morgan goldman sachs and others are just as problematic as as wells fargo is just that wells fargo screwed people on a retail level as opposed to a higher level now prior to this entire revelation well it was actually a growing bank with huge profits and a really fast lender division as well so since they had that sense this entire scandal blew up they've had earnings of just under 7 percent year over year compared to citibank and bank of america who are up more than 30 percent last year so are they doing enough at this point to get back on the right track or is this all is this regulatory issue a death knell for a while. they're actually under a size restriction growth i mean the federal reserve has put them on a cap that they can actually grow i actually think in addition to that that consumers looking for a bank while banks are sticky it's kind of hard to leave your wells fargo or any bank account when they have the choice there is so much bad news about wells fargo that they are deciding to go to one of these other banks. and finally to your question i would say that there could well b

or any bank account when they have the choice there is so much bad news about wells fargo that they are deciding to go to one of these other banks. and finally to your question i would say that there could well be managed accounting going on right now you have a new c.e.o. he would like to paint as black a picture as possible so that he can look good in the next quarter or the next year contrasting with that with jamie diamond who is arguably in his his final years he wants to show that he's leaving with a bang with a bank at wells fargo is 2 trillion dollars wells i'm sorry j.p. morgan is 3 point something trillion dollars they're only earning one percent or roughly of assets there's a lot of management decisions that can be made to either stifle or expand on what you're reporting as a profit and then the given quarter and moving on to j.p. i want to talk about them because they're on the other end of the spectrum here their cue for profits they grew 21 percent. which marks a record reference revenue for any bank in a 4th quarter for their regular in the 4th quarter now as we l

citi beating, wells fargo missing. in europe, to be honest, at a headline level, the indices are not getting much action. the ftse a little but higher, dax a little bit lower, cac 40 a little bit lower. some of the weight coming off of the market, sanofi is down in paris. the health care care conference still very much underway. vodafone is having a good day in london. lvmh helping the paris market. the oil stocks are leading us down. the european close is coming up next. this is bloomberg. ♪ ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network... only with xfinity xfi. download the xfi app today. the 30 seconds to go until end of regular training in europe. i am not going to lie. at a headline level this does not look like the most exciting session. gray, is gray, germany is london was gray a second ago. italy is gray. nothing is happening at a headline level in europe. this was the session that was. this is the stoxx 600,

alix: good luck with wells fargo. at the 4:00 hour on the what did you miss show? alix: coming up we will look at the winners and losers among banks. if you're jumping in your car, tune into bloomberg radio on sirius xm channel 119 on the bloomberg business app. this is bloomberg. ♪ alix: time for technically speaking. bill maloney joins me now. listen to bill on bloomberg. type in squa . jp morgan crushed it. what are we looking at? bill: beat estimates. up around 1%. off its premarket high. a long trading range. a breakdown in october. resistance around 141. 141 being the all-time high. alix: citibank also had pretty good earnings. i want to see how much upside there could be there. bill: citigroup also up in trending higher from the december 2018 lows. 81, for resistance around which is the january 2018 highs. if you get a solar breakout around 81, the next focus may be 80. alix: with the numbers you would put up you would think the stock would be extending. bill: wells fargo started dragging the other names lo

jpmorgan, citi and wells fargo new trade deals with china expected to be signed tomorrow headlines injecting uncertainty on existing tariffs and after hittinga new all-time high, apple is now the biggest drag on the dow. we'll have much more on why later in the show. we are up 50 points on the dow steve grasso with us for the full hour. steve, today's session yo yoing. the bottom line though is the deal should be signed tomorrow and the rest of it we kind of knew. >> it seems like the market is looking for a reason to sell off. you have bulls that want a better entry point, bears that want to push it down and any headline that allows them to do that, they're going to roll with it's about china today i think it's going to be about earnings coming up if you really look at where we are in the s&p, the 3300 level is pivotal and if you look at earnings, if we fall short, the market will tank and that's a big word >> tank is a big word. it's a big worry >> when you say where's the market going or where do i think it's going, i think it will be legitimate to say a 7% to a 10% fall from here if earn

wells fargo is kind of an outlier. in terms of what we've seen so far, i would call it a victory i expect some really good earnings they would like to be one of the highlights it is not likely to be one of the earnings quarter overall the market thinks consensus is down i suspect they'll get a little bit up it will not be a banner quarter on the macroside >> what stood out the most to

