morgan stanley and goldman sachs don't want to comment.anley will comment at some point because they're catching up here. there is one reason, this is the ran why gary cohn is working for trump. it is because what he believes the democratic party did to the goldman sachs business model. liz: not because he didn't want to wait around to be the ceo because lloyd blankfein is still there? >> yes. that's it too, but this is one of the reasons why. because he believed that the democratic party destroyed goldman sachs' business. it was something -- liz: they're making money. >> they're making money, but still morgan stanley is ahead on market cap right now. that says something. even whatever it is, we'll see at the end of the day and we'll update. liz: thank god you didn't speak spanish today. >> habla espanol. big daddy delgado said i spoke very well. liz: okay. don't speak french. 26 minutes away before the closing bell rings. dow jones industrials up 50 points. s&p, nasdaq on track for new record closes. >>> coming up the senate may be strugg

goldman sachs we know. it's the thick trading was a huge overhead. >> they put up incredible numbers. i think it's a misread and that creates an opportunity in goldman sachs. i looked at this and was hoping to see the stock down. it was flat at the beginning of the trading session. i couldn't wait to see this thing start to drop and i think that's the opportunity. >> weiss, you have morgan stanley to deliver their results. you feel better or worse about the financials today than you did go into earning season >> i feel the same i feel it's going to take longer to work out. i look at a 2.31 ten-year. >> 2.26 today. that's unbelievable. >> it is that's where i'm at going forward. i don't know who is going to be the first major commercial bank to say, look, we're separating the business because this is holding us back. i don't really care. here's what i do know. private equity has had a record raise of capital apollo, 23.5 billion, kkr down there at 22 billion. it goes on and on and on those will lead to fees

everything is internal you can't get anything out of goldman sachs. simple question was asked yesterday to goldman sachs, what is the stock buyback program going to look like every other financial company has indicated what that is because it's not a major issue we're not going to tell you, is the answer we're not going to tell you on basically anything it's a private company that is paying its people well, that is showing no improvement over a ten-year period for earnings or revenues or any of the key metrics which would drive stock prices -- >> hold on if you guys disagree with this call from dick bove, you should also turn some of your ire on that side of the desk because jim labebenthal agrees. >> let me explain it for fully this is a company that has a legacy of changing its culture right? you've had investment bankers in charge through the '90s. you've had dual heads with jon corzine, hank paulson, investment banker in the early 2000s. now you've had a trader for the last ten years actually -- i'd like dick's response to this >> he was a trader

sachs makesoldman up 7% more of the dow. goldman sachs is making up the bulk of the dow.n is softer by four percentage points. the s&p 500 is softer as well. screen,t to the other yields are still up by three basis points. theytory out of d.c., abandon efforts to replace obamacare. they may just repeal it for a little while while they come up with a replacement. the fx market, euro-dollar is up right 3% to this the highest since 2015. we are up about three quarters. sterling after that inflation data came in below expectations. we will be talking about banks. they -- bank of america's off .3%. deposits were up $47 million year on year. if you want to dig a little deeper. from new york, you're watching bloomberg. ♪ >> the republican health care bill is dead. senate minority leader mitch mcconnell abandons efforts to replace obamacare. ways onlock in the sea optimists surrounding the economic agenda. the dollar slides. wall street earnings review. goldman sachs fixed income training -- trading the worst performer since 2008. a monster 40% drop. good morning. this is bloombe

richard gnodde is the head of goldman sachs international. with the bbc‘s business editor, simon jack. here's what he had to say. i'm spending money every single day to make sure that, come march 2019, i'm open for business. obviously, as each month goes by, i've spent more of that money. so, certainty becomes less useful for me as we go further down that path. if i knew today that we would have a significant transition period, i could stop spending that money, taking out that insurance. because i'd know i would always have time to transition my business. if they tell me in february of 2019 there will be a transition period, well, i've already spent all that money, it's not much use to me. at that point, the transition period doesn't really help. so, the sooner we know the answer, will there will not be significant transition period, it is obvious to helpful to us. ideally, in an ideal world, you would need to know this year? the sooner, the better. joining us is nandini ramakrishnan, global market strategist atjp morgan asset management. are

