u.s. banks outclassed european competitors a new study by e.u. why found that u.s. banks are more than twice as profitable them their european counterparts when you talk to a german franky experts to find out why. also on the show german fin tech company wired card gets ready for a strategic alliance with japan's softbank. and three days after the terrible easter sunday attacks in sri lanka the island's hotel and hospitality sector worries about the impact on tourist. island welcome to do business good to have you with us a study by consulting firm eve why has revealed a striking difference in the size of profits u.s. banks are making compared to their european counterparts taken together the ten largest u.s. banks last year made a profit of one hundred and thirty eight billion euros now compare that to the top ten european financial institutions they made fifty two billion that is less than half as much j.p. morgan chase was leader of the pack in the u.s. bringing in a massive twenty eight billion euro profit in europe it was ages b c that came out on top with twelv

u.s. banks outclassed european competitors a new study by eve why found that u.s. banks are more than twice as profitable than their european counterparts we go live to germany's financial hub frankfurt to find out why. also on the show ride sharing is getting more and more popular now folks live in launches and use this in the german city of hamburg to get a piece of the action. and wake up and smell the coffee because starbucks isn't the only game in town chinese chain luck in coffee is taking on the u.s. job a giant all the way to now stuck. hello welcome to your business good to have you with us a study by consulting for me why has revealed a striking difference in the size of profits u.s. banks are making compared to the european counterparts and taken together the ten largest u.s. banks last year made a profit of one hundred thirty eight billion euros compare that to the top ten european financial institutions they made fifty two billion that is less then half as much j.p. morgan chase was leader of the pack in the us bringing in a massive twenty eight billion

u.s.-backed versus european. are there banks in the u.s. ading into the early season you prefer even more? james: i see that as a global giant. it is able to be more price setter than a price taker. i worry about banks that are competing in asia. chinese banks still buying business. i see the flows from hong kong to china, eye watering in terms of the risks. i am very nervous. in europe, i still don't believe many of the banks have adequately addressed balance sheet issues. j.p. morgan is the natural home for capital. nejra: you are worried about balance sheet issues. does that mean you do not seem european banks as a credit proposition? james: i look at the banks in europe. i see sent in there as an example of a bank that has potential to report very strong numbers, but that is not a european story. in contrast to challenges clearly felt. to make money in negative interest rate environment when passinget to system money across the central banks of europe means wendy bundesbank bundesbank when the provides money, they not only have to provid

u.s. banks are definitely doing better. many times on this show about how they are falling behind, losing market share. japanese banks and canadian banks have done better. they are not as bad as european banks. but when we look specifically at nomura, their problem has been in europe after they bought lehman's operations in 2008. they haven't had as much success as they wanted in all the areas. come last year, they lost market share globally. equities grabbed market share from european banks. in the areas where they lose market share, they are going to cut cost. that is what banks always do when they lose market share in areas. and in equities, they are doing better, so they will probably keep people there. but u.s. banks like j.p. morgan are firing on all cylinders, grabbing market share. j.p. morgan just said a couple of months ago they even want to open more branches around the u.s., which is very unusual. for a decade we saw branches closing. so u.s. banks are doing great. europeans are doing much worse. japanese and ca

u.s. banking because of its bankruptcy in atlantic city with his casinos which left u.s. banks with billions of dollars on the hook so they kind of partnered up and that has been the case to the tune of two billion dollars in loans but donald strums youngest son has already blasted the inquiry as quote an unprecedented abuse of power how likely is it to yield results. well what might be really interesting for house democrats here is the banks very own russia connection. so the moscow office of the frankfurt lender has been caught helping wealthy russians getting ruble out of russia to the tune of ten billion dollars and they have been fined for that with six hundred million dollars u.k. and u.s. regulators. and new york thank you so much. u.s. president trump is stepping up the pressure on cuba washington apparently plans to allow lawsuits against foreign companies doing business and property seized from americans after the island's nine hundred fifty nine revolution the move which is expected to be announced on wednesday could expose u.s. european and canadian companies t

