wells fargo is up 4%.e of us saw second-tier banks --not that wells fargo is second-tier but some that have a consumer focus do well today. caroline: overall, wells fargo is optimistic. romaine: mike was here earlier. he talked about this. he seemed optimistic. obviously based on the share price, investors seem optimistic as well. let's see what the managing director and seymour equity analyst at barclays thinks. let's start with wells fargo since we were talking about that, their numbers looking decent. we heard from the cfo and he suggested they think this trend can continue. what do you think? jason: after pressured on roads last fortified quarters, you see loan growth come back with the commercial and consumer front, and it is broad-based. on the commercial side, across the corporate businesses and commercial real estate, and on the consumer front, auto lending grew. that bodes well for 2022. that is a driver banks hadn't had the last several quarters, starting to return. caroline: starting to return.

bank i had wells fargo. we had huge call activity just two days ago, where they were buying the february 57 1/2 calls. they both 28,000 of those calls. boy, did they work almost immediately. by today, with the big run-up to new 52-week highs, those calls nearly doubled on the day. that was the rental side of it i'm actually out of that trade, but i think i'm very confident in bank of america and some of these other banks as well. 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 breaki

they are focused on cost cutting and how much as well fargo -- wells fargo been able to reshape their does this? they want to benefit from the lending boom and jade p morgan is the focus on lending. how much our credit cards expanding? 8:30 a.m., u.s. retail sales in the issue is this is nominal. this is with inflation priced in. people are getting more concerned about inflation yet the higher prices are overcompensating for that. how much are we looking at a cpi year-over-year of 5%. how do you backout the actual consumer sentiment? we will get the actual sentiment. it's expected to decline a touch. danny blanchflower of dartmouth says you have to watch this looking for recession and other say if you look at indicators of consumer confidence, they are still strong stop if you look at the michigan survey, it's been an outlier in terms of while the others show strength. jonathan: the dot is not changed. what a morning we got lined up for you. let's have a shout out for betty it morgan stanley. she went overweight on jp morgan. year to date, that name is up almost 17% in just a couple o

in many respects, we saw that with wells fargo today.: just to reiterate, the earnings picture may be poking a couple of holes into how big of a boost the banks would get in a higher interest rate environment, at least wall street players. the regionals, you say, you are watching for more upside on that front? david: jp morgan's outlook was driven by the trading which will not be a part of the regional outlook. when you think about wells, th eir nii kindness next year is well above the street, expenses were relatively in-line, so that is why you see that stock up. i would point to next week's super regional earnings, maybe more so to wells fargo than the universal banks. matt: what do you think in terms of the loan growth that is now forecast? does that make sense to you, do you see rates changing at all? david: we are still bullish on the loan growth side, especially when you see the data coming through. jp morgan, they were slightly better than our expectations. 3.5% quarter over quarter, that was above our expectations. i thought well

powering possibilities. >>> shares of wells fargo rallying today joining us now is wells fargo cfo mike santomassimo. good to see you and congrats today's performance and year to date performance well ahead of peers. you must be very happy. >> good to see you both again. thank you for having us. hopefully with the market is just seeing is just continued execution on our part and priorities and also continued progress on the economy. we are seeing loan growth for the first time, seeing in a while. seeing good momentum in our wealth business and then executing on efficiency initiatives. continuing to support communities so we have a lot of work to do but hopefully people see the progress we make. >> let's run through the individual points loan growth. how sustainable is it? >> we see it across the board in all businesses if you take the commercial bank as an example part is driven by the new business and clients starting to use the lines more and seasonality that's in there, as well. people starts to build inventory. seeing some good growth there. on the consumer side we see it in our mor

francis: wells fargo recently announced a goal of net zero.st year during earth day. we also joined c-40. tell us what drove that decision to be a leader and how you're going to achieve this goal? this is obviously an ambitious goal. bill: it is an ambitious goal but unless you set a goal and you have a north star to go after if you don't do that you'll never get anywhere near it. so we set this goal. our c.o., charlie sharp is committed to it. it's an enterprise-wide effort. we also committed that between now and 2030, eight year, we will invest $500 billion in investments into the climate change area and for climate friendly investment. so it's an enterprise-wide effort. we're taking a lack at our branches. how to make them friendlier to climate and working with our entire organization. obviously when you look at the impact of these, whether it's the wild it is fires, whether it's the hurricanes, the economic impact in community, the economic impact for our customers, is enormous and the risk to financial institutions and their balance sheet