he's got quite the to do list in terms of turning things around at wells fargo how quickly does he need what is wall street? what's an analyst like yourself give him in terms of a time line here. >> sure. well, he's only been in the seat for three months it takes a lot of time to figure it out it's a $2 trillion bank. so a lot to go over. you know, the bank has made some progress they have gone through over the last two years and added 18,000 people in i.t. and compliance. however, during that period of time they have lost people, revenue producers, which hurts the fundamentals of the company. so unfortunately as they are working through these i.t. issues, it's going to still be a while before the fundamentals improve. to put an exact time frame on it is a bit challenging but looking at 2020 and the rest of this year and 2021, i do think that the street expectations need to be reined in from an earnings perspective and to really fix the foundation here. >> mike, the dow is hanging onto gains, albeit just slightly right now thanks to jpmorgan at 2 1/2% injury in financials, only sector i

will hear from the ceo of one of those banks, wells fargo. what happens when a fed historian and fomc member square off on social media. the question is whether a fed president should get involved in political issues? scarlet: let's take a look at shares of wells fargo, losing ground here. as much as 5.5% lower today. 5.4%.losed down about this continues a week trend of late in which they have only gained one time in 2020. the lender reported $1.5 billion in legal expenses. that missed the average analyst estimate. for more, we want to bring in the chief financial officer and executive vice president for wells fargo. thanks for taking the time to speak with us. we need to start on the litigation expenses. 1.5 billion dollars for the quarter, making it the second straight quarter in which major legal costs heard earnings. where is the firm in determining how much more legal liability there is? second inning, fourth inning, eighth inning? >> it is tough to talk about active litigation but the cadence of the charges, given that they reflect prob

the former boss of wells fargo is banned from banking for life and hit with a record $17 million finever a massive sales scandal. we start with cash, the queen famously never carries it but neither, it seems, do a growing number of people around the world. today researchers here in the uk are warning that the rise of digital payments could mean vulnerable groups, such as the elderly, less tech savvy, or less well off, get left behind. and they say a few technology firms could end up with far too much power over the economy. so let's take a closer look and give you some of the numbers. three years, ago electronic payments overtook cash in the uk, and by 2018 just 28% of payments were in cash. that is forecast to fall to just 9% by 2028. across the rest of europe cash still dominates, for now. but for now the trend is definitely downwards. across the countries that use the euro, over 78% of transactions are done with cash. but that share is falling and tends to be for smaller payments. the move away from cash is now a major issue for the people who run the world's money. the bank for in

wells fargos have. the balance sheet constraints.d revenues begin to stabilize and set the platform for them to be able to grow again when we get to 2021. citigroup is an opposite story revenues are getting better. expenses are actually coming down and returns are moving toward their goal of trying to even actually get to the 12% return on common equity that they have been putting out for the last couple of years they get right on top of what we expected this quarter. even with a little bit extra in capital markets and we continue to expect the returns to move toward the long-term targets. >> mike? >> yeah. i would say with wells fargo there has been a sense out there that the expense base is too high it's been slowing coming down. it's a lot of extraordinary expenses in there but a quarter like this and this message from the company i think builds the case for really streamlining because they have the caps on their potential growth citigroup is really checking off a lot of the boxes here. it's been seen as a restructuring story but

it ain't going up. >> one of the reasons that we sold well fas fargo. ne was looking forward all the questions were forward looking and forward thinking except wells wells, there was a very dramatic malaise, to me everything was about the past, digging out from past sins that made us think it will be worse than better. >> the company itself dug a deep hole for itself. they have no choice but to deal with all the ramifications of that they are still digging baird thinks it's going to take longer to get back to solid ground >> good news is, they are not the first bank in history to have let down their sharehow olde olders, banks and customers. others have done it. i don't think it's hard to have a similar comeback if you are a shareholder, likely you have seen all of the ramifications. the question is, when do people get excited about investing in this company >> when they had issues many months ago, you were a buyer you said it then. >> i did >> not now >> not now i don't hate it here at all. i think the note is pretty much as everyone has said, exactly r

asking you about wells fargo to begin with there are huge charges related to the litigation.o you think the bank's management has done enough to communicate the turn around strategy . >> it has been a long process. we've lost one ceo we asked that question on the call yesterday he couldn't really elaborate that does seem to be the view. >> do you feel you have a grip on what they've done to the assessment of the future >> management themselves have said in the early stages of the review in the time frame of where that will come out he says they are looking to try and be best practice of all of those efficiencies in which business units they might divest they are very much in the dark at this stage. >> moving from jp morgan, what are they doing right in your view, how much of that is down to the strength of the u.s. consumer versus some of their trading operations >> i think jp morgan has a strong move across the board deposit growth are developed up to 5% showing the strength across the u.s. as well. showing the mitigated impact only one quarter decline credit quality remains