the u.s. banks have just now completely dominant worldwide i think. not to say that some banks in europe and asia aren't also players, but these u.s. banks, why do you think jpmorgan is making $8.5 billion a quarter in profit they are the dominant bank in the world these days you know, so are their brethren. it's a great time if you want to be a u.s. bank or a u.s. wall street banker. >> bill cohen, i hope you won't go too far same for wilf and robert frank, sara eisen, bob pisani as we wait for the hearing to resume while we have the time shares of levi strauss are up. the company swings to a quarterly profit in its first earnings report since coming back to the public markets the ceo joins us exclusively this morning from san francisco. welcome back congratulations on the first public print >> thank you it was a great quarter. >> walks us through sort of the dynamics right now that you're seeing, at least in your core business >> thanks, carl. it's great to be here. yeah, this was our sixth quarter in a row of double digit, top line growth and consta

u.s. -- european banks trade versus the u.s. would it not be an interesting proposition? there are a number of issues sector.he european that is prevalent in some of the southern european and eastern european banking sectors. to drivehe will consolidation in the banking sector, we will have to see how the deutsche bank comments go. as the finance minister said, that is what is required and it has been slow. the other final thing, we are faced with negative rates in the if they can see how they are going to get around that, so consequently it is quite different to know how you're going to boost banks. nejra: not a big buyer. i want to show you this chart as well as the s&p 500 to show how far we have come. a discount to september price to ratio -- price-to-earnings ratio. we can go quite a lot further because of low inflation and low bond yields. can we go a lot further on this rally, paul? paul: i don't think so because the low inflation is something which starts to constrain profitability. we are seeing rising costs. the support from the economy comes from the consumer.

u.s. banks outclass european competitiveness a new study by the y. found that u.s. banks are more than twice as profitable them their european counterparts we talked to a german faggy experts to find out why. also on the show german fin take company y. of caught gets ready for.

u.s. bankdeliver. goldman asee at better than expected fixed income beat. >> the markets are having an issue. taylor: another report sends shockwaves through washington. congress and the public get more detail on the mueller probe. a.g. barr: the special counsel did not find any conspiracy to violate u.s. law. >> right now, we are already seeing some of the edifice built around the attorney general starting to crumble. taylor: a raft of data shows chinese data on the upswing. >> it seems like oil indicators are pointing in the right direction now. taylor: president trump keeps applying verbal pressure to the fed. the catastrophic fire in one of europe's most cherished landmarks. the u.k. has extra time for the brexit impasse. chancellor philip hammond believes theresa may will see it through. >> as far as i know, she doesn't have any intention of leaving until that deal is done. taylor: auto executives at the shanghai motor show discussed the road ahead for the world's largest car market. >> i

up arofit beat set surprisingly strong quarter for u.s. banks. e dimon credited a robust consumer spending. the firm also stood by interest income forecast despite fears that the metric had peaked. but shares dropped after the bank lowered interest forecast and that's the biggest source of revenue. which way will the rest of wall street go? expectations seem to be to the upside but we will know more later today when goldman sachs reports. bloomberg intelligence expects the top line to decline from a year earlier but analysts say relative strength against the global revenue trend is more important for judging their results. also closely watched, any key updates and capital return plans. tuesday, we'll get bank of america. and the trading numbers may hurt revenue picture. loan growth in the first quarter could be a positive for the group, but commercial and industrial lending is outpacing other categories. manus, nejra? nejra: thank you so much, dani burger. and henrietta is still with us. a little bit of a blowout quarter for j.p. morgan on many le

this is u.s. banks where you have actually benefitted from the rise in interest rates europe you've got negative interest rates, overcapacity you've got regulation issues you have money laundering issues when it comes to the scandies and nordics. >> on that cutting analysis we better reverse our opinion on that we think that has been factored in markets are aware of that, and we would say that european banks in particular have had a challenge domestically, whether it's the geopolitical concerns of the yellow vests or the italian banking sector through the coalition challenges with the government the coalition challenges with the european authority hopefully that run of bad luck could reverse for europe this year, and combined with the chinese stimulus and the european central bank efforts to reflat the economy, the banking -- growth environment could be a bit better in europe this year. >> ultimately evaluation play. all right. we'll pick up the conversation that's ben guthrie, ahead of research >> fire