morgan, wells fargo and citigroup reporting results.owing wage and inflation pressures taking a toll. joining us is an equity strategist at morningstar. what is your biggest take away given that we know there are number of seismic shifts affecting the broader industry after what was a banner year last year? >> my biggest take away, and we have been telling clients is in our conversations, if there is a lot of positive fundamentals in the banks, the markets have priced a lot of that in already. it's a pretty high wall of expectations. the level you have to hit with earnings to get outperformance from here, where names like j.p. morgan, the quarterly results were not bad at all. they reported a ford guide for expenses that was much higher than what everyone was expecting and over the long term that's not bad but it's hard to beat a lot of these expectations right now. that's the big takeaway -- fundamentals are solid, but things are priced in and will have to go better than that. haidi: even when we have fourth-quarter earnings that do be

dagen: coming up, earnings in focus, jp morgan and wells fargo reporting this morning. today, up about 1 and-a-half percent be in premarket trading. we take a look, dig into the numbers. plus, vice president kamala harris still not on the same page as joe biden and people within the administration, the white house's damage control, part of the hot topic buzz of the morning. you're watching "mornings with maria" live on fox business. ♪ maria: next week on "mornings with maria," monday, parents pleading with unions to keep schools open, congresswoman ashley hinson on her role in the battle. tuesday, more border agents shot at from across the rio grande river. former dhs secretary chad wolf is here. wednesday, inflation at levels not seen in 40 years, former national economic council director larry lindsey breaks it all down. thursday, omni hotels and resorts shrugs off the pandemic to continue growing, president peter struble is here. friday, troubling trends for democrats in an important election year. mark penn with his latest polls, it's all here on "mornings with mari

in the industry for a sector that's been leading the market in a big way in this young year is wells fargohis down with marty moseby. marty, why the negative reaction, for the most part, on the street? >> well, what we're seeing is despite the uptick, so if you take jpmorgan's numbers, in 2020 they only earned $9 because they had to provide all that for the loan losses they potentially can have. then they're releasing those loan loss reserves, so their earnings went up to $15. that's been the catalyst for the increase in stock prices. now we're looking at that's going to roll off. you look into next year, and the outlook is for about $12. so if we don't have that provision benefit anymore, what are the core earnings doing? the core earnings have gown -- gone down every year since 2020, and that's because of the compression we're seeing across the city. they're starting to look at a year when earnings are going to be down on a reported basis, and they're going to say what about take that release valve, i uh-oh, things are also going down. so that's why you're starting to see some tailing of

j we were talking about calls on wells fargo and you just bought wells fargo calls. >> yes, sir.eople who have been upgrading this one, scott, and it is across the board they're upgrading targets, they're upgrading outlook. i was not in it. i told you i was not in because i had not seen this buying, and now we just have so whether it was one of your viewers watching that decided to pull the trigger, they bought 28,000 calls so if it is one of the viewers, scott, it is somebody running some institutional money because that's a big trade, 2.8 million share equivalent, just a dollar out of the money on those calls. 57.50s out in february those are the ones they bought. >> all right wow. we'll make it your final trade that's good stuff. jenny, what do you have for us today? >> thank you, sir. >> sticking with our theme of international and energy i will give you one from our international dividend portfolio. total, eight times earnings, 5% yield, direct beneficiary of higher oil prices. >> okay. steve weiss? >> 51 job. ticker is jobs, the only chinese stock i own. i bought it last mo

we have a little time here, give us one good reason why you like wells fargo, we got like two minutes price to book, i love -- >> wells >> it's going to be messy. in terms of valuation, there's nothing even close same as wells last year. they'll get out of the regulatory issues at some point. they'll be able to be back in the markets, giving cash back to shareholders, dividends and buyback. it's my favorite one >> we've never had more time for final trades, it's like a stairway to heaven >> it will give me a chance to introduce two led zeppelin songs. if you're on twitter, you've been trampled underfoot and clearly the levy has broken. this is a company that back in their fabled investor day of 2021, early, they pointed out doubling reference in the next year and a half. i think twitter is a story i don't care about this congressional hearing. i think it's about modernization. the stock's gone way too far, too fast >> pete najarian >> i mentioned morgan stanley. i do love that name. i think wells fargo. jpmorgan beat estimates the last four or five quarters. they've still gone down. y

the performance coming in was fantastic, wells fargo and cit ahad a good start. over the last few years and so you know they do all have quite a lot of performance that they can give up in the short and the medium term and that's what's happening today him i think when we get onto the calls, jp has just begun, it will be interesting to see why they're not coming out with more constructive forecasts given rising rates it's weird, because i think when we heard from brian moynihan last month, he was pretty characteristic on it maybe things have changed. or maybe we will get general stock differentials this year and wells obviously is doing pretty well. the expenses for wells really impressive expected efficiency ratio 63%. people expect it 73% you want it lower on that number again we got j.p. morgan guidance on expenses, 77 billion. that was more than people were expected. >> will, thank you we will see you a little later this morning >> we get to the broader marks, just a little bit in yesterday's steep tech sell-off, which is continuing today, the nasdaq lost 2.5%

