morgan stanley cut u.s. tech equities to underweight.nvestment strategisteama and northern trust management is still with us. what is your view on where things stand with u.s. equities with morgan stanley and bank of america, are they right to be sounding the warning signal at this point? >> we don't agree with that stance at the moment. we are a little more optimistic. we still think the recovery will continue. in the short-term, we're transitioning interest the recovery growth to more organic growth. lots of volatile data and there will be periods of disappointment in that data and maybe we're in such a period right now. we do understand that that is -- that is challenging for markets at times looking six to 12 months ahead looking through that volatility, we are underlying positive growth and it is going to be supportive for equity markets. tom: volatility but not time to reduce dramatically or expose u.s. equities. where do you want to be positioned there? do you buy into the view that tech is a safe hain amid this volatility? how mu

we have been talking about the downgrade from morgan stanley. next two months carrying an outside risk of growth. lisa: the agenda is not just passing the plan. will they pass it with higher taxes? the conversation is going to represent that. people are looking at how they're going to crackdown. we have a headline rate that companies do not pay. you end up with a 25% corporate tax rate. that might have more of a drag than a benefit. jonathan: what do you make of that, kaylee? kailey: this is not just about the trillions of dollars in socially oriented spending. they will not pass the info structure package until there is an action on the social origins of spending. they are focused on things like climate and childcare and you have to consider the economic implications in terms of having the harder infrastructure spending. it could mean that both things collapse. jonathan: lisa might lock you in a closet. lisa: i am just trying to figure out -- i am trying to understand what the negotiation tactics really are. you really want to wind me up today.

what's your rating on morgan stanley? >> well, we do have -- we do recommend four of the five large banks led by bank of america and start with j.p. morgan and the regional banks like us bancorp and pmc, and we have a whole neutral rating on morgan stanley. we think the structural change has gone a long way, and it's a top pick for a number of years, and you can't -- dance with everybody, so we're on the sidelines with them. >> you're dancing with everybody else i mean, come on. i feel like you're going out of your way to avoid saying anything negative about morgan stanley. you're dancing with everybody else and you left morgan stanley on the bench what's up with that? >> the jury is out on some of their acquisitions you don't decide on the success of an acquisition and you, the first few months it takes a couple of years it really see how they're going to integrate e trade. james gorman, the ceo of morgan stanley was lucky with the timing of the e-trade acquisition and you have heavy lifting to see the followthrough thro

ivanka of edge versus morgan stanley. this is what he had to say in terms of buy that bounce, you had the worst rout in 16 months, but here is what he said, the market selloff escalated overnight, i merely technical selling flows but the primary thesis remains unchanged. buy the dip. morgan stanley says it is far enough, they talk about a 10% or even 20% correction. tom: that is david wilson from morgan stanley with a more irish view, but you saw that bit toward the end of the session yesterday which brought to the s&p back from those intraday lows we sell, and the futures pulling up a 5/10 of a percent right now. let's check on the markets for the up-to-date context. in asia, you have china closed for a national holiday, so bear in mind. the nikkei down sharply today, japan laying catch-up. msi i -- the msci asia pacific down. the crypto space is feeling the risk off mood as well, down more than 10%, bitcoin around the $42,000 level. the bloomberg dollar index is just a smidge lower, as you can see. that is being reflect

oppenheimer downgraded morgan stanley.cerned about how the stocks already had an incredible run it's up 45% year to date you have great quarters followed by bad quarters. still see it in other big investment banks some feel that's all goldman has. we don't understand them they can trip up the bank especially an investment bank. nearly every bank feels a little precarious then you have morgan stanley which is so consistent that it's boring how great is that? 11 years ago james go prman too over ceo it was one of those great american scream machines since then he turned into a sedate investment bank that stopped getting in trouble and started maybing consistent money. it wasn't eeds zi. gorman was in tricky line of business the settlement ar r addressed mortgage backed securities these days morgan stanley is known for buying companies like etrade to boost wealth management almost annuity stream. this bank doesn't trade that much differently from the others with morgan stanley you get that consistency for free a no alarms, no

morgan stanley's australia summit gets underway. the key drivers of industry disruption with richar wagner. breaking news out of south korea. we are getting the jobless figures for south korea. dropping to a record low of 2.8% for the month of august. the estimate was for the rate to come in at 3.5%. it is falling to a record low of 2.8%. much lower than the previous month. this is an unexpected fall. defying economist expectations of a rise. we have seen the virus related restrictions. we are wondering how it will affect the jobless rate. perhaps it will be a decline in labor force, with people waiting out the latest virus wave that has led to an actual drop in the jobless numbers. we've also had a lot of fiscal aid in south korea. the extra budget passed in late july supporting small businesses and job creation programs. the economy added 518,000 positions from a year earlier, which would be six straight months of gains. haidi: and of course, a little bit of a win for team transitory. everyone says what we see in terms of price pr