goldman sachs -- decline.an sachs missed trading revenue by 20 1%, which is similar to jpmorgan. trading down by more than 1%, recording tomorrow before the bell, similar to goldman sachs. they derive a lot of revenue from trading action, so investors may think the weakness we see in that segment could bode poorly for them. if we look at the five-day chart of the 10 year yield, a big decline represented in green, telling us bonds are rallying ther janet yellen suggested fed may not be in a hurry to raise rates. that decline in yield weighing on the banks and that lending activity of interest income expectations, so that is a bearish tailwind overall. another sector in the spotlight, health care, on the likelihood the gop health care bill would not be passed and congress may go toward repealing obamacare. reaction onixed health care stocks. we have the bloomberg intelligence hospital index down modestly. this is the sector within health care that stands to benefit the most if obamacare stays in place. --ina hea

you yourself the president of goldman sachs said we have a stronger balance sheet than ever.ks don't have a lending problem, middle market banks have a lending problem. >> stephanie, how do you get a strong balance sheet? you horde cash. you don't lend. the strongest balance sheet in the world -- >> you mean to tell me goldman sachs, jp aren't lending? they are lending. >> they are lending to the most credit worthy borrowers in the world. you don't expand the economy by lending to the top borrowers. you expand the economy by lending to smaller medium-sized businesses that are actually hiring people to grow their businesses. >> or of course, collapse the economy by lending to non-credible borrowers and yes, on one hand you can say hoarding cash is holding us back. hoarding cash could also be known as banks did not have cash on the balance sheet. the probably right answer is somewhere in the middle. >> assumptions of economic growth and trump said the economy is going to grow by three, four, five, 6% economic growth. >> where is that going to happen? >> no. the economy is growi

all eyes on goldman sachs, how they do relative to those two.t will definitely be down if it's down more than those and significantly more, it's a second quarter in a row where they missed relative to the others on trading. last quarter they had that big miss for bank of america, it's interesting to see, trading will be down, they guided 10% to 12% down probably somewhere in between the citi and jpmorgan performance. but they're finally delivering on operating leverage and there was a difference between citi and jpmorgan jpmorgan slightly missed on that area bank of america will focus to see how they're doing in that core consumer lending f that interest rate hike picture is playing in for them, in a way it didn't do for jpmorgan >> on the agenda, a few key pieces of economic data. june import prices at 8:30 a.m. eastern. >>> it looks like apple could be in trouble new reports say the release of the apple i phone 8, 7s and 7plus will be delayed. production of the next generation will not start until november or december the flagship redesigned o

how can they do that truthfully when they're behind goldman sachs. i hear your point.hink you are right about that. how do you with a straight face advance that agenda now when the person you were behind taking the same money? >> this is about what the next step is. >> right. >> getting ready and this is why i called it no, it is not enough. it is not enough to expose trump as a fraud or a hypocrite, whatever it is. that's part of it. the other part is making an offer that this is the real thing and this is how we address the urgent need that trump was tapping into for jobs. >> they rejected. >> they did. >> that's my question. how about now, you see what i am getting to? >> luckily, it is not just up to them. there are voters and i came back in the uk, and spent some time with jeremy corbin and people around him came out of the election cycle where they did not win the election but they won historic number of defeat and they did much better than expected. the whole idea of calling the snap election of the uk was wipe out corbin. putting forward a manifesto that did th

goldman sachs aside from trading business, others beat estimates.he cfo is saying modded these of revenue in the quarter was the worst on record. as for bank of america, metrics except for net interest market falling. that is what is responsible for that bank going back. we also have netflix, subscriber growth, better than estimated. international audience is now bigger than that in the u.s. the shares are up 9%. harley davidson, another big disappointment here, the stock down the most in the s&p 500. it has cut its in will forecast for motorcycle shipments. we are seeing less demand for motorcycles. one of the things of that has really crimped what is going on with the trading earnings is the lack of volatility. we have talked about that so much in the first half of the year. take a look at the bloomberg, this is another look at it. it is a look at the vix and the move index, bond volatility, going back to 1998. you have seen the lows we see for both, less trading activity for the bank. i also wanted to mention what is going on in the dollar, becau

bank of america and goldman sachs report underwhelming earnings.oes that hold any close for european bank earnings which, next week? politics u.s. -- blamestrump lanes democrats and a few you republicans for the failure of the health care bill. let's have a look at where european equities are straight -- ours trading right now. european stocks dropping for the first day in five. you can see broad-based losses 1.4%,germany down eurozone stocks down more than 1%, spain lower as well. if we look at the epic space we fx dollar weakness -- -- space we see dollar weakness as well. after that health care reform bill, the dollar at an 11 months low. the euro gaining against it. 1.15 against it. sterling weakness coming through after the u.k. inflation data unexpectedly softened off 3/10 of 1%. in the fixed income space, yields coming down both in the core and the periphery. we are seeing gold bid along with the yen for today's session. crude is at $48 a barrel. digging into equities, it is what happening with different industry groups. tech stocks leading