at wells fargo it is about 8%. interest rate increases come, that number could be higher. as of those companies assume rate increases, but also say if the economy is stronger and loan growth is stronger, it would also be better for revenue. so the optionality is to the upside. that is how we witness tension, whereas the expenses are better controlled because they know what they are going to pay people in the upcoming year. kriti: we have been talking a lot about the rate hikes, inflation targeting. how does that translate into what you are hearing from the banks? gerard: it is a good question because we know rising interest rates over time will eventually slow the economy down. it always has, and it really comes down to how aggressive does the federal reserve have to be to fight this inflation number. it appears to us that they are behind the curve, so they're going to move fairly aggressively to get in front of the curve to control inflation. so there will come a point where there is fed funds rate at 3% or 3.5% t

wells fargo much more built about loan growth.some of that loan growth in the most recent quarter. we should point out we saw some pretty healthy spending with regards to credit cards, and also auto loans, but auto loan growth was premier league driven to the value of those individual loans rather than the volume itself. we saw drops with regard to home lending, as well as some of the personal loans. those shares up about 2.7% right now the premarket. the cfo is going to be only close a little later today. first republic had some decent earnings as well, up about 1%. a couple of other things to keep your eye on, guggenheim shares down 1.5%. the casino company's doing well if you wanted to get trip over to macau. new rules putting the cap on the number that is good for the companies that already have a presence there. tom: thank you so much. greatly appreciate it. there are all sorts of ways to go here. what we are going to do now a step back and go deeper and richer. you can do that with seth carpenter, global chief economist at m

for more, let's bring in tracie mcmillion wells fargo -- from wells fargo.ow did you experience this incredible run in rates last week, and do you think we are done with it? tracie: i say we are probably not done with it, with the 10 year hovering around 1.8%, that is still lower than the fed's target for inflation, which is 2% in the long-term. at 1.8%, that is still a negative real yield. we think rates will continue to climb here. we see them ending the year 20 to 70 basis points higher, around 2%, 2.5%. probably a little more pain in the bond market before we end the year. matt: what does this mean for stocks? i was looking at the run-up in the 10 year, and it's pretty striking, especially when you compare it to the s&p yielding less than 1.3%. all of a sudden, boring 10 year treasuries are yielding 1.8. tracie: investors are always looking for that relative advantage. with interest rates moving higher, we see them discounting future earnings at higher rates. that brings down the prices that investors are willing to pay for equities. we think that is wha

i think citi bank will be the wells fargo of this year, and i'm long a bunch of banks.rnings, but it happens every time when i banks run up into earnings like they have right now they trade off when they actually announce, but i'm not going to trade around them i'm staying for the long term, knows they can trade down on earnings, but citi is my favorite risk/reward for the year >>> for more options action, of course, tune into the friday show at 5:30 eastern time. >>> up next is your final trades ♪ ♪ ♪ ♪ ♪ fries or salad? salad! good choice! it is. so is screening for colon cancer. when caught in early stages, it's more treatable. hey, cologuard! hi, i'm noninvasive and i detect altered dna in your stool to find 92% of colon cancers even in early stages. early stages. it's for people 45 plus at average risk for colon cancer, not high risk. false positive and negative results may occur. ask your provider if cologuard is right for you. (all) to screening! ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪

jp morgan, wells fargo and city group. only out liar in terms of the response to its quarter. joining us is our head of equity strategy and big bank analyst. what stood out from these earnings reports u perhaps what do you think is most reflective of the overall sense you get from the industry? >> i would say the one thing that jumps out is expense growth you saw that in wells fargo and j.p. morgan's numbers. even when you pull them out, expense growth was still quite high and the guidance that j.p. morgan gave was much higher than expected it's the mode of reducing expenses so, their outlook was quite good >> yeah. so, let's talk about that j.p. morgan expense guidance. what do you make of it and what does it say for the course of how this year is going to go one would think they benefit on the net interest margin side, potentially, from the same environment. >> your ror right. the benefit all the banks are going to see -- in fact morgan identified net interest revenues, dealing with spreads from goods and assets, that co

