u.s. bank is one of those names as well, but i think there's regionals that have a lot of room to run. i don't know if people can see the that is right there. wells fargo up 21% so far this year, citi 10, bank of america 7, morgan stanley and jpmorgan basically flat any final reactions or thoughts? >> pete's exactly right. u.s. bank, i was trying to rifle through those charts pete is a gentleman, and he knows the stock market extremely well i was trying to rip through the charts as he was saying it the best chart he mentioned was u.s. bank. it looked to be a double top and is breaking higher from there. wells fargo to me, too overextended i agreed with everything that handsome pete said, but the problemivity is when you look at this and see on a relative strength index, you don't have to -- when i see a nosebleed chart like that, it's going to warn a lot of selling. i don't disagree with any of the fundamentals >>> folks, we're going to move on i can't take my eye off the artwork. i love that p

octavio: we see the inflations in the u.s. banks, but the point now is what is uniform across the earnings which seems to be that banks are not spared of that. there conversation costs did not go up as much as others did. you saw wells fargo actually did well, and that was because they reduced the headcount. it is not uniform across the u.s. banking sector. while universal banking sector earnings went up, that is not the truth. tom: does this suggest that the wage inflation we have seen in u.s. banks is temporary? octavio: i think it is going to be pronounced long-term. i do not see the fed getting general inflation under control anytime soon. the fed will raise rates may be three or four times this year. it is not really going to get inflation under control, so we are going to see wage inflation, but it is not uniformly distributed across the sector. we see far less inflation in some places, and other places like the u.s. banking sector are seeing far more inflation. francine: overall, you look at some of the prices for the banker

across the big europeans, up about 4%, which compares to 28% improvement in revenues for advisory of u.s. banksinteresting thing will be equities and the reason i say that is because it has been quite a mixed picture in the u.s. it was not as hard for many of the u.s. banks as it was for fixed income. some banks did very well and in europe, what we have had is dmp taking on the prime brokerage business from deutsche bank, taking on a full earnings and revenue which is one of their divisions and they are going to do much better than they did in 2020 in part because of that. there equity division has drawn level with their fixed income division for the first time. and then ubs of course, similarly to morgan stanley, is much more exposed to the wealth market, much more exposed to asia. they're revenue might be quite good as well. manus: hsbc have had a cracking run, the most overbooked since 1986. bloomberg opinion on the outlook for european bank earnings coming up. oil's red hot rally. we will discuss what is behind the slide at the moment of reprieve in the brunt markets. this is bloomberg. ♪ d

the s&p 500, the only two sectors in the green so far are energy and u.s. banks. o talk about bank earnings. bank of america and morgan stanley, results both expected today. so far they've been disappointing. goldman shares have tumbled the most in more than 18 months after the firm posted a lackluster fourth-quarter. let's bring in david scanlan. why are expenses soaring? jp morgan, city and does that mean we will see it for the rest of earnings as well? >> quite likely, there has never been a better time to be on wall street than right now. you mentioned goldman sachs, about 33% last year, an astounding number. most of that is just compensation. are they paying the people? ? they are hiring more the headcount going up at goleman and jp morgan. they are feeling under threat from hedge, from private equity, from fintech, who are threatening to steal their best people. they are blunt about it, saying we will pay more to keep our best people. the result, expenses are rising, affecting the bottom line, and the stocks are falling, as you mentioned. manus: so what are w

u.s. back to trading after that bank holiday yesterday. futures pointing lower by 0.5%. this is the u.s. two-year yield. yields have moved up quite aggressively, more than 10 basis points. we are focusing on the yen as well. the boj changing the language around inflation. are you going to see more pressure on the end as you see this divergence between the boj and the fed? given the geopolitics of the drone strike in the uae and the inability of some producers to meet their commitments, you are seeing gains of 0.2% for brent. more than 1%. 1.8% for brent. goldman sachs up. $100 a barrel. francine: if we look at little deeper into some of the sectors that are moving, i think energy and technology and travel are some of the biggest losers. energy a little bit up on the side. brent touching a psychological level. this is some of the geopolitical concerns, usually short-lived for the oil market. what is not short-lived is that demand could pick up. omicron is possibly not as deadly as what we thought as well. a lot of these european stocks, energy on the way up attach, but everything else on

i like a stock like u.s. bank taking a totally different direction.nd guy that if it breaks out of this level, when you luke at a stock like u.s. bank taking a totally different direction it's breaking out of it it look like a double top but it's break out of that level they just call it a shot now there's no more jump in that shot >> which mean it's probably been a while since he's made one. let's go to alex in new jersey >> i'm calling about these fabulous tech deals we have in the market now and more specifically netflix coming out with news today they are going to be raising prices on u.s. and canadian subscribers do you think it will be a god time to buy it my price target is around $620 i wanted to get your opinion of what you think >> mike and nice hat to alex in new jersey >> based on the weather i understand y'all have having out there, i can understand why he might be wearing one this is probably more nor the technicians than for me. it's the opportunity and the risk the options market is implying this thing will move about 11% one way or th