vonnie: wells fargo's quarterly profits slumped. citigroup beat expectations on 49% fixed income surge. for more, let's bring in allison williams, bloomberg senior bank analyst. from, say, share morgan stanley and other banks? alison: we will soon see. at this point, the numbers are so strong. jp morgan is the leader in that business. 80% from aup 75% to year ago, depending on if you adjust the number. that was a very weak quarter, but still, they beat estimates by about $1 billion, so that is a pretty's ignatik and showing -- a pretty significant showing. we will see as more of the banks report. federal reserve actions with balance sheets, i think that has actually helped jp morgan. we think that will also help them this quarter as well. guy: let's go through the banks fairly quickly. citi has been a restructuring story. is that now done? is citi where you would expect fair value to be? citi isciti --alison: still in the process of trying to improve its profit ability. the positive we see for citigroup is that they did meet their 1

jp morgan, citigroup, wells fargo.hief executives will help clarify whether the low interest rates, geopolitical tensions are enough to end the good times. faang stocks trail the broader market so far this year. the chief investment strategist at northern trust asset management is with us. we are going to go into the jaws in the banking. we have seen a swath of global job losses in the past year. arbitrage look at the of global thanks? -- global banks? wouter: we still think the u.s. banking sector is better positioned than the european banking sector. the u.s. looks a lot better than europe. valuations are also different. underlying trends look more favorable to the u.s. fourth quarter earnings for the u.s. will be interesting. but it will be messy because we have new accounting coming in and we don't know how that will impact different banks and reserve accounting measures. nejra: you are overweight broadly u.s. equities. i want to circle back to the chart showing the outperformance of tech versus financials. does th

wells fargo is kind of an outlier.n terms of what we've seen so far, i would call it a victory i expect some really good earnings they would like to be one of the highlights it is not likely to be one of the earnings quarter overall the market thinks consensus is down i suspect they'll get a little bit up it will not be a banner quarter on the macroside >> what stood out the most to you about those reports from jp morgan chase and citi group. was it the idea that the bond service was back what does that tell you about later on today? >> you've seen a surge in the trading and investment banking the other part, consumer and loan demand is good to me that probably means again, you don't have much to worry about here in 2020 because you continue to see the consumer in a pretty good place seeing this other part for example. a great job managing the expense side that shows up in terms of the bottom line earning. >> the past several months in large part of the expectations to the phase one signing today. does that mean the ma

we think wells fargo has the best upside over the next 6 to 12 months. >> are regional banks much tothe money center started out best we think they'll catch up over the next year. they'll make a good return, not a 50 p% return but 10 or 12% return >> thank you always good to get your thoughts >>> that does it for "worldwide exchange" this morning "squawk box" begins right now. >> good morning, china's delegation arrives we learn more about the hundreds of millions of goods china has agreed to buy. >>> earnings season here and more >>> and larry fink making environmental sustainability a goal of all of the first's decisions. it is tuesday, january 14, 2020. "squawk box" begins right now. ♪ >>> good morning, everybody. welcome to "squawk box" here we are live from the marketsite in times square. let's look at he can quity few turz yesterday, we saw s&p 500 and nasdaq setting highs nasdaq up about 1% gaining 95 points dow up 83 points but did not make up for the losses the dow experienced last friday. this morning, you are seeing a slight give back dow down by only 12 points s&p down by

and wells fargo shares are heading lower today by more than 3%.fr r overall the market is platt and mixed. today, the dow moving higher by about at this time 18 points. the s&p 500 moving lower by 7 points. michelle and ann oechld back to e back to you. >> entoit national dress your pet day. found 11 years ago as a bonding opportunity for you and your pet. we enjoy it so we decided to get in on the fun. here is our jackie ward's dog cooper. he is ready for the next round of rain and here is mill poochy. . >> she still nohame. >> that's so cute. >> yeah, we got him like these little santa boots you can put on his paws and he hates it. he likes to go naked. >> as most dogs do. we are getting reports and quite quite a few crashes in that area. so if you're headed out there in san jose say 101 northbound we've got a crash there. also on 17th right around sunset view near the summit. you've got some slow and go conditions here. that's why this crash here is blocking at least two lanes. a busy area through that portion slick surfaces on 101. that left l

mike is hear from wells fargo up to explain why they need to ink more hoodie than jacket and tie with banking in 2020. and a "wall street" staple for years, a daily basis, he's ceased to exist. why? what happened? the faint and sometimes controversial market insider and offer is about to reveal his second acts and how he sees this moving in 2020. dennis, that's live plus and oscar double take for netflix, we are about to show you how tiny the new tiny targets really are and charlie brexit on "wall street". less than an hour to the closing bell. let's start the countdown. ♪ we got a big of a shocker. i will the sexual assault trial heading into the second week. he's been called in for potential juror in the case. he's been accused by more than 80 women of sexual assault. leaving court hours ago, the daily news reporting he was one of two people who raised their hand when the judge asked the entire group if any of them knew a member of the defense or prosecution and admitted she met weinstein, the oscar winning. weinstein is facing 28 years to life in prison for the sexual assault of tw