the first quarter results season, u.s. banks kicking that off. ast told get a boost from monetary policy for a while. where goes the rate curve, so goes the banks, they say. that will see that, how plays out when jpmorgan kicks off the results tomorrow. net interest income, a key driver, may well have heat. they saw the figure jump 10% in the fourth quarter. the group has warned it expects little change for this set of numbers. we will see goldman sachs report. bank of america's figures are out the following day. this could help counter unexpected drop in trading revenue, predicted by analysts along with weaker investment banking results. work.at piece of dani burger. staying with the banking theme, attempt is falling flat with investors. , it is russell ward. latest cost-cutting flat withling so investors. >> it has been a week since they made the announcement of $1 billion of cost cuts. the stock has fallen about 3%. the stock is down more than 20% in the past six months. the price ratio, about half the value of the assets, the biggest different

u.s. bankarnings were in the spotlight all week, starting monday with goldman sachs and citigroup. ♪ vonnie:tigroup -- citigroup and goldman sachs reporting earnings this morning. goldman.rt with its revenue structure has been quite static, and if you got such a static revenue structure, you can't afford a 40% drop in something, can you? alison: goldman had a really strong rebound in the first quarter of 2018. if you look at this quarter, pretty much across the banks we are seeing decline. we did see at goldman a better-than-expected beat in fixed income trading. the same at citigroup. however, both coming in lower on the equities side. even though they beat on the earning side of thing, revenue is probably about in-line with some of the key businesses, perhaps a little bit light and some other businesses, but really the beats or tax driven, and that is why investors might not be giving them as much credit as compared to if it was a big revenue boost. >> a major fire devastating the notre dame

i wonder what you think -- we looking at the equity performance, u.s. bankse, european banks in blue. is there some point with the price adjust gets so low that it makes sense to buy european banks? >> i guess it depends. if you have a long enough time horizon now is probably ok but isis next in the short-term they will be quite volatile. evaluation of the european banks is very attractive but you need and continued week news flow, particularly around the litigation -- it is unhelpful to the sector and i suspect you will need to get more hawkish comments out of the ecb and an indication that rates will be moving negative before you have the full value potential of the european bank. >> let me ask you what is ahead -- is that bank of america today and morgan stanley tomorrow? >> that's right. >> what are we expecting? >> we are expecting bank of america to put up some decent inbers in morgan stanley terms of the black box aspect of scales and trading -- that will give you the swing one way or with j.p. morgan better than expected. it's a tough sector to hit be

the banks, really the next question for u.s. banks is capital returns. ill get those announcements late june. so wells fargo, even though there's some issues at the bank and some balance sheet and revenue growth issues, they are the best positioned for that on a fundamental basis. in terms of the stock, it is always difficult for us to comment because we don't do valuations. we don't make recommendations. one can observe that the multiples are relatively low. i guess i would also just point to the general growth versus value. this is a big value sector, and i think value stocks have had a tougher time of it. that could be contributing to some of the frustration among investors. vonnie: we will see morgan stanley later this week. thank you, alison williams of bloomberg intelligence. 2.6% right now, and goldman almost 3%. this is bloomberg. ♪ ♪ guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." the iphone will go into mass production in india this year according to foxconn. it

-- more complement three to u.s. banks. ic companies .ere when it is time to support these companies outside of the u.s., we lie on the european market. reliantly, we've been in supporting european companies and distribution kit abilities -- distribution capabilities. alix: are you taking on more risk as a bank? are you retrenching a little bit? it feels like european banks retrenched to their home base. how much risk are you willing to take? guest: back to what we were discussing earlier, i think developed an organic business model here between retail and wholesale. retail provides the deposit ability, provides good capitalization, provides the cabkiness of revenue, and is a good complement because it is a different type of risk-taking that provides higher margins and could return. what we managed to do because of this balance model is actually to continue to be stable and invest in the segments we believe we have some advantages, or in the vertical we have some , like inue as well media, telecom, technology. we can develop

she's here to tell us what's banking sector in focus and a comparison terry a comparison between u.s. banks and european get banks and guess which banks more profitable i can guess the american the americans and you're dead right there actually twice as profitable as european banks and that is quite interesting considering that the global financial crisis was actually triggered in the united states yes. emerge so much stronger than european banks and they of course also suffer under low to zero interest rates so we'll talk a little bit about that and try to figure out a way out for those european banks resiliency reserve what to do with business coming up next thanks for watching. good. to. be good cardio a super food substitute of the environment the nutrient rich fruits is my new source of bugs in chile a major producer of the boom has had devastating results the reason growing its uses boss demands of water i'm not has human and environmental costs of a card in. the job so i'm sixty six on the job of the for my first boss also sewing machine. where i come from women are balanced by this