my, wells fargo, the problem child managed to rally and while citi citigroup pulled back but jp morgan we own wells for the charitable trust after the long weekend we heard from goldman sachs i like the quarter but wall street disagreed and didn't push hard on it the stock plunged 7% and yesterday morning we got results from morgan stanley and bank of america, both of which did better rallying substantially but the whole market roled over and that got repealed this is a good year for the banks once the fed starts citing in the first ernst season of 2022, the group has been all over the place let's start with citi. from jane fraser took over the bank, it may have been a bit of a mess she set out to stream line the business and get into the good graces and still to early to tell work in progress when citi reports, wall street was not impressed. why, expenses were too high. up 18% year-over-year. the best thing you could say about this one is that the stock is cheap, trading at 80% of the tangible book value which would be if you liquidated and we don't do that. this is crazy cheap on boo

try to do something new for wells fargo.o you have that feeling for citigroup? i don't yet. jonathan: first of all, jane fraser comes in. she's got to work out simple questions. complex answers and comp looks processes to go. where do i want to be? what does our footprint look like? now does on from there. lisa: how do you maintain the talent at a time of talent wars and increasing compensation when you are trying to rejigger everything and craft a new strategy? it is really a complicated thing to get not -- to get done. jonathan: kicking of earnings season with j.p. morgan, wells fargo, and citi area next week, goldman, bank of america, morgan stanley, and the rest. we are -0.7% on the nasdaq 100 -- negative zero point 7%, on the nasdaq 100, negative zero point 9%. this is bloomberg. ♪ >>>> the problem is the fed is in a box. you have fiscal policy uncertainty, economic policy uncertainty, and geopolitical issues, so we expect the volatility earlier in the year, but i think it is going to end a good note on earnings. jonath

wells fargo the only one up about 3% goldman sacks reports on tuesday and bank of america on wednesdayback to you. >> we will have more on that in a moment thanks >>> the nasdaq is trying to avoid hitting a three-month low as the tough start for tech continues. my next guest has three names to buy on the dip let's welcome in david katz. i think of you as a value investor it tells me something if you are sniffing around. what names do you like >> some of the large-cap tech has been hit along with the overall group. we like facebook, google, microsoft. we think all are good businesses, richly priced and now selling at reasonable prices facebook and the google are about 20 to 22 times earnings, so relative to the group very attractive we think they've been thrown out with the bath water. we think when tech rebounds they will be one of the first to rebound and you are getting it at a great price >> you are sticking with mega cap tech i don't see netflix on the list though >> you don't rather than netflix we like comcast or viacom, selling at better valuations. we think there's a lot of air

and all these bank stocks at new highs with jpmorgan and wells fargo. stocks opened at new highs like wells far fargo, but they had not contributed to the raleigh. in fact you had argument they were a source of funds tyler, this is a interesting development. can you say do i have strong feelings that this is the bottom no, that doesn't feel that way, but it's certainly a good sign somebody is attempting to take advantage of the declines. don't know if it's the bottom, but it's encouraging for tech bulls. bob, thank you very much let's move on to a check on yields as investors turn their focus to inflation data. fed chair powell's senate testimony later this week. there you see the ten-year note, little change from where it was at the end of last week, but certainly much changed from where it was before we heard the minutes from the fed meeting last wednesday there you see the two-year note. it's been moving up as well, right now 0.898% oil is closing for the day in what's been a volatile session pippa stevens has the numbers for us. >> that's right. this

there are two checks deposited into this wells fargo account.$500 for himself and then donate the rest. >> why do i have to why didn't the account just donate? it makes no sense. he is family, he has been with the family for decades. i would like to do the same as well. thisthisthisthisthisthisthis for 4500. and then then then then then thn his behalf. >> the fact that this money went out the window so quickly, i was just like holy cow. >> the checks deposited had bounced. why is all of my money gone? can you please exercise some patients? it is my issue with the account officer. i am really sorry. i promised to make it up to you. janet wants to know that they did not send a warning like this one notifying her that a new river suit -- a new recipient had been added since she is the custodian. early morning services told 7 on your side and alert may go to one person depending on how the account was set up. >> why and find out? >> she wants to know why wells fargo did not notify her of unusual activity on the account. wells fargo told us it can ta

yesterday we saw big, fast trades hit in wells fargo.m now we'll be getting earnings from wells fargo and several of the big banks. to see the upgrades and then see the very fast 28,000 options trade in wells fargo, that to me dom said that people are still betting that rates hold here at 172 or so, and/or keep pushing higher, but they do not go down in the short term or they would be betting against banks like wells fargo. but they're doing the opposite they're very bullish into the earnings tomorrow and in the financial space we've seen the xlf, as well as wfc and several other of the financial stocks just ripping >> so john, i wonder, from your side of things what do you think is the more compelling trade here, given the fact we've seen a transparent fed so to speak on a relative basis with regard to their intention to raising rates. are you looking for more traditional lenders, retail banks, focused on the investment banks, security options, where is the positivity right now? >> i think you always want to be aware, as you always have