for $9300000.00 cash a small portion of the 30134 $1000000.00 retirement package he received from wells fargo and 2016. he isn't the 1st person to ever get barred from this there are all the other famous person jordan belfort who is also doing quite well for himself now as a motivational speaker right so here's the thing with these guys is so what he barred for life from something you're never going to do we get anyways was he was going to jump ship and go over to chase or bank of america or some place that was going to happen the fact that you could walk away with $134000000.00 after outright fraud because that's what it was right and outright fraud it's identity theft they're setting up accounts for people that they didn't have authorization to do nobody goes to jail not one single person went to jail for it but it's not even really a slap on the wrist to say well take your $134000000.00 you're going to have to retire now you can't work in places it's nonsense well exactly rarely get blamed for this because they can always say i don't know what my employees were doing they can always claim

and then there's wells fargo oh, wells fargo. all was not well, missing on the top and the bottom line. quarterly profit dropping 50%. the bank blaming lower rates, high legal fees and litigation costs. shares of wells fargo are down just over 4% right now >>> let's step out of the world of money and business for a moment and get to sue herera with a cnbc news update. >> thank you so much, brian. here's what's happening at this hour, everyone toyota is recalling about 700,000 vehicles in the u.s. because the fuel pumps can fail causing engines to stall and increasing the risk of a crash multiple toyota and lexus malls are subject to that recall all were made in 2018 or 2019. >>> eight people were arrested after a fire broke out this morning at a motel in osceola county, florida. authorities say one person faces arson charges. seven others are charged with battery on a law enforcement officer. the motels owner reportedly said the fire was intentionally set by an evicted tenant. >>> in france, a teachers strike against proposed gov

mortgage business is strong at wells fargo. >> you want to be diversified financial. the reason for that you have revenue streams from all different directions. what we saw in the fourth quarter of 2019 of financials is a nice rally. which was a positive sign for the economy. i think consumers like that rally. the market likes that rally. most of it though was because the yield curve steepened. banks will continue to be tied to whatever movement happens in the yield curve. we expect there to be a gradual steepening this year. i don't think it will be anything to erin's point that will really drive net interest margins to a level so exciting that suddenly banks come in. are the best sector. cheryl: bigger picture, erin, a lot of viewers like to buy baskets of investments whether etfs or sectors. i want to buy the whole sector. i don't want to buy just one bank. when interest rate are low -- >> this will be one earnings season they will say we're doing better than all the companies in financials than the rest of the s&p 500 this is it. for the rest of the year we're exp

the latest here on wells fargo. bloomberg. ♪ scarlet: sometimes, the squeaky wheel it's the grease. siu king -- intenseed it has faced competition from banks. they are renegotiating terms of their long-time partnership. i had not realized it was that tense. what was the issue? >> there were a couple of issues at play. united won. some of the biggest funds of competition has come from chase sapphire. they are also facing competition on the airline side. you have delta with its relationship with amex. all of the cards are creating a tough environment. knighted has been saying, we know we deserve a better deal. the so, the pressure on card issuer comes from the airline? >> it kind of depends. this is a unique one because these airline deals are lucrative for the bank and airline themselves. since there is not a ton of banks that can deal with the cards, folks get a little boxed in. their going out on all of analyst calls and making the complaints vogel, it does put pressure on the relationship. scarlet: how important h

. >>> breaking news right now on wells fargo.ilfred frost has the breaking news what have you got? >> brian, this is pretty huge. occ is announcing that it has issued notices of charges and that it settled with three others the headline of who they settled with included in those three is the former chairman and ceo john stumpf who has agreed, it seems, to pay a whopping $17.5 million to settle these charges. clearly, a huge settlement for an individual to make, not the company. headlining the list of the five people that are facing charges and haven't yet settled is carrie halsted, seeking up to $25 million from her one with wonders whether a possible settlement could have come in a little low we don't know what the original amount was sought from the former chairman and ceo john stumpf a lot of other names on this list which we could perhaps come back to a little later back to the start of this whole issue, it was the cfpb that got wells fargo as a company to settle for a couple hundred million. carrie halsted was fired for caus

morgan and wells fargo will follow after.e will focus on what blackrock just announced moments ago to focus on more sustainability. let's get to the bloomberg first word news. >> the world's largest asset manager is upping its push to a greener future. blackrock will put climate change at the top of the investment strategy. inwill avoid investing companies with sustainability risk. the u.k. is likely to secure a trade deal with the eu, according to boris johnson. he said he is very, very, very confident. the transition phase is currently scheduled to end on december 31. iraqi leaders privately want u.s. troops to stay in the country. iscome -- mike pompeo playing down demands to expel forces. india, inflation is surging in december to a five-year high. largely driving this jump. this may force the government to spend more. manchester united risks losing its position as england's top learning soccer club. it has been kept out of the champions league. revenue could slide as much as 11%. deloitte says that could put it behind ma

