jonathan: goldman sachs results 25 minutes away.rom new york city, for our audience worldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tuesday morning, equity futures unchanged at 4377. jake hidden -- jp morgan behind us. goldman just ahead. tom: you really wonder if it is buy, buy, buy. do you sell on the news today? we got nice bloomberg data on that. what i am looking at is the bank index and what gerard cassidy said about the big tanks, the mid-ask, the small banks -- the big banks, the mid-banks, the small banks. on a technological basis, they have the high ground. jonathan: we've got a high bar for goldman sachs. we understand fixed income trading and sales revenue came in a little lighter. from the investment banks out there, the fees business doing quite well through the first half in a way that we expected. lisa: when you talk about fees, advisory fees on mergers, acquisitions, ipos, massive. you see that activity continue to build.

you are positive on jp morgan and goldman sachs. bloomberg chart that shows the index which for the past few months has been quite above the s&p 500, closing the gap, turning up a little bit. does it have something to do with valuations? if i already own these banks or a couple of them, is it like, ok, fine. for now, i have enough bank in my portfolio and i don't really need anymore. mike: we would be overweight u.s. banks. we think that banks, there is also an act three and post-pandemic, banks, jp morgan, goldman sachs, and others are using technology like they have never used it or and we think they are driving to word record industry efficiency over the next three years to five years so that is very exciting for an analyst like myself who has covered the group for three decades. short-term, a lot of people say what is next. you have mergers and mergers. almost every company in every industry in every country is reevaluating their strategic positioning post-pandemic and i know parts of the world are still going through this in a

they are competing head-to-head talent with goldman sachs. compensation is up 18% at goldman sachs, but costs when it comes to revenue and relationships is stable. so how are these banks going to get a handle on costs? looking ahead to bank of america tomorrow, the bar is very high, both in terms of trading and income. the other thing is the consumer banking business has a lot of headwinds when it comes to interest rates and the fact that people are not borrowing all that much. that home business that jp morgan was down quite a bit, and credit card loans are flat. let's see what bank of america and goldman sachs have to say about that. guy: we will look forward to the coverage. another wrinkle for boeing. shares falling. the company saying it is going to deliver fewer dreamliner 787's this year than they originally planned. engineers are basically looking for tiny structural flaws, wrinkles in the composite frame that the 787 has. this is another blow for boeing. bloomberg opinion columnist sutherland joining us now. how long could the balanc

. >> a bustling goldman sachs. very timely, wilfred frost, thank you into still to come, irwin simon jones us with the details on the integrate between the company's marijuana and beer division down 15% in the past month, but still seeing strong gains for the year. >>> shares of boeing weighing on the dow today. we'll talk about the latest headache, and an analyst who upgraded the stock today we'll be right back. young woman whispering: condoms father: condoms charlie. she wants to know if you brought any condoms. young man: yeah i brought some. ancr: eargo a vitually invisible hearing loss solution with high quality sound and lifetime support. eargo 5 is here. our latest device that allows you to personalize your hearing experience. get yours today. and if you're and active or retired federal employee you may qualify to get eargo at no cost to you. - [narrator] dearest noodle houses and hot pot hotshots, thank you for the stir fry that gets us all stirred up. whatever you can serve, we'll proudly deliver. (lively

it's price-to-book ratio is more rich than goldman sachs is trading at right now.ff is truly staggering, as morgan stanley's texture of the bank changes. lisa: that's exactly where i went to go because i looked at goldman sachs shares in premarket trading as a comparison, also lower by about 0.8%. just the knee-jerk reaction is more for morgan stanley, even though for the most part, these are beats across the board, except for that fic trading. sonali: for now, they are cheaper. that efficiency story is not for nothing. we are in an era where inflation on wages is happening across all of wall street. competition is happening. twice this week alone, i have spoken to bankers choosing between working at either of these two banks, so that investment bank is no small story, and how they pay this bankers is no small story. something morgan stanley has to its advantage is the tailwinds we are seeing in wealth management. the idea that it is not just the e*trade retail frenzy, it is also the financial advisors across the u.s. dealing with wealthy clients. the lending is hi