we are morgan stanley. we see increased efficiency connected to more comfortable homes.rson's energy star™ certified sensi™ smart thermostat uses geofencing to simplify how homeowners manage comfort and costs. emerson. consider it solved. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> welcome to the etf edge portion of "halftime report" i'm bob pisani tax wars have come to etfs senate finance committee chairman has proposed a new tax on etfs to help pay for the $3.5 trillion budget plan the measure would stop investors to avoid capital gains on in kind transactions. traders can swap the underlying asset for another without producing capital gains. one of the primary tax advantages of etf. etf industry is fighting back. let's talk to the ceo of the investment company institute which represents mutual funds and etfs, briefly. what is in kind transaction. why do the democrats want to tax it why

that is one of a half-dozen stocks in which morgan stanley cut its rating.e talking johnson & johnson, merck, are genex, and jen lab. it is not like there is one overarching reason why morgan stanley is more negative on these companies. in a lot of cases they figure there is nothing to push them higher. they don't look as attractive as they were a few months ago. that is what is going on in terms of the groove. it is a different story in a sense. you look at health care stocks in the s&p 500. historically, they have struggled to keep up with that benchmark. even without weakness, the second most heavily weighted group in the s&p 500 are about 13.5%. some of the stocks that have weighed on the group this year are among those that morgan stanley cut ratings on, merck, amgen. to these stocks at least, the firm's call kind of like pouring gasoline on the fire to some extent. guy: you need to segment the health care sector. health care has fallen 19% year-to-date. moderna has been a driver of that sector. you strip that out, and the sector has had worse performan

jonathan: mike wilson of morgan stanley, chief u.s. equity strategist.orward to that conversation in 60 minutes. looking forward to the conversation. from new york, this is bloomberg on radio, on tv. this is bloomberg surveillance. ♪ ritika: the fate of president biden's economic agenda is largely in the hands of house speaker nancy pelosi. just to find a way to keep the democrats moving toward her goal. she has an agenda that includes the president's multitrillion dollar tax and spending bill. she will have to find a way to avert a government shutdown and treasury default. british prime minister boris johnson is heading to the u.s., his first trip out of europe since the pandemic began. his most radical relationship with president biden is that a delicate juncture. it has reinforced the idea of a special bond ahead of an upcoming global climate summit the u.k. will host. the u.n. general assembly returns to manhattan this week. many new yorkers are less than enthusiastic. hotel and restaurant associations are expecting only a moderate economic impact. i

getting your attention, morgan stanley advising the gdp tracking number from 6.5% previously. that is quite a revision. tom: it is a good precursor to get to brian. it is a 90 day one off. when do we see that? i am not sure how they can say it is a discrete quarter slowdown. >> what they expected, a sharp slowdown. they thought it would be evenly distributed. a lot of it has come through the month of august. the ongoing problem we have not worked through, demand is fantastic. supplies is not. we have seen that in every data point this year. september was important because we saw -- we thought these difficulties would ease and heal. september, in the eyes of so many people, it is so important. tom: payroll tweaks for tomorrow from -- brian, you see them bring down assad d august. how do you adjust and invest to the uncertainty of q3? the uncertainties of q4? >> we believe there would be a slow down. when you think about how disastrous the session was and how quick the recovery was, it is strange investors were extrapolating that event and you heard a lot of talk about higher in

andrew sheets, morgan stanley chief cross asset strategist. we are done in europe.in terms of what you see on the chart. the ftse 100 finished down .1%. stories are idiosyncratic. we are watching the m&a story. a stronger pound, weaker ftse. cac 40 nearly up 1%. luxury stocks doing well. the auto sector having a solid day. alix: i thought that was an interesting idea that some of that is already priced. coming up, cecilia malmstrom is our guest. we will also break down the german elections. this is bloomberg. ♪ ritika: coming up, the tripadvisor president and ceo at 1:00 in new york, 6:00 in london. this is bloomberg. >> we know very much what we bring on the table. it makes sense we move forward. >> i just pledged our leaders to speak about it and you will have to wait a few hours and days to see what will happen for this meeting. guy: the eu commissioner for the internal market is speaking to reporters in brussels earlier on today. the issue is we will start our conversation, cecilia malmstrom, former eu trade commissioner. cecelia, we have a spat between paris an

equities strategist and chief investment officer at morgan stanley good to have you on.re from tom lee. it's a technical chart and shows the 50-day moving average. i know you're not a technician per se, but it shows that every time we drop down a little bit, we hit that 50-day moving average and the s&p just continues to move hirgher only one time has it broke below that in the past year. obviously it did 18 months ago but it's been a very strong chart. what are you seeing now, fundamentally, technically, fund flows, whatever, that makes you think we may finally get a real correction >> yeah, thanks, brian look, i think, that's a good point. that's what's kept people involved here. the s&p 500 has been tremendous. it's been the place to be. and look, that's been really part of our call this year, which is that in march, you know, mid cycle transition, we said quality would outperform. that's when we got away from the cyclical trade and small caps and low quality areas. there's no better index in the world than the s&p 500, so it's been a beneficiary of that it doesn't ch

