p. morgan, for instance, the biggest bank i'm in the united states are from city group on friday and what those banks have in common. that obviously they're looking at quite some headway and that's why they're putting money aside for a possible credit and losses in the hundreds of millions of dollars embedded. dragging a profit down at this point. so all the banks so far and have announced a pretty steep profit decrease, they're still profitable, but not as profit profitable as they were before. it was the anyhow. interesting to see on friday city beating estimates on wall street. the stock was up by a stunning, 13 percent, and now on monday, the bank earnings continue with the numbers from bank of america and goldman sachs, but i expect a similar, sorry. thanks for that. yes, i will check in with you on monday, china has reported weaker than expected growth adding to an increasingly weak economic picture around the world. the chinese economy grew just under half a percent annually between april and june, a period of time that includes a major lockdown in shanghai, the world's largest por

p. morgan stanley, not jp morgan, big differences in the numbers.a: you see more strength in the morgan stanley numbers even though they missed in the headline figure. it is notable the profile of these banks. this is marv a traditional wall street bank in line with goldman sachs. how much can those banks do better than those more exposed to the consumer? i do wonder and i would love you to weigh in, how much are the consumers facing the banks much more exposed to downside suit -- surprise versus the bread-and-butter of wall street? alison: i think that's right because net interest income is strong for those lenders that has been a factor driving the stocks since last fall. this year really the turn has been more towards the other side of things, the credit hit loss provisions. we did see a reserve build a jp morgan that was more than people thought that will be the focus for traditional lenders whereas morgan stanley and goldman sachs that are more focused on trading in the capital markets unit should benefit more from the volatility. goldman, we d

p. morgan chase city group and hsbc. according to one of zalinski economic advisors in order all of these companies, richer route that are made in. ready war arms b, m a r, and nansen, war or criminals. so basically you want to, to see them prosecuted for war crimes, is what you're saying. exactly. the same adviser had previously contacted heads of the financial institutions to tell them how to run their companies demanding that they refused to engage with companies that sell in trade, russian oil or gas, or in russian energy chairs like gas prom ross, snuff, luke oil and v told teams zalinski is threatening to pursue the managers of these wall street companies, personally, all the way to the international criminal court, which the u. s. doesn't actually recognize. in fact, the united states passed the head convention ox in 2002 during the global war on terrorism, which allows the u. s. to liberate any american or a citizen of an allied country held by the court. presumably, much to the disappointment of some that would

p. morgan, one of the banks mentioned last $524000000.00, largely because of the fallout from the russia ukraine conflict. the bank is one of the biggest players in global commodities and it's economic fluctuations greatly impact the global market. in my view, western banks are committing war crimes because they are helping the putin regime in this specific way, and they are supporting the regime. that's not all ukraine's foreign minister slammed what he called, a hypocritical nato for doing literally nothing to counter russia. the war is always a test that rips masks off, and we all saw real faces. what we saw some revolutionary groundbreaking decisions taken by the european union, which even they themselves did not expect to make. and we see nato as an alliance as an institution sidelined and doing literally nothing. i'm sorry to say literally nothing. a reminder that since the conflict began on february 24th of this year, ukraine has received billions of dollars worth of weapons and military equipment from at least $28.00 countries, including $25.00 nato members. and unfortunately for

p. morgan, one of the banks mentioned last $524000000.00, largely because of the fallout from the russia. ukraine. conflict to bank is one of the biggest players and global commodities, and it's economic fluctuations greatly impact the global market. in my view, western banks are committing war crimes because they are helping the putin regime in this specific way, and they are supporting the regime. that's not all you crave. foreign minister slammed what he called, a hypocritical nato for doing literally nothing to counter russia. but the war is always a test that rips masks off, and we all saw real faces. what we saw some revolutionary groundbreaking decisions taken by the european union, which even they themselves did not expect to make. and we see nato as an alliance as an institution sidelined and doing literally nothing. i'm sorry to say literally nothing. a reminder that since the conflict began on february 24th of this year, ukraine has received billions of dollars worth of weapons and military equipment from at least $28.00 countries, including $25.00 nato members. and unfortunat