down, they are justified in the fact that they are holding their own with u.s. banks it may sound like a small business, but it is a big difference. nejra: there is a lot of focus on this week and one of the things is deutsche bank earnings but also the merger talks tend to cloud everything. cds andchart shows the the difference between the banks cds, which suggests investors it can benvinced treated as a single entity in terms of risk. is that how we should read this chart? investors don't see this merger as terribly likely? you put a 50% probability on it. >> what it tells you is deutsche bank's balance sheet is trading out to five times as big and putting two weak banks together -- deutsche bank is virtually the top. commerzbank goes up a bucket. if you had to raise the capital, deutsche wood and to do it properly that properly, 8 billion. greater balance sheet, greater think all that tells you is two weak banks, but one of them is a bigger week bank with more things to address. manus: bill, can we bring you to the conversation? as you look at the landscape, you ha

u.s. presence tells deutsche bank not to hand over his business records that's up to political rivals in congress demand that. also coming up boeing leaves questions unanswered at its first shareholder meeting since its top selling jet was involved in two fatal crash. hello welcome to the business i want to get jones in berlin good to have you with us presidents on a trump is suing door to bank to stop it from handing over financial records about the banks dealings with the new york real estate mogul congressional oversight committees seppi made the documents in march and for years the german lender has been trump's main and sometimes only credit to financing many of his construction projects democrats in congress say they want to investigate possible financial ties between donald trump and russia and gain general knowledge of the president's finances trump past few years posted about his financial action but he's been secretive about the details for a king with a longstanding tradition of presidents making their tax filings public. all right for more on this let's bring in our financial correspo

morgan in relation to the other big u.s. banks? : as i said, think this puts them ahead of pretty much aery major bank, positioning slate of women that could potentially take over. you have to dump women very much womenh up -- you have 2 very much high up,. lake could potentially take over as ceo of wells fargo. she has been nominated for that. . at a place where if they do want a woman to be successor, to have a list of women they can tap. matt: all right, annmarie hordern, the most-red story on bloomberg. we are minutes away from the open of stock trading across u.k.. and the next, we take a look at the stocks to watch, including nestlÉ, the world's biggest for the company which had the best start since 2016, as customers continued to bite despite higher prices. this is bloomberg. ♪ ♪ matt: we are watching stocks around the newsroom. is looking that ms. lee, maria tadeo is focusing on unilever. a lot of consumer staples here. , kick us off with nestlÉ. dani: shares are higher, they had the best first quarter since 2016. you're in

thee westbrook reacts to committee hearing with major ceos of u.s. banks. [captions copyright national cable satellite corp. 2019] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] morning, thursday, april 11. a3 hour "washington journal" is ahead. we begin with william barr's testimony yesterday before the senate that he is reviewing the fbi's 2016 investigation of the trump campaign's ties to russia. he cited concerns he has of what he described of spying on the campaign. what do you think of william barr's concerns and his use of that word, spying? republicans can give a call at 202-748-8001. democrats, 202-748-8000.

alix: the fed seems to be going after banks, u.s. hey think it just portion it amount of risk -- a dispersion it -- a disproportionate amount of risk related to other banks. credit suisse and ubs would have to follow rules and liquid asset requirements set by regulators rather than internal assessments. that is part of it. the estimate is this would .ncrease the cost your third story is you can buy part of a college grad. lisa: an increasing number of extending to college students, saying if you are an english major, we will charge you 4.5% of whatever you earn over the next 10 to 15 years. there are all these thresholds, but the idea here is your going -- they are going to own equity in you. they are millennial backed bonds. alix: i feel weird about this. david: but it makes sense. we'll see. many thanks to lisa abramovitz. coming up, republican senator chuck grassley joins us to discuss drug pricing. and as we go to break, we are live from st. petersburg, russia, where the finish president is delivering a speech. we will continue to