goldman sachs m&a revenue was up 83%.the biden administration is cracking down on competition more broadly, how hard is a repeat performance of that going to be? charles: i think this executive order that the president signed on friday certainly calls into question the future of m&a activity on a large scale. meaning every new large m&a transaction will face greater scrutiny, whether it is the banking sector or any other sector. that may put a damper on m&a activity. if you are in the c suite, and you are about to make a major transaction, you may have to think twice, vet it from a regulatory point of view to make sure it passes muster. kailey: when it comes to bank mergers specifically, how much do you anticipate activity will slow, especially for some of the regionals which had been combining like crazy? charles: what the regulators will want to look at is, will it stifle competition? crowd out competition and therefore hurt the consumer, especially communities that are either less served by banks or communities of colo

goldman sachs is now 150.low tangible value, jp morgan was 140, 150. when we're looking at this, again, the key statistic was revenue, 33 million last -- a quarter ago, a year ago, 32 million last quarter, 31 million. that trend is down. interest rates can go up. they're going to go up very modestly but relative to the book of business that they have, they're still repricing assets lower so there's this treading of water that's going to continue to kind of push those revenues lower. the only thing they can do to offset is as your analyst mentioned earlier, liquid assets can be deployed at higher interest rates and you can buy back shares. those are the only two things they have to combat the pricing pressures they're getting on the earning asset side right now. maria: really interesting. marty, great analysis as always. good to see you this morning. thank you, sir. we appreciate it. marty mosby joining us as we navigate a host of earnings this week. jp morgan is out. we're waiting on goldman sachs and the week

goldman sachs ceo david solomon said he was surprised by china's recent moves to boost oversight with regard to the technology sector solomon said didi could just be the beginning when it comes to the china ipo pipeline >> chinese have now put in a process where they have a regulatory agency to sign off on items. if the chinese regulator signs off on the listings, there will be no listing. if they sign off in an affirmative way, there will be a demand for companies on a global basis for global investors we're seeing a shifting of policies coming from china we'll have to watch to see how that will unfold. >> the head of the competition watchdog is sounding off the rules targeting big tech were too narrow. he says the eu should instead model its rules on the german laws which talks about antitrust with anticompetitive practices. >> frank holland, thank you very much for that. let's get back to the markets and your money kathy wood is doubling down on some old calls and making some new ones in the process as well. among her key take aways, deflation will become a larger force despite the

what you're seeing there is goldman sachs and jp morgan down in the red goldman sachs ceo david solomon discussing the results in an exclusive cnbc interview just a while ago on the "closing bell." take a listen. >> i think we're not going to see the level of activity we saw, for example, in the first quarter and that was clear by the two earnings reports you saw today. but i do think there are two things going on. one, i think that fundamentally activity levels given the environment, the size of the overall wallet was larger, and i think the large players are also a consideration. lower market share, 160 basic points we feel very good about the way we're positioned >> all right i mean, some would consider him, goldman sachs, a bellwheeather you said you didn't like this setup. >> i don't like the setup. i liked what they had to say, i liked what jamie diamond had to say because i always like what jamie diamond has to say, but i want to see what he felt about the economy. he was pretty optimistic on long growth, he was pretty optimistic on gdp growth. he thinks interest rates should be

sachs where he will soon interview the chairman and ceo david solomon. wilf, take it away. >> hey, tyler. goldman sachs as you said smashed their estimates for the second quarter jpmorgan beat but in large part due to a big reserve for lease of about $3 billion. capital markets was once again the key area for both banks. both saw fixed income trading down about 40% year over year, but that was expected. goldman had particularly strong performance in investment banking and suggested, by the way, on the call that m & a remains very strong. jpmorgan's equity trading performance stood out for them both overall were better than expected and showed the pandemic-induced party in terms of capital markets' activity has not altogether disappeared yet goldman's stellar numbers were also driven biasy asset managemt more than double what was expected in large part due to equity investments jpmorgan's net interest income did slightly disappoint but they were able to hold guidance in that area. on inflation, jamie dimon said he thinks it will be worse than what the fed

so brynn, back to goldman sachs. you own calls in goldman, as well as shares >> yeah, so i think that joe brought up about paying attention to technicals is really important as an investor, before you buy a stock, i think you want to look for three things know sentiment, fundamentals and technicals and i think from sentiment to scott what you just pulled out is sentiment is somewhat negative on the banks because of rates. i think sentiment is also negative because of the terrible loan growth. and i think that you go to the st. louis website, st. louis fed website and look at loan growth of the big banks and it's been terrible they're not lending, maybe because people don't need loans. whether you are a consumer or company you're so flush with cash thanks to the federal reserve and stimulus checks. that being said, that doesn't really apply to goldman. goldman is going to generate revenues from equity trading, fixed income trading and investment banking this type of market plays right into goldman's wheelhouse and i t