p. as morgan's right on the bottom, you might find a similar price. larry embarrass, johnson said only a neck and neck. rice. rec uncle. it between those 2 at the moment but to our viewers watching p b. s. in the united states, into all of you around the world, welcome, we begin the day with the assassination of shins o r b. today in the old japanese capital city, norm, former prime minister sions obee, stood in the middle of a crowd to lend his voice to a junior politician running for parliament abi began speaking, but never finished. police say a 41 year old man armed with a hand made gun shot obeyed twice. once in the chest, once in the neck, killing him. the investigation into a motive continues to night. gun violence, it's almost unheard of in japan, in 2021 in a country of a 126000000 people. there was one that reported gun death one. now that makes today's murder even more shocking. and it has triggered questions about security in japan face to face pressing the flesh, campaigning is considered a given today. it seems to have given a murderer a

p. as morgan's right on the bottom, you might find a similar price, larry embarrass. johnson said of me, a neck and neck rhetoric, uncle it between those 2 at the moment. but to our viewers watching p b. s in the united states into all of you around the world. welcome. we begin the day with the assassination of shins, o, avi. today in the old japanese capital city, norm, former prime minister sions obee, stood in the middle of a crown to lend his voice to a junior politician running for parliament abi began speaking, but never finished. police say a 41 year old man armed with a hand made gun shot obeyed twice. once in the chest, once in the neck, killing him. the investigation into a motive continues to night. gun violence, it's almost unheard of in japan, in 2021 in a country of a 126000000 people. there was one that reported gun death one. now that makes today's murder even more shocking. and it has triggered questions about security in japan, face to face pressing the flesh, campaigning is considered a given today. it seems to have given a murderer an opportunity t

p. jp morgan now seeing a recession in the europe. the new outlooks getting slashed by the minute.athan: this equity market bond the day after the fair last-minute. we have rallied ever since. up .8% on the s&p. the nasdaq up by 1.4%, helped out by two names that we can build on in a moment. in the bond market, twos, tens, 30's looking like this. i want to spend some time on the euro. jp morgan the latest look for a recession by year-end. we look for a combination of higher european natural gas prices, political risk to slow eurozone gdp. when it comes to the euro. they are not looking for 50 in september. two more 25 basis point rate hikes by year end, and then we are not. tom: the guests and people have coming up will lean toward that angle. what will bill dudley tell us this afternoon? jonathan: bill has made the point since june of last year that this federal have to do more and go higher than people thought. tom: i just cannot say enough, when you do a debate to inform people, so ultimately they can make investment decisions on retirement plans. i was not going to retire but i

this after many of the big banks, j be p morgan, morgan stanley, wells fargo, blackrock reported a doubleearnings last week so a miss on earnings and revenue. joining me now, bonson group chief investment officer, founding and managing partner, author of there's no free lunch, 250 economic truths, david bonson. we're looking to bank of america, goldman sachs out before the bell this morning. what are you expecting, david? good morning. >> well, good morning. it's actually been a mixed bag because as you said, jp morgan, blackrock, morgan stanley all missed last week. then you had a really kind of encouraging number from citi. it was frankly surprising. we're not used to citi actually outperforming expectations. and so i suspect it's not going to be a monolithic response where all financial firms respond the same way. i think some are going to have better news, some are going to have worse. what we know is going to be bad, dagen, is investment banking activity is going to be way down because last year you had a huge amount of m&a and buying and selling and activity and that activity is tot

you look at how the rest of the banks are responding, all of them are underperforming the s&p 500, but morganformer out there which would indicate the market isn't too concerned about the results they saw with regard to investment banking they were pleased by the offset that came from trading activity during the quarter but underperforming in addition to jpmorgan is also citigroup and bank of america which have much more exposure to the benefit, one would suspect, from second quarter net interest income, which was served as a tailwind from rising interest rates. that's of course the profitability metric that they get from being able to charge more for loan making so it's kind of surprising to see such a large sell-off in the more commercially oriented banks, whereas the wall street ones are holding up a little bit better despite the big slump in investment banking. >> really quickly, leslie, jamie dimon usually sets a tone in what he says he said the hurricane a month ago and people are still talking about it what tone did he strike today? >> he struck a more measured tone, especially related