one of those facing charges is the former head of the wells fargo community banking system. she could end up paying a $25 million fine. >>> candidate tom steyer's status has changed a lot since he was last here in december. >>> tom steyer is back in the bay area, meeting face to face to talk criminal justice reform in richmond. >> that's why i'm running for president. his public profile and legitimacy as a candidate has risen dramatically in recent weeks. last week he appeared as one of only six democrats in a cnn debate. wednesday he engaged in a mini twitter feud with donald trump who called him a major loser. to which steyer replied, donald, you're just jealous. nobody wants to say hi to you. impeachment is forever. bye. >> mr. trump doesn't know me. he is a guy who is very snarky. i find him musing. >> his newspapers are due in part to his own deep pockets having now spent more than $130 million on television, radio and internet advertising. trump aside, he's managed to stay away from the swilling around the candidates. >> i don't think this is time for democrats to be t

where i beat myself up is on wells fargo. two months ago you said what if the new ceo comes in and kitchen six of the quarter the problem i have is i don't think that was even a kitchen sink that was brutal. and the commentary -- >> you think it could get worse. >> he indicated on the conference call. he basically gave no visible for 2020 i believe in the ceo, and in the turnaround but that doesn't mean i have to lose money in their stock. the litigation expenses at $1.5 billion were incredibly high the consumer revenue growth was awful. this is a real turn around story that's going to take time. i am wrong to think that i could just sit there patiently and wait i would rather go and put my money behind the expectations to have the trading revenue be strong and follow goldman sachs. >> he have the, why citi. >> it is trading below it is historical average in terms of the valuation. it lagged its peers dramatic for all the reasons you are talking about. they had issues. sharp wasn't in the role for the whole quarter. he just g

. >> thank you >>> when we come back, details on the historic fine and ban facing former wells fargoeo plus a big black eye for global hedge funds after a disappointing 19 and the wheel of fortune trend that is trending for all the right reasons. a very busy hour still ahead when "worldwide exchange" returns after this ♪ the world is customized to you. built for you. so why isn't it all about you, when it comes to your money? so. what's on your mind? we are edward jones, a 97-year-old firm built for right now. with one financial advisor per office, we're all about knowing what's important to you the one who matters. edward jones. it's time for investing to feel individual. see how to keep people moving, ♪ to keep a city moving. with esri location technology, you can see what others can't. ♪ oh no, here comes gthe neighbor probably to brag about how amazing his xfinity customer service is. i'm mike, i'm so busy. good thing xfinity has two-hour appointment windows. they have night and weekend appointments too. he's here. bill? karolyn? nope! no, just a couple of rocks. download the my

wells fargo, not so much. jpmorgan ceo, jamie dimon touting positive signs of the connie. >> doing okay. the united states consumer, 70% of gdp. their wages are going up, their saves are strong. balance is in excellent shape. household form make. i think it is pretty good. 30% is business. confidence came down, cap-ex came down and i think a lot driven by trade, trade uncertainty. that all seems to have stablized. neil: think about this, jpmorgan put together a year most successful for any bank ever in history. any bank ever in history. fox news contributor john layfield. point view wealth management president, david dietze. welcome to both of you. it is a split verdict. wells fargo had other problems that disappointed the street. by and large we're expecting financials to lead the way. they have done that. david, is it your sense that, you know, wells fargo is more an outlyer here? >> absolutely. wells fargo had to put aside billions for legal and regulatory issues. they're still trying to climb back out of t

protections. >> thanks for that we have a number of banks reporting tomorrow, citi group, jpmorgan and wells fargo ahead of the open and the ceo ed bastian will speak to us exclusively on "squawk box. wells fargo in particular stands out with the first earnings as ceo. we'll see what kind of tone he sets but more broadly for the banks as a whole, that's going to be important to see, jpmorgan and others and see where they stand. >> opportunity to kind of set priorities jpmorgan, i find it interesting because the stock has been such a leader and it's just so kind of separated from the pack in terms of valuation and kind of the broad sponsorship it has on wall street. you wonder how it in jefgests t quarterly earnings report, but whether the stock trades nervously. >> the one thing you can always get from the ceos when they talk on the call, the economy is really strong and we're confident about it and that can help sentiment. >> as long as you think the ex sfangz is going to go, the banks are going to be okay. >> we are out of time. that does it for "closing bell." >> "fast money" begins right now.