wells fargo a big winner in his earnings cycle. shares were up 3% in friday's training, one of the few banks to perform well in the trading and that is because investors are trying to see a sense of the turnaround coming. a process improved because of regulatory issues. but huge indication the bank is poised to do well going forward. jack: goldman and morgan stanley, what are you looking for? carlton:goldman and morgan stanley are looking at trading revenue and the backlog but most excited to see bank of america. of the big banks they are in best position for rising rate environment and jamie dimon could see 7 rate hikes. don't know if that will happen. it would be huge. jack: i need you to explain to me the omicron variant is raging through the economy. what stocks are going up? travel stocks? airlines? cruises? i would think the opposite. jack: i have two theories. you can see this looking at us global jet etf off to a strong start and the s&p 500 is not. the omicron burnout 3, jpmorgan strategists expect omicron's lower severity

morgan down 7%, wells fargo up almost 15% year to date so far. something to think about. you keep talking about the most important inflation print of the year, you keep putting to march but may 11 is the inflation report. is going to be very interesting. we see the peak in inflation and then a different way to kicking in 12 months ago. if it phase materially, that could set the tone for rate hikes. tom: i thought there was a blistering note from deutsche bank which really can humble those looking for four to six increases. he said this inflation is contractionary. jonathan: he also said if you wanted to know where it neutral is, the equities will settle back. but the financial conditions tell you. tom: we are supposed to be in davos. jonathan: i am think we are not. tom: i talked to barry and he said no virtual piano bar. you should hear barry play meatloaf. jonathan: these are high-class problems. if it happens this summer, i will be lobbying hard for it to say in the south. i don't want in the winter. coming up on the bond market, looking forward to subadra rajappa.' le

jp morgan, citi, and wells fargo kickoff earnings. the fed have the stamina to tackle inflation to the degree they need to? dr. doom himself who of course was very vocal during the 1970's, henry kaufman says no. he says to turn the market around to a more non-inflationary attitude, you have to shock markets. you cannot raise interest rates bit by bit. manus: but did we make it to the end of the week really intact? the dollar flopped and rolled over. yields almost exhausted themselves. they were out of puff by the time they got to the end of the leg. i like the way you put it, have the fed locked themselves in? four rate hikes, five rate hikes, that is not tightening, merely adjusting to normalization. a more normalized world. you are going to have 70 banks due to hundred rate hikes this year according to martin malone. a paradigm shift in liquidity. dani: that's a lot of doom and gloom for a friday. i thought we were supposed to be happy the weekend is approaching. but you are right. 70 banks. ella from pictet says the front end of th

wells fargo right behind it with the sensitivity. m&a is alive and well.de doesn't make any sense to me and like american express >> two minutes to go in the trading day. mike, what do you see? dow down we have moved south all hour. >> mixed under the surface you got fair margin of advantage on the advancing volume. i mentioned earlier the equal weighted indexes are beating so i see some hesitant action in the big caps definitely going to the sidelines before the payrolls number with a wounded growth tape this is what's happening in the nasdaq 600 new lows today volatility index holding pretty much yesterday's garn gains. still on alert that payroll number tomorrow has something to do with why investors are weary of what might strike the tape here. >> we have lower across the board. gist slightly. s&p down 107 nasdaq down 15 and then the dow down about half of 1%. we do have therefore a mixture in the sector performance. health choir, materials and utilities at the bottom of the pile microsoft and apple down again today. ark etf down following a big declin

wells fargo -- who am i missing?you break down these calls, it is not just about who has 4, who has five, of those who have 5 is at the same as the other -- it the same as the other 5? it will be interesting to see how this plays out in the bond market. tom: with data the way it is, they will turn on a dime. i do not inc. this will be an evolving thing. it is going to -- think this will be an evolving thing. how do you get into rate sequential game with sub 2%? jonathan: real gdpjonathan: j.p. morgan was the first one -- sub 2% real gdp? jonathan: j.p. morgan was the fifth the one. -- the fifth one. a tenths of 1% on brennan. -- 8/10 of 1% on brennan. tom: very much associated with looking at the broader picture and the global view. we know her for her work at the mckenzie group. susan, if you are writing for mckinsey global institute right now what would you say about the growth trajectory given the growth of em countries? susan: we are seeing really pernicious supply chain disruptions and the resurgence of omicron

wells fargo will give customers 24 hours to bring their balance above zero before charging them a $35 also allows people to direct deposit funds up to two days in advance. bank of america is cutting its $35 overdraft fee to $10 starting in may. we'll be back with you right after the break. princess cruises was born right here in california. for over 55 years, we've been helping californians make the most of their precious vacation time. and right about now, we could all use a real vacation. so forget the road trips and rentals and sail with princess right from san francisco to the glaciers of alaska, the beaches of mexicos or along the california coast. book now at princess.com. >>> just 22 days from all the excitement in beijing. and for one winter olympian, their role on the world stage is already challenging traditional gender roles in a highly competitive sport. pairs figure skater timothy leduc had to come out of the closet twice. once as gay and then the first ever openly nonbinary winter olympian. they say they hope their participation will help other skaters feel more comforta