p party, 2nd in the name. ronnie luke, grimacing, america de morgan, mama oswick armed with another senior sir p. p. member proposed drano, vicar missing for the post. and then the 2nd thing was this man who had been a vociferous critic, vicar missing her, has been premier 6 times. and he is now the acting president. he's a familiar figure, but not a popular one. seen as a protector of the roger boxers, he is likely to have their support. this man is his main challenger, dallas, alabama, a senior politician, sidelined by the raj, a box of brothers. he 1st entered parliament in 1994. a few years later, he said he was disheartened and disgusted, but after a break from politics, he's back in the field. the 3rd candidate is under a komodo dis, annika don. the leader of the national peepers force his party, mobilized tens of thousands of people from a crush lanka to march against the raj, parks, the government and vicar missing her. oh, the outcry over the possibility of running a vicar missing her being elected is getting louder. university students join trade unions to voice their position on

equities lower by .5%, s&p 500 down by .4%. a jp morgan, from max bullish to about 95% max bullish.: a rough change. jonathan: in the bond market, looks like this going into cpi tomorrow. the headline is about 8.8% and maybe higher. we will build on that with yields coming in ahead of cpi. a lot of you are a focus on what is happening with the euro-dollar, let's talk about problems behind the single currency. all about energy, gas in what happened with energy supplies into winter. 11 or 12 months away. what goldman did with copper is worthy of more attention. the price target comes out about 8650 down to 5700. we are softer by about 1.5%. if you are looking for big global growth resurgence in the second half, goldman is not involved. tom: it is drifting away. when you look at the summation of the coal and copper charts, the forecast of four or five months ago of 2.8% global, we left. guess what, we are there. jonathan: i talked about the forecast on the euro, you have to make a forecast on gas and what putin may or may not do. you have to make it: what happens with lockdowns in chin

morgan did after the s&p 500. the story isn't particularly good. my opinion is that the economy is going to get worse. i think some tumors are popping up spending. i think ultimatel , this rally that we are seeing in banks. it was very, very weak heading into earnings. i think, ultimately, it ends up breaking your heart to get that down with the other super bowl names and the economy flows. >> i agree with that. we've been talking about this. the one thing that hasn't happened yet, i know we are going to talk about housing. we also have a situation where we haven't seen unemployment really pick up in a meaningful manner. what did we spend for a few minutes of the show talking about some of the biggest employers of our country slowing hiring. i think once we see that unemployment rate come off of 40 year lows. i think that will be the nail in the coffin of consumer. gse sort of stuff. i just mean we have a consumer that the saving rate as come down a lot. is that we are looking. is likely to get worse from here. were starting to see lone grove to ce

morgan on the earnings dip yesterday as it hit a fresh 52-week low at a p/e of just under eight, whatan entr jp now for leaps >> leaps buy you time. with the stock closed at 112 break even, if you think j.p. morgan will be 18% higher in the next months, money good. >> final call, carter. >> if you want to. >> seeking strength in health care, long johnson & johnson. >> coco. >> i like uup spreads to make a bearish spread on it >> thanks, guys, happy friday. that does it here on "options action." that was an actual tweet, carter, i've been running, dieting. the camera adds ten pounds, minimumly, right that's right >> this is a paid advertisement for csn. >> you know, the one thing you can count on in numismatics, which is the hobby of collecting coins, is that the pace of change, or change, is glacial. [ chuckling ] okay? we would hope from the -- oftentimes, as numismatists in a hobby and in a profession, we hope for a snail's pace from the united states mint. nothing is done quickly. nothing is done without fore

p. where down 38 points. from new york, jp morganarnings coming up shortly. ♪ ritika: i'm ritika gupta. donald trump is looking at announcing in september he will run for president again according to the washington post. the newspaper says allies are counting on him announcing before november midterms to help republicans to cover congress. the senate is getting closer to a deal on the economic agenda of the president but it could spark a showdown amongst democrats. senator joe manchin has been negotiating with senate majority leader chuck schumer. he says the federal deductions popular in high tax states has not been in the mix. and there has been a bill to help state and local governments set up a warning system for active shooter situations. it gains new urgency after shootings in texas, new york and illinois. any republicans have called it a encroachment on the rights of gun owners. in your forecast, as we bounce from the pandemic, it will be weaker than anticipated. 2.6% this year, 1.4 percent in 2023, inflation averaging 7.6% in

