equities after we've already had a massive six months from the end of october, early november? tom: commodities pull back a little. e.m. having a little more difficult time. can't get out of its way. we get a briefing now which has been extremely anticipated for all of our viewers and listeners. amesh, all of the media love the charts of cases, they are dramatic, emotional, easily countable. the pros look at deaths and hospitalizations. when you assume the public will finally shift onto your territory of deaths and hospitalization dynamics? dr. adalja i think: they are already starting to -- dr. adalja: i think they are already starting to. they're starting to understand that the concept is not to get to covid zero but contain the virus and be thankful it doesn't have the ability to cause hospitalization and death. i think they are going to get there. eventually that is all everybody will be looking at. this is what figh

tom: anticipated this morning, a block trade of viacom maybe through morgan stanley.'ve got to look for debris through these other prime brokers as they unwind this busted trade. jonathan: the operative phrase, we don't know. there is still a lot we don't know this morning. tom: we will monitor it through the day. we've got a terrific 8:00 hour. kevin cirilli wouldn't know way swap if it -- wouldn't know a swap if it hit him over the head. [laughter] kevin, you've got to be on time every time, like the airlines of years ago. today with us, on time, every time. how would you do legislation in a boom economy? forget about the republican/democratic idiocy. how does washington respond to a boom economy? kevin: i think the democrats are saying infrastructure. republicans are saying tax cuts, and let -- and let's keep the tax cuts going. the newly confirmed trade representative over the past couple days said essentially that president biden is not going to lift tariffs against china right now, but that they are holding the door open for talks with china. i think it is amazi

goldman sachs, morgan stanley knew with a group meeting of the prime brokers including morgan stanley goldman sachs-- goldman sachs and the like in a new bill and archegos were in trouble, but instead of these investment banks did was started liquidating ahead of everyone else's dumping shares friday so goldman and morgan will come out a bit better than everyone else as they already started selling first and that's why stocks are down 30% friday. the ones left holding the bag, they were the ones selling last. they will be feeling a lot of pain from this. stuart: no wonder you got some calls and people are angry here to get out first, save your own neck. if you are last, you lose big-time. susan: also brings up the question about goldman and morgan and how they treat their clients because you are dumping shares to clients and knowing there are more block trades to come in the price will go down further so what is that say about the client relationship? you are dumping stocks under them knowing the price will fall further from their. stuart: its eruptions within the wall street communit

matthew hornbach, morgan stanley had of -- morgan stanley head of microstrategy.ted to be a gradual ash of macro strategy. -- of macro strategy. you expected it to be a gradual move, and it has been a massive one. matthew: we think the economy is going to grow faster than most expect, and that real yields are starting to wake up to this fact. yes, we have been expecting a gradual move, and over the past six months, it has been gradual. but over the last week, the nature of the move did in fact change. on thursday, mentioned earlier on your show, thursday really was a violent move where the fed probably for the first time in the past six months got a bit of a rude awakening. jonathan: i think it is really important to nature the character -- important to mention the nature, the character of the move. how do you think that shakes the approach of said speakers this week, particularly chair powell on thursday? matthew: we think it serves to highlight a disconnect between the pricing of had policy in the bond market and where the fed thinks appropriate policy thinks po

ilar of warner media presenting at morgan stanley. it seems the entire world is presenting at morgan stanley this week and they believe in the future most households will have six to seven streams services and at&t believes they will have one of them. >> hbo max which has started to pick up in terms of momentum but we're keeping a close eye overall, just what is going on at warner, and you know, how much time will they sit with that asset, and continue to focus on growth, or what will happen, you know, conceivably over the next year or two, we could see a lot of tumult in media, but that's, i don't know, six or seven, i think i'm already there, jim, in terms of streaming services >> i am, too and it's already enough. i mean i don't, you know, after a while, they've got, there's got to be a better search function >> i just want to know where my click, you know, david, we didn't talk about the tv, the nfl package. >> no. >> the sunday -- >> the most valuable thing on earth. >> yes. >> if you're a fantasy football fan. >> you're talking