goldman sachs, let us not count them out on m&a.et, at their stock is pushing $400 and a much different calculus then it was not too long ago at $200. have a stronger currency and i think that gives you more flexibility to do mna, and they have a lot of capital that they have built into the system. they were not buying back stocks, and as we were talking about a number of growth initiatives particularly in consumer and wealth that also with an active management, and i would expect goldman to be the equivalent, but that is the key thing. goldman has so many areas that are newer and starting from a smaller base, so that is why we are more optimistic over the next couple of years because these newburgh roshan -- growth initiatives are small but very significant. i think the student loan business over the next 10 years could be one third or more of their overall business. jonathan: you alluded to that stronger currency, the stock is up by more than 40%. talk to me about the way you think they would be buying specifically, where is the f

jonathan: goldman sachs results 25 minutes away.rldwide, good morning. this is "bloomberg surveillance ," live on tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tuesday morning, equity futures unchanged at 4377. jake

katie koch of goldman sachs will be with us. this is bloomberg. ♪ >> i think you are seeing a lot of volatility in the market, and i think the market is trying to digest what is going on with the delta variant. >> i think a lot of other strategists expected a pullback was in the cards. >> this kind of pulled forward, the cyclical recovery, a lot of that has been priced into trading. >> certainly the delta variant news was out there in the headlines. >> now we want to think of what will do well in a decelerating economy. >> there's probably more to go here on the downside. it is not fatal. it is just taking some of the froth out of this market and unwinding some of those trades that were overworked. i still think we have a ways to go on the cyclical recovery here. >> we are still very much on the side of cyclicals is the place to be, and pullbacks like this -- and use pullbacks like this to add. >> we are very much fans of small-cap stocks. those who are looking for a place to put money, you can put money to work really quickly i

morgan and goldman sachs report today.or european lenders may be off the table. asia stocks power higher after fresh all-time highs on wall street. treasury yields a change and focus now turns to the u.s. cpi print later today. plus, the u.k. scientists warned the country could see 200 deaths per day. in france, macron says vaccines will be compulsory for health care workers. what caught my eye first thing coming in and overnight last night was the new york fed survey of inflation expectations at 4.8% for the next 12 months. a serious high through the data going back to 2013. not all respondents are created equal, are they? manus: no, it is a boomer thing. not that i am a baby boomer. it is from the new york fed, and it talks about people over 60 being most vexed about inflation. that is followed by 40-60, my age group. they remember rates at 15%. i remember a mortgage rate of 5.5% on my first mortgage. and then millennials, they don't care about inflation, it is not top of their list, is it? dani: it is really not, and i

he looks back at them to come in goldman sachs and fixed income.y fell short of expectations, well short of expectations. they will be questions about whether there were market share losses given that they felt so short. equities did come in all right. all in all, very mixed results. as you guys have been talking about, mixed is not going to cut it. jonathan: the cfo said total loan balances grew for the first time since the first quarter 2020. that will be a big part of the story. what are we learning from jp morgan and bank of america? sonali: that loan balance question is a big thing. credit cards not growing, that is a tough thing for jp morgan must certainly for citi group. for bank of america as well, we are going to want to watch the mortgage business as well. home loans rising. that was also challenged at jp morgan as well. again, a mixed bag. it is not enough to appease investors. bank of america has promised it will be shipping more towards e -based businesses. even goldman sachs, that was a big promise. more predictable revenue. that has

let's dive into the earnings, goldman sachs and jp morgan.bly well they do need to see a bit more lending. trading is down as expected. goldman is just a blowout. they are number one in everything with investment bank. they had an amazing quarter. trading was good took a lot of market share wealth management is incredibly strong this was an excellent quarter by goldman. it's up against very difficult comparisons about when -- people are going crazy with covid jp morgan, nothing but consistency but goldman is the big surprise and so far, so good. >> part of the question is, we've been talking about this this morning how do you beat expectations when there's already so much baked in the stocks have really run now the question is what comes next, right? >> there's critics that say there's a one-time story here, goldman tas taken private equity gains plugged into asset management private equity gains have been consistent in terms of -- everybody keeps saying they're one-off. this is the quarter where people are saying they're not one-off and the