morgan stanley is taking u.s. equities to underweight.'s tax plan includes more than 80 tax hikes and changes to fund the budget, but there are three that raise the most money and have the biggest impact on corporate america. >>> and the nfl season does begin this week and a number of betting names coul

morgan stanley certainly doesn't believe that it will. question about whether they can get the plan done is not separated from the $1 trillion other social spending. the house has indicated that they won't let those things happen without each other. i don't know if i agree with lisa that i wouldn't be surprised to see the bipartisan bill not getting done if the democrats in the house can't get what they want. jonathan: not the first time i've been accused of painting a picture of a perfect world. >> honestly, i think the people are expecting something to get done, whether it is a wash. jonathan: your equity market goes nowhere on the s&p. this is bloomberg. (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back p

tom: morgan stanley boosting salaries for the second time in a month. that story next. bloomberg. ♪ >> there was a worry ry there might be competition but so far the cannabis sector seems to be holding up very strongly. tom: this is bloomberg "daybreak europe," future pointing to upslide in the u.s. section. after closing lower on wall street. the c.s.i.300, the benchmark for china, posting its biggest jump in more than a month. optimism around tech share there is as well. that's the futures complex in the u.s., optimism creeping into these markets. morgan stanley boosted salaries for the second time, second time in a month, raising stakes in a wall street bidding war for new talent. base pay for junior -- they bumped base pay for junior bankers to $110,000, that will cover staff in the trading division. our managing editor joins us now with ed ill it's a. what's the latest on wall street's bidding war for junior bankers? good news for those entering the ranks. >> certainly good news that keeps going, right? you're seeing bank after bank, day after day, announce they're

we are morgan stanley. in 2016, i was working at the amazon warehouse when my brother passed away. a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart. i don't just play someone brainy on tv - i'm an actual neuroscientist. and i love the science behind neuriva plus. unlike ordinary memory supplements, neuriva plus fuels six key indicators of brain performance. more brain performance? yes, please! neuriva. think bigger. at aspen dental, we help you find your happy place like tailgates, doubles dates and great escapes. through all your favorite moments, we keep you smiling with flexible financing on treatments you need - from routine care and dentures, to implants and clear aligners plus convenient appointment times in the evening, weekend or right now. start your treatment today for zero down plus zero interest if paid in full within 18 months and bring

morgan stanley would agree with you. andrew at morgan stanley is looking at europe. you are making this call out of london. look across the channel for us. what is the europe call for you? ben: i think europe leads it. you look at who is recovering from this wahoo has the highest pmi group outlook in the world, it is europe. who is best to benefit from that with the most cyclical industries, it is europe. who has the policymakers that are going to sit on their hands for an extended period of time and let growth run? i think the ecb may tap the brakes today, but they will be one of the last central banks to try to increase interest rates and fiscal policy is going to remain pretty loose. the next couple of years, european gdp will be on par or even outpace that in the u.s.. we have just come off of an earnings season europe with 140% earnings growth. that tells you the earnings leverage, which you will see today. jonathan: that is quite a call on gdp in europe. great to catch up. ben laidler, etoro uk market strategist. he has been bullish for quite a while. tom: i th

jonathan: morgan stanley asking that question, too.have gone from reopening to the midcycle transition. they are still trying to figure that out, tom. tom: for those of you who follow us on more than an hourly basis, from been labor over to mike wilson over at morgan stanley. there is a debate out to the end of the year. jonathan: we are trying to work out the what next after the midcycle transition. lisa:lisa: there is thinking that with the big tech companies, there are few employees relative to the cash flow. that point is going to be more and more salient as we start to see these, because they will be more immune to that pressure. they have better deals with the tips of players, for example, and the automakers. -- chip suppliers, for example, and the automakers. jonathan: morgan stanley put up sellers again for the analyst classed. we need the associate class to flex their muscles, if you are middle-management at the bank right now, you are doing all the work. lisa: and, frankly, the carry through, the bleeds through, the minimum w

morgan stanley had of global microstrategy.affects market looking for a stronger dollar and higher yield. tom: i'm speechless, jon. i had no idea. jonathan: i thought you knew. tom: i'm looking at the family disclaimers, and at the bottom it says i'm related to jon ferro. i didn't read the small print. jonathan: i don't own morgan stanley shares either, for that reason area. tom: all of the research, all the back-and-forth we've got down to the gloomiest of the gloom, guess what? everybody's got a narrative. that's what makes us go on radio and tv. you know what? nobody has a clue. jonathan: no one has a clue. i think you have really hit the nail on the head for me. the range of outcomes is incredible he wide. i totally agree. this is one of the most fascinating points of the global economy, going back to the euro zone debt crisis 10 years ago. the range of outcomes seven currently wide going into next year, except we seem to have policy makers get what they want. policymakers have been able to get what they want. will this fed