chiefd: goldman sachs strategist joins us next.his is bloomberg. ♪ lines just getting some across the bloomberg. elon musk making headlines again saying he's buying back, exit.com from paypal. this is of sentimental value from elon musk. this is a purchase from his former employer paypal, which confirmed the purchase to business insider. if you go back to 2000, the significance of this url, it is an online financial service, an online bank essentially, that merged with another company, which had operated paypal. it was cofounded by peter thiel. there's a little bit of historical nostalgia for x.com to be repurchased by elon musk. rishaad: indeed. let's get the crystal ball and move along in time to find out where the markets are headed. goldman sachs see them out consolidation in asia. linkedin -- we can discuss that with the aipac strategist. the big story today is randy as the topminated watchdog. a quick word on what we know about him. >> we've already discussed some of his background>>. the main point i would make is that the m

what are the options for goldman sachs after a big slump to start the year?nd in european politics, french president a metal macron speaking to parliament, outlining his agenda. meanwhile, there is words -- that is words that macron, angela merkel, and putin will have a joint meeting later this week at the g-20 later this week. 30 minutes in total the end of the monday session could stocks are rising after falling. these currencies are falling against the dollar with yields rising in greece and portugal, and switzerland. manufacturing expanded the strongest pace in over six years. factories across the region taking on more workers to deal with surging orders. growth rates improving in most of countries including france and italy. signaling expansion since the last time in 2015. signaling that the recovery in the eurozone a strengthening after years of subdued activity and muted inflation. bring on the next ecb meeting. german 10 years inching higher, up 48 basis points, levels we have not seen since march yieldsng the big -- in from those hawkish comments fro

morgan stanley outpaces goldman sachs.xamining options to wind down qb in september. from new york city, good morning and a warm welcome to "bloomberg daybreak." i'm jonathan ferro alongside david westin and alix steel. let's get you up to speed very quickly. the story in the markets is that futures positive. the euro-dollar moves back from a 2017 high. some telestrate and some euro weakness and of the ecb decision tomorrow. treasuries go nowhere. the yield on the 10 years to is 2.26. alix: morgan stanley -- the call is going under right now. we know that the vix came in better than estimated. here's what we're learning from the call. the deposit rate is lower than i thought. as the fed hikes rates, they do not have to pass those on to consumers. they can pocket that difference. in light of that come you wind up having the cfo saying that there is good growth in net interest income. also putting out that there is less volatility and a bigger trading band for commodities, but they have a benefit with fx vol. wealth manageme

goldman sachs down almost 1%. take a look at the bloomberg.. anchor: it is a new function we have on the bloomberg. if you look up equity and type tv and dated for about a month back, you will see all sorts of tv clips attached to certain dates during that month, and a list of stories related to that certain company. we are always adding new functions on the bloomberg. we always enjoy showing you the newest ones on bloomberg television. here is an old favorite that you will also find useful, quic go. quick takes the more you can get important insights into timely topics. . a quick take from this week. -- here is a quick take from this week. ♪ u.s. departments of agriculture said that foods labeled organic must be grown without synthetic fertilizers and be free from genetically modified organisms. meet must be from animals raised without antibiotics or growth hormones, and with access to the outdoors. organic foodst have greater nutritional benefits and can even fight cancer. that is why they sometimes spend nearly twice as much for an organic

goldman sachs was basically the dow today. nasdaq was enfuego. it was apple and netflix and few others. i have no complaint. amazing to watch because you have a republican leadership great at snatching defeat from the jaws of victory. i'm kind of surprised that markets aren't doing a little bit worse but i do think the big one will be the tax reform. if we get a no on that. i think things may be a little bit different going forward. nicole: jonathan, what do you think? >> a lot of money was invested in companies like goldman sachs, nicole, predicated exactly what gary is talked about, meaningful tax reform, meaningful health care reform. >> anything. >> almost shocking how quiet it is. i mean we are in the lowest period of volatility, the lowest intraday range in the market. we're almost due for a correction. nicole: that is exactly what cfo was saying on the goldman sachs conference call, volatility, lack thereof made for difficult trading environment for them to make money. commodities, forget it, was the worst for goldman sachs in lloyd blankf