morgan and goldman sachs beat estimates. look at what is in store for bank of america, citi, and wells fargo. kathleen: breaking news. singapore's second-quarter gdp coming in close to estimates. the year-over-year number up 14.8%. it is comparing with a year ago, where the gdp fell 13.2%, the worst of the pandemic damage. the numbers being watched very closely, the quarterly numbers. in the second quarter, down 2%. a a little bit stronger than the forecast -- a little bit weaker, i should say. let's bring in bloomberg's chief asia economics correspondent to give us the details on what it says. we know there is some pandemic restriction dynamics buffeting these numbers. what is the real story? >> two things going on. it reflects where the pandemic was a year ago. there was always going to be a base effect. singapore's exports have been doing well. so the base effects were always going to drive up the year on year. the quarter on quarter is more interesting. that reflect what is going on, in terms of containing the virus. in

so this is goldman sachs being goldman sachs as much as ever and with the merger results tomorrow >>y of this going to matter, all of this good news, mike the ten-year deal down to 136, 137. what if it keeps flattening. is it going to move the stocks >> have your popcorn chill out for a few months i'll take -- if you want to take the over or the under for the ten-year yield, 1.37%, i'll take the over for that. our firm still thinks the ten-year yield goes to 2% by year end if you get a 2% ten-year by the end of the year, even expectations for pickup in loan growth going into next year and this all happens in a period banks are returning more capital, the earnings estimates are going higher and strength begets strength with stock price outperformance whether it's year to date or year over year you could have momentum players move in even if it might not be this week. >> that sounds great, though i know you didn't foresee rates going from 1.75 down to 1.30 in that sort of time frame. so how does that frame this overall conversation why should i even bother waiting when i have plenty of

we had an investment banking, very strong with goldman sachs with ip also with new companies that are coming to the stock market says that there was maybe one little disappointment and that was a trading revenue. and so that dropped in comparison to last year. but then again, that was also not a big surprise because with all the volatility that we saw last year, that was to be expected. that trading volumes would be a bit lower. so they're very good start into earning season from the big bang them on wednesday. by the way, we will get the numbers from citigroup on bank of america. maybe one final word thanks actually did trade to the downside, but not because the numbers disappointed i would say that the stock's up the big banks are up quite a bit so far this year. so that was mostly profit taking what we saw on wall street on tuesday. okay, and thank you again. it's quarter in new york for 11 and now and work has begun in bay route on one of the 1st large scale clean up operations. in last august catastrophic explosion. the chemical blast killed more than 200 people, and helped plung

i like goldman sachs here.ials. >> david solomon on "the closing bell," today we're looking forward to that interview. josh brown, jpmorgan, again, stock down that's yours >> okay. it's up 30% year-to-date so, you answered your own question these stocks have been anticipating strong results all year now you get the strong results, they don't also get credit after. stocks are anticipatory. they're not worried about looking back the thing on goldman, goldman doesn't get a lot of credit for things like booms in asset management their asset management business was up huge year-over-year but they don't get credit for that by investors or by analysts on the street because everyone knows that was a once in a lifetime year-over-year situation. it ain't going to repeat next quarter, let alone this quarter next year. so, it's not as though you should expect outsized gains as a result of a windfall of government created money flooding its mutual funds. the last part of that where goldman really excelled way better than jp

morgan, goldman sachs, and morgan stanley.liver better than expected numbers, but most of their stocks sold off in response partially foreshadowing the grim action, and it only got worse, not better to potential buyers today. before we get into the quarters, let me set the scene for you going into earnings season, the major banks were up substantially for the year, which matters. wells fargo has been the best performer, even though it's the worst operator in the group. cheap stock. travel trust, you can follow by joining the plus.com i'll be talking about it at a conference call on wednesday goldman sachs and morgan stanley have had a nice year booming ipo and m and a businesses, even if trading divisions fall off in recent months morgan sanley could handle it. there's been a lot of variation. wells up 45 for the year, citigroup 11%, that's important. most of the banks sold off in response a couple managed to rally. we're going to take them in descending order, you have to start with wells fargo which jumped 4% wednesday. well