. >> u.s. banks earnings season is in full swing and muted long growth is the theme. we will hear why one market watchers sees many more u.s. companies struggling to beat wall street forecasts especially tech stocks. this is bloomberg. ♪ks. this is bloomberg. ♪ haidi: it is time for your week ahead. this is what we are watching when it comes to china. gdp data on monday likely to show fourth-quarter slowed to its weakest level in more than a year. and a boj decision as well. the fed moving to tighten. kuroda will be looking at any kind of signaling on the economic rebound. u.k. inflation printed on wednesday is predicted to confirm surging prices. president biden marking his first year in office on thursday. shery: it has been a busy year from -- for the president from the covid crisis to ongoing tensions with russia and china but a majority of americans fault president for his handling of inflation, the economy and covid guidance and it does not get any easier. republicans appeared to be in possession -- position to dominate the 22 elections. he has worked to remind v

u.s. bank. we'll get there together.or business wants to make this the best year for your business yet. when you switch and bring your own device, we'll pay off your phone up to $800. you can keep your phone. and keep your number. visit your local t-mobile store today. amazing. jerry, you gotta to see this. seen it. trust me, after 15 walks... gets a little old. ugh at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner. healthier starts when excuses end. what? it's too windy. right now at cvs, get $10 in extrabucks rewards when you spend $30 on select wellness support products. with this offer, there's no room for excuses. >>> all right. welcome back, everybody, to "fast money. shares of sofi topping the tape in a big way today after clearing a final regulatory hurdle to become a bank steve, to you first. what does it mean for sofi and the more conventional big banks? >> the

the white house talk about cutting off all of russia's bank from all of the u.s. banksuld affect if we cut off the international banking system. with a height reading another one, 4.9% inflation is the highest in more than 38 years. it is hitting the food you and your families eat at your kitchen table. >> a good evening liz. craft tines is grappling with inflation and it is forcing the company to hike prices on many staple food items starting in march. prices are going up on oscar mark cold cuts, hotdogs, bacon, the lida cheese, maxwell house coffee, kool-aid and caprice on drinks. the hikes range from 6.6% on the velveeta to a 30% on oscar mayer turkey bacon. craft heinz is set the entire food industry is faced with ongoing and unprecedented global supply shortages coupled with other extreme inflationary pressures on ingredients, labor and transportation. this is in no way it unique to kraft hines. as a result the prices of our product to reflect the cost of production. liz it is true it's not just craft, fast food is also getting more prices went up by 6% last year.

dried cassidy, rbc capital markets head of u.s. banktegy, has an outperform -- gerard cassidy, rbc capital markets head of u.s. bank equity strategy, has an outperform rating for j.p. morgan and citi. you have a tension coming through today between the inflation we are seeing on the cost side and the opportunity that may be exists elsewhere, particularly as interest rates start to go higher. how do you see that being resolved? gerard: it is a really interesting question because there is a tension between these two line items on all of the banks, and the expense issue is being primarily driven by compensation. the labor shortage is affecting the banking industry, like many other industries, throughout the united states, and that is pushing up these expense guidance numbers that j.p. morgan chase gave. but the revenue side is also very interesting because there is an optionality to the upside in our opinion. both j.p. morgan chase and wells gave us good guidance on the net interest revenue, essentially the spread between what they earn on

let's set you up with a side gig savings goal on the u.s. bank mobile app.s way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together. >>> all right. the nasdaq is slightly higher today. a little bit wobbly, though, tech has been battered so far this week. money has come out of the mega caps but also the cloud stocks, and electric vehicles. we will look at these three groups, and get some tech support from our friend steve grasso happy new year, steve. first we are going to hear from bob pisani on what we are hearing called the great rotation bob? >> tyler, the rotation is very real today it's happening again we are seeing cyclical stocks, bank stocks, energy stocks, industrial stocks hold up very well the theory here is omicron may slow down, but not derail th

u.s. bank. we'll get there together. >>> welcome back, everybody.f tracker. we're focusing on energy etfs with $100 million of inflows vladimir putin, the growing threat of russia and ukraine making the markets uneasy and then inflation fears and tight oil supplies and as bill perkins said cold weather driving nat gas prices higher. united states natural gas fund up 25% this week ishares u.s. oil and gas production etfs gaining about 4.5% energy up 18% since january 1st. more information is available on the etf hub so check it out. >>> up next, a working lunch with the ceo of marvel tech. the sector struggling down 20% from the yearly highs but matt murphy has a strategy to lead the super cycle. join us for a workinluh.g nc jon fortt will be here on "power lunch" next. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire matching your job description. ♪ ♪ ♪ digital transformation