. >>> cnbc exclusively learning morgan stanley is becoming the first major u.s.ccess to bitcoin funds. two on offer are from galaxy digital, a crypto firm a third is a joint effort from asset manager fs investments and bitcoin company nydig. morgan stanley is allowing wealthier clients access only considering it acceptable for people with an aggressive risk tolerance who have at least $2 million in assets held by the firm for more on the story, head to cnbc.com back in just a minute. >>> in the meantime, keep your eyes on amazon baird says the stock is undervalued. i think the target is $4,000 yeah that's the pras tice rgtaet ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in

the work you guys are doing at morgan stanley, it is interesting.here are we in the cycle already? you talk about shorter, tougher cycles at morgan stanley and you think it has gone through the first phase. vishwanath: there is a forward thinking behind it. if they want to be more patient and -- in terms of tightening the policy rates, that means behind -- when they start to react by raising rates, inflation could have picked up to a high level and therefore, they would have to catch up by hiking more frequently or faster than they would otherwise. and that could result in the cycle being shorter then -- i would emphasize here that this cycle, it is not exactly a big surprise that this cycle will be shorter considering that the last cycle was among the longest to be had. i think the way we are thinking about this is that if there is a consequence of patients, that we might -- the fed might need to do catch up, and that catch-up can end up shortening the length of the cycle. jonathan: then they give you the final word on that, megan. megan: i am not

morgan stanley is trying to answer that question. let's turn to this pandemic.illion vaccines per day in america right now. the president is saying we can open up eligibility for everyone may 1. let's get an answer from a professional. dr. jennifer nuzzo joins us now. based on the trajectory we are on right now, is that likely? jennifer: what the president is saying is by may 1 we will have enough supply for everyone who wishes to receive it and all the adults who wish to receive it. can we distribute it? we are making good progress in expanding the number of vaccinations per day. the goal was to vaccinate one million per day originally, then it was 1.5. many think we are on track to hit 3 million per day. what the next bottleneck will be is how quickly we can get that supply into the arms of everyone who once it. jonathan: there was a worry about acceptance. do you think we have done -- we have pumped up against acceptance -- bumped up against acceptance? jennifer: yes, hesitancy is probably muted because demand is outweighing supply. but the people who want to

jpmorgan morgan stanley would everyone have to address this, david? will everyone have to say here is my loss from this as if it is some sort of whale because these stocks are being carried out. not everyone could have been hurt -- could everyone be hurt by this? >> i don't know. still early days of the story. and i think you're right, i think all of them will have to address it and this is our potential loss and what it could be as a result of unwinding these positions. and that's whatis so interesting here, is that we still don't know how much more stock there is to sell and they may not even know again, back to what i'm hearing this morning wells fargo may have more stock to sell. or wells fargo, that's not, okay, on viacom, we'll see, i haven't confirmed that with well but i want to make it clear, i have been talking to, due -- you don't even know, did he have another prime brokerage account at another firm we are not aware of and we are just not sure. we just don't know. >> carl, i think what this does is create another level of distrust, it's be

we are morgan stanley. lately, it's been hard to think about the future.nking about the future, fois human nature.. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones. >>> all right man welcome back now to the vaccine update. maybe the most important story in america and the world right now. making steps to try to end the pandemic and lockdown. the latest -- cnbc and cdc whatever cdc data 85.4 million americans have had at least one shot. 44% of those in the highest risk category, those over 65 years old, are fully vaccinated. 70% of those with at least one dose higher in many states. despite concerns of variants and spring breakers, the actual data in the facts have been favorable. according to the new york times, average case down is down 7% florida has seen a drop. including the most important states of all and stats. 14% drop in hospitalizations 51% drop in fatalities. don't focus on it will take how many months to get back to normal this is important. the cdc estim

you have goldman sacs and morgan stanley, the prime brokerages in the world.the greatest scale and most sophistication. getting out of this trade, even before the time they had to disclose they're experiencing material losses. this shows really the difference in sophistication. it shows that perhaps at least at the very top of the league charts that the biggest prime brokerages are have learned a lesson from previous low belowups and from the 2009 crisis and that if you're outside of the top five or six, and you're seeking to break into prime brokerage and the lead on price and to lead on maybe we'll take less collateral, that sometimes that comes back to bite you >> yeah. i'm curious. you're starting to see the reports that obviously not all banks were created equal and in terms of how this margin call played out these liquidation events across the different banks. is it really sort of a race to be first in terms of placing those sales and if so, is that something that now changes i mean, could you potentially see more communication, or not >> well, so morgan