-focused have performed better goldman sachs crediting the u.s.d continues, carl, back to you >> thanks. >>> great place to start with our next guest, joining us is k kellen dwyer former justice department division great to see you >> thanks for having me on >> general viewers, at least on the china front, they're doing this crackdown for three sort of similar yet disparate trends can you explain? >> yeah, from president xi and the chinese state wanted to rein in the tech titans who are seeing as potential too powerful and then the second and kind of related is that of sovereignty, that we've seen not just china, but really every country, united states, the eu, india, realizing, albeit late, the value of data. and taking steps to make sure that they have -- they have access to data and also that rival countries don't have access to sensitive data so i think when in the case of data, the idea that a company has sensitive information about where chinese stipulates are traveling at various times and various places, the concern that could somehow be e

goldman sachs with some enthusiasm.ave a soggy and rapid downturn from this boom economy or will it sustain longer than we can imagine? steven: it will continue to be above trend in 2022. our estimate will be three point 5% friday for 2022. by the time we get to 2023 we be back down to the 2.25% area for growth. we will not be able to sustain this unless we get a bounce of fiscal policy. this is one of the reasons the federal reserve will be late to the party as opposed early in the party, allowing this to continue to run as hot as it can for as long as it can. jonathan: what you make of the argument conditions we are facing could overcome the recovery and shorten the duration of the cycle. what you make of that? steven: business cycles in the world of global excess supply are not driven by elation, they are driven by credit quality. when you look at the underlying credit quality of household sector and the nonfinancial corporate sector, they are all extremely healthy. this is going to be a long expansion. it may not be

goldman sachs today.ways seems to win do you think their fixed income commodities trading will be huge what will you look at with goldman sachs which has doubled in a year on >> all of the banks, brian, have run up 40% or 50%. we wells, i think was the best. based on the expectation of income and dividends would go back to normal goldman should have a great report they are in the same business in terms of the transactional side. the bank side, it is not much for any of the names rates are falling and spreads are falling. it is about spreads, not rates for banks, lending is flat there really aren't a lot of opportunities to build or retain assets right now i think goldman should have a great quarter. this is their environment. they like this environment change, dynamic, volatility. that's what they do. >> we showed jefferys. they are a unique model. is jefferys one of the bank or broker dealer we must watch closely? it doesn't get a lot of press sdppress. >> if you want to know how investment banking is do

meena flynn of goldman sachs plus bloomberg sonali basak. let's stick with earnings.ll break down how the world's largest cigarette maker is dumping out the old business model -- is snuffing out the old business model. the ceo jacek olczak will join us. this is bloomberg. ♪ alix: this is "the european close." coming up, scott minerd, global cio for guggenheim partners at 3:30 in new york, april and 30 in london. this is bloomberg. -- and 8:30 in london. this is bloomberg. phillip morris out with earnings. abigail doolittle is with the report. down about 2% today. now just up 1%. abigail: up just a little bit. they beat by a penny. the bigger story has to do with the forecast. back in february, the estimate was 5.95. it was been fully raised to 602. that is a positive and it has to do with cigarette volume shipment. served at volume shipment rising as the reopening happens. the big driver is heated tobacco, up 30.2%. cigarette shipments up 3.2%. when you put it together, up 6.1%. when you look at how shares of philip morris have done relative to competitors, outperform

david kostin of goldman sachs joining us.oming up, zoom wants to make sure it keeps growing as workers go back to work and kids go back to school. more on that strategy, coming up next. this is bloomberg. ♪ alix: just breaking for you, the s&p is extending its decline past 2%. most of the subsectors are in the red, and the flipside is you're seeing the money continued to move into the bond market. yields down by almost 11 basis points in the u.s. and in the ok it is going to be eighth -- and in the u.k. it is going to be a super ugly day. it just depends on how bad we get and how bad we close. in terms of the business flash, we want to dig a look at the business stories in the news right now. we will go to leigh-ann gerrans. leigh-ann: robin hood hopes to raise up to $2.3 billion in an ipo. the trading app company at the center of this year's meme stock frenzy says it will still more than 55 million shares. robinhood expects the ipo to price between $30 to $42. at the top of that range, the come but he would have a market val

