mike: i really focused on the u.s. banks right now. are inexpensive european banks but there are inexpensive u.s. banks like citigroup, trading below book value and below tangible book value. look at those capital ratios? history.he highest in vonnie: let us give up bonuses. because this question has been interesting to me and i haven't seen much about it. if european banks move their headquarters and lose staff from london to other places, we are hearing more and more about that and we will as the brexit negotiations get underway -- franklin and dublin and the -- will bonuses go away? will be structure of compensation change? for 25 have been focused years doing this job on wall street. i'm focused on the incentives which drive behavior. collectively, investors and the public are fed up with this. heads i win, tails i win. ceo and a management team isn't getting the job done, in the case of banks, then they shouldn't get paid. and when they hit the targets they should be allowed to get paid a lot. that is capitalism. were at theou citi

u.s. central bank. llis to click, most of the commentary i see is focused on the way the fed is viewing the u.s. economy. service data soft fed fulfilling its dual mandate? the big question on mark -- trump might not be what he thinks about specific people on the fomc. it might be what his policies are combined with his stance toward the u.s. dollar actually mean. a lot of people have pointed out tension between desiring a weaker u.s. dollar and a stronger u.s. economy. peopleaybe calling other a currency manipulator or not is interesting and everything is interconnected. thanks to tracy alloway and mark cranfield. you can follow live market insights on the bloomberg mliv blog. it is fascinating and helpful. we have people up all around the world, people are putting in content from hong kong as well as from princeton. it is very late in new jersey. coming up on the show. we are live in istanbul ahead of the critical vote that could reshape turkey's democracy and with markets. later we are in a preview of

what's interesting about trump is as early as 1990 he was already viewed as a major credit risk by u.s. banks. in 1990, i tell the story in the book, he flew out to los angeles to visit with security pacific bank, which at the time was the 50 largest u.s. bank. he wanted to borrow $50 million in borrow $50 million in order to fund the revitalization of the ambassador hotel. as you can imagine, from modern times, trump arrived at the meeting for confidence and swagger about his amazing balance sheet of assets, full full of some of the best properties on earth that were easily highly liquid. he was the best lending option you have out there, you probably should give me $100 million million dollars. the bankers had an entirely different view of his assets. they didn't trust them. they looked at them as highly illiquid, that that if he iran into difficulty paying off his debt is would necessarily be easily sold. they refused his request for $50 million loan and they ultimately loaned him $10 million million dollars. they wanted to be associated with his celebrity and they ultimately live to regre

talking about the u.s. banks. america, goldman sachs and morgan stanley all reporting numbers before the bell. the senior market strategist at ambrose is with us. looking at the bloomberg intelligence analytics. global investment revenue is showing a strong first quarter. we dug a little deeper and hsbc is saying that it should be a positive. growing at 25%. if you are an investment bank, it will be a good quarter. ofif you look at the results j.p. morgan and citibank, same stories. revenue is strongly up. the problem was the commercial banking revenues were not as strong. it has been a good quarter for banks but the bigger picture is what happens in terms of their future and earning potential. given the fact that yields are coming down in markets and the yield spread has also come down is a big reason why banks have, -- have recouped some of the ins they had from the highs the trump election. they have reversed those. will be paying close attention to this as well because they have done better as rates have been r

>> we still like u.s. banks. they are in a better capital position. yield curve does steepen, but not as much as people think. we think you have a relief valley on european banks. there was a concern that if certainly le pen goes to the -- has a good chance of winning in the second round, you could have capital controls on european banks. certainly the risk of france leaving the eu, all pose a significant risk to the european banking system. therefore you're seeing them have a sigh of relief this morning or yesterday. >> darrell, washington still in the spotlight. this tax rate reduction expected sometime this week. we have a delay in the border wall. now the countdown to a potential government shutdown. how are you digesting all of these recent factors and putting money to use here? >> well, as i mentioned before, we think the geopolitical risk is with us for some time. it will be interesting to watch the tax package released to tomorrow. i would watch less about what is released and said and more about what we realistically think can get done and ov

thing seemed to be looking up for u.s. banks. is there more optimism or concern? reporter: well, it depends, because most of these banks that parking roger earnings show evidence of slip -- that beat earnings show evidence of slow growth. the federal reserve is still on board with at least 2 more hikes this year, something that will help banks' ability to make money from lending. also, deregulation and a bullish stock market should contribute in the short-term, has earnings have benefited from substantial gains in trading revenue. brent: today we saw the u.s. dropped the mother of all bombs in afghanistan. what was the impact on the markets? reporter: well, u.s. investors panic a little bit, with the dow jones falling more than 100 points as the dropping of these bombs increased geopolitical tensions. u.s. equity markets have been focusing on syria and russia and north korea and china, as investors tried to figure out foreign policies, and here at home, trump's priorities keep changing as now he wants to get a health care bill passed before any tax reform, for an i