i believe the earnings is the following week for morgan stanley. >> yep, okay, thanks, tony dan, whatake >> looks like earnings are confirmed for october 14th and this is one way to work yourself in a position to a stock that traded as high as very near 106. you know, just a couple of months ago and to me, to your point, you know, selling naked puts in an environment like this is definitely deep end of the pool stuff for the people watching the show. >> for more options, tune in coming up, markets are getting rocked as stocks are plummeting. what to expect when asian fa mmaetop stoney is back in two. isn't it a paradox? that the love for this world that gets us out in it sometimes leaves behind the things that can harm it? but now, flight by flight, we can make a difference. because delta has committed to becoming the world's first carbon-neutral airline on a global basis. we believe you shouldn't have to choose between seeing the world, and saving it. ♪♪ we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical

that is the indoctrination at morgan stanley. i love the short, sharp note.rybody calm down about inflation. why should we calm down about inflation? seth: i think if you look at the details about what is really driving the inflation, there's lots of reasons to believe inflation in physical goods is really being driven by supply chain disruptions. we've heard about that for a long time. when we talk to our equity analysts, it seems like most supply chains are starting to get a little bit better at that and at least not get any worse. that means the price level increases for physical goods should be coming to their end pretty soon. we think we have peaked in the u.s. when it comes to inflation now. may be little bit later for europe. but the price level for those goods affected has probably peaked. they are going to start to ease off a little bit. that is going to pull down inflation for the index overall. tom: it is maybe not a global question, but i have to go to america. jon ferro mentioning this earlier. real estate, homes, rent folds into this call, certa

because some have done really well and some of them i still think are cheaper like you and the morgan stanleys and j.p. morgan and american express. >> so i am within there diversifying the portfolio and i'm not just falling in love with the sector and saying these stocks will go to the moon because at some point they will reflect what's there and then we have to cut it back. >> give me 30 seconds on american express which i know you own and like, as well. >> it's a re-opening stock business travel, higher interest rates, big flow and it's banking cheap. >> that was less than 30 all right. i'll give you a few seconds back before we get out of here today. still ahead, the committee is making a lot of moves and plus we'll hear from the ceo of one of the big banks, bnp paribas usa and the fallout from evergrande and much more a reminder you can always listen to us live on the go on the cnbc app. we're back right after this. over the years, mercedes-benz has patented thousands of safety innovations. crash-tested so many cars we've stopped counting. and built our most punishing test facility yet, i

and by corporate funding provided by stevens inc and morgan stanley. >> welcome to firing line. >> thank you for having me. >> we're now 18 months int the covid-19 pandemic. more than 4.7 million people have died worldwide. the virus shifted the way we live and the way we work. where do things stand by this assessment with the global economy right now? >> so the global economy is in recovery mode. restarting a global economy is not easy. it is proving to be a less smooth recovery than we would like. and then add to that the fact that the fan depandemics not ov. and that politics is in the way, and we're looking at a notable recovery, one that is very unequal across countries and within countries. >> some peep are calling this a k shaped recovery meaning that certain sectors are recovering faster than others, do you agree? >> i like that this is more than just k shaped. there is multiple ks. i will give you an example. there is something new in the last few months and that is the smell of stagflation. you have to be as old as me to have experienced stagflation in the 70s. that is when you

the head of european energy research at morgan stanley.ould not get the secretary-general to even hint whether opec will be prepared to add more barrels. but let's deal with this oil market. the small pause this morning but is it a pause before another resurgence? are you in the $1900 camphor oil or demand disruption? good morning. >> good morning. he is certainly a skilled deflector of those types of questions. look, the question that you are asking is exactly the right one. the real conundrum is that we should be undersupplied. and then we are finding even more inventory tools so there is something to be explained in oil market for six at the moment. the picture is not entirely clear. could it be well more than that? we can find 2 million barrels a day of inventory over the last month or two. so what seems to be happening is that oil prices have long disconnected from the marginal cost of production but they are searching for the price at which demand is starting to be destroyed and that is the mechanism by which oil prices recovery take

we are morgan stanley. the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. >>> the nfl season kicks off tonight when mvp tom brady and defending buccaneers host the dallas cowboys the man calling the action will be emmy award winner and hall of fame sports broadcaster al michaels who joins us now from tampa. it's good to see you again, welcome back >> scott, you do know this is an annual visit this is my favorite interview of the year i love you guys. it's the greatest show on television love to be with you every year >> so good to have you, i look forward to it always as well i know you're looking forward to the season fans are back. i can't imagine what it's going to be like for yo