the service will use goldman sachs as the lender for the loans needed. i want to bring in mark gurman, who broke this story. how will this work? mark: you will be able to, when this eventually launches, sign up for this pay later service. you will make a purchase, and let's say it is $100. if you're part of this pay later program, you will have two options. one will be apple pay in four. what you will be able to do is split that up into four installments of $25. you have to pay four times every two weeks. the other program is called apple pay monthly installments. this is a longer-term program, if you make a sizable purchase, thousands of dollars, that you want to pay for over several months. in that case, apple will charge interest and apr. goldman will be the one handling that as well. emily: if you have an iphone, i am sure you have noticed, it is increasingly easier to just use apple pay with zero friction really. i'm wondering what some of these other companies will have to say about it? mark: this will definitely be a new layer. if you use any cred

we started off at 9:00 discussing what seemed to be quite strong numbers from jpmorgan and goldman sachs but both names as you can see are in the red fairly significantly. nothing from either one of the conference calls that would seem to be a reason for that decline. that will do it for us on "squawk on the street. "techcheck" starts now >>> happy tuesday. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa we're live outside the courthouse as elon musk's second day of testimony begins. tesla coming off a big day for the stock. and later president biden beefs up his security staff. we'll talk about the investment pieces for companies in the space. >>> we're watching the banks, both goldman sachs and jpmorgan kicking off earnings season with strong results, both stocks are currently in the red this morning. we're going to talk about methods in which the banks will try to get more competitive. >> yeah, and despite both of them beating expectations, but the question is that where the real growth is fintech is becoming a bigger and bigger threat to the big banks with

it's a goldman sachs, because goldman sachs -- look at private wealth for them six to 12 months bank of america, jp morgan canadian banks, they are big conglomerate banks, many multinational banks. and they're the top ten banks in north america, four are canadian so that's why we like the multidivisional assets because the wealth management business is going to be strong. commercial bank and len something strong and capital markets. >> all right i like to plug you through in there for the canadian banks you know it is what it is i suppose with guy with the bmo over the shoulder. josh brown has a question. >> bellsky, great to see you i agree with most of what you had to say i've been talking about the idea that we're in a secular bull market started this spring of 2013 when we broke above the 2007 highs if you think about it from that context coronavirus year of 2020 looks more like 1987 which happened at the midpoint of the 82 to 2000 secular bull market if we're only halfway, based on that premise, i think the biggest risk to stocks is just oversupply we did 226 ipos year to date w

i think so let's start with goldman sachs up 3% in 12 months off recent highing in june, nadine trade or fade it? >> i'm going to trade it i any you can trade if from 355 to 359 investment banking has been good this year. to it's really going to come down to the strategic initiatives. whether or not it is renew able trading. i liked it more yesterday but i think you can trade it for next week >> dan >> yeah, i think you fade this one here, brian. listen, that is plenty of great points yesterday it was bad it looked at the low end of her range and i don't think you want to be long it below that it's up 100% from october lows this is the most front-end loaded year that this company will ever have many of the banks, as investors get comfortable with deceleration or the valuation, but i think the back half of the year will be far more challenging than some of the periods we have seen in the last year for goldman sachs, so i'm not a buyer here >> one trade one fade, that's what it is all about let's go to united health. it's one of the better stocks in the dow this year. higher than averag

coming up, goldman sachs said removing offices in tokyo.e will consider the impact on commercial floor space next. this is bloomberg. ♪ juliette: you are watching bloomberg markets: asia. robinhood filed publicly for an ipo undisclosed it became profitable in the last year, but losses jumped in the first quarter of 2021. it also revealed that 17% of revenue came from cryptocurrency. the company's potential valuation has yet to be cleared, the bloomberg estimates it could be worth as much as 40 billion dollars. nissan says the global semiconductor shortage could ease before the end of this year. the chief operating officer told bloomberg a lack of chips have not slowed any new model launches but have forced the company to adapt. >> semiconductor crisis is a new normal for us during the pandemic. this crisis has taught us how to plan for the unpredictable scenario. yvonne: we just talked about that down day in equities. david ingles is talking about what is really going on in tech. david: we are still trying to figure it out. the bulk of this