important night for earnings on two big dividend payers, sl green and kinderkinder morgan as many are outperforming the s&p-date, which is why you keep saying, i don't know why you all are so gloomy, i'm feeling good about my portfolio. >> it's going to the more interesting of the two with respect to the companies specifically, it's pretty easy they own class-a office space in new york city. the stock's down 34% this year because everyone's been spooked by return to the office. meanwhile, they still have 93% occupancy, an average lease time of 8 1/2 years they should earn $6.75 this year what i think will be most interesting is the broader commentary, and they're really good about talking broadly about the world, about the market, about rents, about new york city and what they see. so i'm really looking forward to that >> what about kmi? 6.35% yielder? >> kinder's easy they own like 70,000 plus miles pipeline and even though we want to say oh, it's an energy company, the reality is they don't have huge earnings or revenue response to the price of oil or gas. they just transport it and so this, i think, wil

and note from morgan stanley that that that is about an 8% for s&p 500. does that sound right to you? >> it depends upon really the combination and the economic outlook. when we think about the dollar, typically the dollar is surging in periods of economic weakness or risk-off periods. it has been decreasing the expectation and at the same kind of the dollar is rising, the net result is analysts have shown some tendency to reduce expectations of the multi-national, growth segments, but it is really difficult to isolate one vs. the other. the result is expectations for second-quarter innings -- earnings, and just to the end of april. the biggest drag is again, growth earnings are actually supposed to decline year-over-year. guy: how many times am i going to hear the dollar mentioned? microsoft has already warned. >> i think it will be for the one third of companies actually have exposure, but 65% of companies are actually net beneficiaries of the dollar. when the dollar rises, generally, their earnings are positively correlated. but for those who have expe

. >>> real estate has been one of the worst perform s&p sectors so far this year falling nearly 20%. now morganportunity within that space in the reits which is why we wanted to do this, josh you just halved your simon group holding, have invitation homes they see modest q2 beats and 2022 guide raises. they do -- they're pretty positive on simon. what's your view of reits here >> listen, i think it's been a tough year for these because they're so interest rate sensitive, right this is the type of investment that would work better in a different environment. you have to play the hand you're dealt. i'm broadly positive on them i think the only way to think about reits is not tactically. you want to think about them strategically. a certain percentage of every investor's portfolio and then you can kind of have that be within a band, but i don't think the decision is ever yes or no reits. the main thing i want our viewers to understand is that the income you are paid to own a reit, which is most of the reason, is not a dividend. you are being taxed at ordinary income rates so if you are going to bu

p. madison faller, great takes. vice president and global market strategist at j.p. morgan private bank. coming up, u.k.etail sales fall in june as food spending jumps. we take a look at the economic picture, the health of the u.k. economy next. this is bloomberg. ♪ tom: welcome back to the open. we are 20 minutes into the european trading day. losses of 10% -- 0.1% across european equities. s&p pointing lower by 0.3%. nasdaq lower by 0.6%. let's check in on some of the stock movers of the day. we take on board some of the earnings. santander, this is about them walking away from a potential bid of the city unit in mexico. they will not be pursuing that. santander walking away from that nonbinding offer, gaining 1.8% on the back of that. norsk hydro, we will speak to exec it is from that business, gaining 3.7% on the back of a decision to have cash to shareholders in terms of buybacks and dividends as well. ssab, maker of steel products, down. warning about pressures in a challenging market for the third quarter. let's get the bloomberg business flash with alice atkins. alice: one of elon musk's top ten

p also low off the session. you've got the big bank earnings story. morgan stanley, j.p. morgan, taking risk off the table, putting aside more losses for charge ups and for loans. two year yield is where you will see the reaction to the comments and still standing firm. that spread between the two in the 10, and now you're looking at something like 26 basis points today. a huge spread and the dollar story is a euro weakness story. it is also a stronger dollar story and you can see that reflected in the cable rate and in dollar-yen. its highest level since 1998. the ripple effects that will have all over emerging markets as well is in europe. >> it is like the rate hike is on steroids prayed let's get back to italian politics. the prime minister mario draghi, the government is currently on the brakes. this is as we potentially work our way towards a confidence vote. potentially withdrawing support from that government. the euro chief there, we understand that draghi has went premonition of the president prayed what is he going to do? >> we do not know. as far as we underst