u.s. banks in the world financial system. the united states has a huge competitive in an age he told a tv interviewer and we want to preserve that advantage for two years before alan greenspan or robert rubin had sought to maintain that international advantage. the idea of american banks as major players in the world economy dominated financial policymakers agendas in every administration from reagan to trump. admit february 2017 month after trump's inaugural and longtime observers and bank politics dismiss hensarling and trump's prospects for eliminating the dodd-frank act. those observers use terms like slop to describe the substantial efforts than any presidents treasury secretary would face in seeking a large overhaul of bank regulation. dodd-frank's tentacles will won't be easily cut a writer for an insurance oriented publication noted that month. the supermarket bank continues to reside at the center for presidential project more than five decades old and yet if anyone less emerges from su

u.s. president donald trump is suing deutsche bank to stop it from handing over financial records about the bank's dealings with a new york real estate mogul congressional oversight committee subpoenaed to the documents in march two years the german lender has been traumas mane and sometimes only creditor financing many office construction projects democrats in congress say they want to investigate possible financial ties between trump and russia and gain general knowledge of the president's finances trump has for years boasted about his financial action buts he's been secretive about details breaking with a longstanding tradition of presidents making their tax filings public. for more let's bring in a off a national correspondent in frankfurt. the president of the united states suing germany's biggest lender oh is that going down with investors. well the reaction here has been fairly muted at this point of time the dirty bomb shares are down one percent as we speak. on its behalf and said that it will still be it is still committed to providing those documents according as per required by

dani: that profit beat set up what might be a surprisingly strong quarter for u.s. banks. credited robust consumer spending. the firm stood by net income forecast, despite fears the metric had peaked. but there was also wells fargo, and shares dropped after the bank lowered its interest forecast. that's the bank's biggest source of revenue. the rest of wall street, which way will they go? expectations are to the upside, banks rally with j.p. morgan friday. we'll get a better picture today when goldman sachs reports. bloomberg intelligence expects the top line to decline from a year earlier, but analysts say it's relative strength against the revenue trend that's critical for judging results. also closely watched, key updates on 1mdb, as well as capital return plans. morgan stanley and bank of america, bank of america on tuesday, and the trading numbers may be hurt by the revenue picture. improved loan growth in the first quarter could be a positive for the group, but commercial industrial lending outpacing other categories. matt? much, danis very burger looking at what to e

side,he deutsche bank because there plan b is going back to the original plan a, and they are going to have to do a raise and cut u.soperations, and it will be difficult to find a natural suitor, but when you look at the banking industry in general, ubs spoke to wealthy individuals wanting to be back in this market, so i think that is a good sign. we think if you are looking at financials, you would do better to look at u.s. financials. think about the headwinds that both have come a low interest rates -- both have come a low interest rates. i would say dollar for dollar, you probably do better looking at u.s. financials. alix: i'm glad you brought that up. barclays has warned of a choppy environment, but the revenue beat all of the u.s. banks about up 40%. the equity mix was in line with the -- the equity miss was in line with the rest. what do you make of that? art: all of the trading revenues have a great deal of volatility, so kudos to barclays doing a great job, but that is not something you can really model outgoing through the rest of the year. i don't think there is any secret sauce and that, necessarily. i

u.s. investment banks very hardly. >> i wouldn't expect anything in terms of the u.s. investment banks. case perhaps with the european ones who have seen a much harder first quarter, but i think we'll just see a basically wait and see strategy and maintain a different strategy there, and we'll wait and see how the second quarter unfolds. >> i want to also talk about the lending side because there are a lot of question marks about where the u.s. economy is headed the fed has recently turned very, very dovish. >> the default rate on some consumer loans that ticked up slightly so you look at credit cards and things of that sort. the default rate has ticked up 2.5% that's an increase over where it was six months ago, but that's still a very low rate. >> the real issues on the capital side, that's going to be a rough first quarter. the more exposed the bank is to that kind of activity, the worse the results are going to be in this first quarter >> finally, look, we know that banks very much thrive on a steeper yield curve. that is not necessarily going to pan out the way that we expect for t

alix: theresa may playing it othersaying i speak to leaders all the time. , u.s. bankmanagement cio, is still with us. what is your base case for brexit? eric: as an investor, we think it is more a micro issue for the u.k. for a u.s.-based investor, it will have very limited effects. the biggest issue back in june 2016 was would brexit be the tug on the fiber of the european union. clearedw that is this is not the case. we think it will have limited economic and portfolio impacts for clients. david: what does it mean for europe more broadly? if we go back to a world pre-brexit come up would have been stronger as an economy if they had been united with the u.k.? eric: absolutely. , if thething for eric u.k. were in a currency union come of benefits greatly by having its currency denomination, it would likely be much higher than where it is right now. when you have a very vibrant, dynamic economy like the u.k. with lots of technology, lots of really solid service sector perceptive patient -- service sector per dissipation, but as you migrate north to south, particularly