goleman sachs posted a 36% jump in revenue from investment banking to $3 billion.hey advise on the top deals this year, including the megamerger between time warner and discovery. j.p. morgan also advised on that deal saw their investment banking revenues rise a record to 3.5 billion. it is their best every year, and whether that is sustainable is the big question. manus: absolutely. great to have you back with us. a couple of warning shots for me, we know the rich do not spend, but they borrow. they are borrowing but main street is not a j.p. morgan, and we are banking the money. that is a warning sign for me. the average loan growth was flat. jamie dimon said, do not expect another release. are they the warning shot that holds us back? >> absolutely, and that is why you saw the stock selloff. the trading revenue being down was baked in, investors were expecting that. they were hoping for better news on the loan growth front. they jp morgan cfo thinks it will improve in the next couple of quarters, but that remains to be seen. america has come out of the pandemic

now, we know that and that's going to not be anything until next month we got a report from goldman sachs this morning cutting growth forecasts, so in terms of -- liz: let me jump in there. >> yes? liz: but scott, last friday, we had david kelly, one of the best economists over at jpmorgan. he said 10% gdp for the quarter. that's the print he is looking at, so you know, you got dualing choices here, and we know what the economy is doing. it is roaring ahead, is it not? >> it absolutely is. they can print 8%, they can print 10%. the way the market is trading, it's going to take it in stride in my opinion. again, for the short run, for this week next week, it is those four heavyweights maybe a couple other names that sarge had mentioned as well. going forward, yes. interest rate policy, infrastructure, gdp economic reports, absolutely. that's what's going to drive us to the rest of the third and fourth quarter. for the immediate term especially for that trader, those are the names you gotta watch. liz: sarge, what do you hate here? i always like to hear that. go ahead. >> what do i hate? we

we're going to hear from jpmorgan, goldman sachs. stocks ending last week higher with all three major averages closing in record territory on friday. and then taking a look at the global action right now, european stocks are pointing lower. there's a lot of talk about that global minimum tax, by the way, in europe. they're all in the red. investors are worried also about the economic recovery because i you've got that surge in the delta variant that is affecting european countries in particular. and then taking a look at asia, reverse story. green across the board. the nikkei and the hang -- shanghai really performing, up more than 2.25%. >>> and some of the headlines we are watching this morn, a denver hotel maid tipping off police, possibly foiling a mass shooting plot at the mlb all-star game. investigators say she found a stash of guns inside a hotel room just one block away from coors field. police arresting four people. the fbi does not believe they are connected to a terrorist organization. coors field will host the game tomor

goldman sachs the same story, very strong profits. they made a lot of money in the booming ipo market. these two banks started the earnings reporting season and so far it is off to a good start. as for the market reacting to all of this the dow industrials going to open down may be 100 points. that is a reaction to the inflation numbers. the s&p down, the nasdaq also down. i suspect this is a reaction to the inflation numbers and to the profit numbers. political farce. in texas. how else do you describe it? excuse me. democrat legislators loaded into a couple of private jets and fled the state to stop republicans passing voter reform legislation. they were all smiles as you can see but they say they are sacrificing their personal lives for the sake of voter rights. president biden addresses that issue later today. demonstrations in cuba, president biden says he supports the protests. his press secretary says they are the result of economic mismanagement, not a word about the abject failure of 60 years of communism. a very big day. we

whether or not ferrari will be able to pull this off, getting into the electric vehicle space, goldman sachsouble downgraded for re shares, porsche, meanwhile announced really great second figure sales and they have much bigger momentum behind them at this point. jack: porsche selling at seven times versus 42 for four re, coming up next high stock valuation, low yield, inflation, valuation, low yield, inflation, they said it couldn't be done but you managed to pack a record 1.1 trillion transistors into this chip whoo! yeah! oh, hi i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq ♪ ♪ when technology is easier to use... ♪ barriers don't stand a chance. ♪ that's why we'll stop at nothing to deliver our technology as-a-service. ♪ jack: the economy is wearing back from the pandemic but we have real inflation concerns, how investigators navigate this like the ceo wealth management catherine keating, thank you for j

the successful firm leading the way is goldman sachs.ou can see they have done $719 billion in total deals. however, this month the biden administration issued a executive order for agencies to promote competition in the industry. read between the lines. that will slow down the bigger deals. what does that mean for the rest of the industry going into the second half? joining us to talk about that is stephan feldgoise, global head of m&a at cul-de-sacs -- goldman sachs, alongside our ed hammond. we are all back in the studio. how many of your people are back in the office, what does the return to work look like around m&a? stephan: in new york, a vast majority of people are back. it has made a big difference. matt: making a positive difference to have them back in? stephan: no different with the culture and working together. for our clients, we view being with our clients as a critical part of returning to office, delivering what we view as the best client advice. it has been fantastic for the team. we try to make it as enjoyable for folk