serat, you as well citi, jpm, morgan stanley. you claim this is the place to be the market seems to be voting otherwise. >> yes, the market today is saying, you know, they've been voting the other way but i agree with steve it's rare when i do. but i do think these talks have really good catalysts coming forward. their valuations are still cheap. great balance sheets i like the ones i own or the management teams and i think steve is right the fed, we'll probably get the taper slowing down those catalysts will come and help the stocks but there are other things that are helping the stocks, too. they have great asset management businesses, great m & a businesses, great franchises i think at this point what you are seeing is some defensiveness to say hey we have some uncertainty about reopening this delta variants are there why don't we go to the safe place which as you mentioned this is the second worst loss for financials the same thing happened over a year ago so i like the position we're in. i think there's good opportunity ther

over motors, specifically back in august the bulls are pulling hard on the rope 24 hours after morgan stanley, morgan had an underweight call that sent shares hitting yesterday bank of america clapping back with a vibrating on the easy maker whose dream model prices at $160,000 this is expected to roll off the assembly line next year but it's rolling along at 5.9%, lucid not the only one making electrifying move at this hour, the man behind the company looking to put the smack down on the electric vehicle market by a lightning speed acquisition including an all easy i italian publicly traded motorcycle company. shane mcmahon, that mcmahon is here, the closing bell ringing in 48 minutes the dow up 236 points. we're coming right back. ♪ i wonder how the firm's doing without its fearless leader. you sure you want to leave that all behind? yeah. stay restless with the rx. crafted by lexus. experience amazing at your lexus dealer. that building you're trying to sell, crafted by lexus. - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can cl

we are morgan stanley.es are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. all the things, all around you... where you learn, work, and fly... we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you. ♪♪ energy is everywhere... even in a little seedling. which, when turned into fuel, can help power a plane. at chevron's el segundo refinery, we're looking to turn plant-based oil into renewable

mike wilson, morgan stanley's chief u.s. equity strategist.ing up, investors ignore electronic arts' small issue in terms of the games released pre-christmas. we got a four-week delay on the next big gain. the market was freaked out by that. this is bloomberg. ♪ >> it is time for the bloomberg business flash. a version of its debut sedan has been confirmed as a longest range electric vehicle ever. the company says the agency i wanted a rating of 520 miles of range, more than the tesla model x. lucid plans to build less than 500 cars with those specifications. the push for a $15 minimum wage may have stalled in congress but the type labor market is making $15 that the factor minimum these days. many service sector industries crossed above the $15 starting wage threshold. employers such as target and walmart have increased their starting pay to $15 or more. guy: thank you. let's talk about what ea is up to, electronic arts delaying its next big game until november. it could have been worse. it is called battlefield 2042. at least we don't have t

morgan stanley cutting them to underweight. citigroup also warning we could see bullish positions, having a large impact when it comes to any small correction. haidi: a lot of this is down to if investors believe when they say invention area -- inflationary pressures. we did see the downshift from early july to august in activity. a lot of it was due to the impact of the delta variant. hospitality, dining out, travel, and the like. they talk about the inflationary pressures coming from the fact it is a downside in economic activity, a downshift in activity, not a result of lack of demand, but supply constraint. we know it is a recipe for inflationary pressure to come. shery: talk about the constraints, we have seen the scrutiny in china continue being felt across markets. and i know every other day, we talk about evergrande, bonds falling to record lows. but we are hearing news they are suspending low interest payments. stitch moving to cut ratings. we are watching them closely as we head toward the opening in china, as well. h

morgan optimism versus what we hear from morgan stanley.han: that nutrition is really helpful. it helps us think. tom: it goes later so the cheeseburgers taken. jonathan: what you think of 2022 out like a lion -- in like a lion and out like a lamb? lisa: is that price did? we see a bit of a roll -- is that priced in? we see a bit of a rolloff. that is the ultimate question. this does increasingly become consensus. jonathan: yesterday was a really defensive rally. staples bomb utilities, health care. lisa: there were fundamental reasons. micron reporting disappointing earnings. it is a muddy picture. tom: lisa shalett, bed, bath & beyond, 24% south. jonathan: did you see dollar tree yesterday? things will no longer cost a dollar there. lisa: they've been hit hardest, the dollar stores. jonathan: there is a change. isn't that part of the story? the dollar store is now more than a dollar. tells you where we are at. tom: to go down madison avenue, i shop at visa tree. it is great. jonathan: i thought you going to fit and further down to get to