u.s. banking regulators have gold plated the capital standards for banks so the u.s. banks have higher capital standards than the rest of the world essentially. what we've done to answer your question is we've taken those calculations from the higher standards and just gone to what are global standards. if you do that and if everything were to break for the banks in their direction, you could say there could be a 30% improvement in earnings if it all happens. my sense is that it probably all won't happen, but you could get a very meaningful improvement. why that's important is that nine months ago we were talking about whether or not the big banks can earn their cost to capital. going to an international standard rather than higher standard could help these banks, the biggest banks, earn their cost to capital which takes a lot of pressure off them and i think frankly helps the economy overall. >> stay with us. we want to get to eamon javers in the room where the president was just addressing those ceos. >> you heard the president call them all the killers from new york

this is an area he wants to focused on. >> european banks versus u.s. banks score card? >> u.s. livering significant limit ubs better, and credit suisse was all right. deutsche bank missing because they were under pressure. barclays were not expected to miss to this extent within the trade revenues which they have done. >>> rbs first quarter results dpe exceeded estimates. up 2%. follows from lloyds banking group beating on the domestic business as well yesterday. >>> look at shares of starbucks. they're slipping this morning. for the second quarter in a row, same-store sales failed to meet wall street estimates. in the conference call the ceo remained optimistic about the rest of the year saying strong performance in china and new products like the sweet and sour unicorn frappuccino will help the chain grow revenue growth in the second half of the year. even in the earnings release, they said march and april looked stronger in the u.s. on that note, kevin johnson and howard schultz will join squawk on the street at 9:30 a.m. eastern. >>> to follow up on barclays, on the call jes

we were here with the u.s. banks three or four years ago. the u.s. f cleaning up their act. europeans are in that process right now. cash to theshed windows to make sure they have passed their test. we are looking at capitalization ratios on par with those of the u.s.. the reason for the hesitancy globally on picking things up, there is still risk -- geopolitical risk, some concern of transparency and especially the southern tier banks are not quite what we want them to be and there is going to be some fallout there. you have greece still hanging around at the periphery. guy: we are not done with you yet. the cohead of asset allocation at asset management is going to join matt and i on bloomberg radio at daybreak. here on bloomberg television, up next, it is surveillance. withonversation continues politics and the u.s. car sector as well. francine: all about the job is markets 08. friday's payrolls report. the u.s. crackdown on a visa program. meanwhile, could slumps on vehicle sales put the brakes on trump's plans for american car factories? cut to j

matt: what do you think the problem is with european banks versus u.s. banks? is the playing field how much will it be tilted if donald trump comes through with this deregulation? >> i think america is ahead of the game in terms of having reorganized its banking challenges. if we go back to the trouble asset relief program, europe still has a banking system that undoubtedly has bad debt embedded in balance sheet's and everyone is nervous about that. there are some punchy people betting they want to be in the french banks in advance of the election anticipating the greatest spring. for me, the european problem is not france but italy. italy say people in they would rather not be part of the euro project. that to me is a big challenge to the banks of europe. if i were going to purchase a bank in europe, i would look at the spanish banks like santander . anna: making that point about italy, back to the start of the conversation. focusing on the french election. even if marine le pen were to become president, there is not necessarily a direct line between that and h

we have had to restructure the bank for new regulations in the u.s.. to restructure the bank right now to create the bank in the u.k. k. we will have to deal with the changes come to us vis-a-vis the european union as a result of brexit, but we are committed to role in the and united kingdom. we think that london will stay the dominant financial center for europe and barclays is committed to do its part for that to happen. guy: barclays is now down -- bouncing around all over the place. looking at the bug in the right hand side of the screen that you othere over here, and -- side. it is tv, everything is reversed. , sore down by 3.84, down 2% it is bouncing around. market is trying to get to grips with it. it is a negative number that has gone down two to four. we are bouncing around a little bit as we try to get prices settled on that. ubs is the other bank we are watching carefully. 80% rise in first quarter profits. spoke toe business, he manus cranny. manus joins us now from zurich. a pretty positive picture from him. absolutely. just look at the s

this is u.s. banks versus european banks.here are a couple different arguments, which is the underperformance is driven by the nonperforming loans, the issue that was never dealt with, we never had the european top. but the other issue is the outperformance of the u.s., they dealt with their problems earlier, but also rising rates. does that gap close? if you are an equity investor, do you believe in the mpl issue being dealt with -- the npl issue being dealt with? >> it is more than that. margins can rise of interest rates, and the fact that interest rates have risen more in the u.s. than in europe, that gives u.s. banks more of a chance. growth is also helpful, that income flow helps more loans not falling into the nonperforming category. european growth has been surprisingly good. i hope to see the white line begin to rise somewhat. the blue line i think is overcooked. anna: how strong is european growth at the moment? we got pmi data out yesterday, very strong for germany. i was speaking to a guest from ubs who was doubtf