. >>> the former ceo of wells fargo will be banned from the banking industry and faces a 17$17.5 million fine. john stump was one of three executives to grae to s ts to a settlement if connection with the fake account scandal in 2017. five other executives have refused to settle. they'll face a public hearing, one of them is the former head of the wells fargo community banking system. she could pay a $25 million fine >>> the countdown to kick off is nine more days until the 49ers face the chiefs in bowl liv. san francisco has not won the super bowl in 25 years. some fans have merchandise that is older than that. >> lauren martinez shows you some of the throwbacks. >> reporter: there's something special about sporting the old red and gold and having those items passed down through generations. >> the ones now, maybe you'll get a couple years out of them but not 20. >> 49ers gear is selling out fast, even at vintage clothing stores in san francisco. >> if we had more, i think we would sell more. we're down to a select amount of sizes. >> reporter: static vintage has a couple of t-shirts an

federal regulators are fining former wells fargo c million.eo $ the decision follows him in a scandalmployees opened millions of fake accounts without customer consent. regulators are banning him from the banking industry for life. five other executives are being sued in connection with the scandal. this is the first time regulators punished individual executives for wells fargo wrongdoing. >>> big change coming to fico. the most widely used credit scoring company will grade scores. it will grade customers with growing debt and missed payments more harshly. unsecured personal loans could hurt an individual's score. fico says 40 million people could see their credit scores drop by 20 points or more. another 40 million who already have high scores will see their scores improve. this is expecd to increase the gap between those who are considered to have good and bad credit. the trump administration is lifting protections for some of. it will scale back which waterways qualify for protection under the clean water act. environmental activists and health officials say the changes will make

federal regulators are suing five other former wells fargo executives for a total of $37 million. this is the first time that regulators have punished individual executives for the banks wrongdoing. wells fargo has already paid hundreds of millions of dollars in fines and penalties for encouraging employees to open up millions of fake accounts in order to meet aggressive sales goals. >>> stocks were mostly higher with modest gains after a selloff in asia over the potential impact of the coronavirus. the dow was down 26, the nasdaq was up 18, and the s&p 500 was up three. >>> chinese new year starts on saturday peer tonight, we have a sneak peek of a new exhibit in danville, part of a personal collection, years in the making. >>> our chief meteorologist returns with the complete bay area forecast, including the next chance for rain. >>> a new gallery opens this week at the blackhawk museum with an example called into china. this is for the start of the chinese new year. we got a sneak peek at the gallery, and why the exhibits are so personal.>> reporter: there is a story being told

wells fargo asset management had evocative equity. over in europe, as the growth continues, spain has continued to flourish. francine lacqua spoke to the spanish finance minister to discuss what she is focusing on in 2020 to keep the uptrend going at the world economic forum in davos. >> the state has been growing above 2.5% in the last five years. we closed 2019 around 2% year on year. it is one of the fastest growth countries in the eu. it is growing above the average of the eurozone. we want to keep it that way. everybody agrees there is a slowdown environment. our growth will be slower than in the past few years. we want to continue to keep this growth and we want to pursue the economic policy that has been successful. place theutting into structural reforms that spain needs to have a stronger, more dynamic, also more inclusive and sustainable growth. francine: if spain overturns some of the labor reforms, put in place in previous years, what kind of message does that give to investors? nadia: there is a wide agreement in the span

a prime example of that, a lot f you will remember, is when the ceo of wells fargo came before the banking committee, and elizabeth just destroyed him, absolutely destroyed him. in two weeks he resigned, and last week the controller of the currency was banned from the -- banned him from the banking industry for life. and none of that would have happened if elizabeth had not torn into him in her very calm, very prix pre-sice, but deadly ashion on the committee. that's what we need. and all of those qualities, the compassion, her intelligence, her energy, her toughness, the fearlessness are what we need and why she will win with your help and help your neighbors cross the state. thank you for everything you ave done thus far. for the next five days folks in the office here will ask you to put the rest of your lives aside. and just engage in nonstop canvassing. i know you know it is for a good cause. we want to thank you in advance for all the help you will be over the next few days. and with your help, we will ight hard. and win. thank you very much for being here. bailey will have a photo w

i'm kristie i and i'm bridgeboro in washington here's a look at what we have on day wells fargo's stock continues to slump in the wake of its major accounts scandal with vines taking a big hit on the company's bottom line chart with nearly a publicist and gives us his take on what lies in store for the breaking the law and how the sector has performed in recent times then as one bank has left another has there j.p. morgan you know from you for profit we take a look at the stats in the final quarter of 2019 and what this means for the forecast of the u.s. economy going forward without a mess of the other messing up so many stories so little time so let's go and dive right in. the head of the anticipate assigning a phase one the u.s. treasury has decided to remove china's designation as a currency manipulator never mind the fact that china should have never even been labeled that in the 1st place according to the i.m.f. commodity traders and analysts are now doubting these insane amount that china is committing to buy from the u.s. under phase one of the trade deal china will pledge to bu