managing director and chief china economist at morgan stanley.ttle bit more pessimistic than consensus. why? >> well, i think when we are meeting forecasts, either gdp or pmi and china, what we need to bear in mind is they have a major regulatory reset -- had a major regulatory reset late last year. we are seeing the housing downturn. it is part of this reset to tackle deleveraging, decarbonization, and rate distribution -- and redistribution. this power crunch, which means production cuts in order to comply with the energy-saving targets, causes slower housing activity. and pressure for some property developers. there will not be a significant drag on growth. but there will be some offsetting from the pboc and the ministry of finance. tennis pmi will fall to 40.5 in september and in third quarter it is tracking a 4.5% year-over-year, which is also weaker than most people expected. shery: you mentioned the pboc, this chart shows the pboc toolkit. what are you expecting them to use, in order to help the economy? >> i think we are at the inflection

that may be more of what morgan stanley is pointing to. i think a relatively underappreciated risk and uncertainty for the past several months has been on the physical front. that may come to the forefront. jonathan: the equity market just off all-time highs. softer in yesterday's session. into the bond market where yields are lower by a couple of basis points. a small break of 1.35. into the fx market, just a little bit weaker here. going into the ecb tomorrow we always talk about risk. talking about risk we are nearly always talking about downside risk. the number one question is what is the upside risk? what's the risk that things go right? that's been the most unappreciated risk for much of the last decade. lisa: this is where you will tweak me today because this is the issue. to me the idea this has been the issue, people missed out on the upside. if in doubt, buy. that's how it has been over the past 20 years per what breaks that paradigm? jonathan: we can do that with the northwest mutual management chief. investors in these three c

today morgan stanley says they like these five tech stocks.t which ones they are and subscribe today. that content available only on cnbc pro cnbc pro we're back in a minuteit differ. so it takes less fuel to bring people together... and make faraway places feel a little closer... with engines that power planes more efficiently. because seeing a better-connected world isn't far in the future. we're building it... now. ge building a world that works. zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. jerry is here! j! mate, how are ya!? it's so good to see you. good to see all of you, yeah! why is jerry so... popular? it's been like this ever since we started using workday. what do you mean? it makes it easier to develop great relationships with our suppliers. now everyone, everywhere loves jerry. they sure do. they do. they really do. mmhmm. workday. finance, hr, planning and spend managem

morgan stanley saying you might have a 15% correction.you have a macro view now >> we're bottom up guys but we have a macro view. we think the market will be higher over the next 6 to 12 months now is not the time to be speculative. you really want to pay attention to fundamentals. you want to pay attention to valuation. don't get caught up in the craziness of the day the 100 pes. the meme stocks. we think cryptocurrency is a disaster waiting to happen there are things we wouldn't speculate on we think there are areas if you have a 12-month time horizon, you can make reasonable money in the stock market. >> i was reading some stuff, the hot money for the meme stocks has gone into nfts, some of the bricks and other things people are doing that are more difficult to understand. let's go to something you do understand, bottom up stock picking. we know you love dividend pairs. dividends don't get as much love as they should nor does bank of new york, bk. why not? >> bank of new york is a good company. good long-term prospect. interest rates a

ritika: morgan stanley cutting u.s.ities to neutral as they shift preferences to european and japanese equities. at a time when there is a lot of concern about lofty valuations over in the u.s. this is the chart. s&p 500, orange line, trading at a premium to global equities which is your white line. this is on a year-to-date basis. they cite a number of reasons, one is the spread of the delta variant. we also had morgan stanley coming on bloomberg and saying rates are going to move higher on a hawkish bed which will weigh on the equities outlook. not alone in sounding the alarm. credit suisse, citigroup both chiming in. citigroup saying a minor correction could be exacerbated by the fact we have so many bullish trades at play. they are saying the s&p 500 is outpacing short by 10 to one. credit suisse concerned about some of those extreme valuations. taylor: thank you as always, ritika gupta. let's look at these equity markets. we are joined by gargi chaudhuri. i am curious how you are thinking about some of these other

morgan stanley's adam jonas weighs in on tesla's prospects jon?>> we'll start with stocks on the nasdaq coming off its first up day in six still closing in on another record despite the recent weakness although all five faang names and microsoft in the red today dom chu taking a look at those stocks that have not followed the rest and are going the other way flirting with their 52-week lows >> jon, because not all of those technology stocks outside the real mega cap names have participated in the recent rally, at least in the last six months or so we wanted to take a look at some of the bottom feeding type stocks that have not participated but might still have upside potential. the reason why is if you look at the technology sector communication services versus the overall s&p 500, tech is roughly in line. that orange line, can it keep going, that recent down trend here as you pointed out is a bit of worry we took a look at the screen looking at s&p 500 technology and communication services companies. by the way, there's roughly 96 of those total