mike wilson of morgan stanley.his is bloomberg. ♪ ritika: it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. applications for u.s. unemployment benefits fell to the lowest level in a year last week. the labor market is picking up steam as more americans get vaccinated and more states ease business restrictions. initial jobless claims fell by 97,000 684,000 -- by 97,000 to 684,000. the securities and exchange commission has started an inquiry into the frenzy over spac's, special purpose acquisition company's. they have sent letters to wall street companies on their dealing with spac's. they want to know about deal fees and compliance. kailey: i have to say, i am not too surprised that regulators are going to look at spac's at this point. two and a half months into the year, they have raised $70 billion. it is insane. guy: i think there is this concern about the phase one, phase two, and whether or not the whole process is openly rewarding to the phase o

i hope you agree ellen zentner is wonderful to do this, with morgan stanley.alk about the backdrop of jobs as it links into your 6% and 7% economic growth. ellen: the backdrop of jobs is important. we are passing more fiscal stimulus this month. that is going to continue to build the bridge, hopefully to when jobs are coming back and over-fest. you need that bridge in order to have those government transfers help households, help workers without jobs until we get those jobs back. the income growth has to be there in order to drive consumption in gdp as high as we have got it. we don't think today's report is going to be more than a trickle of jobs back, but in a couple of months we are going to see that barreling back. tom: this is really important. many people above you at 198,000. how does morgan stanley perceive markets will react to a sending or -- to a zentner 198,000? ellen: from an economist standpoint we will for you to death. the difference is pretty much nothing when you think of the wide standard deviations in this data. but the market is looking fo

morgan stanley and the team looking at 700,000.ck to the credit card and card spending data. total card spending is measured by the card data increased 45% over one year. 23% over the two years for the seven days ending march 20. it gives you a feeling of what is still to come in this economy. tom: can i tell you what i've been doing all morning? jonathan: you have me worried because we have been doing the show together for the last three hours. tom: i've been doing my taxes. i just got the bill from motel 6 in l.a.. i've been looking at ms equities cm go, which is the news flow. jonathan: looking for a statement from morgan stanley. lisa: how was the airport? was it completely crowded? tom: i learned a lot from this trip. the airport had a pop to it. jonathan: why are you encouraging this? lisa: it is kind of fun. [laughter] tom: from terminal two in lax to motel 6. coming up, goldman sachs g equity strategist david costin. from new york city. good morning. tom: i have tyler the creator. [laughter] jonathan: lisa is back. this is

. ♪ ♪ i am vince lumia, head of field management at morgan stanley. that's retirement, paying for their children's college education, or their son or daughter getting married, our financial advisors need to make sure that they are making objective decisions, every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family. i am vince lumia and we are morgan stanley. >>> welcome back to "power lunch. i'm seema mody check out the nasdaq, hitting the lows of today's session down more than 2.3%, extending the big sell-off this week let's bring in the trading nation team. mark, you think the nasdaq can move down another 2% from current levels tell us why. >> what is interesting, the nasdaq is certainly the largest piece of the puzzle. the broader ma

morgan stanley traded $13 billion in archegos stock. goldman?llion 3$3.9 billion in viacom dumped y other firms in fire sale trade that forced selling led to the biggest one-day drop for viacom and discovery. down 27% it hit bigger parts of the market like the k-web etf it is not known if this forced selling is over. if all of the margin calls have been met or if archegos is forced to shutdown calls to the firm were not returned if more cash needs to be raised, we could see more selling. this is a big story and it is getting a lot of attention this could be one of, if not the biggest single hedge fund margin call, of all time. or at least in many years. the ripple impact from friday felt in early trading this morning. according to reports, nomura is warning of a late significant potential loss from an unnamed u.s. client is indeed related to archegos the claim against the client was $2 billion they owe much of the credit risk on the trade those shares are down 16% in japanese trading credit suisse also says first quarter results could suffer a m