do you think with the set of results, you can take on u.s. banks? are being cautious because we are in the first two months so i can't really talk about it so much but we are pleased with this performance. we are pleased for our people, particularly in global markets. we have been under intense pressure and i'm sure we will have difficult quarters in the future but we want to make sure and it viable business is really now delivering by working with wealth management, which is what we have always wanted. over 18. 23%, 19 that is becoming material francine: in europe, there is an m&a. speculation among -- tidjane: we are focused on organic growth today. basedieve the results are on relying on our strategy. m&a is not something we find attractive at this point in time and we have very high hurdles for an mende in terms of risk return and we find in most situations, the risk returns are not appropriate. 5%, we can grow at 4% or what we do 35 billion in assets and a quarter come you really have to weigh any acquisitions for this -- versus that. matt: tha

u.s. announces plans to end sanctions waivers on iranian imports. global markets as european banksnts prepare to report wires in sync as germany's market regulators list a short selling ban on the payments firm >>> sri lanka oebz a day of mourning in the wake of easter attacks that killed nearly 300 people questions emerge over wll an intelligence tip-off was shared with an appropriate level to government >>> we're billion 90 minutes into the european trading session. a bit of a mixed picture across the board. we've only got 5,100 trading in the green today. just shy of that 7,500 level about 30 points higher .4% further. the other indexes in europe are trading a little weaker on the data front today the only thing we're watching out for later is euro zone consumer confidence. tomorrow all eyes will be onth german efo numbers remember, we did have a bit of a disappointing bunch of pmi trends come out last thursday. that is affecting on the macroside. a lot of the folks today has been on the earnings, micro, and the -- that's been lifting some of the oil and gas shares within europe

and potentially wall street could be cheering. >> u.s. banksad been restricted for some time here, obviously, for hire terry trading will not be coming back. but according to our reporting, there will be lighter regulations and what types of trades can be made through the banks. also, letter restriction on private equity and hedge fund investment as well. some of those feel technical, including the length of the trade. what are critics saying about how much this exposes the system once again? >> critics say it will be easier for the banks than the initial rewrite was supposed to be. under the trump administration, they been trying to ease the rules on the banks. tois a technical thing, how with accounting standards. the initial rewrite would've had to deal with accounting standards that would have created the banks having to mark to market certain securities, adding more securities into the volcker rewrite, which would have made it worse, according to the banks. this new rule being proposed is supposed to the lighter on the banks. we will see w

lisa: several years ago, a number of banks saw the u.s. bright spot to expand into because capital markets were and have been so robust. i am wondering, is that opportunity over? lorenzo: banks may have different strategies. what i have certainly noticed is the banking sector is much more concentrated in the u.s. , and have market power they start from a basis which is much more profitable because mystic markets in the u.s. are much more profitable, and they go abroad starting from a strong domestic market. in europe there is much more competition, margins are smaller, so it is not as easy to come into the u.s. from europe. things may change when europe will become like the u.s., but right now i think we are present with an.s., actually, operation that is readily focused and efficient. that is what we think should be our goal. goal off part of the consolidation would be gaining market power that you see u.s. banks have, should we really be looking forst and foremost at consolidation within a country as opposed to cross-border? it would tak

u.s. bankstal over the last decade. that trend has topped out. u.s. banks are pretty fully capitalized and bond investors have been happy and rewarded by investing. europe is a different story. which isccumulation, your buffer against losses that gives you the strength of a banking system, has been hard to come by in europe. the news on deutsche's is an indication on how challenging it is for these companies to make a sustainable profit, accumulate that profit, and defunct their capital base. the vicious cycle versus the virtuous cycle. much, georgeu so bory and lisa shalett. please stay with us. this is bloomberg. ♪ tom: breaking news, widely expected. to bethe headline has this interesting agreement with paypal. francine: this is for a number of -- it may give this indication of investment interest. if you look at what we heard from uber including the addition of stock options, the valuation at $84 billion could top $91.5 billion. tom: so many stories we have been out with today. when you have