lauren: banks talks ahead of their earnings due out this morning. the dow fell 60 points yesterday. u.s. stock market to lower. s&p 03. lea: president trump's comments getting too strong. in china the shanghai composite up fractionally. lauren: investors focused on bank earnings. jpmorgan chase, wells fargo, citigroup among others. lea: orders for the galaxy and have been strong. the exploding phone fiasco in the rearview mirror. lauren: boston celtics beat the milwaukee bucks are in the top seed in the nba playoffs in the hockey playoffs the new york rangers in their first playoff game. train 25:01 a.m. in new york. thursday, april 13th. welcome to "fbn:am," your first look at morning markets and breaking news. lauren: almost friday. raking us this morning. president trump offering better trade terms for north korea. in an interview, and this is what the president said. that's worth having deficit and that's worth having not as good a trade deal as i would normally be able to make. in the same interview, the president said he will not label china a currency manipulator, but he said the

liz: now is stands 12.9 trillion sitting in u.s. banks. we're talking about paltry returns. banks will start to increase their deposit rates? that is what many of your viewers are waiting for? >> yeah, you can blame it on the fed. we are still in this environment where they are punishing savers by keeping rates extremely low. liz: they sure are. >> you know what we're going to see as equities continue to rally, make new highs, some money will be put to work. timing might not necessarily be good. liz: do we have to wait for the fed. >> no. the fed is going slow. road map they will go two times this year. i actually think they might continue to go even slower. at some point they will talk about reducing the balance sheet that is 28 sort of issue. if you're looking for yield income to surpass what you're earning on that measly bank deposit, interest are certain ways to do that without taking on a lot of credit risk. liz: we'll put all your suggestions on our facebook.com, facebook.com/lizclaman. thank you, jack mcintyre. brandywine portfolio manager. when you see the dow is down

banks are. that hurt some of their business. .hey have been losing shares a u.s. us european scorecard, we have seen obviously a big upswing in european shares on the lows of last summer. have we seen the lows? giving theks backdrop or not? >> certainly there are some inexpensive european banks, but there are some inexpensive u.s. banks. look at the capital ratios. some of the highest in history. i go with the devil i don't know. vonnie: let's talk about bonuses. it has been very interesting to me. if european banks move there headquarters to london or other places and we're hearing more about it as negotiations get underway. franklin, -- frankfurt, dublin, the hague. will the structured change? >> i'm incredibly focused on incentives which drive behavior. i think collectively what investors are fed up with is heads, i win, tails, i win. if the ceo and the management teams are not getting the job done, they should not get paid much. they should be allowed to get paid a lot. that is capitalism, the way the system should work. vonnie: you were at the citigroup annual

we have some of the big u.s. banks, j.p.roup, so there is plenty from a fundamental perspective as well as the corporate and the continuation of some potential bank commentary that we have been getting very you soon over the last few weeks. over theude -- used to last few weeks. we have several reporting on monday. , this is weakening off of the layers, and we are seeing a continuation at the start of the asian trading day. very heavy risk off moves we saw earlier in the trading session on friday, which began the unwind friday afternoon. looks like it is following through in the first few hours of trading, and fx markets here in asia. the aussies still looking relatively steady. we have home loan data coming up with will be closely scrutinized in an hour or two, but it looks like a little bit of risk. on friday we see largely through that, weaker than expected jobs report. it is reasonably wild for a few gains at the start of the asian session. the fedoking at bonds, said they would start unwinding the balance sheet, $4.5 tr

u.s. on a different playing field with european banks? certainly closely following those developments, the dodd-frank act and also now the upcoming executive order on ordinary liquidation authority. so, basically our message is we think it's very important to continue with international cooperation in the field of regulatory -- financial -- in financial regulatory field. because, well, our financial systems are global. so also the -- >> but are you getting any signs that the trump administration is doing that in they seem to be very focused domestically. he has an america-first policy. >> we have certainly also some meetings with the u.s. administration. yesterday i had a meeting with secretary mnuchin to discuss those things. i would say certainly there is understanding also on u.s. side on the need of continued financial regulatory cooperation. so the question is will those reviews mean some targeted changes to make as regulation more gross friendly while lowering standards or will it amount to substantial deregulation. as long as we di