u.s. bank currencies continue.e discussed goldman-s disappointing results and what to expect from bank of america and morgan stanley. that is next. this is bloomberg. ♪ tom: welcome back. pressure across european equities space. not quite at the same degree as yesterday. benchmark is down. flatlining in france luxury. accepter is getting a boost from earnings. over and spain, the ibex is up. retail is at the top of the list. food and beverage is lower. the first time since 2019. bonds are in positive territory. francine: a big deal. tom was saying that it is thanks to us that luxury stocks are doing so well. dani: how many cartier watches are you guys buying? [laughter] francine: it worries me. love the fact that tom mackenzie thinks we are that cool. tom: i now know what hightops are. i have them pegged. i'm going to go. i don't think i will pull them off. let's get to bank earnings. francine: inflation. your pair of hightops were less than a thousand dollars. only bankers can afford them. morgan stanley results e

u.s. bank. we'll get there together. >>> welcome back i'm rahel solomon.in philadelphia, at least 13 people killed in a house fire including seven children there were four smoke detectors in the building although none worked one senior fire official struggled to find the words. >> it was a -- it was terrible most -- i've been around for 30 -- 35 years now, and this is probably one of the worst fires i've ever been through >> on the news tonight team coverage of the fire and a look at other deadly house fires in philadelphia that's tonight at 7:00 eastern >>> in kazakhstan, meantime, thousands of protesters have taken to the streets and set fire to the presidential palace. the capitol's airport has also been seized and the governor has resigned in response the demonstrations were sparked by a sharp rise in gas prices. >> tennis star novak joefdjokovc may not defend his title he will not be allowed to enter the country. official his granted him a vaccine exemption yesterday. more halftime report after this. every day in business brings something new. so get

let's set you up with a side gig savings goal on the u.s. bank mobile app. into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together. >>> private equity going public today. co-founder of market rebellion coin pom dr. j joins us on the phone. you there? >> yes, indeed, scott. hearing your voice loud and clear. >> good stuff. told viewers yesterday hoping to get an allocation and did, albeit a small one what about it and what will you do with it >> yeah. intended, or was willing to take a much more significant piece, because i liked the fact they were pricing it in the middle of the range, scott and i liked the space. i mean, you know, these private equity firms, you've been quoting numbers all week returns have been phenomenal the fact that they're going to buy out some partners, so

well tonight, two u.s. banks are drastically reducing their overdraft charges. slashing the $35 penalty when people overspend to $10. capital one is now offering free overdraft protection. okay, tonight, the georgia bulldogs are celebrating their first college football championship in 41 years. they defeated the defending champion alabama crimson tide 33 to 18 with a comeback rally that included a 40-yard touchdown pass thrown by former walk-on quarterback stetson bennett iv. congrats to them. all right, coming up next, teaching kids about life one chess move at a time. e. your fa. or waiting for the 7:12 bus... or sunday afternoon in the produce aisle. these moments may not seem remarkable. but at pfizer, protecting the regular routine, and everyday drives us to reach for exceptional. working to impact hundreds of millions of lives... it's what we call, the pursuit of normal. ♪ ♪ age is just a number. and mine's unlisted. try boost® high protein with 20 grams of protein for muscle health. versus 16 grams in ensure high protein. boost® high protein also has key

it is the third largest u.s. bankmay have changed the workplace forever. 20 years ago at stanford, an economics professor started a research team called the work from home research project. based on new research, he is predicting, quote, huge battles between employees and manufacturers over remote work in coming months. he says workers value working from home so much they equate it to a 10% pay raise. the research finds most larger companies are led by older white men. a group that tends to care the least about working from home. >>> big changing coming to the enhanced child tax credit. lawmakers haven't passed the build back better act. it's reverting to what it was before 2021. that means, you can claim up to $2,000 per eligible child instead of the $3,600 allowed last year. there's no more advanced monthly payments. 17-year-olds, no longer qualify. parents will have to file a tax return to get that credit. government says around 35 million families were using that to make ends meet. >>> will it be jimmy g. or lance

and u.s. bank, gold bank, jeffrey. there are quite a few that we like. city.t is kind of a special case. but i would say that i am generally positive about the outcome, and if you look at the key underlying narrative, which drove the stocks hired. early in the year. it is basically that rising rates are not going to help bank earnings, and same time, we are probably going to take air out of the gross stock multiples. on a larger basis, the banks will have it. on top of that, you have something that is interesting. in the fourth quarter, after declining in covid, and most of last year, we had about 1.8% loath -- low growth this quarter cover in about 2.8% net interest income growth. there are these blips on expenses, and on trading income, but if you look at the key revenue line of the banks, this was really the first kind of meaningful uptick since covid had. >> that is what will continue. >> in terms of loan growth, and this rate environment, what is your outlook? >> it doesn't pay to be a hero difference. figure three or four hike this year and a share. the