patents for settlement coins subtle coin so this is an attempt by goldman sachs to hijack the price of sky every mechanism of it going if you can hijack the price discovery mechanism by introducing a price through settlement coin you're going to put the other exchanges the independent exchanges out of business you're going to monopolize the prices cover a and then you're going to be in a position that let's say the big banks are in relation to gold and silver they control the paper price the matter what the demand is for gold it's skyrocketing as a high spend ever but the price doesn't move up because the prices governs controlled by the paper market this is what goldman sachs wants to do they want to create derivative of paper market prices government that as i'm to put the independent changes out of business and to control this space do you agree or yes i know the next thirty days you will miss matters but it makes a lot of sense and i have one more question following on this in terms of innovation a theory i'm. there with supposed to be the flipping that didn't happen it was supp

later, hearing from bank of america, goldman, sachs, j and j, morgan stanley, american express, microsoftsa, and general electric as for economic data, the manufacturing survey is out today. tomorrow, home prices and home builder survey wednesdaying housing starts. and thursday look for the fed survey. >> jumping on bank earnings. friday so much focus on jamie dimon's outburst, easy to miss key themes from earnings themselves you have to commend citigroup numbers relative to expectations they didn't have either of the little disappointments that jpmorgan had in terms of capital markets, trading and disappointment in net interest income citigroup overall is solid, they did better than the other two. and still one times book compared to jpmorgan a little slip there. looking ahead to the rest of the numbers, you say goldman, sachs is probably under pressure, 70% of revenue comes from capital markets, both citi and jpmorgan showing decline in that business focus on goldman, sachs, particularly given the miss last quarter. >>> still ahead. getting down to business brexit talks under way betwee

of goldman sachs, accusing his republican rivals like ted cruz of the same, trump has turned arounded five former goldman sachs executives to his cabinet which is absolutely unprecedented. so you are saying big money is associated with donald trump. what i'm saying is that the way he is governing is quite different from the way he campaigned. there was this political brand called make america 6reat again. but what he has ended up doing is pushing policies that systematically redistribute wealth to the 1% of the 1%. he is doing it with tax policy infrastructure plans, healthcare, social security. that's not what he campaigned on. all right. interesting you bring up the campaign when you say it's not what he campaigned on because the democratic candidate, hillary clinton, spent $1.2 billion on her campaign. donald trump spent $600 million. if you look at your argument, actually, just looking at the campaign, it would seem that big money flowed more to the democratic candidate than it did to donald trump. that's not my argument. no, just, it's a point to make though, isn't it? you can

let's start with goldman sachs.kind of showing signs of weakness when we get that report. i do feel about goldman sachs and bank of america? >> i'll talk about the scenes. goldman sachs trading revenue is something we put a fairly low multiple on. we are seeing more down than up at this particular point in time. the story of the banks and financial institutions is ultimately they will normalize the yield curve. higher short-term rates now. that means better potential profitability. in this quarter, to see glimmers that's beginning to happen. take that as a little bit less stringent regulation and a very attractive sector. cheryl: that's good for banks and we'll get numbers later today. let's talk about earning results so far in general. despite everything happening in washington, some of it hasn't been so good. earnings have seen to be positive for the last three quarters or so. do you think in general that will be overall positive? >> for two years earnings went nowhere and now it's starting to see it makes us thin

national economic council and steve minucci in another goldman sachs alum the treasury secretary of course steve benen worked for goldman sachs too although he was not like you know he was your serial big wigs i was just a trader so well that's interesting as i mentioned that the media is talking about this oh there's one more faction and it's very important that's very strongly against any steel trade tariffs and that's the national security crowd general mcmaster the national security adviser general mattis the secretary of defense i would imagine rex tillerson former exxon chairman now secretary of state is this i'm sure they hate this idea they see steel tariffs as raising the price of steel raise the price of steel you raise the cost of manufacturing weaponry and word theory one of the largest manufacturers in the world of weaponry one of the largest merger cers of it so it's going to jack up the deal but i have a feeling that they're much more concerned with the prospect that one hears from from all wings of the american foreign policy establishment that whenever america moves

with regard to goldman sachs, obviously that stock weakened during the call and since. and in addition to that kind of scrutiny over the commodities business and whether there is an outright loss, is there a sense out there analysts trying to get a handle on whether the trading business is just kind inform this cyclical lull because of low volatility leaves or something a little more structural about the opportunities down the road in market >> exactly right, mike i would say overall fixed incomes represented half of the questions that cfo marty chavez faced. highlighting the level of interest investors and analysts have chavez didn't give much more color than we just heard on that call saying it was overall client volume that's hurt all of those subsectors across the board. in terms of what the analysts are writing and saying at the moment within that discussion, the best case scenario is this is cyclical. even if that is the case, you have a very tough environment going forward. 70%st earnings is from capital markets. very tough comps in the second half the worst case