. >> david rubenstein peer-to-peer conversations is sponsored by wells fargo, helping clients use profits for a purpose in the communities we serve. david: i want to talk about starbucks. you have been on the board for how long? >> since 2006. david: do you go to starbucks every day? do you have to wait in line like everybody else? >> yes. that is important to see how everything is working. how long it takes, what is happening in the store. david: when you walk into any starbucks, they must know you. mellody: no, it is good to not be recognized. you can truly assess how things are going. i take pictures of the cases, i do all sorts of things. david: what is your favorite drink? can you say? mellody: i make a joke, i like my coffee black like me. [laughter] david: howard schultz has been a mentor. he is the founder. mellody: very important. david: there are other coffee chains around the world, what did he do that made it the biggest in the world? mellody: he started saying he wanted to create a different kind of company, and he had a point of leading through the lens of humanity. it sound

wells fargo still up, but as an industry group, negative on the year, even with the likes of wells fargo saying five hikes in 2022, and that is not just wells. that is now a consensus position of a lot of people in this market. five hikes for the year, and the banks aren't delivering gains. lisa: i think a lot of investors weren't counting on some of the bonuses and compensation costs the banks are having to put out. they also did not count on the idea the yield curve would flattening. they thought it would be steepening. they also didn't know how much lending could really pick up, and it looks like it is going to be tough to get to the levels a lot of people wanted for that revenue. jonathan: are you ready to talk about growth risk? morgan stanley is. lisa: i am always ready. jonathan: i know you are. [laughter] do you think that becomes the consensus view, that we jump across from inflation scaring, the policy response, to it is going to tighten growth and hit growth hard? lisa: this is to your comment about what would your market call be. that is the real question. if you see growth a

morgan, wells fargo, and citi posting out their latest results this morning.dy set the bar pretty low for the group. president biden making history nominating a new slate to fill some vacant roles at the fed investor reactions straight ahead. later on, the latest on the pandemic and we are showing you what may now be the only metric that matters. and get reaction from one doctor it is friday, january 14th and this is "worldwide exchange. >>> welcome or welcome back, everybody. and good friday morning, thank you very much for joining us, just about 5:30 this morning, here's how your money and investments look right now we are seeing stock futures higher across the board. markets trying to prevent two weeks of straight declines right now not up much but we are in the green -- as i said the nasdaq goes in the red still a rough go for the nasdaq high high-tech, high multiple gains as interest rates rise it reduces what should be the valuation on many of those stocks we are seeing the tech stocks they got hit hard this week and this year. there's been a lot of talk

thanks again it is great to have you here >> thank you >> steven cahill with wells fargo securities >portfolio do in 2021 should be pretty well unless you run a hedge fund many top picks underpurchase formedunderpurchase - under performed and we'll show you that today > > >>> alibaba dropping we will be back in a movement. a. >>> alibaba dropping we will be back in a movement. wg become there's this feeling we chase... like someone upped the brightness on the entire world. like your body is super-charged, but your mind is super calm. it feels like 20/20 vision for your whole being. and we'll chase this feeling, until we can feel it... one. more. time. feel the hydrow high. ♪ >>> welcome back who needs hedge funds? while the markets rose 20% or more last year, many of the names owned by the big funds didn't share the ride. leslie picker is looking at the numbers and fall-out for us. leslie >> hey, kelly. yeah, we are looking at the goldman sachs basket of 50 names that appear most often appear most often along with the top 50 names of hedge funds. the so-called vip list delivered 11% r

tomorrow, jp morgan, citi, wells fargo, then bank of america, and goldman are all next week. >> granted the bigger banks have a month later and they say december was better. do you know why it was so slug niche that period for jefferies. >> clearly there is going to be a theme in general capital markets are less at attractive versus interest rate sensitive positive business. but we may get a different picture of company performance within each subsector. what will be interesting to see tomorrow and with goldman and stanley next week is whether jefferies was more stock specific for the quarter or whether it is broadly going to affect all the banks fixed income trading hasn't been in key area for the capital market's performance over the last year or say we have had amazing m & a performance, ipo issuance and trading in general there are other areas where morgan stanley, goldman sachs, and capital banks citi and jp morgan can differentiate themselves and pick up the slack. although they fell a little bit in lieu with jefferies, but not as much. >> and jefferies had other positive trends,