i'm waiting for james gorman and morgan stanley to tell me what the house of morgan stanley wrought. jon: asking the right question, would it lead to broader reduction of leverage of prime brokerage? what was offered to some of those clients? tom: i thought wigglesworth was a great short about what is going to happen this time. how can we have ltc m at 98, how could we have the irish bank lobe of 2008 and have it happen again? how do we happened so the prime brokers are on the same page because they don't have the transparency. jon: lisa, what a day to take off. lisa: i couldn't help myself. you guys had fun with it, but i will say, there is a question, you say the yields are rising. it races a real issue for people perhaps who have added leverage to their poll folio with this idea the fed would have their back. will the fed have their back if you see more of these leveraged trades unwind and people start to normalize? this, to me, is one of the big conundrums as we see tenure yields reach the highest level since january. jon: tom, weigh-in, this has happened in a pretty normal marke

morgan stanley don't to .6%. according to sources morgan stanley was still shopping a large block of viacomcbs shares sunday. according to a single source goldman sachs is telling clients and shareholders that is insulated in terms of losses from exposure to those stocks at the heart of this story. really the story is in europe and asia. credit suisse off by 14%. nomura off by 16.5%. credit suisse and other lenders are exiting some of those positions still according to a company statement. at nomura falling by record with big exposure, they did not name to cuba date it was exposure. >> bloomberg's ed ludlow, thank you so much. with more on the how and why what is next, romaine bostick, just wrapped a special on this topic. give us an explainer, it was a margin call and how did this happen in the first place? romaine: with a margin call you are borrowing to buy security or a block of securities here. this is effectively where you can use leverage to borrow something if you make money on it and effectively you make

and morgan stanley's mike wilson saying u.s. equity indices have priced in much of the economic and earnings recovery for 2021, but opportunities still lie beneath the surface and technology should be a fertile hunting ground who agrees with that who doesn't agree with it. who wants to talk first? i'll go with you, shannon. >> i don't agree that technology can be a stock picker's area over the next couple of years. the faang m underperformance the show me story for stocks like apple and amazon. particularly for amazon with such a big year last year in the e-commerce space how can they continue to grow on top of that over the course of the next couple of years we think we have a lot of confidence in amazonbeing able to do that when you go down into the technology sector, if you look at names like ibm and cisco, those are names that haven't necessarily kept up with the ad spent stories as i think about alphabet and facebook and so i think that there are opportunities to add a few names here into your technology basket trimming nam

training will follow suit and this will likely spark a new rush from wealthy baby boomers so morgan stanley is the 1st big u.s. bank to offer bitcoin and i think just well managed clients so j.m.p. securities predicted that about $1.00 trillion dollars could flow into bequest from this demographic as they currently do not have any direct access or exposures other banks like goldman sachs they're also seeing huge institutional demand as increasingly wealthy clients are getting worried about the us and things way too many dollars bus goes christiane and shown harman editor of the logical investor thank you both for that and today. thank you again. and johnson and johnson has entered an agreement to supply the african union with up to 400000000 doses of its covert 19 vaccine the pharma giant announced monday now as part of this deal with the african african vaccine acquisition trust johnson and johnson will deliver 220000000 doses of its single dose drug starting in the 3rd quarter of this year with the option for another 180000000 doses to 2022 now the continent has been struggling to deal wi

couple of numbers to keep in mind here morgan stanley has said that the global space industry could actually produce revenues of one trillion that's one trillion dollars by just the year 2040 right now current estimates for global revenues roughly $350000000000.00 for room bust. so let's dig deeper into the private space industry with boom bust co-host christiane aaron peggle he's an adjunct professor of strategy and economics at de paul university with a focus in space commercialization thank you both for being here now aaron i want to start with you and this is the most simple question we talk about the private space industry what is the motivation behind private space companies like space x. blue origin and virgin galactic why are they doing all of this. well private launch companies like 3 you're mentioning and many others are just trying to lower the cost to space so that we can fully develop the earth space on a me lower transportation cost means it will be easier to develop overall infrastructure that can eventually make space launch a primarily human transport industry rather than ca

we talk about consumer finance we added financial to our buy list here at morgan stanley.s we expect that consumer losses and consumer credit begins to abate as you see the economic rebound continue to add jobs and consumer balance sheet continues to remain very well supported throughout the covid crisis in the aggregate due to the amount of fiscal support we think higher rates could be a driver there on the energy front we like exxonmobil as a free cash flow generator. a tremendous job trying to lower costs, lower capex supply demand picture in oil titans, we don't think there is credit in the stock price. it comes down to stock picking in the sectors you know, we like these two examples. >> so, adam, i mean, for months now we have been talking about what's priced into this market or what is potentially going to be priced into this market in terms of another round of fiscal stimulus i mean, we heard that optimistic report from steve, the possibility of herd immunity by the grace of god around the corner you have the u.s. chamber of commerce this morning issuing this state