((steve/fsc))he has been identified at 39 year-old william sachs goldman a professer at the university of san francisco.two children..and a woman were also injured.((pam)) kron 4's hermela aregawi spoke to a man who tried to help the victims.. moments after the crash. they were headed to a water park in san jose, according to airport employees.but they never made it.the pilot - 38 year old william sachs goldman of san francisco died in the crash.a woman and a little girl were airlifted to a hospital.. while a little boy was taken by ambulance. witnesses describe the aftermath.robert castillo/witness: when we got there, the pilot had been ejected from the airplane. the little girl was unconscious and we were able to remove the top of the airplane because it was broken by cutting with knives, cut the seat belt off the little girl, was able to take her out with her car seat and put her on the ground away from the plane because of the smell of fuel and we were able to pull the seat forward, cut the little boy out.people on scene say the boy, walked off the plane and appeared to be fine.and

catch up on goldman sachs with bloomberg businessweek. the banks. trading expectations at goldman sachs and bank of america out today. joining us now is peter and john. you for sticking around. thank you for joining us. what do we know about banks? we had a couple with tough quarters. what are we expecting today? there is nothing to dispel the fact this quarter will be sobering. the second quarter a year ago was a tough comparison for most of these banks. this quarter is going to be a double-digit decline. francine: what are we expecting from bank of america? >> we know the investment banking is a volatile business. tom: which matters more? traditionalg or loan banking? bank we ares on the looking at. we are really going to focus on the outlook for trading. if you look at bank of america, more diversified, universal bank. extremelyk is important for them. tom: how wide are the valuations into big to fail? >> we have seen u.s. banks double the performance of the s&p 500. looking for a catalyst to drive the next leg forward. banks are going

now for goldman sachs, trading, that's the bread and butter, what they're known for, right? pretty shocking. bank of america on the other hand, did okay, rising interest rates helping on bank of america because they have interest rate sensitive, mortgage holdings and consumer deposts, higher rates for a company like bank of america. the shares are down half a percent, likely dragged lower by weakness in goldman sachs and the big picture today which is this health care gridlock in washington. all eyes here on the floor, zeroed in on the trump administration and what is going to happen next with health care and down the road what it means for the trump administration's plans for tax reform, infrastructure setting. it's very interesting, right? materials names, energy names lower because of concerns that we won't get the economic shot in the arm that the president had been talking about with the latest hiccup in health care, cheryl. cheryl: you bring about the pro-growth economic growth, and david, that's the concern here, particularly gary cohn saying it's very clear, we're go

wilf >> andrew, yes, so yesterday we saw goldman sachs basically beat on every single line apart fromncome commodities and currencies morgan stanley have managed a small beat on every single line. so eps has come in at 87 cents versus expectations of 86. revenue $9.5 billion versus expectation of $9.1. let's dive straight into that trading because it's the really juicy talking point in terms of the fixed income performance came in at $1.2 billion. estimate was $1.1. equity, $2.2 billion the estimate was $2 billion. the clear beat there coming on the fixed income line because others had done well on equity, they're really stand out on fixed income and really important, though, how they differentiate from goldman sachs. not just the others, because one of goldman sachs' excuses more last quarter than this quarter was that they had a different mix than the other universal morgan stanley and goldman sachs were pretty similar client mix but morgan stanley beating on fixed income where goldman sachs missed quite significantly morgan stanley has a slight gain year-on-year by a couple of perc

vonnie: disappointing quarterly results from goldman sachs and bank of america.ding fell 40%, making it the worst first half in that area of ceo lloyd blankfein's term. bank of america's interest declined, failing to deliver a boost following the fed rate hike. >> overall, trading coming in line, i think it was a little worse but equity is better. there is a little bit of trade-off. banking fees are also better. there were some bright spots in the quarter. on the other side, the cost ratio is the lowest cost rate ratio in the first half for the public history of goldman. that shows that they are doing what they can in terms of managing costs in this tougher environment. >> bank of america is very tied to long-term rates. so any time that you see the 10 -year not doing what we think it should be doing and picking up, that is bad for bank of america. what really sticks out is net interest income for that bank, which is core revenue for any bank, especially for bank of america. that is something that fell despite these productions from brian moynihan two months in t