we are morgan stanley. >>> a stabbing attack at a supermarket in new zealand.e minister describing the suspect as a supporter of isis ideology. let's bring in ivan watson live from hong kong. pictures are terrifying. what happened? >> reporter: good morning. in this case the suspect was in a supermarket and police say he took a knife from in there and started randomly stabbing people. six people wounded, three in critical condition right now. now, he was shot and killed within about a minute police say by a police surveillance team that was actually monitoring him tasked with doing this. now this, is what is really incredible about this case. the suspect is identified as a sir lankan man who was labeled a threat to national security in new zealand as far back as 2016 and was put under police surveillance then. though he was believed to be a supporter of isis and its violence extremist ideology, there were not enough grounds to arrest this individual who was in fact known, his case in particular was known to the prime minister of new zealand herself who addresse

and john mack was like that when he ran morgan stanley.y low-key. extremely low-key but extremely confident. what they are saying the inside scoop is on him, he his getting the systems regulatory systems and checks and balances in order. very fast pace getting down cost and you know, higher interest rate environment problem that probably going to get higher. in the banks do better than that pretty charge more pretty they lend more money and it cost more in the have a huge planning aspect in the whole thing about breaking them up that they recently said because they screwed up the ran into issues with that. and where they didn't settle the cases with these phony account scandals. not going be broken up. even powell thinks basically said that we will keep an eye on them but you know. he and i think that what is going to happen is going to be at some point, in the next year or so, allowed to grow. romans fed and sort of this cat because of that account scandals and it can't grow. at some point, when he gets his total act together, also the re

morgan stanley's wisdom kristin retiring as the c.e.o. and joined morgan stanley in 1998. we also saw him really leading from beijing the raising of morgan stanley's stake to 90% for buying shares from china fortune securities behind that deal. and we are now hearing that she is in fact exiting when it comes to co-c.e.o. role. let's go back to e.v.'s now. paulstart, the electric vehicle maker backed by leonardo dicaprio will go through a merger with a company at roughly $20 billion valuation. the c.e.o. told us about his plans to put several new models on the road. >> it's a very important exciting day for polestar. we have two cars on the road, yes. we have established our system in 14 markets. but there's a big future ahead with three cars coming out over the next three years as expanding into many -- there will be 30 markets targeted in 23. and of course, this big growth story, this expansion of the brand, is really, really nicely supported by this injection of capital. but that access to the capital market. so a new chapter for polestar. >> will part of that chapter be

the s&p and nasdaq having the worst month since last october and morgan stanley is warning anyone buyingo last week's rally is in trouble, saying it is too frothy and government is on a crash course for shutdown and fed tapering around the corner joining me from the bonson group, are you more sanguine, david bahnsen, or how is it shaping up >> it dependon when they write the plan i worked with him at stanley morgan and he leans negative he made a call on this about 15 times lately all people pointing out logical things that don't look good all the time in the markets. the markets have had an opinion of their own so i wouldn't make any short term decisions around the report from morgan stanley. i hopefully don't have clients making short-term decisions at although you know, we want to be able to have a little longer term view, and that's where the sanguine comes from, is that we do believe through time the way that particularly our dividend orientation is positioned will do quite well. but as far as the markets needing an excuse to have a correction or some downside volatility, there's pl

bearish notes out of morgan stanley. friday and beige book somewhere in there and the opening bell in six minutes. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business, you can pick the best plan for each employee and get the best deals on every smartphone. is brought to you by, nuveen a leader in income, alternatives and responsible investing. >>> keeping eye on china names this morning kmul lit action in china overnight not that bad as we got comments from the vis premier they will work to support the private sector the other hand, george soros sat with another piece in the "wall street journal" opinion page this one titled "blackrock's china blunder. he writes

committee as one member is buying today at least one we'll also be joined in a few minutes by morgan stanley's mike wilson who just revised his call on the market and you need to hear that. stephanie link, josh lebenthal and the stocks got a nice bump off the open at 11:00 it was all gone it's coming back a little. the dow is up 141. the s&p is good about 17 and a third or so of a percent and the nasdaq with a nice bounce of two-thirds of 1% and russell is good for 7.5 points. the tech has been volatile josh, the central question, buyable dip or is this the start of that correction that we've been thinking might be coming? what do you think because i look at you as a seller today and i see you selling a stock that you loved, that you made the case for multiple times on this show, that you had bought back in april at the end and that is leslie's it's a pool supplier it's been down in the last three months and you're a seller can you tell us why and what that says if anything, about your big market view >> no. it has nothing to do with my big-market view. leslie's did something disgusting shortl