well tonight, two u.s. banks are drastically reducing their overdraft charges. bank of america is slashing the $35 penalty when people overspend to $10. capital one is now offering free overdraft protection. okay, tonight, the georgia bulldogs are celebrating their first college football championship in 41 years. they defeated the defending champion alabama crimson tide 33 to 18 with a comeback rally that included a 40-yard touchdown pass thrown by former walk-on quarterback stetson bennett iv. congrats to them. all right, coming up next, teaching kids about life one chess move at a time. (dr. david jeremiah) there may have never been another time in history ean i belie there are ten phn th it is today. we are witnessing today that were recorded centuries ago in bible prophecy. (male announcer) join dr. david jeremiah in his new series, "where do we go from here?" on the next episode of "turning point." right here on this station. >> o'donnell: we want to revisit a story that captured your hearts about life lessons and the game of chess. an update tonight from cb

we're told a u.s. bankh wells fargo continues as nonstrategic, could fetch nearly $1 billion. credit suisse warned a credit -- quarterly loss. in a surprise statement, the lender says it's investment banking business will post a loss. they also warned of client outflows and a significant slowdown in transactions while flogging that it is setting aside more than $540 million in litigation. coming up next, xi jinping holds a rare face-to-face meeting with the ioc. details on that and china's headwinds ahead of the olympics opening ceremony. this is bloomberg. ♪ >> we're expecting clear steps from russia that will contribute to a de-escalation of the situation. >> germany and france are united, discussions within nato and the eu, but also, as the two european partners in the normandy format, we've made it clear that military aggression, which calls into question the territorial integrity of ukraine, will come at a high price. in parallel to this, we're preparing a reaction and response in case of aggression. s

the u.s. bank estimates that bitcoins adjusted market accounts for a fifth of the global store.tial growth shows a rise over the next years. morgan stanley is investing in new york city. the bank has sealed the deal that houses the headquarters of blackrock and signs a lease for roughly 400,000 square feet in midtown. one of the largest deals in new york since the pandemic began. china's asset management is slumping after nine months of venture. they are taking steps to return to full business after raising more than $6 billion. that is the bloomberg business flash. tom: as the race to dominate the electric vehicle market is heating up, we will break it all down, next. this is bloomberg. ♪ is bloomberg. ♪ >> based on the demand we are seeing, it feels like the demand is there. it will be how quickly can we execute to meet that demand? tom: that was a forward on the growing demand for its electric vehicles. the stock is surging. the carmaker says electric vehicles could grow 10% of the u.s. market. francine: that is impressive. the race to dominate the electric vehicle industry i

u.s. bank. we'll get there together.r business is here to help you hit the ground running. when you switch to t-mobile and bring your own device, we'll pay off your phone up to $800. you can keep your phone. keep your number. and get your employees connected on the largest and fastest 5g network. plus, we give you $200 in facebook ads on us! so you can reach more customers, create more opportunities, and make this the best year for your business yet. visit your local t-mobile store today. >>> welcome back to "squack on the street." and joining us now with a special guest, bertha. >> and yoining us is the administrator for the centers for medicare and medicaid. thank you so much for joining us >> thank you for having me >> two big announcements this week from cms. one about the coverage of home tests or covid testing and the second about the coverage of the bio gen alzheimer's drug and i want to start there. you are limiting the coverage, issuing a rare limitation called the coverage with evidence development. what went i

haidi: let's take a closer look at u.s. banksthe latest lenders earnings season is in full swing after results from jp morgan. as we look ahead for more results, let's bring in our senior editor. how big an issue is rate inflation? what is the outlook? >> higher expenses were a big factor for the share price decline. the stock is down 6%, a very unusual fall for a u.s. bank, particularly jp morgan. jp morgan has expected expenses to rise to 77 billion, almost a 9% increase. there are also modernization costs. wells fargo says the expenses due to -- but there is pressure on pay across the spectrum. junior bankers got a lot of attention when they crossed the $100,000 a year mark. bloomberg had a report on friday that the top 1% of goldman sachs ranked the best 400 people and all will get special payouts on top of their base and bonus pay. that's millions of dollars of what they are earning in multimillion dollar pay packages. they are doing this to fend off poaching from other corners of wall street. shery: the competition for tale

an individual u.s. bank is spending that and they are highly supported by a heavy regulated and the department of treasury. that's a marriage that leads to high cybersecurity. tens of thousands of banks in americahe specifically say our biggest banks. when it comes to water, water utilities are generally about 80% publicly owned and operated by your county, your town and some kind of local government organization. that is not the definition of an organization that will be rich with excess funds or able to rapidly give the grantor funding to solve the security issue so they are very much governed by bonds to raise money and a very slow not agile response mechanism and they are really complicating factor is two decades ago they heavily automated the water industry in other words take the man or the woman out of the loop. at the time there didn't appear to be a cybersecurity threat. now 20 years later there's a big cybersecurity threat with these heavily automated systems and we don't have the excess funds to p