was in the navy, later goldman sachs. asl done in hollywood first -- wound up in hollywood first in filmvestment banker financier. once you make some money, he moved over to the creative side and began making conservative documentaries -- amy: made some money, we're talking "seinfeld." >> yes. the weird detail in bannon's life is while he was investment baker, he brokered a deal pictures,stle rock which owned "seinfeld," which was in its infancy at the time, and ted turner, who wanted to buy the shows. as bannon tells in the book, when they sat down at the table, turner was short of cash and so rather than let the deal fall apart, bannon took in lieu of its ordinary advisory fee, he took a basket of residuals from five television shows, including "seinfeld." as we all know, "seinfeld" when on to become i think the most

bank of america beat while goldman sachs reported record income from lending.s to break down the is dakin campbell. they did not have a great quarter when it came to big trading and we are looking at a 40% drop in trading? what happened? guest: that's a good question. theirlike every desk in business did not perform. they specifically called out commodities trading and they had some trouble there, not just low client volume but as they say, difficulty navigating the quarter which we think means some problems with their inventory or hedging their inventory. explanationther big because we did not get a big explanation, but income america did fairly well. how did that come about? in comparisonwell to goldman being down 30%. similarly, when we asked the question this morning can you tell us which banks were not doing well, bank of america, we cannot really call them out. all of them did badly. i think they did point to rates and emerging markets. scarlet: four bank of america, bloomberg intelligence and many others have said this bank is more sensitive to rate chan

scarlet: talk about how this is catalyzed by goldman sachs last quarter.t was a surprise to people. when pressed on the earnings call about what drove that, they gave different reasons. >> i think it was a variety of factors. commodities were definitely a piece of that. based on our report in the second quarter, it was not outstanding either. the whole first half was rough. i think that is driving it. we will see how much is a review that could structurally change typicalsiness or just a how can we do things better. but i think it is driving performance in the first quarter definitely. aboutt: two julia's point goldman perhaps staying in too long, other big firms have largely pulled back from commodities trading. >> certainly more than goldman. j.p. morgan and morgan stanley have pulled back. some of it was forced by regulators. commodities businesses are less attractive and you cannot even be in parts of them anymore. that has made the business a lot different. julie:. quickly, we have seen management shifts in the commodities business. how important is t

traders posted more fixed income revenue than goldman sachs. smallest drop among the top five u.s. investment banks. how did morgan stanley managed to better than goldman? >> one of the things we were highlighted in the choices of writing was the commodities sector. this is something morgan stanley has largely gotten out of. interestingly enough, goldman sachs did not exactly say we had a terrible loss in commodities. >> they said it was the worst quarter ever. >> maybe not a lot, but certainly bad. that could be one of theforwardg on a very narrow things. one other item that morgan stanley talk about in terms of fixed income was they had the rates, they are not good for them. >> the bank of japan. as expected, they took no steps to downgrade their aggressive program. >> to central bank acknowledged it was the being too optimistic with 2% inflation target. >> the date for when they will hit of the 2% target around april 2019 which is pushing it a year. their quantitative easing, their relative control. >> there are a number of risks. one is the

talkinggoldman sachs's about the same level.re others out there, steven major, i misquoted his forecast, but it is at about 1.9% now, going the other direction. what could push yields down from here? carsten: i think it is a bit more dovish central banks and the lack of inflation, which is around the entire world. we do see a bit of tapering. we will see a bit less accommodation from central banks , but i think the fed and the ecb will make clear that what they are doing is clearly not tightening monetary policies, and it is less accommodation. work on thes this periphery? if we fear that we are getting into a tightening pace, one of the biggest beneficiaries has been the periphery of europe. if that were to be the case, do you see periphery spreads widening out? carsten: i think normally when we do see tapering, this would be the impact that we see a widening of spreads between core and periphery. this is exactly what the ecb does not want to see. when it started the qe program, it was called to repair the transmission mechanis