morgan stanley favors large cap tech names and named amazon as its best overall pick in the internetan stanley saying it's bullish on alphabet which it calls a dark force travel trade. facebook citing growth in its facebook shop's initiative has anything changed about the stories in any of these names, shannon? would you be a buyer on the weakness >> i think these stocks have essentially stalled out for such a long period of time at this point, sara, that we're looking at this from a relative perspective and saying, wow, we've seen such a huge catch-up in some of these cyclical trades we've seep these portfolio managers migrating their portfolio whether it was through trimming some of these names to be candid rather than moving out of them completely in order to fund some of those cyclical trades it just feels right now if you're buying cyclicals because you're expecting this robust economic recovery, why wouldn't you also expect there to be a lift for these big cap tech trades whether we have an economic recession as we saw last year or whether we are anticipating the growth of the

offering 45 million shares in a block trade by morgan stanley.ked to the large block trade credit on viacom said to be offered via goldman sachs and morgan stanley and that added to selling pressure. we heard earlier from nomura following the japanese session saying they could have incurred a billion-dollar loss arising in transactions with the u.s. client in a similar transaction. that comes on the back of an extra ordinary 20 billion-dollar wave of block trades friday that rattled global investors. we are looking at viacom continuing that decline, as well as the other media company affected seeing worse daily losses friday despite the broader s&p closing at a record high. we continue to monitor the situation, the latest with the 45 million share block offered by morgan stanley. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at

sophie: morgan stanley coming out with more fairytale metaphors. asia's economies will be in goldilocks mode through 2021 and when it comes to overheating prices, they warn against confusing reflation with bad inflation, noting it is incredibly low in asia and most economies are seen tracking below their pre-covid gdp path. switching out the board, morgan stanley is in the reflation camp. not seeing disruptive tightening in asia this year. subdued price trend outside the commodities rally is also factoring into this view from morgan stanley. hanslinda: on that, goldman seeing the route in commodities may buffer in currencies from higher rates? sophie: in a recent note from goldman sachs, it is a strategist saying the commodity dependent emerging currencies have room to play catch up with the exuberant price gains in oil and copper and the rates market could provide a window to go long high-quality, procyclical currencies like the rand, mexican peso, and russian ruble. the view from tim theme of and the equities team at goldman, they are staying con

morgan stanley, their loss or exposure is not known at this point. back to you. >> su keenan in new york. let's get more on the recent market volatility and look at the opportunities it may present. great to have you with us. we saw the seesawing of stocks this week. this gtv chart on the bloomberg also showing how we have done quarterly -- it has been a mixed picture across assets. we have seen headed towards the quarter and rebalancing in the last day of trading of the quarter in asia. how do you trade the volatility? >> you're pointing out what is a really challenging market. it's very volatile. it is still a very fragile place to be in the world market. although a lot of the economic data is improving, we cited some of that overseas as well as in the u.s., off of low levels, we are still in a very fragile place and there is a big disconnect and we have different pockets. just talking about that. issue as well as, you know, a lot of people from a retail point of view and all of that is playing into the rocky mist of the market. i think you need to

morgan stanley and wells fargo among the worst performers the exchange will be back. right here in the u.s. that's helped it get through worst of last year's economic crisis at the start of pandemic it pivoted from making hoodies and leggings to mask for front line health care workers. it's scramble ld as demand has snapped back just talking last week i was like really got to get this conversation on cnbc. i remember you making this pivot. you say demand has come back strong that inventory just isn't there at the level that one might expect it's something we're hearing across the economy but for a primarily digital online player like you, you've been able to be nimble >> we have some of that was self-inflicted. it's hard to remember this far back now we moved aggressively in the pandemic to cut our supply chain back to get ready for wa we thought was going to be a bead year >> you make comfortable clothes which kind of works well for people who are stuck at home or at least close to home and you had a model where you are primarily online with a few retail locations ho