tom: the u.s. bank is kicking things off later this week.so focusing on the tech sector yesterday where we see the session for the greenbacks at wade. that is the currency we will keep and i on. bloomberg surveillance is next. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. ♪ >> the fed is operating independently and the president has underscored the importance over the fed performing independently. >> we have to be prepared once again. >> mr. speaker, i want to apologize. >> this is bloomberg "surveillance" early edition with francine lacqu

an individual u.s. bank will be spending that. they are fairly high -- very highly supported by heavily regulated industry and supported by the department of treasury, that is a marriage that leads to very high cybersecurity. now, you cannot say that about the tens and thousands of banks of america but you can broadly say across the industry and specifically about the biggest banks. when you get down to water, water utilities are generally more than, i think it is 88%, are publicly owned and operated by your county, town, some kind of local government organization which is not the definition of an organization that will be rich with excess funds or able to rapidly give a grant or funding to solve a developing security issue. they are very much covered by rates that they are allowed to chars, violent -- charge, bonds to raise money, it is a slow mechanism. the complicating factor is about two decades ago we began to heavily automate the water industry, otherwise take the man and woman out of the loop and make the valve, pump, and c

we look ahead to the earning season and what to expect from u.s. banks.s is bloomberg. ♪ manus: this is "daybreak: europe." dani burger is in london. revenue fell 50% from last year. the company's performance is closely watched, let's get to our asian finance reporter. shares slumping on a big drop in fixed income revenue. what is behind that? >> as you say, fixed income revenue tumbled about 50% from a year earlier. to put it into context, this time a year ago these banks were reporting record numbers, they were shooting the lights out. that is part of why this drop is so hard this year. jeffrey's declines were primarily due to market conditions which led to lower volumes compared with the prior year quarter which benefited from high levels of client activity. in the slump ended up contributing to a 28% drop in overall revenue, which is very good for shareholders. dani: i do wonder, the rest of wall street will also have tough comparables. what can we take away from jeffrey's as it portends to the rest of the big banks? >> as you know, jeffries has alway

tom: we look ahead to those u.s. bank earnings today. the corporate story, there is the picture around the stoxx. s.a.p. gaining 0.4%. mars recently, they have upgraded -- more recently, they have upgraded. volkswagen has been caught up in port restrictions in china. they had to stop production since monday, so that has factored a lot of their models. currys lower by almost 5%. the christmas sales were coming in below the estimates. let us get the bloomberg business flash with leigh-ann gerrans. leigh-ann: the french government has told the utilities control to have discounted prices to protect households from inflated prices. in a separate development, edf says that several of its power price caps in france will be down. more global carmakers are being affected by the latest china outbreak in tianjin, along was a deal box control designed by the german automaker. they have now been closed for five days. alphabet's youtube is among the company that you -- that have been subpoenaed to hand over videos to the u.s. committee investigating t

bank introduced negative rates. quite an extreme move given the size and scope. >> a different story to what you had seen in the u.s. with that relief rally in bonds. a big spike coming through in yields, particularly on the japan five-year. this reuters report suggests bank of japan is moving toward some kind of messaging toward a rate hike. we have been watching this big move in the yen particularly on the selloff in equities, particularly those tech players. really waiting into the overall nikkei, driving down by over 1%. the bank of korea coming through with its third rate hike since the pandemic. 1.2 5% really putting inflation at the forefront here, trying to rein that in verses concerns about the omicron variant. we heard from the bank of korea governors saying this is still accommodative and even if you see the fed move toward a faster pace in terms of tightening rates, they think emerging markets could be hit, but not korea. they are saying they are in a better position here. it would be different given the economy's stability. dani: some more news to bring us from asia, hitachi, the japanese construction g

especially given that u.s. banks are about to start hiking as well?among emerging markets most vulnerable to u.s. rate hikes. this is due to its large current account deficit. some say turkey needs to hike rates significantly this year, by around 900 basis points. if not, we could see lira volatility continue. last year, the lira was the worst performing an emerging market the most volatile, losing 44% of its value. standard chartered bank earlier this week said that it expects the lira by year-end to be at $20, saying it does not expect the country to shift orthodox economic policies anytime soon, and especially before the elections scheduled for next year. economists are also concerned that inflation will continue to rise, citing concerns about hyperinflation. dani: great roundup and preview. thanks for joining us. let's now get to our guest, gizem oztok altinsac, chief economist at tusiad. thanks so much for joining us this morning. here we are on the eve, or the day of a turkish rate decision. those surveyed by bloomberg expect no change. what is

u.s. bank.her. >>> good friday morning and welcome to another hour of "squack on the street. let's give you a quick look at markets. we're down on the s&p. nasdaq down over 1% and now down 10.5% for the year, which is only not even a month old. lei out just moments ago rick >> yes, david. up eight-tenths on december read for leading economic indicators, exactly as expected and in the rearview mirror revised from 1.4%, to up 7/10ths of 1%. and to point this out, we did not have a negative month for the entire year of 2021. it was negtive precovid and in march, when covid hit. and that's the leading index of economic indicators. yields are making new low yields high prices for the week and we have a big expiration of historic proportions 1.3 trillion in single stock options. morgan, back to you. >> thank you we're 30 minutes into the trading session on the friday morning. here are three big movers that we're watching grier griering to p -- going to start with netflix shares are now down 24%. we're