last week goldman sachs urged investors to sell a brand as well as general parts companies. of their susceptibility to price competition. they could get more aggressive pulling a whole foods deal in the industrial space. last week an analyst said we would not rule out acquisition by amazon if such a deal were embraced by both parties. the key point here is distributors in general have the potential to be disruptive. >> thank you very much. bob pisani. squawk alley back ain moment with michael phelps versus a great white shark. >>> just news on jared kushner. after that interview with the senate intelligence committee the white house is saying kushner will make a statement at the white house after his interview concludes. i'm sure we will take that live when it does happen. this russia news doesn't seem to be going away but some new information out of jared kushner over the past few hours about how insignificant he is saying his role in that meeting was. meanwhile, it was supposed to be michael phelps versus a great white shark. find out how they did but not in the way they w

not at all and goldman sachs were complaining about the lack of certainty and this is the problem inbut i hear every day, the lack of certainty on any form of brexit. no one knows what will happen. and those japanese banks, a numberof them happen. and those japanese banks, a number of them have said they will be moving certain people to frankfurt, putting contingency plans in place and one of the chief executives of robin sachs said it will make a definite assurance on what will happen, they have to put their insurance plans in place and every day they are spending money on it. these are big differences that need to plan 3—5 years in the depths ofa need to plan 3—5 years in the depths of a two—year timeframe isn't very helpful. so you need certainty and thatis helpful. so you need certainty and that is what has to come out of downing street and all of the ministers and one of the issues is not enough negotiators. britain doesn't have enough skilled people to actually do all these, do all the talking, do the deals. there is no way we will see a brexit deal that fixes everything we hav

goldman sachs in issue here.ticking with the current sector of the business. ,f they are sticking with it maybe those etf estimates to have to come down. >> speaking of the lack of trading revenue, you have to continue to talk about the incredible lack of volatility that we are seeing. this is a cool chart shows average quarterly volatility -- going back to late 1997. we are really low here. there's nothing going on in the markets, hard to generate some trading revenue. this and the left side between 1998 and mid 2000. what i think is interesting here, the was a boom time and markets. we tend to associate volatility with negative times in the market, but it was higher than the markets were streaming higher. --ust, you can have rising right now we have rising asset prices but almost no volatility to speak up. >> goes back to the idea of good and bad of volatility. everyone looking for some kind of event driven volatility this time around. when you have it like you did after concerns about china. >> not the good ki

coming up, goldman sachs ending an era.t.t says about what's from new york, this is bloomberg. ♪ julia: this is bloomberg markets. i am julia chatterley. scarlet: i am scarlet fu. let's head to julie hyman. julia: taking a look at retail today. the retail etf that we track -- it is up about 0.6% today, helped in part by stronger than estimated earnings report from companies like monroe muffler. we are watching shares of sears, trading higher in a decided fashion, up 12%. sears has been battered of late, over the last several years, so it is something of a rebound from that. also on the news that sears will be selling its kenmore appliances on amazon.com. sears used to be the largest seller of appliances. they gave up that title to some rivals like lowe's and home depot, so they are falling on this news. whirlpool is also falling. it makes computing appliances. we don't have market share data specifically on what the control of the appliance market looks like, but one interesting window into it. if you can run splc on your b

car business overall, bank of america number without a clear negative as t goldman sachs.uys >> yeah. continued concern, i guess, overall about net interest income at bank of mencht w america. wilfred, asked about the volatilist of the business and how do dampen it, he said at a granular molecular level, we're working on it. that's pretty little so much, he says, is blocking and tackling and looking to see where there are gaps in their client coverage and the ability to on board new clients and serve them they'll be pressed on this, i would expect. >> they are being pressed on it. most of the questions -- you mentioned that client coverage because a couple of analysts focused on that saying i know you're saying it's down to low volatility and commodities, in particular, of the fic & c but pushing on declined exposures and why are yours worse? he didn't have a clear answer for it yet i guess you've got to say, look, is this another one off or is it a bigger trend are they trying to take focus away from the trading business and put it into the lending business we've seen a b

then goldman sachs is expected to release quarterly results we'll bring you numbers and reaction froml street. >>> and we'll talk to david zaslav stay tuned, you are watching "squawk box. >>> welcome back look at shares of johnson & johnson. the dow component out with earnings coming in with earnings on an adjust the basis of $1.83 a share. better than the street was expecting. revenue was slightly light 18$18.8 billion versus 18.9 billion expected the full-year guidance also says they expect to earn 7.12 to $7.22 a share. the street was at 7.10 they are saying they still expect to hit numbers through the rest of the year again, the street is taking in stride right now that stock is up by 2.30 dollars a gain of 1.74% and that will help the dow jones we'll keep an eye on that. this is one of three dow components reporting this morning. united health already out. that was better than expected. still have goldman sachs coming up in just a bit bank of america we're expecting soon, too. >> time for the executive edge investor s have a new way to play china bike sharing startups are raising