whether or not ferrari will be able to pull this off, getting into the electric vehicle space, goldman sachsouble downgraded for re shares, porsche, meanwhile announced really great second figure sales and they have much bigger momentum behind them at this point. jack: porsche selling at seven times versus 42 for four re, coming up next high stock coming up next high stock valuation, low yield, inflation, they said it couldn't be done but you managed to pack a record 1.1 trillion transistors into this chip whoo! yeah! oh, hi i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be circuit design engineer to help push progress forward can i hold the chip? become an agent of innovation with invesco qqq look at this guy. can i hold the chip? he's really working hard. you know what he will get? muscle pain. you know what he should get? advil. pain says you can't, advil says you can. this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth. everything begins anew. and many of us realize a fundament

each of these banks, goldman sachs, j.p. morgan stanley have worked on 100 more deals in the first half of the year since the two years prior before covid started. these are many of them smaller deals, and outside of the purview of the bonded administration. whether they conduct -- the biden administration. whether they can touch those deals is another question. alix: let's get more detail with frank aquila, partner at sullivan & cromwell. he advised on deals of more than $20 trillion in value. thanks for joining us. it is really good to see you. when you take a look at the potential executive orders, what makes you the most nervous? frank: i think i am not particularly nervous because first of all, this is a re-price of an exec it of order issued during the end of the obama administration, and we have to remember that this is not new law or regulation. it is really asking the regulatory agencies to consider new regulations. that is a long path, and as sonali was just saying, most of these deals we are seeing are not the hug

goldman sachs first out the gate with a downgrade. tom: morgan stanley going the other way. that if the decision that makes people tune in in august. maybe we will have more than 42 viewers and listeners in august. jonathan: thank you for that, tom. great promotion of this program. [laughter] here's the quote. "in the near term, a complete service sector recovery will likely require return to office work patterns." how many people are in that boat? tom: there's a lot of people in the boat, but i'm sorry, morgan stanley goes completely the other way. jonathan: we will get into it any moment. that's part of the market. that's the debate. i'm with you. tom: i'm in cash. i feel comfortable. jonathan: clearly, given you are not per and what we see on the screen. are you finished? lisa, we are not doing that. lisa: never done. jonathan: you take a drink, relax. take a deep breath. tom: tang. even when they don't launch a rocket which we have 10. lisa: the idea here, they really pointed to the return to office and how that has really liked behind -- has really like the kind -- has

goldman sachs is getting bullish on live nation as concerts return in a big way. we are tuning into that call next. at gplus, our chart of the week. wh'soing on in one south america country? we'll break it down next when "fast money" returns it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buil

>> goldman sachs will have a good report. i think carter laid it out good what is expected and how better, i think expectations across the whole group are up 100% year over year. expectations are really high i don't love the money centers i see some bad action in bank america and citigroup and wells fargo. i don't like any of them >> all right,sir taking over the nasdaq 100 going for its nineth straight week of gains. just a few minutes to break it ul down. disney ease plajic lighting up today on the back of some very strong box office results. the best since the pandemic stard.te fast money returns after this. there's an america we build and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l i'm evie's best camper badge. but even i'm not as memorable as eating introducing the wildly civilized turkey hill chocolate chip cookie dough creamy premium ice cream and chasi

on that same note, goldman sachs did lower its forecast for u.s.dp in the third and fourth quarter, and it says that recovery in the service sector spending could take longer than previously anticipated. david kostin said in a note, "the new strain should not pose a major market risk." we recommend tactical positions in virus exposed cyclicals alongside longer-term investment in high-quality, secular growth stocks. let's get more on this growth trade and the trade our next guest wants to be in. that is david lebovitz, j.p. morgan strategist. would you may making -- would you be making a tactical allocation to cyclicals right now? david: you don't want to completely abandon the cyclical trade. we come into the year with the view that cyclicality was going to outperform quality. obviously that has been put on ice as growth concerns have percolated and interest rates have come back down. but it does feel like the rates market is priced given our outlook for the economy. i would agree with the guys at goldman that the recovery is going to be more uneve