u.s. bank.re together. - [announcer] at southern new hampshire university, the cwe never stopmake celebrating our students. from day one to graduation to your dream job, that's why we're keeping your tuition low for the 10th year in a row. - [student] the affordability and the quality of education, it can be enough to change your life. - [announcer] as a nonprofit university, we believe in making college more affordable for everyone. - southern new hampshire university, it was just amazing experience. - [announcer] find your degree at snhu.edu. >>> another tough day for the market s&p closing down 1.8%. now a look at how the market is reacting to expectations of fed tightening that's what it's all about. >> been aggressive in the short term over there the end of the chart is treasury that's most sensitive to the expectation of fed rate hikes see the massive move above 1% today a first for this go around a pet peeve. i have a bunch about how people talk about the markets as if we have been on the

that are working pretty well, we try to buy ahead of these sort of moves, but we really like the u.s. banksore than the european banks. we added to the portfolio by buying jp morgan last year. we have been adding to energy companies. started late last year. we own ecuador, bp -- e quinor, bp. asset-backed precast flow stories there have been very positive for portfolios. some thing is that is working quite well this year which has not been talked about much because it tends to be quite dull is the staples. staples stocks have done well this year, and that is from a combination of being so beaten up last year and place neri terms, as well is having that element of going out and not being embedded in their earnings, but this year they are performing quite well, and we own a few staples stocks which have been working. we still own text stocks that we still own tech stocks. so that is a more granularity. but i think the barbell is critical at this point. alix: if you take a look at the european bond markets, if we get to zero on the 10 year, if you get a two-year that is above the -50 basis poi

alix: the u.s. banks will be starting to report next week. the comp ratio and how much we can expect individuals to be paid. that has been coming down but will be coming up as we compete for talent. joining us now is leslie gordon, senior client partner at korn ferry. paint the picture for us. how competitive is the investment banking landscape right now leslie: i've been in this business for 30 years, and i have never seen the level of, velocity and level of hiring among investment banking platforms that we are seeing today. it is unprecedented in my experience. jon: what is the single biggest driver driving all of that? leslie: there are a lot of firms scrambling to meet the demand for deal to, keep up with demand activity. there are also new platforms emerging, firms forming, and clients are drawn talent away from investment banks into a corporate role. with all of those dynamics, you have a very robust market. alix: not only are the banks competing with each other but you have hedge funds and private equity, scale. who has the upper hand

u.s. banking system. chairman powell: we are still applying the same -- the law hasn't changed and our practices hasn't changed. we are still working our way through the applications that we have in front of us. senator tillis: i'll submit a question on the record for the at this tus of the fed payment system. thank you. thank you, mr. chair. chair brown: thank you. senator warren from massachusetts is recognized. senator warren: thank you, mr. chairman. since president biden took office we have added more than $-- $6.4 million jobs, the most jobs added to the economy in u.s. history. over the past few months families have faced higher prices at the grocery store, gas pump. addressing inflation is one of the federal reserve's most important jobs. if we are going to solve this problem then we need to understand why it's happening. if we can, let's start with econ101. chair powell in markets with lots of competitors, are companies profit margins generally likely to stay low? that is in competitive markets a

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eric freedman of u.s. bank asset management.remlin spokesperson saying the following, the kremlin sees a high risk of ukraine offensive. in the region southeastern part of ukraine, blaming the u.s. and nato for escalating tensions. they go on to say the fears that russia may cut the gas over sanctions is hysteria. this coming from the kremlin spokesperson moments ago. tom: 10 year yield breaks down. it is fractional and ever moving slightly but the first blush we see from the headlines. jonathan: how difficult is it to draw a distinction to separate what has been happening over the next couple of weeks in the markets worldwide, and what is happening in ukraine and russia at the moment? lisa: is a tale risk that seems to be percolating and overhangs the ceiling that commodities will have a huge bid from oncoming demand with people trying to get over the pandemic. you have dual stories and pressure at a time when gas prices are feeling inflation in europe. it makes it that much more fraught and more so rather than creating at new

we heard from bank of america and u.s. bank corp.e up better than 2% right now on better than expected earnings story, growth in loans picking up and capital markets business doing well. we are waiting on morgan stanley. those numbers come out within the hour. your reaction to what we've seen out of the banks so far, keith? i thought it was good to see a pick-up in loan growth. your thoughts? >> well, i agree with you, it's always good to see a pick-up in any kind of growth. i think morgan stanley will come in probably in line, 5 to 6%, i'm looking at 191 in earnings, 14.5 billion in revenue. the key is to stay on the bull case because if people are getting distracted with the fed i think morgan stanley's got great equities trading, numb nur one in the world. it's active in the telecom space. there will be merger mania as people figure out how to stand up to a behemoth had coming into the business. maria: you see microsoft expanding its video game business by acquiring activision. that will likely trigger other deals, perhaps enforci