know is the opioid epidemic is basically causing the catastrophe in the american economy and goldman sachs seems to suggest that we're going to run out of money to incarcerate all these drug addicts as well so those two are like it seems like opioid addiction which is. like a slow suicide or join one of these futile lawrence become one of their serves and those are your two options there are there are other solutions but size those two bleak ones it's tough it does feel like we're at a fork in the road between sort of a roddenberry star trek future or a dystopian you know blade runner future. you know i look at you talk about this rentier economy that this fuel economy is a great example of that right they came in they found this is this possibility that people would want to work as their own independent contractors driving other people and they inserted themselves in it and they've profited by being a middleman and i think that art of the future is one in which we become micro entrepreneurs in a sense it's a it's a form of barter economy where we take our own. our own work into our own ha

after campaigning against goldman sachs and wall street, accusing his republican rivals like ted cruzund and appointed five former goldman sachs executives to his cabinet which is unprecedented. so you are saying the money is associated with donald trump. eleanor forte in saying is where he is governing is quite different to the way he campaigned. there was a political brand called make america great again. what he has done is pushing policies that systematically read is to be at wealth to the i% of the i%. read is to be at wealth to the i% of the 196. he is doing it with tax policy and infrastructure plans, healthcare, social security. that is not what he campaigned on. interesting you bring up the campaign when you say that's not what he campaigned on because the democratic candidate, hillary clinton, spent billion on his campaign —— her campaign and donald trump spent $600 million. if you look at your argument, just looking at the campaign, it would seem that big money flowed more to the democratic candidate. that is not my argument. that is a point to make, though, isn't it? you c

drama straight ahead shares of goldman sachs getting hit hard after reporting their worst quarter ever for commodities training and we'll go inside those numbers and from the milken boom and the burger wars, a full plate of issues on the food menu. we'll dive right in with restauranteur danny meyer. belly up to the bar. "power lunch" starts right now ♪ ♪ >> where are the drinks? i'm ready. welcome to "power lunch," i'm michelle caruso-cabrera. you can see the dow is lower by 91 points and the nasdaq is managing in positive territory, goldman sachs and united health are weighing on the dow following their ownerings and those two stocks are responsible for more than 50 point in th dow's near triple-digit decline. on the flipside, as i mentioned, netflix is up more than 10%ity hitting all-time highs on the back of their results. harley davidson is tanking 10% motorcycle maker says demand is slowing from the baby boomer customer base and we'll talk more about that ahead and chipotle is down more than 5%. a chain shutting a restaurant in sterling, virginia, after customers got severely sick

both are weaker in premarket, but the cake goes to goldman sachs. that stock down almost 1%. a look at the bloomberg here. this is their fixed trading revenue. it was down 40% and is the weakest since 2008. vonnie: it is a new function we have on the bloomberg. if you look up an equity and type gp tv, and then if you date it for about a month back, you see all sorts of tv clips that are attached to certain dates during that month, and a list of stories related to that particular company. we are always adding new functions on the bloomberg, and we always enjoy showing you the newest ones on bloomberg television. here, though, is an old favorite that you will also find useful, quic . it will lead you to our quick takes, where you get important context and fast insight into timely topics. here is a quick take from this week. >> amazon's planned acquisition of whole foods highlights the explosive growth in organic food sales. the u.s. department of agriculture says that foods label organic must be grown without synthetic fertilizers and be free from genetically modified organ

interestingly enough, goldman sachs did not exactly say we had a terrible loss in commodities.ulie they said it was the worst : quarter ever for commodities. laura maybe not a lot, but : certainly bad. that could be one of the things. one other item that morgan stanley did talk about in terms of fixed income was they had the rates, they are not good for them. fx is something that did offset that. >> the bank of japan. as expected, they took no steps to downgrade their aggressive monetary stimulus program, even as the other central banks around the world are looking for an exit. anna: the central bank acknowledged it was the being too optimistic with 2% inflation target. >> the date for when they will target toscal 2% around april 2019 which is pushing it a year. their quantitative easing, their relative control. >> there are a number of risks. one is the consumption hike scheduled in 2019, that is bad timing. it would be best if the government delays the consumption tax rate again. another thing that is much bigger, what is much more important, the ability of prime minister abe