jp morgan, citigroup, bank of america, but it's the regional banks that may give us a better view about what that consumer health is in the u.shat exactly would you be looking for then in those regional banks who have yet really to report in earnings >> well, we have heard from pnc, and, of course, we've heard from the chase aspect of jp morgan and bank of america will be able to give us that insight as well. i do agree, and it's a really important point, and, again, i go back to the theme so far. if you do consider wells farg wroe is the one-off in that space, then the picture from jp morgan pnc and citi's u.s. retail business has been pretty good so far. credit quality still pretty good loan growth has been sort of fine, and it's kind of been broad-based on that kind of aspect of the u.s. economy bank of america judging by what brian moynihan told me a couple of weeks ago when i interviewed him, i think they could do pretty well, again, on that front. little a similar setup, low expectations we've beaten the expectations, but it still didn't lead to share price outperformance because investors, for whatever reason, late in

none of the six largest u.s. banks have ever had a female ceo.anus: if you look at the business exposure they will have, joining the operating committee, it is about participation and real decision-making. lake will take over consumer lending. lending and net interest income is driven by that division. they are extraordinary executives and leaders. references toke women, they are executives and leaders critical to success. it is about the changing face of wall street, reflecting back on mistakes that were made 10 years ago because of a lack of female participation in major decisions at the time. nejra: let's not forget the asset management division, that is something to note. be years awayght from selecting its next leader, but these changes put it ahead of many other major u.s. banks. says, markamie dimon --in used it last week with my demise is gradually exaggerated, mark twain, not me. let's talk about trade relations, a daily sport. the u.s. and china could be close to a deal. there with me, both sides are checking diaries, and that is where

businessman out of bankruptcy even when the u.s. banks would not touch him and then there was all there would be also questions about whether there was money laundering involved here. and there are suggestions that if it wouldn't have been for dirty bank president from wouldn't have been the president today because he used most of that money to erect his buildings and plaster his name in front of them and then project himself as a credible business been doing the presidential campaign all right our correspondent reporting for us there in frankfurt thank you very much. now he's been presumed dead more than once but the leader of the so-called islamic state could be alive a propaganda video released by ass shows abu bakar al baghdadi praising the easter sunday bombings in sri lanka he says they are part of the group's revenge for its losses in syria. if this is who islamic state claims it is that it would be abu bakr al baghdadi is first appearance in five years. in the video shot in an unknown location he acknowledges the group's recent de

one of the concerns is that european banks -- we've just seen the u.s. banks producing profitability -- european banks struggling to make similar numbers because of the negative rate story we have here in europe. doesn't seem that interested in changing this. why? >> that's right. we are hearing from the governing council members that indeed they are not enthusiastic about introducing negative four interestring rates. -- for interest rates. basically, how the whole story started was mario draghi opened this can of worms last month when he said the ecb should reflect and use to getting effects-- mitigating to counteract negative rates. ng," butt say "tieri that did spark speculation. he repeated the message earlier this month at the press conference after the governing council meeting when he said the theis going to assess impact of negative rates. on the whole, the conclusion so net-net, the impact on banks from negative rates has been positive. there are fringe banks that have been complaining. german banks have been hit because a lot of their deposits were l

particular the global markets revenues came in down 10% year-on-year to put that into perspective, u.s. banks in ag gat were also down 11% year-on-year. many people expected european banks to fair much worse credit suisse is the first amongst many banks supporting this week. tomorrow we get ubs. after that we get barclay's. rbs and deutsche bank also to look forward to as well. the first of its peers -- it appears as though the numbers are not as bad as some had anticipated. their equity revenues are marginally positive. fixed income still down 13%. as he put it, it is a relative outperformance, and they are gaining market share, in that space. it will be interesting to see what color and what picture this paints for the rest of the sector as we head right into the heart of earnings season this week >> jewel really interesting intw there, and interesting to see shares reacting to the beat versus expectations. now, shifting gears away from banks, another stock in focus today, s.a.p. has set new medium term profit targets despite reporting a q1 operating loss. the german software firm is aiming

financials in focus as four of the biggest u.s. banks deliver.see at better than expected fixed income beat. >> the markets are having an issue. taylor: another report sends shockwaves through washington. congress and the public get more detail on the mueller probe. a.g. barr: the special counsel did not find any conspiracy to violate u.s. law. >> right now, we are already seeing some of the edifice built around the attorney general starting to crumble.