wells fargo says they haven't seen loan growth yet.citigroup, their ceo said similar things about corporate lending. corporate client still have strong balance sheets because they can rely on stimulus money rather than fresh borrowing. they were all optimistic loan growth would bounce back this year. jp morgan today have huge firepower and -- look, this is generally very good news for the economy. merck is still flesh with cash. -- americans are still flesh with cash because of the pandemic. haidi: the other major things that have emerged out of the great resignation when it comes to the junior ranks, what are we seeing in terms of recruitment and the market for talent from the junior to senior ranks? >> jamie dimon vowed to pay whatever it takes to get the best talent. he cited global lenders, citadel, paypal, a range of fintech. he said there's a lot of competition and they intend to win and sometimes that means spending a few bucks. we know about goldman's generous compensation season and we will know more when they report their qua

. >> by the way, some very positive comments this morning in this report from wells fargo.t is now a content-execution story, says wells fargo and they seem to believe that they're going to be able to do it in terms of creating more content that is going to be compelling to broaden out the population of people who use the direct to consumer platform, disney+, so they can get to the numbers that are out there for fiscal year 2024 the stock is responding positively by the way, thiswas not a good performer last year. we've seen a number of those stocks that maybe even caught up in some tax laws selling at the end of the day discovery, key amongst them. up 11.5% so far for the year. >> i know disney might bail out the position for the travel trust. what you really need is a definitive metaverse plan in a sense that, i want to be in there with bambi i want to stop what happened to bambi's mom. i think you can just change history. we found out it was an -- >> undue trauma for a lot of kids. >> we just get rid of that hunter scene and you can be the hunter and miss. the metaverse,

i think 2022 could be a much better year for wells fargo since any year since 2017. i think it pulls back, we can keep telling you to buy it you have to stay tuned then we get to hear from black rock which is surprised to the high side. you'll get a great analysis of the world. not just his usiness from ceo larry fink. this is a censensational compan. then there's citigroup can jane frazier tell a tale that makes the stock catch up. jamie will tell us what the heck is going on in banking and in business and around the world. i love the chart because i get to put from it for months on end. it spreads into if more mature ones at the close, it made me feel like the despair is beginning to hit that nasty level that often signifies a bottom the industries and the banks were red hot it's a bad rotation. i'll help you with that later in the show their vit's a lot easier to buy the stock of an established company that's making money. earnings are what matters again. tangible gap earnings. who have thung it. let's go do omar in new york omar. >> caller: happy new year. >> sam

. >> wells fargo has been a monster.numbers the one i saw sort of laser focused on is tangible book. for citiit came in at $7 t.16. i do think citi will trade back the tangible if it's true, it's not bragging. i think citi is interesting here i think citi could be what wells fargo was last year. >> what dro you think of citi? >> both my kid play basketball i'm no help to them at all i've got toleell you. if they played tennis or skiers, i might be able to help them more it's about as wide as i've ever seen it in terms of valuation. i kind of like it here if the market is volatile, ta won't help them great deal of the two, i have to say that citi is a good pick. >> jane phrfrazier announced thy are getting out of mexico. she's exited a lot of these consumer banking businesses abroad what is the future of that name and why do you think the stock hasn't really moved up that much on some of her moves >> well, i think -- are you talking to me and steve? i see steve so i'm going to be quiet. >> i missed that too sorry. sometim

bank is unloading assets as part of turnaround plans, which wells fargo considers as nonstrategic --ll fetch for $1 billion. shery: breaking news out of japan, getting the ppi services year on year number for the month of december coming in at 1.1% growth. that's the same level by the previous month and also slightly higher than analysts had expected at 1%. growth at 1.1%. this coming at a time where we are seeing the bod releasing opinions about the january policy meeting. one member saying it is appropriate to keep the current on a terry easing, another boj member saying they should add easing as needed without hesitation. of course, we continue to watch central-bank moves as the japanese yen continues at a weak level of 113, 114 per u.s. dollar. we saw pmi fall into contraction territory this week given the ongoing covid concerns. we'll be watching those numbers as we get the latest on the boj's january policy meeting, as well. taking a look ahead at the trading day, corrections are looming for more major stock benchmarks following new zealand and japan's topics. asia equities edi

wells fargo is -- hard this year. wells fargo is up 17%.to do something to impress investors. haslinda: thank you. have a good weekend. rishaad: coming up, india entering an economic super cycle. what that means is. ♪ -- what that means is next. ♪ haslinda: these are live pictures of mumbai. futures pointing to a lower open in-line with the rest of the region. rishaad: let's look at our next guest, who believes india has entered a super cycle, driven by a turnaround and corporate earnings. we are joined by him now from mumbai. thank you for joining us. we have been here before. many people say this time it is for real. give us a sense why you believe that. >> thank you for having me. i think the housing cycle in india has had eight years of downturns. the up cycles in the market that lasted seven to eight years. we just completed the first year of the cycle. what we see going forward on the housing trend is unsold inventory as at an eight-year low. housing affordability is that the best level in the last 20 years. broadly, we are seeing job