u.s. bank earnings, president trump met the italian prime minister and the french election.e will look at head, from new york, you are watching bloomberg. "real yield." ♪ city, i: from new york am jonathan ferro. this is bloomberg "real yield." you have got earnings like goldman sachs, the earnings continue here on wall street. a week that concludes with the first round of the french election next sunday. we are back now with western asset management's carl eichstaedt, fran rodilosso, and martin fridson. i want to begin with you, carl. of uncertaintyt we have on the horizon not just next week but beyond, a few were to put one trader trade on the table, what would it be? carl: being long u.s. duration is an easy one. against a lot of bad outcomes, whether it is coming out of france or the u.s. i like the long restoration and the long emerging markets. but and a good 2016, awful 2013, 2014, and 2015. brazil, mexico, russia. >> we need to focus on income investing, looking through a variety of sectors, preferred is a big component of it, some of the more specialized categories

. >> earnings season continue with more u.s. banks revealing first quarterly results. goldman sachs posted their figures this tuesday completing the picture of the two big to fail banks. interest rates and trading for good for most lenders. let's take a closer look. bank of america profits grew toward a percent goldman sachs have the salt -- smallest. an astonishing 80% of $2.3 billion. analysts expected a better performance. citigroup, j.p. morgan chase and wells fargo revealed their numbers. they had figures of 17%, a lot thanks to higher trading revenue. this comes ahead of a change to dodd frank regulations. the figures could be used to weaken regulation. taking a good look at those numbers is our financial correspondent on wall street. let's talk to her now. we solve that goldman sachs results dragging down the markets a little bit. is there a reason for concern. >> goldman sachs is a big player and part of the dow jones. it had quite an impact. it fell short of expectations. goldman sachs is unique. when you take a look at the competitors, bank of america reporti

it could spill over and be good for u.s. banks.er treasury yield. here's the reaction in france. associa soes societe generale up. candidates face-off in a runoff. from paris, wilfred, what you can tell us as you watch the market reaction to gather the color on the ground, how do you make sense of it all? >> well, you just mentioned the first and second place percentages, so close behind them was the third and fourth. right field, 20% far left, melenchon, 20%. why is the market rallying? as we said before, it's because of this belief that the center ground of politics will unite and vote against le pen. anything but marine le pen is the phrase that's here in france. let's get some history why the market and people are confident that will happen. 2002 is the last and not only time that the national front made it to a runoff vote. that was jean marie le pen. marine le pen's father. he faced off against jacques chirac. 82%, and le pen, 18%. that's why the market is confident something similar will happen this time. but in the first ro

i think the point is they're priced that way and traded a 50% discount to the u.s. bank. the economy is europe is growing faster and loan growth is doing better in europe than the united states. european banks in the first quarter are up 7% versus 2% for the u.s. bank and i would use any pullback to buy more. david: at the same time europeans have a tough time getting away from the share pitch. u.s. banks had the promise and put it behind them. jay: they're priced at a discount. the u.s. banks and economy definitely move first, right? now europe is falling behind and they're finally dealing with these things and the bad loans and dealing with a lot of the legal issues and i think we'll see a european bank structure in the next couple years that will be much more competitive and dominant in their own region than they have een. david: are you confidence they have their arms around the problem? jay: if they don't get their arms around the problem someone else will. jonathan: coming up on the program, a conversation with the former president of south africa. that's coming up n

u.s. bank bank wells fargo is blaming the former head of its real retail division for abusive sales practices that resulted in 100 $85 million settlement with regulators last september. characters called the best banker in america by her boss, former ceo john stumpf. and an internal investigation released monday also blame stump for failing to realize the severity of the situation. billions spending $1.3 in its kentucky plant as part of a $10 billion investment over the next five years. the move comes amid uncertainty over looming u.s. trade policies that could influence foreign carmaker production plans. earlier u.s. president donald trump threatened to impose a hefty fee for markets in mexico. at&t is buying straight path communications and a one point two $5 billion stock deal. in january it agrees to pay the federal communications commission $15 billion for falsifying data. and the italian aerospace company audio began trading on the exchange for the first time monday. they have been called

price tangible book value is approaching 2, whereas u.s. banks is just that one. s kind of discount, if we get a return to glass-steagall or more regulation from wall street in the u.s., does europe look cheap? oneurope does look cheap many measures, certainly because two times book is probably the top end of the range. banks are ahead in terms of restructuring and repositioning. crisis,that since the profitability has been much higher in the u.s. as well, so we can certainly say there is quite a lot more being priced in to u.s. financial stocks. certainly with the last six months with the elections -- the election of new president trump and his promises on infrastructure spending and also deregulation and tax reforms. so it's reflecting good news. europe about a year ago was still talking about potential implementation of negative interest rates. simply notns have improved over the years and are probably a few years where u.s. -- behind where financial markets are. anna: interesting to look at that transatlantic comparison. there was a recent thing going on in fin