notes out on tesla, wells fargo and much more. we'll cover it all in the next 59 minutes >>> good afternoon i'm wilfred frost. let's look what's driving the action 2019 sentiment carrying over to 2020 fresh economic stimulus from beijing adding to the optimism but under the surface the russell 2000 seeing its worse day in a month and we got some mixed labor market data here in the u.s. earlier in the session. we are up 235 points on the dow, near highs on the session for all three major averages joining us paul hickey co-founder of the spoke investment group very good afternoon to you happy new year to you. where do you stan in terms of whether this bullishness is justified. is it easy to pick bullish or bearish as we stand? >> when you look where things stand out, you look at the equity pros and cons which we look at on a regular basis, the pros are balanced with the cons. that doesn't suggest you should be taking a cautious view or just a neutral view implies average returns for the market going forward. and when we look what's

wells fargo. one look at their pathetic results makes it clear this company is suffering its not spending enough, perhaps because of the management turmoil. jp market is able to take market share left and right because they invest in technology and service. wells fargo is lagging behind. and that's another reason why the stock got hammered they have to spend a lot they have to get their act together the new ceo has his hands full we have a lot of in news but the market couldn't sustain the rally. stocks were overbought we came up very far very fast. but the statistics from the banks show a robust consumer who is still spending within her means. that's an encouraging backdrop, especially if we're headed into short term selloff after a remarkable run one last positive, the analyst rally and the overheated faang stocks on the same old price target bump price target bump, price target bump news, finally seems to have run its course i say hallelujah ♪ hall lay lelujah ♪ >> it's good the stocks need to

and that's one of the issues for wells fargo. morgan which has invested -- you know, jamie dimon told us yesterday, $11 billion a year invested, spent really is the word r, in technology. >> also, the regional banks that don't have the wallets to spend on technology like the larger banks, we heard it from jamie dimon, we're seeing it in the marketplace, i think in 2020 you're going to see more and more regional banks coming together either to have a bigger geographic footprint or just to have the resources to invest in technology so they can compete with the bigger national brands. dagen: also, anton schultz said any banking deals need to get done no later than march of this year because of the election, that nothing would get approved as we go toward election day in november, which is really something to point out. watch out for, particularly among these smaller regional banks, that are increasingly large, say, 25 to $75 billion in assets. maria: yeah, that's a great point. so expect a lot of deal flow within regionals within th

we are awaiting results from citigroup and wells fargo later this morning.tart of trade forge the dow industrials, although it has been a mixed situation there as you can see, futures are showing a gain on the dow. we'll get that board fixed for you. we had gains a across the board yesterday, the momentum continues. the s&p 500 and nasdaq closed at all-time highs yesterday. the dow was up a quarter percent, nasdaq up better than 1%, s&p up three quarters of 1%. global markets look like this. european indices right now are showing a mixed story. fq100 is basically plat flat in london, up a fraction, cac in paris is down 3 points and dax index in germany is up 9 points, so very much a fractional move across europe this morning. asia overnight, mixed performances overnight and the best performer was japan, nikkei average up three quarters of 1%. all those stories coming up this tuesday morning. our top stories this half hour, a win for democracy this weekend, this weekend's presidential election in taiwan dealing a major blow to beijing. pro-democracy candidate

tomorrow we'll hear from jpmorgan, citi, and wells fargo. that's a lot of market cap right there.artinez. he down graded jpm and bank of america ahead of this big week we all know anybody who paid attention watched that big move up in the bank stocks over the last quarter in particular of the year out performing the s&p as we are in this year, how important are these earnings to justify the valuations that banks ascended to only over the last few months? >> well, thanks for having me on look, i think the quarter, itself, is important it's really about the outlook and whether the outlook can really justify what have been pretty material moves for the largest banks. our downgrades last week of jpmorgan and bank of america to neutral weren't necessarily reflective of a more negative view, fundamental view of each of the stocks. it's really that we just feel like they are pricing in a heck of a lot and that the bar has been raised quite a bit. for us you really would need to see material profitability expansion for both banks to be able to justify the kind of upside you would need to