foreign-profiting analysts morgan stanley calculated that every percentage point increase in the dollar index cuts the growth in total earnings per share of the s&phalf a point, which means that growth in the index should fall by 8.5 points over the past 12 months. i will add that over the past 40 years there have been only four full years when the dollar index added more than 12%, while at the beginning of this year the growth was already exceeded this figure. mosbirzhi today will resume trading in eurobonds of the ministry of finance and web with settlements in dollars and euros earlier. they were available only in the main trading mode with settlements in rubles, since a number of organizations that fell under the sanctions, in particular sberbank vtb sovcombank in the russian federation, switched to servicing their eurobonds in russian currency through national settlement depositories. in addition, good news for investors on july 18, the clear stream will resume the conversion of depositary receipts of russian issuers. this became possible after national settlement depository. also , the sanctioned person decided not to charge a fee for the t

p this morning. "squawk box" coming right back >>> quick check on j.p. morgany, after the banks reported earlier you can see morgan stanley down just a half percent. j.p. morgan affecting the dow but off its lows you can see the futures. >>> mean while, netflix has chosen microsoft for an ad-supported version were you surprised with microsoft? they do have some good connections between the two companies, i guess, but is it the best thing for netflix >> i was a little bit surprised, just because microsoft's addressable ad solution, mining the advertising solution that can cater to streaming is still relatively new they acquired a company called xander from at&t it's a great fit but a little unexpected i hadn't heard of microsoft with these big deals and xander quite yet. >> what does non-intrusive look like you watch everything, sara i know what a non-intrusive ad looks like do you think they can thread that needle? >> if you take a lolook at hu they 70% of their subscriptions on the ad platform there to them this seemed foreign for a really long time fast forwa

home builder etf, the xhb is up 13% from july well outpacing the s&p 500, retail-related home stocks are hotter and this comes as morgan stanley forecast slowing revenue growth in the home furnishing space through the year 2025. sales of home furnishing stores were among the strongest categories in june from may according to the latest retail sales report williams sonoma shares were up 27% this month, pottery barn, west elm and others and reiterating its forecast for the balance of the year, and while rh slashed its forecast for the year citing high are interest rates, lower luxury home sales and continued fed tightening, investor aren't discouraged rh up 30% year to date. rh shares up 28% and still well shy of the 52-week high. b of a says our house web traffic is well ahead of competitors up 32% year over year at least in the first 11 days in july floor and decor up this month and the more volatile players in the space, their financial performance when i'm talking about volatility are getting a bullish bid in july. online marketplace, wayfair up 30% this month, still down 70% year to date, to be fair bath and beyond

anyone that does business overseas mike wilson from normorg morgan says the climb signals an 8% head wind for s&p 500 earnings and unless the fed pivots or inflation turns weaker, it's hard to see what stops the dollar from marching higher. another huge move. joining us no you is bruce richards of marathon asset management global credit manager with approximately $23 billion in assets under management. usually has some good macro views, bruce do you think the dollar continues to climb higher? how much so? >> it's remarkable -- hi, sarah. remarkable to see this 20e--yea high in the dollar versus the euro and baskets of other currencies the euro is not only weaker gdp and weakness in the ng markets where the weakability for europeans to procure energy but also the fragmentation that we're seeing in europe you see that through italian bonds and spreads as well as other peripheral spreads andin general, europeans have become more risk adverse so what you're seeing in europe, you're also seeing necessity b i the bank of japan and the yen. there is weakness there as well because they capped, you know,

foreign-earning analysts morgan stanley calculated that every percent of annualized increase in the dollar index cuts the growth in total earnings per share of the s&p00 by half a point, which means that growth in the index should fall by 8.5 points over the past 12 months. i will add that in the last 40 years there have been only four full years when the dollar index has gained more than 12%, whereas at the beginning of this year, growth has already exceeded this figure. moscow exchange today will resume trading in eurobonds of the ministry of finance and webbe with settlements in dollars and euros earlier. they were available only in the main trading mode with settlements in rubles, since a number of organizations that fell under the sanctions, in particular sberbank vtb sovcombank vprf, switched to servicing their eurobonds in the russian currency through the national settlement depository. well, in addition, good news for investors clear-stream on july 18 will resume the conversion of depository receipts russian issuers. this became possible after the national settlement depository. also, those who fell under the sanctions decided not to charge