morgan stanley, take a look across the markets as the dow continues to climb towards session highs.s on the nose led by energy of 3.5% today financials up nearly 3%. and industrials up 2% as well. the best performer is the dow real estate, the only sector fractionally in the red. kind of makes sense with rates on the move as well. morgan stanley is making a bold call, calling it a niche green flying machine we're talking about jobi aviation its shares up nearly 12% the company is working on an electric aircraft that takes off and landsvertly. joining me now is the analyst behind this call it's great to have you here. how close is this technology to prime time >> first commercial service will be in 2024, kelly. so it's something that we could see in the next few years for sure >> when we say 2024, is that like a wink-wink '24 or is that, like, look at what's happened with space this year where all of a sudden we've got astronauts on these incredibly successful private missions >> i think you have to look at this market in terms of what can happen in the next five years, ten years and

i like morgan stanley.usiness, capital markets and underwriting is the place to be. >> all right >> i think marc jacobs thought he was an oracle back in the summer of 2000, but proves to be anything but which is why you should just own the actual oracle orcl >> by the way, the stock was immulex. matt congratulations. "mad money" with jim starts right now. >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc or tweet me @jimcramer. this is what you get when everyone is worried, a market opens strong sure the dow ultimately finished up 2

neil: now, 13 -- i believe it was 13 morgan stanley workers died.> some of them were. some of them, tom was on the floor with us, he got off on 59 to call his wife. leadership say harkness was on -- lindsay harkness was on a floor above us, he was a broker at his desk, and a lot of them were -- rick's security team that worked with him to go back up to make sure everybody had gotten out of the floor. neil: how do you feel today? >> well, i'm thankfulful. i mean, i'm -- i feel, as we hit the 20th anniversary, it's become very real. it feels like yesterday, and it also feels like it was a hundred years ago all at the same time. i'm very fortunate to have great support of my family and my friends, but it reminds me of the humanity and the kindness, not just the terror and the destruction that happened that day. and it reminds me that people from around the city but also around the world all came to be one in this terrible incident to support each other. and and i'm thankful every day that i was able to survive and come home the my family, and i try to

morgan hits an all-time high today morgan stanley hits a new high today. what happened after that they turned negative the xlf, negative. bank of america is still positive, but what's up with that kind of move? >> it is interesting, scott, to see how that's all playing out we have the same thing going with energy. energy was up a couple of percent. it actually started to move after the bell, it got even higher financials were up about a half a percent and they flip around and we saw energy flip around, as well. it's interesting, scott. it becomes part of what's going on in the market and it gets caught up. if the broader market wasn't getting hit to the extent that it is right now, i don't think you'll see the financials coming off of the levels of where they were it certainly isn't getting sold off, scott because suddenly people say these things are way to expensive at this level and that's not what it was this is a reaction because of everything going on within the market so we see this type of thing happen all of the time i don't think it's necessarily

morgan stanley is saying that the recovery in corporate investment will be much higher after this crisisompared to previous crises. i cannot say the net result will offer a pillar of support for global close -- growth. >> the biden administration is issuing a new investigation into chinese subsidies and their damage to the u.s. economy to pressure beijing on the trade front. let's bring in our chief asian correspondent david ingle in hong kong. do we see this of an extension of the frustration biden expressed in the phone call friday? >> >> that is a good way of putting it. biden has been frustrated with a lack of engagement that he is seeing, or not seeing, from the chinese. i think there are many in the bided administration who -- the biden administration who feel that trump era paris -- tariffs no longer lead to the desired effect of having china change its ways and are no longer any leverage get china back to the table. the state broadcaster in china quoted xi jinping, telling biden in a phone call that those policies the united states has had on china of late have caused serious dif

we will speak with superstar agent drew rosenhaus as the season kicks off tonight. >>> morgan stanleyas little upside even after beating the mark this year dow's up 116 "squawk on the street" continues. sure you want to leave that all behind? yeah. stay restless with the rx crafted by lexus. experience amazing at your lexus dealer. incomparable design makes it beautiful. state of the art technology makes it brilliant. the lexus nx. experience the crossover in its most visionary form. experience amazing at your lexus dealer. and there you have it— -woah. wireless on the most reliable exnetwork nationwide.ver in its most visionary form. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. be reopen

here is a call from morgan stanley, amazon price target cuts from 4100 4300. the reason for the price -- 4100 to 4300. the reason for the price is higher wages for the online retailer. that could be the discussion we have through earnings season. tom: what will be interesting is they may have revenue from company to company to company but are overwhelmed by the costs we are feeling. dollar-yen with four days through, the rate of change we are are a scene and of these. -- the rate of change we are seeing in these. jonathan: bond market 149. that is what he wants. that might be the objective. tom: it look like us on friday. we were sleepwalking. jonathan: you were sleepwalking friday. lisa and i were at work. big week ahead. this is bloomberg. ♪ ritika: angela merkel conservative party defeated in a tight election. the spd 126% of the vote. christian democrats got 24% -- the spd won with 26 percent of the vote. christian democrats got 24%. the president's packages set to be lower than the 3.5 trillion dollars. a showdown for the economic agenda. the head of the