the last thing i want to talk about was wells fargo. wells fargo was cut to underperform at baird.ed. momentum stalling around november highs. 54 to 55 is probably resistance in wells fargo. david: tesla shorts -- thanks so much to bill maloney. great to have you with us. coming up on bloomberg the open with jonathan ferro, he will have quincy crosby, prudential's cheap market strategist on a day that is risk on with equities up around the world. this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ romaine: coming up -- jonathan: coming up, 2020 begins with stocks rallying with china moving to ease financial conditions, investors look for further support as eurozone manufacturing remains in contraction territory for an 11th straight month. good morning. here is your thursday morning price action. equities up 20 points on the s&p. positive .6%. euro-dollar 1.1196 and a bid in the bond market. yields down to 1.88%. we begin with the date issue, a new year, new decade, a familiar outlook. >> w

wells fargo reporting tomorrow. what are you looking for here? no one wants to look at the fourth quarter. but the fourth quarter will be better compared to the fourth quarter last year. are do you think the ceo's likely to stress? that sets the tone for how the stock reacts. sherry: well, i think we are probably likely going to see, i'm going to venture out, ceo's set a lower expectation than they have in the past. psychologically people prefer to beat expectations. investors weued are expecting low return sets across the board for most of corporate america. and we are favoring emerging markets right now as an example. so i would expect to hear that. but i think there is also going to be a hint of optimism, because we continue to see l ow unemployment in the u.s., a strong consumer, accommodated feds around the world. things are still there for things to be pretty good. they might not be as fantastic as they were last year. a change in fed policy. but that does not mean that things still cannot be good. when things are great people become fearfu

have a bitrica does of a different interest rate profile, bank of america and wells fargo are perhapsgular -- similar, wells fargo the weakest in terms of net income america and the bank of is not in that bucket, but less optimism than other banks. vonnie: how can goldman promise to rein in costs? when really talent is what differentiates it? >> talent and technology is one area where the banks continue to invest, but where they are benefiting on the cost side of things relates to efficiency, and a lot of the technology send -- spending we've seen over the past few years. goldman and jp morgan are getting some signals that the technology could level off after some major investments, but the other part of it is seeing gains on those investments. so citigroup is talking about gettingenses, they are some of the gains in that investment. vonnie: thank you. this is bloomberg. ♪ guy: live from london, i'm guy johnson. quinn, thisvonnie is bloomberg markets. it's time for futures in focus. me,t is in the studio with .elcome let me inform everyone that we did get some inventories, the u.s. oi

morgan chase bank of america and wells fargo with large so calls denial of service attacks making us difficult for customers to access their accounts iran also attacked the saudi aramco oil company n 2017 with the so-called shamoun virus it was so devastating that the network had to be rebuilt almost from scratch just in the verbal last year microsoft experts suspect that iranian hackers were focusing on physical targets major manufacturers and operators that build hardened software used in industrial control systems for example control power grids manufacturing and oil refineries but iran is also vulnerable to cyber ties the u.s. has targeted or any an air defense and command sides in june last year as a response to terence drowning a downing rather of a u.s. drone for more on this i'm now joined here in the studio by spend happy he's a project director for international cyber security policy at the shifted more fun for them as a political think tank here in berlin when working with the studio doesn't run have the capability for a major attack against western economies so there's a

we've got city, wells fargo and jp morgan trading in defense food and beverage down about 0.4% in the green up 0.2 percentage point. we have the renault chairman denying that they are moving towards a break up of the alliance with nissan renault is up on the news. a stock we've been watching closely in europe. basic resources up about a tenth a percentage point no surprise. any positivity around the trade deal is positive for basic resources. let's turn and talk about chips and autos in more details. these were the autos this is one of the sector we've been watching closely. can you see that psa, puth owe is down. one automaker they own is nouane they are losing jobs renault back in the news as well down five tenths of a percentage point. we started off positive but back in negative territory. both renault and nissan have massively underperforms. both of down as investors still grapple with questions about what exactly is going to happen. that is the picture for autos this morning generally speaking, european equities are off to a luke warm, if not negative start to the session. >> th

the former leader of wells fargo's community bank is facing a $25 million penalty. it is all from the fake account scandal that affected millions of customers of the san francisco based bank. >>> let's turn to the weather and give you a live look. >> very cool. spencer has look at the forecast. >> all right. here's a look at live doppler 7. first of all, don't be alarmed by the green showing up north of you eye dia. the tail end is that you aring rain but we don't expect to it reach the greater bay area. however, rain is coming our way. 58 degrees in san francisco. temperatures in the upper 50s in oakland, redwood city, san jose, half moon bay and 60 in gilroy. here's a look at the beautiul sky there with a few high clouds. upper 50s in napa. 54 degrees. and here is a look at our storm impact scale. we have an approaching storm that will be here late saturday. we can expect light to moderate rainfall. half an inch. the storm ranks only one on the storm impact scale and i'll give you a closer look at the time line and how much rain you can expect in a few minutes. >>