we sought from u.s. banks that already reported. investment banks have been fantastic.? the fixed income business is doing relatively well but not as well as it did during the pandemic. profits are up. that's the way it works on wall street. >> how do you lift revenue, the share price? you've had a nice rebound recently. you are nowhere near the pandemic level with an em exposure that you have, with the hong kong exposure that you have , what is the strategy to jumpstart growth? >> that's a good question. we are releasing earnings in about a month. part of that will be sharing our story with how we accomplished exactly that. on the one hand, emerging markets is out of favor with investors. in particular with equity investors. that has an impact on our share price. on the other hand, these are the drivers of global economic growth. look at china. they are at 4% gdp growth in the fourth quarter. that's pretty tough relative to the 7% that we've become accustomed to. 4% is still pretty good in the global context. especially given the challenges that china faced in the earl

u.s. bank estimates that bitcoins adjusted market cap adjusts for 1/5 of the global store of value market and the digital current she -- if digital currency rose 50% over the next five years that could seat 100,000. a stretch of the interstate in virginia has reopened. hundreds of drivers were stuck in their vehicles monday night into snow and freezing temperatures along a 50 mile section of the highway. a wreck involving multiple trucks triggered the mask. there were no reported deaths or injuries. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> once the covid shot passes and it starts to go back to normal, i do not see any reason the economy would not revert back to the low-inflation regime we have been in for 20 years. jonathan: neel kashkari, the president of the minneapolis fed, writing a really interesting blog, worth a read as he starts to pencil in

one of the things the officials have been breathing these banks about also, given this reporting, it does look like the u.s. seems to be honing in with their western allies on cutting russia off in their ability to convert currency. remember, this would be very difficult for russian banks and russian companies, especially energy companies that do tons of trades, and they have to convert their rubles into local currency. guy: does this give us any indication that the swiss inclusion may be on the table, including russia from the swiss financial system? cate: it does seem like the --annmarie: it does seem what the banks have been asking about the nuclear option of borrowing russia from the payments system, and it seems to be only coming up in conversations marginally, which has me thinking the administration is still considering that, but it very much is the nuclear option. that would be a hard pill to swallow for some of the european allies like your money. -- like germany. guy: absolutely. we have this call taking pleas between emmanuel macron and vladimir putin. france saying within the last couple of min

a u.s. banknk just a couple of doors down from susan's apartment. >> of course it had up a camera >> of course it had up a camera on its atm. on its atm. so they asked to see the video. and what do you know? though very grainy and extremely hard to see clearly, so they asked to see the it appeared to back up everything brad said. early in the morning, just video. and what do you know? though very grainy and extremely hard to see clearly, it appeared to back up everything brad said. early in the morning, just before for ivm, for 52 to be exact, you can see a pick up bullet up across the street before for 5 am, for 4:52 to be exact, you can see a pick up bullet up across the street from the ponderous or from the ponderous or apartment. >> we see brad holzer pull up apartment. >> we see brad holzer pull up in his vehicle on the security in his vehicle on the security cameras and susan casey is with him in that vehicle for a period of time. 20 minutes. cameras and susan casey is with the light comes

now, the regional banks, u.s. bank corp. disappointing in its guidance a couple of banks are reporting tomorrow, fifth third, key, regent's financial, mtb is reporting tomorrow they are weak in the middle of the day. there is is a source of some of the weakness i was encouraged by proctor and gamble different space but they had encouraging comments today they had 6% organizics sales growth half was because they were able to increase prices the other half because of volume growth 3% volume growth, 3% raising prices, 6% organic growth. the bottom line, they still have pricing power. even with that 3% gain in prices they still had some margin erosion on the growth side good news for that overall we will get earnings from the big railroads, csx, union pacific. keep an eye on that, about intermodal ship asking volumes i think they are going to remain very, very strong. what analysts are trying to do, guys is figure out what's the body language of the ceos about the growth prospects we have inflation problems we have fed raising ra

u.s. and bank of canada -- these banks will be raising rates and that will be one of the big drivers of modernolatility this year. the last point is central banks are not aiming to throw the global economy into a recession or engineer a slowdown. this is about hiking and policy adjustments to take back some of the emergency stimulus put injuring covid. the and should still be a robust environment for risk, but we think it's going to be bumpier than it was last year. romaine: that's a good point to make about removing the emergency stimulus rather than overall monetary policy. i'm curious when you look at some of the deals we had last year in the corporate space, how much of that if not fueled, under in by rock-bottom interest rates -- does that tightening or removal of the emergency accommodation make the environment less attractive for new issuers or investors? ashok: i think for bond investors, you make an important point, which is last year and the year before, these low rates allowed companies to rejig their balance sheets. it was about terming out debt and reducing near-term maturities, p