you have covered european banks coming have covered u.s. banks, compare how much capital u.s. banks need to hold on their balance sheet versus european banks. guest: even though we are all part of europe, u.s., asia, all part of the committee that since these capital rules, the u.s. regulators for many of these rules have goldplated and made the u.s. requirements much higher. which isle leverage, one that i pay more attention to, because it is the simplest one, how banks face 5% capital requirement on a simple balance sheet argument while the european banks are at three. our banks have exceeded 5%. average ofre at the 6% on simple leverage requirement. in european banks are hovering around three or four. we have more capital in our banks. they have managed to make profit. oliver: easy transition to set us up, deutsche bank has roughly a billion euro. what is next for them? does it sell the capital problem? > there are -- guest: their structuring problem -- nobody really wanted to buy it. they say nobody wanted to buy but the price wasn't what they were willing to accept. there

u.s. goodsy for decades, the bank was reauthorized without much debate. ma had criticized it campaign. 2008 even though he had a change of heart following that. the u.s. chamber of commerce ours use -- argues jobs might loss to be -- might be lost to competitors. opponents say xm loans could be vulnerable during a downturn, leaving customers stuck with the bill. there's also been pointed to corruption at xm, after a former employee pleaded guilty to attempting brides. read more about the export import bank on the bloomberg. france is currently getting most of the euro zone's attention with its living election. italy's banks remain in rough shape. spoker, "surveillance," with the head of the peterson the bank ofd america chief european economist about whether italy would be the next big risk factor. badks i think the banks are in the not so terrible economic way, and the inability of the italian government to deal with small bank bailouts is terrible. it's a touch point going into the german elections, the italians are being let off from the veil and of the

the major u.s. banks will announce their results at the end of the week. last week the dow lost six points, the s&p fell 2, the nasdaq lost 1 point. >>> there's a recall of packaged salad after a dead bat was found dead. fresh express is recalling a limited number of organ ek spring mixes sold at walmarts. lab testing said they couldn't rule out the possibility of that bat having rabies. >>> google is sri he meantly denying an accusation by its u.s. regulatitors that it underpays women. it stems from a routine probe to make sure google's complying with federal law. google says it conducts an annual analysis of the issue and has found no pay gap. >>> l.l. bean is giving its class uk foods a makeover, at least temporarily. the main company's footwear will get new styles and colors for each season but limited edition boots might be hard to get. l bean says once they're sold out, the company will not be making more. >>> and alec baldwin's sauce baby is still on top of the box office. >> here comes the choo-choo train. >> no. >> that it're waiting. >> choo-choo

even u.s. banks. this shouldn't be a case where u.s. banks suddenly got this burst of energy out of fiscal policy and rates going higher. we got above the 224, but if europe is back full steam ahead, and i would make an argument to this, you've had the endorsement, two elections now where you have the two biggest euro skeptics, centrist parties, and in fact the -- >> but china -- if china is going to slow down, i'm not saying it's falling off the edge of the cliff, that's europe's biggest customer. i'm not sure, maybe we're at peak europe here. we've had a market that's run a lot. >> if you're telling me china is crashing, but i get what you're saying. if we're going in this direction where china is going to be a major headwind for markets, maybe. about you all china is doing is sloppily trying to tamp down the credit markets which they've done for the last five years. last night, china pulled back. but chinese data has been as good as anyplace in the world as well. people say i don't believe china. guess what, china is doing just fine.

beenuropean banks have lagging their u.s. peers, but they are catching up because the european economy is catching up. we have seen a lot of efforts in terms of cost-cutting at european banks that will bear fruit in the coming months. veryrospects are still fine for the european banks, so the steep rise after the bottom. there is still the momentum that is going on when it comes to the ratio of earnings. mark: more on that theme in just a few minutes. michael moore from our european finance team. re stays with us. career conflict. in morerump in gauging saber rattling as he heads to his 100th day in office. the latest as we check in on britain's economic health with gdp figures in 20 minutes. we talk brexit and the general election. the former conservative party leader, iain duncan, with us. ♪ mark: here is nejra cehic. nejra: an unbroken twenty-year streak of revenue growth shows no signs of slowing. the company top profit and revenue estimates in the first quarter as sales may be projections in the current period, reinforcin

the markets u.s. banks season, jpmorgan chase aly ou city a wells fargo reporting before opening. stock trading higher in premarket right now. citi is expecting to report highest while wells fargo to report lower because of the bank scandals last year. the sector has been under pressure since early march, maria. maria: coming up next, ramping up a fight for the rams blocking the team's move to los angeles. details back in a minute listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. then you're a couple. think of all you'll share... like snoring. does your bed do that? the dual adjustability of a sleep number bed allows you each to choose the firmness and co