bank. clearly, the u.s.the charge on having bigger deficits , which is why we want inflation protection. -- buto having some out. also having some outside yield for investors. erik: where do you think we will see the bond -- what you think we will see the bottom of the bond yield? erik: -- henry: the equity has 3% in the fourth quarter -- the equity has 3% of growth in the fourth quarter. think there is a better chance that they do not cut. but i think that hockey stick earnings growth of the fourth quarter is miscalculated. erik: what about europe? benchmark rate are negative. is that working? henry: i think what mario draghi did with their latest program in which they land banks means rates will stay low in europe through 2021. for global investors, you have to remember that u.s. rate but the past three decades have never -- you have to remember that u.s. rates in the past three decades have never traded above -- they may trend up somewhat, but i don't think you will have a cataclysmic bond market selloff

u.s. and international banks. survey shows the u.s.a slight to moderate pace in march and early this month. for the latestl batch of corporate earnings and did little to boost confidence. told bloomberg that it may require some creative thinking. >> what you really like to do is have some way on the variety of different models and somehow make those decisions to process. it is a long-winded way of saying that there is some groupthink at the fed. so it helps to get some interjections. peter, the u.s. economy is in ok shape right now. all the fed has to do is sit and wait to see how the story develops. understand the late cycle because how long could it potentially be? i think if we go to july, the u.s. will have posted the longest ever cycle in history. when the cycle starts to get lengthy, people start to think and differents ways. don't forget that the fed has raised interest rates quite aggressively over the last couple of years. and that, in turn, will probably have some form of impact on the economy. tom: a lot of people talk about

congress grilled the ceos of the seven largest u.s. banks on capitol hill this week.from jpmorgan, morgan saks, among those grilled. watch. >> i represent kids that go to jail for jumping a turnstile because they can't afford a metro card. do you think that more folks should have gone to jail for the, for their role in the financial crisis that led to 7.8 million forecloses in the ten years between 2007-2016, mr. dimon? >> i don't think people should go to jail for jumping a subway. i think we put too many people into jail, and i think if people broke the law, they should go to jail. >> i'm concerned that several of these institutions are simply too big to manage they are own operations, too big to serve our communities and too big to care about the harm they have caused. maria: joining me now to react to that is former finishing -- f, the ic chair sheila bare. it is goo -- sheila bair. good to have you on the program. what was your reaction to what you saw this week. >> >> yeah. well, i thought it was kind of the shaming of the big bank ceos. i think there were some

u.s. banking system better and safer than it was ten years ago? joining us tonight is david ellison, portfolio manager of the hennessy large cap financial fund. david, good to see you. thank you for bng here tonight. >> good to see you. it has been a while. >> they are certainly bter capitalized than ten years ago, but do you think they'll be to weather another financial downturn should there be one? >> i think some of w what heard today was kind of rear-view mirror. i think clearly to handle aredit cycle a they're ready to handle a liquidity cycle and to some degree a rise in rate cycle and the one thing they didn't mentionoday at all was the real damaging impact that lower rates has done to their business and what rates, if they go lower, whaul it do to their business. so i'm surprised. they're fightinghe old warf credit and liquidity and capital is over. if we end up like japan, their margins are going to get hurt pretty badly and that,o me, is the biggest risk. if rates go down too much, d lending wil up and that will be the problem. >> jamie

in the meantime but as well it's been organizing themselves against a possible u.s. bank to military countries' peoples militia is a pretty. good. job. don't we all know the enemy and all the way to bet and so when you look at this thing i knew it was for a woman. gets another. don't . get. me that it is so in. the in the fight. is likely a good link this info to make it think on the thing and to put it to say for making money you'll see before me that i can also know one. thing and i would i think if they buy anything i will get some get it from there because of the promise of the fame the. thanks they without international return with updates on our top stories in half an hour. after the previous stage of my career was over everyone wondered what i was going to do next the boat the boat different clubs on one hand it is logical to sort of go from fields where everything is familiar on the other i want to the new challenge and the fresh perspective from time used to surprising us all or not if you think. i'm going to talk about football not for you or else you think i wa