. >> wells, fargo. a value play at this point or how do you consider that? is that just off the print we're talking about a stock you think is going to perform, let's say, over the next 12 months is that the same bank? >> so i guess a couple of things first, wells fargo is one of our overweights on a 12-month forward view look, the mane rin reason here because of its sensitivity you get a 50 point curve in the expects are. the ets goes up about 18%. so it is highly geared to rising rates to raise everyone up higher than expectations or in the cringe i'm sorry, in consensus. when i'm thinking ability the other major leg for wells fargo, it's expenses. look, their expense ratio right now is pretty high it's a little fast there is a lot of reasons why. we don't need to get into that now. we can do that on another show that is something that sets it apart from other banks as i think about the next two, three years of earnings growth coming out of wells, part of the leverage to earnings growth is a reduction

jonathan: chris harvey of wells fargo joins us now, the head of equity strategy. the high volume cathartic puke we were waiting for. what is there? chris: that is my scientific term. typically what we see at the end of a selloff is we see volume increase, money move from the weaker hands to the stronger hands are that is what we saw yesterday. yesterday there were three things we wanted to see and got. fixed at close to 39 -- the vix at close to 39, we don't think it is sustainable. you have small caps outperform large. that is typically what you see when you have any -- and aggressive hedge fund to grossing. -- hedge fund de-grossing. tom: what about the catharsis and we seem to be doing this in a three hour span. i don't i that. if you go back to 1942 in a slower time, catharsis took a couple days or even a week. is the new catharsis minutes? chris: everything happens faster these days. could we have more of a selloff? we could but yesterday was one half of a selloff. every time i looked down we were gapping lower. we did hear about hedge fund liquidation. we di

anna han of wells fargo securities. er a bit, down 0.75% on the nasdaq 100, down about 1% on the s&p. some underperformance in europe. the stoxx 600 not doing so well. lvmh now negative on the day. this is a stock that opened up higher in europe by 5% and is now down by 0.5%. if you want a feel for the earnings, organic revenue, the main division, fashion and leather goods, revenue was up 42% from 2019. not from the year before, from 2019. those are unbelievable numbers, and they can't buy a rally in this equity market. lisa: it seems as though people are trying to quickly capitalize on any rally whatsoever and get out as quickly as possible. it feels like a trading market because of the lack of certainty, and yet kailey asked, where do fundamentals factor into this? it is hard to know the answer given that we are continuing to see underperformance, even by names that are doing just fine. jonathan: trading lower in paris, don't buy more than 2% there. the benchmark and frank for it, germany down by about 2.5% -- benchmar

in terms of tomorrow, bank earnings, jp morgan, wells fargo, blackrock.out a lot tomorrow from the u.s. making sector. economic data, watch out for that one. we get the university of michigan's data. dpi, france and spain is where we get the data from tomorrow. alyx: looking forward to that that is it for me and guy on tv. coming up, balance of david westin. guy and i are headed to radio as well. you can also catch us as a podcast on apple and spotify. this is bloomberg. ♪ and there you have it. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet, but mine has 5g included. relax people. my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one-upping itself. take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. >> from the world of politics to the world of business, this is balance of power with david westin. david: from bloom

the contrast between wells fargo and jp -- wells fargo's quarter was fantastic. >> the narrative is,hey've already done the hard things in terms of expense control that the others haven't yet -- not that they haven't been dealing with, but they haven't -- >> there's a line in the j.p. morgan piece which feels like, they're a pitiful helpless giant. you give me 2 billion, i'll move to the cloud right now one of the things that people said over and over again, including ibm, the banks have not adopted the cloud. i think a lot of people felt that the banks had good technology i read that -- and i just said, wow, have they skimped on moving and -- their expenses are terrible, and then jamie dimon is like, fintech i don't know, i read the j.p. morgan piece and i said, that's got a little bit of a toxicity to it. when i read that -- i live two blocks from the canal. and there's bubbles, and the water is green but it's not green for st. patrick's day like in the movie "the fusion. you're swimming in there -- >> i thought it was getting better. >> yeah, sure. it's superfun. >> where are you