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the major u.s. banks will announce their results at the end of the week. last week the dow lost 6 points, the s&p fell 2, the nasdaq lost 1 point. >>> there's a recall of packaged salad after a dead bat was found inside of a bag purchased in florida. fresh express is recalling a limited number of cases of organic market sized spring mix. they were sold at walmart stores across the southeast. u.s. officials say lab testing couldn't rule out the possibility of that bat having rabies. >>> google is vehemently denying accusations by u.s. regulators that it underpays women. it was disclosed by a labor department official during a court hearing on friday. it stems from a routine probe to make sure google's complying with federal law. google says it conducts an annual analysis of the issue and has found no pay gap. >>> l.l. bean is giving its classic duck boots a makeover, at least temporarily. the main company's footwear will get a new look this year with different styles and bright colors for each season, but the limited edition boots might be hard to get. l.l.

mark: the key questions for deutsche bank -- matt: wise income revenue liking so far behind what u.s. banksdeutsche bank only 11% growth in if you look at equities trading it was actually a drop of 10% compared to a fairly flat quarter for deutsche bank. those of the questions were going to stock -- talk about. see how he views it. the bank says they needed to warm up the engine a little bit before they are firing on all cylinders. the shares down 3% in today's trading. investors certainly did not like what they saw. deutsche bank a chance to get his clients back on the books and get business running again? later the ceo of deutsche bank. ♪ guy: this is the open 42 minutes into equity trading. in next picture. here's the bloomberg first word minute -- news. david: the doj, the bank has follow unchanged while loading -- lowering inflation forecast. it will continue to use policy rates. thatunderscores the view any exit from its on monetary easing is far away. a strong increase in the forecast for this year and next. a few in his back to boj did mention that inflation will likely top of the 2

u.s. bankngs, president trump meets the italian prime minister, and it is the first round of the french election on next week's calendar. from new york, you're watching "bloomberg real yield." ♪ ♪ jonathan: from new york city for our viewers worldwide, i am jonathan ferro. this is "bloomberg real yield." it is time now for the final spread. over the next week, you have some imf meetings, the fed beige book. you have earnings from the likes of goldman sachs and earnings continue on wall street. the week that concludes the first round of the french election next sunday. carl, i want to begin with a look ahead to next week. give me where you have some conviction, given the amount of uncertainty we have on the horizon, not just week but beyond. if you were to put one trade on the table, what would it be? carl: i think being long u.s. duration is an easy one because it is the natural insurance policy against many bad outcomes, whether it is coming out of france or the u.s. i like being long u.s. dur

certainly you will see a bigger presence from these u.s. banks on the continent. e have seen so far is banks making plans to send a small cohort at first, then see how the negotiations plant. market in thece british capital in 1688 expects the office to be operational at the beginning of 2019. >> we a contingency plan before the referendum. as soon as the result came through, we began to put the flesh onto that. -- rapidlyconclus concluded do onshore on the eu. i personally believe that london will remain the financial sector in europe. it will certainly remain the major financial sector for lloyd 's. obviously if you look at other parts of the financial sector, they have slightly different criteria at work. you will see some transfer. london will remain a powerful financial center. >> the eu signaled theresa may will have just one year to work on the trade deal. expected came out as playing hardball with the u.k., saying they would not renegotiate a free trade agreement until you come to an agreement on these issues. that thet is this bill u.k. owes the eu. having

. >> coming into today, all i was focusing on were the u.s. banksnk of america, goldman sachs, now added to that on my list in just under 20 minutes time, theresa may's announcement from downing street. the pound down off the back of the news this announcement is coming. >> some other earnings reports, housing starts as well in the u.s. it's tax day. there's going to be a lot of things going on. >> you love that it's tax day. you love it. >> it's one of the foremost issues for investors now coming out of washington, in light of those remarks from treasury secretary steven mnuchin. you will hear more of that this week. a lot of official commentary. >>> that's it for "worldwide exchange." lots to come on "squawk box" which comes up next. >>> stocks are falling in europe and the u.s. we're awaiting a statement from the british prime minister, theresa may, in about 15 minutes. there's speculation it could be a major announcement. >>> reports from united health, bank of america and johnson & johnson expected this hour. we'll bring you the numbers and rea

and said they are downgrading u.s. banks and they said the improved profitability in the u.s. longer than we say -- and then we think. was it reflected this season? jeffery harte: it depends on how you do find banks. when i look at universal banks that have operations, we have not released the results out of europe but the results out of the u.s. has been pretty strong and the trend we have been ,eeing especially in a trading investment banking, the u.s. banks gaining market share over non-us peers. when it comes to companies i am looking at, i what not agree with that call. i would stick with the u.s. bank. some a lot of gainers and being in the non-us markets. banks are concerned about cost control. should we because told about headcount? byk of america was up a quite a few people. because they are doing better, they are building up headcount and costs? : yes, it has have to be on the radar but the less of an issue than a prior cycle because technology is some of the trading businesses are letting them do more with less people. the headcount increase like a boj, the importan