u.s. bank.her. >>> another volatile session on wall street ahead of the big fed decision tomorrow. earlier i did catch up with imf first deputy managing director about her take on what would be a bigger risk to the market, the fed being too aggressive on interest rates or not aggressive enough gita said there's risk on both sides because of inflation listen. >> this is inflation that is not tradition, it is driven by pandemic-specific factors like shifting the demand towards goods, the fact the labor supply is not coming back as expected and supply chain disruption. we haven't seen the end to any of this. it's clear there's tremendous uncertainty and i would make the point when it comes to markets, we've made the point markets seem over valued in some areas but do expect to see some correction >> down grading the global forecast on the u.s. and china for tomorrow's decision. news conference from the fed expected to hear that the fed starts raising rates as soon as march. and i guess, mike, if yo

. >> we know the darrel of homeless is monitoring possible russian cyber attacks, perhaps on u.s. banks or american utility companies, in case there is a military escalation. how easily could russia cripple american infrastructure if it wanted to? >> look. i think at any point, our infrastructure, our cyber infrastructure could be attacked. the most important thing you can do besides the safety measures is for russia to understand that those types of actions will have severe consequences. there needs to be deterrence in every aspect, especially when it comes to the cyber world where russia thinks it can act with impunity. so any time of aggression should be met with consequences. that's the only thing russia understands. they're not the victim here. they're the aggressor here. in order to keep them in line, they have to understand that aggressive actions will have aggressive consequences. >> before you go, congressman, you told cnn that fellow democrats had been encouraging you to launch a primary challenge against democratic senator kyrsten sinema in 2024. today punch bowl news reporte

typically, u.s. banks have outperformed the european banks.i: goldman expecting the same story -- oldman, excepting the same story from them? tom: yes, we expect strong performance from the dealmakers. we will see if they managed to outdo jpmorgan. that is what most people will be particularly interested in. dani: fascinating story on the hot market in london and globally at the moment. that's our tom metcalf. coming up, kiran ganesh, of ubs, joins us, coming off the back of the week where yields hit their highest level since january. this is bloomberg. ♪ dani: this is "bloomberg markets ." i'm dani burger. it is a holiday in the u.s. let's get a check on the markets because cash markets may not open for equities and bonds, but the futures trading session is off. s&p 500 futures up 0.2%. that is despite the selloff we have seen in this bond market. not upsetting equities at least for today on friday. we looked at an s&p 500 flat yesterday. bond futures dropping, down 0.3%. perhaps it will take the cast market to open to set equities off as we

u.s. bank. get there together. >>> here we go final half hour of trading dow positive again we have been positive and negative all hour long we were up 600, though, on the highs of the day for the dow have given all that back s&p 500 is down about .4%. really seeing strength in utilities and communication services staples, energy, health care, materials all remain positive. you have consumer discretionary, real estate, and tech in the red. the nasdaq down 1.25%. the russell 2000 down more than 2% let's dig into more marking movers at this hour. sirius xf will be the new home to neil young radio starting today. this comes one day after young pulled his music from spotify saying he didn't want it played on the same station as joe rogan. young has accused rogan of spreading vaccine misinformation on his spotify podcast stocks are moving in the opposite direction serious xm getting a boost apple is reportedly working on a new service to allow merchants to turn their iphones into payment devices with

u.s. central bank has signaled that it could raise interest rates in march area they are holding steady rthe move shows the fedal reserve wants to bring down inflation. it is at its highest level in 40 years. a roller coaster week for markets. on monday, the dow jones index took a sharp dive before clawing itself back into positive territory. today was yet another rocky red for the dow. they close down by about 130 points. we are joined by our north american business correspondent. what has the market so freaked out? is it rising interest rates or is it geopolitics? >> i think they are very much focused on the words emanating from the head of the federal reserve, jerome powell, and what they claim to do to tighten monetary policy. when interest rates were nea zero, that was to help the economy at the outset of the pandemic area that was to help individuals. the question now is do you start to see the jobs market recover? we have inflation at levels not seen since the 1980's. the job that needs to be done is very different. that is why there is all this talk of raising interest rates. the

morgan or u.s. bank corps >> all right sticking with them hoping for that curve to behave itself sticking with them nevertheless. david, great to you have here today. thank you. david katz. >> have great day. >> my next guest has been bull u ish on the home builders for a decade but this year has been really rough for the sector with most of the names down 15% or more. not a big deal look at the multiples. these names are so depressed they're trading at price earnings multiple wez haven't seen since the on set of the housing crisis in 2006 joining me now to explain is bill smeed, chief investment offer at smeed value find and five star fund posted 37% gains last year beating the s&p 500 by 10%. so, bill this is either the buying opportunity of a lifetime or these earnings are about to fall 40% or they're going to stay at these depressed multiples. tell me what's going on here >> well, you've got a whole bunch of people analyzing these companies and even people working in the industry that were also analy