>> well, the chinese have been studying whether to allow u.s. banks and insurance companies to acquire majority ownership. i suppose it's possible it would happen. they've been very zealous about keeping control of their financial system. so i wouldn't really count on it anymore soon. there may be a different view. >> no, i don't necessarily have a different view. i think this is going to be a fascinating negotiation, because you've got sort of interesting politics on both sides, right? you've got president trump who's clearly sort of signaled that china is the, to some extent, be-all and end-all of sort of effectoff trade negotiating -- effective negotiating, point one. it is clearly largest bilateral trade deficit, so you're going to have that pressure. i tend to think his focus is much more on sort of the manufactured goods side of the equation, and so i think -- not that that wouldn't be relevant, and there's certainly sophisticated people in the administration who understand the importance of that, but i think it's going to be looking hutch more

. >> announcer: welcome to the u.s. bank nbc sports report. >> hello, everybody. our nbc sports studio. we'll get you to the fei jumping and dressage finals. let's begin in augusta, where

betty liu: the first u.s. bankr president trump shows a split between wall street and main street. revenuerevenue outpace --a fed rate hike paired rate hike. a sluggish results and a fall in total loans. airlines has changed its policy on employee travel. onws flying as passengers planes have to be booked in our before departure. a social media backlash showing a united passenger being dragged from the seat and forcibly removed from the aircraft. he was taken off the flight to make way for an airline employee. play more still to come with asia's first major market open, now just moments away. australia, new zealand and hong kong. let's bring in sophie to tell us what we should be watching at the opening in seoul. tokyo we arein watching for toshiba, the company has a life line extending to the end of the month. when it comes to the struggling airbag maker takata, they are still ongoing and could last until mid-may. hotspot, keep an eye on the stocks like korea airspace. that check-in with the futures board. we are

two things i want to take away, all of the u.s. banks beat on that. on what expectations were priced in and how much harder it was the bank stocks that beat relative earning given the runup they had. but also how tied the stocks still are to whatever the yield is doing. that hurt the stocks irrelevant to what they're doing. >> it was the story of the week. 3% on the week. >> exactly right. again, keep an eye on that ten-year treasury note. let's get to asia data overnight. china grew. and forecast from 6.8 to 6.9. got a boost in the country's booming housing market. we've got hong kong and australia closed for easter monday. but the rest of asia is open. japan slightly higher. shanghai down a little bit. 0.75%. also that soft finish on wall street which asia, of course, is reacting to now. as for europe, the major markets are closed across the board for easter monday. >> as for the broader market picture, we'll show you what's happening with oil prices. wti crude gets below $53 a barrel. brent is off. and also a full percent, and nat gas is down. let's

if you look at the performance of european banks relative to u.s. banks, u.s. things are strongly favored at the moment. i would bite the cinderella option. i think this and relevant european banks look to be showing signs of outperformance. mark: the euro is cheap. euro is cheap -- ignore them your is booming at the moment. if you go to germany, the netherlands, there is a boom. clearly monetary policy settings are wrong. able have to change. that will be supportive of the euro. mark: thank you. good to see you. come back soon. of investec, asset management. vonnie: let's check in on the bloomberg first word news. courtney: president trump is proposing the biggest tax cut ever. white house officials are excited to outline the tax overhaul today that would divide massive tax cuts to business as big and small. steve mnuchin >> spoke in washington this morning. >>i'm hopeful that democrats will work with us on this. this is about tax cuts that are good for the american people. i hope they will not stand in the way of creating tax cuts for for makingess, business c

three to have biggest u.s. banks deliver their report card to wall street, jpmorgan, chase, and wells fargo, were betting president trump would roll back regulations and help them make more money, but doubts now have set in about the future of the agenda, now expected to post higher profits, but wells fargo could see a dip as it deals with a fallout from the fake -- scandal. >> investors who want the electra car group -- tesla just passed ford in market gap, they were urged to add more independent board members, they argue disverse fieing will add an additional check. you don't like it, go somewhere else. >> beat it. gutsy. >> early start continues right now. >>> a series of significant policy shifts coming at a rapid pace from president trump. big changes on key issues including russia, nato, china. his new out look and what it means right now. good morning and thanks for getting an erm staarly start wi i'm dave briggs. >> you get many and conditions on the ground mean there are a different set of facts to work with

u.s. banking administration.epares to roll back the dodd frank rules imposed after the financial crisis. global news 24 hours a day powered by 2,600 journalists and analysts. i'm tagor rigs. francine and tom? tom: we welcome you all worldwide as we begin our i.m.f. world bank coverage. here's a quote from madam lagarde as she talked about these meetings. francine had an important interview a few days ago. we work together to ensure the great recession did not become another great depression. national policies tend to have major spillovers across borders. we are all sitting figuratively in the same boat. at the helm of the boat a few years ago, john litky joins us formerly with jp morgan, an american who came to the rescue of the i.m.f. in its point of crisis. john, when i look at this meeting, i'm saying flat-out, it's not normal. i have france and i have a snap election in britain and i have trump. how unusual would these meetings be? john: very unusual in the sense of degree on policy and certainty. let's call

u.s. banking sector to do that. scarlet: i am glad you bring up the bipartisan aspect.ou aree two tracks as looking for financial deregulation -- one in congress, one of the administration through treasury. compare and contrast what each of these plans offer and where we might get democratic support. rob: let's start on the regulatory side. on capitol hill, you have the choice act that was appearing in the u.s. house of representatives yesterday. that is a vehicle that will move through the house of representatives late spring, early summer. in the senate, they have not even begun to have what assets -- aspects of dodd-frank might be changed. on the at administration's eye, two things to talk about here -- number one is the treasury is working on the response to the president' executive orders from february of this year, and they will present a report to the president of the united states identify and a whole host of things that regulatory agencies can do to help our economy grow at a greater rate. we have been a part of that conversation quite openly. we have met with

mike: u.s. banks have been hardwired for safety. regulators have done their job and they have done them well. but banks have not been hardwired for governance. investors whoe need to push for the better oversight in governance. and that is a job that is not finished. julie: do you think that is going to start to ramp up? do you think when regulators pullback more, will it be more of an impetus for the government to start to increase? mike: it better be. that is the role of capital markets. there are so much red tape with ink regulation. keep the safety and pullback the red tape and investors, oversee banks and hold investors accountable. that was one of the causes of the financial crisis. the regulators thought the investors were doing it at the investors thought that regulators were doing it. it is time to hold bank management accountable. vonnie: haven't even had full of limitation of dodd-frank and the administration is already talking about points of glass-steagall. what are analysts saying about the possibility for that and whet

we have had to restructure the bank within the u.s.. e the bank for the bank and you can. we will have to deal with these vis-a-vis the european union as the result of brexit, but we are committed to our position and role in the united kingdom. we believe london will stay as the financial center for europe and barclays is committed to do its part. anna: thank you so much for your time this morning. we appreciate it, jes staley joining us from barclays headquarters. let's get -- sticking with the banking sector, we get to the rbs numbers. 1.3 3 billion pounds profit. above the estimate. beating estimates this morning. just getting through to some of the details. net interest of -- removing 78 -- 13 7% as the annual -- cost cutting the focus here. the ceo removing costs trying to maintain revenue as his target returns to sustainable profit in 2018. also wants to retain the dividend. the government remains more than 70% owner in this business. some of the big obstacles facing rbs at the moment. looking for an update on those at the moment.

less than half the increase reported by the five biggest u.s. banks bank earnings season in full swing, we've heard from sweden's, lloyds bank and bbva of spain. busy week. let's get analysis. chris wheeler is here. hi, chris. that gap betweend and its --between deutsche bank and its can itanopy close, -- be close? they have got above goldman sachs and morgan stanley who have not been as bigger player. they were never a big. ranks they were brokers. it is done quite well, i think. but the problem john's got is he seems to have stabilize the business, but people want more. that is always what you get when you get the kind of situation. mark: what about the clients? has he yet to win back the full trust of clients? evidence says maybe not. >> well, you know, deutsche bank has an amazingly loyal customer banks because it is deutsche bank, the biggest e.u. bank now and customers have to deal with it. when we're going to the crisis, people have to come to deutsche .ank that is still the case. but what you want is you want them to come with a smile on their

nicole: goldman sachs, more of the big u.s. banks post their quarterly results.dman expected to report a jump in its first-quarter profit. jpmorgan cha a citigroup has beat the expectations. we will also hear from bank of america before the opening bell. and also to post a higher profit thanks to solid trading in the quarter and interest rate hikes. lauren: president donald trump heads to the heartland today to push a buy american, higher american campaign. he was signed an executive order but will it lead to any changes? we'll take a look at this, not. looking at stock market futures, a broadly lower market. dow futures down to 72-point. s&p futures on 10. nasdaq down seven team. you are watching "fbn:am," your first look at morning markets and breaking news. ♪ say it ain't so. i will not go ♪ turn the lights off. carry me home ♪ ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts.