morgan stanley at a risk of higher opec supply. i think these salaries can push through and rebalance by 2018 -- the saudi's can push through and rebalance by 2018. supply and demand is in balanced by 2016, i think we will hear that as well. rich, in one word, where we going with oil? richard: it's very important, the oil market is stabilizing. and supply and demand are coming into balance later this year. david: rich chlorella from pimco, thank you. verizon is the leading suitor for yahoo! after several bidders dropped out. that's coming up on "bloomberg go." ♪ john: this is "bloomberg . it is a beautiful day but it was not that pretty for indexes. let's take a quick look at futures. doubt futures erred down by around 43 points judged dow futures are down around 43 points. dax is relatively unchanged. almost full seven percentage points lower. we are now only lower by 3.5%. yields and oil are moving in tandem. a little bit risk off right now but for the banks, another bank on wall street with an upside surprise despite decli

i think morgan stanley is well-positioned. david: i like vonnie more but i love matt's chart better. you're still my favorite. ♪ we will be right back. vonnie: global stocks rallying after losses from the failed doha talks. profit at goldman sachs plunges from last year. tech disappoints as netflix and ibm earnings underwhelmed and shares her in the red in early trading. and it is primary day here in new york. a big test for donald trump and hillary clinton in a state that both call home. ♪ vonnie: we are about 30 minutes from the opening bell in new york. this is "bloomberg ." i am vonnie quinn with david westin and jonathan ferro is in london, . david: we have a lot of earning news to cover today. jonathan: we are you down to the market opening. futures stay positive throughout most of the session and the u.s.. futures up 38 points. there up around a third of 1%. here in london, we are on highs of 26 points, collet 4/10 of 1%. i will tell you what is happening in fx and commodities -- a risk on mood indeed fx market.

morgan stanley beats estimates thanks to cost-cutting measures. tradingeing declines in and fixed income revenue. we will look at how investors are reacting. ♪ mark: i am mark barton. betty: time for a look at some of the business stories in the news right now. confidence little changed in april. that is an indication housing market lacked momentum. the national association of home builders, wells fargo builder sentiment, greater than 50 mean more people build good market conditions. the force was in the toymaker hasbro. it posted earnings that beat estimates thanks in part to demand for star wars license toys. disney princesses. that is not for you. that also helped. a deal worth 1.6 $5 billion. stockholders will receive $36 in cash per share, representing a premium of about 89% over the closing price from friday. is expected toon close in the fourth quarter. we will head back to the markets where julie hyman is. julie: i want to mention all three major averages are now higher. daymakes its highs in the as well. morgan stanley, not really hurti

the morgan stanley note talked about losing market share. i don't know whether or not that's absolute fact. we're going to find out pretty soon. but the previous quarters haven't shown anything like that. so this is a very, very big call. >> this gentleman, steve, says they believe that under armor q4 same store sales negative. they think running footwear sails trends are decelerating. they criteria a slow down in growth of the women's business. under armour would say look what we delivered and continue to deliver. we're investing in the future. we're doubling down in the investment in technology already paying off. and as kevin plank has said in the past, we're just getting started here. what's the street missing? >> so i don't know if the street is missing anything at this point. when you take a look at the stocks that have had good run-ups, and under armour had one, back where it was, as josh pointed out. you have a stock selling at a premium to the market multiple and substantial premium -- >> always probably will. >> unless their growth

it's not like morgan stanley was doing a lot. we have morgan stanley. what do you think the broad takeaway? >> the money sector was a little more than the morgan trading. i bet goldman will be better than morgan stanley, but that's not really where you want to be in terms of the crux of dpn chals. >> they're doing very well on loan growth and expense cuts so that's where you'll see better performance. really good numbers. >> i think the big new york banks told you they were oversold. people didn't own enough of them. they're not really having a terrible time but they're just barely kind of earning their cost of capital, barely if they're lucky, book value. it's not an exciting story but it's enough that it got the stocks up to this level. outside of jpmorgan and wells, it's enough. >> by the way, we're waiting for these big earnings reports. we're also waiting to find out who buys yahoo. today's the deadline. >> you're not going to necessarily hear the announcements, we hear every bit of news. i do think, you know, it's not surprising to hear that veriz

next up, morgan stanley had a very difficult first quarter. management indicated the improvements toward the he said. meanwhile the companies got very aggressive. i like that. how about citigroup? like everyone, citiwas playing by lousy trading results. but things improved in march and april. it is the most international banks and the overstretched oil companies the holdings could be gone by the end of the year. bad bundle as bad as it could have been. i like city. if you exclude games, the revenue decline year after year. the trading business a horror sown. peering where the numbers, the some shocking cost cuts with noncompensation spending down 49% from the previous quarter. compensation and benefit down 40% year over year. you'll notice this is a repeated theme of the banks. goldman told us february was better than january. with all these cost cuts they put there when business comes back, a lot more of the new found governor will drop. how about bank of america and in their regular solid growth. the company continues to cut costs with non-i

but why does morgan stanley not think that? >> we are getting a rebalancing in china which is more mathematical. consumption growth. that is how you are getting the consumption to gdp higher, and what we want is strong wage growth. with a sustainable manner. right now, we are seeing the deflation is hurting corporate revenue growth, which is then translating into lower wage growth. we are seeing jobs growth stabilize. >> we are seeing a demographic change. this has changed significantly. but if you look at the wage growth data which they have put out, it is decelerate in, so therefore the aggregate consumption growth is also decelerating. in some sectors like, for example, cars, and the internet-based spending item category, like coffee shop sales, but not really an aggregate level of overall consumption growth. that is actually continuing to slow. this is academic, but the data we just got, the private data, worst is over with. was a big shock, and china was going to collapse, that is not happening. china, the big issue with i

we are watching for morgan stanley for earnings. s&p down 5. turning ight right now over the commodities, oil down about 3%. had been down over 6% at the meeting, actually meant no deal. gold is gaining about 5 bucks. we are seeing money going into the yen today this after oil-producing nations the yield has gone down some. now, we turn it over to mornings with maria, we say good morning to you, maria bartiromo. maria: happy monday, everybody. it is monday april 18th. top stories right now. 6:00 a.m. on the east coast. final push for votes in new york. donald trump holding strong lead in the polls heading to primary tomorrow. trump fought back against the system. >> you're allowed essentially to pay off these people. you're allow today pay off these delegates and, again, we want to be smart, we want to be fair and it shouldn't be allowed, so they go out and they're wining and dining, you have no idea what's going on with those delegates. it's a crocked process. maria: on the democratic side both hillary clinton and bernie sanders holding events

i think you wait, hope morgan stanley is right buy it on the dip. shorts will get squeezed after earnings 37. >> so the market share thing, i haven't heard other folks really talking about this, so it's pretty interesting morgan stanley talking about loss of market share. the shoe part of the business is phenomenal. growth of 95% was massive fp only 17% of what they actually come doing in terms of sales. so you just wonder are they going in the right direction and where are they losing. if they're lose to go anybody, i have to think it's lululemon. they have made a massive comeback. well over 60 plus today and it actually pulled off with this sentiment was bad, but i'd keep an eye on that one, as well. when you look in the online sales and growth, i think lululemon is a buy on the pull black. >>> coming up, tesla's warning for its model x drivers, could it have implications on the stock. we'll hear from fim are a bow in a special report. you're watching "fast money." >> money will always be paper, but gold will always be gold. >> that might be the c

morgan stanley three j.p. morgan ubse & co, bcg henderson, and bny mellon. thank you for your support. [applause] i will say quickly, throughout our history, we have convene thought leaders on international affairs impacting our demographic. tonight's event continues that legacy not just because of the panels of speakers. it is the inaugural event of the paul volcker program. grateful to paul. this is the first inaugural paul volker speaker program. justicewe have done him with this turnout. [applause] i would like to turn quickly to what will happen on the stage. this conversation has less to do with interest rates, whethe they rise and fall, and more to do with the fed chair perspective on leadership and the values in their decision-making. values.a focus on we hope you will agree this conversation and many more like it to come in the future demonstrates the can be a beacon of international harmony and understanding proving humanity can surpass barriers of race, nationality, coulter and traditions that have divided the world. i would like to make an introd

they outdid morgan stanley, right? morgan stanley had a 6.2% return on equity. goldman came in at 6.4%, jim. >> i mean, these are like utilities. i mean, maybe they said to hillary, listen, we got to start making more money here. we can't give to you as much as we'd like. the line items, david, did you find a line item that you liked? >> it wasn't a lot to like in the quarter. however, i don't believe -- yeah, i mean, fick was -- it's not like we haven't seen this story over and over and over again. and yet the bank stocks have actually performed fairly well as you guys both know in part because it wasn't as though anyone was expecting a particularly good quarter from any of these companies. and we didn't get it. >> morgan stanley doesn't have fick, which helped them. but i bet you, david, on the conference call if they talk about march being good, if they say the first ten days of april were good, this stock is going to trade above book value and looking at great situation. so i set the stage with a down beat analysis, but if march was good, this is a bargain.

than investment banking. >> i think morgan stanley will turn out to be a good move. but you take over the last decade, goldman sachs have actually outpaced the xlf and regional banking, the kre. the only thing they are lagging right now, and dick bove brought that up today, jpmorgan. take out jpmorgan, and this company can't be compared to jpmorgan. they're not a bank. that's not what goldman sachs is. they're essentially, like guy said, a premier hedge fund that happens to be traded out in the world, in my opinion. you can't compare them. they're not like jamie dimon and -- >> they're not a hedge fund anymore. >> that's the core of it. >> that was their bread and butter. >> that's part of the lag. >> when the crisis was there, they had to technically become a bank. that is obviously really hamstrung them. i think it is the premier franchise. it's a lumpy kind of business. it's not working right now. but i think over time it will. >> real quickly, the advisory business that morgan stanley is involved in, it's been a score. but i've got it tell you something, there's

not only are morgan stanley, but also began and currency -- also the yen and currency. tom: good to see you on "bloomberg surveillance." ♪ . . >> no deal, crude plunges. the other day on wall street, morgan stanley with breaking earnings for the fourth quarter. more on the results from the big five and what it means for the broader picture for u.s. banks. in a president on the brink, result lower house votes to impeach. the process moves to the senate. a warm welcome to "bloomberg go." , with david ferro westin and vonnie quinn holding down the fort. david: we miss you here, you are in your hometown. we have brazil and morgan stanley, and particularly we have dan yergin joining us to talk about oil as well as rich clarinda. onnie: get a quick check of the markets.

the latest on morgan stanley. asian stocks are on the decline before the boj and fed meets this week. the prospect for further japanese stimulus helping strengthen the yen from a three-week low. our next guest says there is a rising risk of a serious correction in equity markets. join us is a founding partner. take you so much for joining us this morning. let me get started with china, the cousin was just talking with our correspondent and people are becoming more cautious there but we are seeing the headline figures improving for march. was that just a seasonal blip? >> if you look at the underlying driver of those numbers, you would be scared. [laughter] shery: they look good in the outside, but not so much when you dig in. recovery, butke a look at the expansion, the ratios rising, the credit events, this is really a warning , the default in cases is a rising factor. let's say, the macro number looks good, but how long does it last? that is the question. is it really coming from export demand or investment dema

i want to get to morgan stanley's numbers. they reported that is the firm reported first quarter earnings 55 cents a share, that was ahead of wall street estimates despite what was a 54% decline in profits. revenue was in line amid weakness and trading in investment banking. ceo james gorman saying while he sees some signs of market recovery, global uncertainties continue to weigh on investor activity. the return on equity was 6.2%. >> i know. oh, my. >> however, m&a was very strong. of 25% completed deals they were number one. equity trading was solid at about i think 2.1 billion. that was up 15% quarter over quarter, down 9% year over year. global wealth management not too bad, revenues down 4% year over year. they also kept expenses down. i think their comp ratio was 37%. did have a drop overall in expenses. and they got a book value now of around 35.34 is what i'm looking at, jim. and the share count was down 2.4%. so some positives in there. they beat the estimate. the stock is looking up. you can see it less than 1%. but

morgan stanley has positioned itself to benefit from that. obviously you have the other four of the big six that are positioned to benefit in that sector. goldman is not. >> dick bove we leave it there. thanks for calling in. >>> coming up, u.s. car makers are losing market share to chinese competitors in the world's largest auto market. who is winning the battle? plus exclusive details on how hedge fund billionaire kyle bass is upping his bet against that country. you can fly across welcome town in minutes16, or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪ >>> china, the world's largest auto market, was dominated by u.s. auto makers. now, though, they are losing the fight. question is, can they make a comeback? phil lebeau joins us live from beijing. >> reporter: we are about to tell you ab

a.p., good to see you, adam parker, morgan stanley, and good to see you. >> as always. >> and now, in the catastrophic period, that is what dan loeb wrote in the quarterly letter saying that there is no doubt that we are in the first quarter of a washout in hedge funds and certain strategies. >> well, that is what i see. this is not every hunl fund of course, but in any industry where you have such severe excess capacity as we do with the hedge funds and the fundamental research means little to nothing, and all driven by the etfs it is difficult for the fundamental investors the make money, and long-only funds similarly have difficult time making money. what is driving it? the bigger debate of the active investo investor, and there is going to be a comeuppance there, and one example, a fund that came over my desk is averaging 2% over the last three years around and the management fees alone are 2%, and then 20% of that, and less than 2%, and they are making a big e return than the investors and fees have to come down, and lobe loeb is one, and i didn't say it, but i was with another a

still with us, dan skelly of morgan stanley. debbie, explain why this deal makes sense. >> the deal makes a lot of strategic sense. mostly because in reaction to health care reform, you see the medical device companies are following a couple of different strategies. unfortunately at it was not bott was not anb following either of them. the right have products or the depth of innovation you need to secure reimbursement nowadays. it was critical for abbott to make some sort of acquisition in order to remain competitive as its competitors were changing and it was becoming more irrelevant. david: saint jude is really a medical device company. overlapre an here? >> abbott has a medical device division. within that division there is a portion of its business concentrated in heart devices. and that does pair quite nicely with saint jude's heart disease platform. david: antitrust authorities sometimes think pairs nicely means a regulatory issue. >> we are not too concerned about that. we think the portfolios are complementary. carol: je

is morgan stanley too hasty in cutting? and theythey were week had to make strategic decisions about what was the proper size. i think they had to do it. because they're not as big and fixed income, and that is what came back in march more so than equity, and morgan stanley strengths are a equity and m&a. i think morgan stanley will have a disappointing quarter. krishna: they have a wealth management business where they can allocate capital that is a good growth driver that other banks have done. reallocating capital from fixed income growth management makes perfect sense. charles: which is what they have been doing. david: charles, i want to thank you. jonathan: he changes the course and set sail. charles: we've not been shy about selling socks. david: up next, the world's largest oil producers are meeting sunday in doha. the question is whether oil investors will be disappointed by those meetings. more on that next on "bloomberg ." ♪ matt: i am in the hp greenroom. tonight at 5:00 p.m. eastern on "with all due respe

morgan stanley becoming the latest bank to post results ahead of estimates. eight cents more than analysts were expecting. morgan stanley has been cutting costs. just marginally down. hsbc is considering a share buyback. the chief executive says once the banks capital requests have been met, it would consider buying back shares trading below book value. he will be stepping down next year. 60% soares have fallen far -- 16% so far this year. credit suisse says it will stop -- credit suisse will no longer let analysts interview companies to gather information. credit suisse may be penalized by the watchdog. if you are invested in chinese bonds and do not like bad news, to look away. things are going wrong in the country's corporate bond market and it is happening quickly. --id: the just of the story, the just of the story -- gist of the story, if things stay the way they are, we will see yields come up and a lot of this premium built into the credit corporate dohinese not exactly needed. this shows you trendd s and changes in credit ratings. what this shows you

a busy day at morgan stanley in tokyo. francine, are the many articles of mystery of why the yen is stronger. the most sophisticated prose. there is a mystery to it. john letter says they were talking about these trades and he himself can't figure it out. we will delve deeper into that. first, let's get to bloomberg first word news. here is vonnie quinn. david cameron is acknowledging he had a stake in an offshore fund set up by his late father until six years ago. cameron has been under intense pressure to provide details of the interest in the holding find it since it was mentioned in reports after the disclosure of the panama papers. cameron previously said only that he, his wife, and his children hold no offshore accounts and one that in the future. state john kerry is in baghdad at this hour on an unannounced visit. he is meeting the iraq prime minister and others. the trip coincides with military advances against islamic state militants. the pentagon says the u.s. is considering more small military outposts to provid

more on morgan stanley coming up. didn't we say we're going to stop with comparing it to the estimates and start -- >> no, we said we were going to do both. you need to know what happened a year ago and you need to know the broader environment. >> this is true. i think we should play with real numbers. we will in a moment. one economic report on today's calendar. the national association of home builders is out with its april sentiment index at 10:00 eastern time. expected to increase from the march increase. shares of toyota under pressure with the automaker suspending production following a weekend earthquake in the country that caused a component shortage. then we have a little bit of hollywood over the weekend. disney's live action "jungle book" leading the box office with, ready for this, $103.6 million. it was the second biggest cable debut for the box office behind universal's "furious 7." >>> public health officials using the strongest language yet in warning about a possible zika outbreak in the united states

morgan stanley's stock has been moving higher today. oil sliding sharply on the doha disappointment. then there's the ugly. citi, the latest big firm to take a knife to its u.s. growth

morgan stanley beats profit with revenue shrinking. we have the managing editor for mea in hong kong joining and, if you don't have any south,and it all goes you get the short-term solution in. >> whatever he bank is doing citigroupand there is taking a big ask to the costs and revenue goes down and profit is down and you have to do and that is what everybody is doing. cuts ine more cost store. >> even the strong will get withgh the cost cuts here a backdrop and fundamental restructuring with the story different. we talk about the cost-cutting falloldman is expected to and this is aggressive. what can we expect? , there are about andmbark on a deep cost cut they are usually running a lean operation. going big on the cost says what they expect. they serve institutional clients takeretail coming and they to think they have to get out they areosts and hard-nosed about expenses and things like that. the ceo thinks they could take more. a i will give money for a goldman employee turning right on the airplane instead of left. economy.ly i ju

morgan stanley painting a bleak picture for the network. growth, that is what they are concerned about. >> they cut their price target to $16 from $18. they reduce their projection for 2017 earnings, excluding interest and taxes, to 13%, $769 million, so twitter has struggled to attract new users beyond the traditional base of journalists, politicians, and celebrities. a deal to it signed stream nfl thursday night games, but morgan stanley not happy. it cap its underweight rating, kept its underweight rating on the stock. we have a bart chart to take a chart to take a look at that. twitter rating the lowest in terms of mobile user engagement behind facebook and snapchat. their social media are facing pressure as well. >> user engagement for facebook might be good, but sources are telling us they are struggling with the declines of people -- content,onal and sharing regional content, and that is because it is important because this is the fuel behind the money machine at the heart of its social network, so now people are sharing information,

the big one here, morgan stanley down 24% year-to-date. neil. neil: jo ling kent, thank you very much. i don't know about you, but this gets mesmerizingly numbingly weak. the argument is that she do it intentionally? bushy intentionally doing fab day that would bridge the security laws that are national security laws. it turns out intentional or not, it is a big boo-boo and it is the kind of stuff that can land you in jail. take it from a former attorney general who spells it out. .... 3 i continue to believe that she has not jeopardize america's national security. what i have also said, and she has acknowledged, there is a carelessness. >> hair and teeth. no one gets treated differently when it comes to the justice department. no one is above the law. neil: what i understand, what the distinction that the president was making was intent. she did not intend to do anything. your argument is, negligence or stupidity is not an excuse. >> that is not my argument. what is in the statute that general betray us played guilty to, which was only a misdem

let's get our guest in on this, the chief strategist for morgan stanley. good morning. >> it's a big story. it's a market where you have a lot of crosscurrents between the pmi and other data picking up, but at the same time, indicators of risk like the yen and commodity prices have been headed down. i think those are hitting critical levels for the yen, where you are reaching levels where the market will expect some greater form of either central-bank action or policy action or both. guy: which do you think is more likely? >> we think it will be a mix of the two. we will get increased central bank action at the policy meeting, an increase in etf purchases, but importantly, and the spoke to your previous guest, we will see fiscal policy step up in may. i think that will be an important element to complement anything the boj might do in april. hans: andrew, i want to take you off again story, although i agree it is dominating, and take you back to europe, where it seems like helicopter money was rolled out. was helicopter money something guy and i like to ta

still ahead, we have allen of morgan stanley. later on, pimco and all of that coming up on "the fed decides." ♪ this is a bloomberg special report "the fed decides." i am scarlet fu with joe weisenthal and michael mckee. edelman,s turn to economist for morgan stanley. she joins us from new york. a lot of people think the fed is on hold for this meeting. you would put that a lot longer. you don't see any reason for the fed to move anytime soon. ln: you are right, mike. we set expectation early in the year. at best, we think the fed gets in one more rate hike this year ellie place it in december at the tail end. it is not unthinkable that they could deliver the rate hikes they envision in the second half of the year with a better growth profile in the second half of the year, but there is no compelling reason for them to do anymore or to be aggressive at all. i think we do not expect any kind of signal that june is a real possibility out of today's statement. people thatre are would say the compelling reason the fed is destroying

that would really help a goldman sachs or morgan stanley at this point. scarlet: that was bill cohen speaking earlier today. alix: oil rising for the first time in five days over a 200 day moving average for wti and brent. we're going to talk about what is in it among a supply drop from opec's largest producers. we will be right back after the break. ♪ scarlet: this is "bloomberg markets." i am scarlet fu. alix: it is time for the bloomberg business flash. business the biggest stories run up here apple has engineer.as he will work on special projects related to the tech giant electric car initiative. he will become apple's most senior car guy in a likely candidate to lead the company's secret project code-named titan. beenet: as we have reporting, state-owned saudi arabian oil company has chosen jpmorgan and michael klein to advise on the initial public offering. that is according to people familiar with the matter. klein is providing strategic advice to the government while jpmorgan is working on preparations for the ipo and maybe among the banks that

slimmon, portfolio manager of morgan stanley investment advisors, is joining us now. today, despite this rally , you are sounding a big caution noted, right? andrew: i think you have to see some validation early. i think this doha is interesting. oil is down, stocks are up to it i think you are starting to see some of these factors that are starting to price in and acceleration the economy. materials, energy, industrials, that is why some of those sectors are doing better. they have performed well year to date. at the risk is to the stocks that are too far ahead going into earnings season, a gentle reminder that things are not quite as good. financials today are rallying, even though it is only because expectations were brought down so low. betty: right, the bar was so low. do you think stocks are getting ahead of themselves? andrew: that is the risk. but there is no doubt, the market is telling you that the economy is starting to accelerate and some of these value areas are starting to lead. betty: so investors are right? andrew: you have weakness in oil, but stocks

sentiment in earnings, morgan stanley and pepsi. nasdaq falling seven to 4938. fans of craft beer could soon be paying more for their beer because there is a serious shortage of hops. craft beers uses a lot of hops. last summer's hot and dry weather harmed the european hop harvest. also are small cars running out of gas? consumers pumping the brakes on sedans compared to last year's figure. industry experts are seeing a shift in suvs and crossover vehicles are becoming more popular. this comes as gas prices drop and better fuel efficiency rises. momentum will continue. >>> our sports teams aren't running out of team. >> there is so much going on with our sports team. >> here is a live look at the shark tank. both pretty quiet right now, but fans will be out in full force at both of these spots tonight. hoping steph curry will be healthy enough to play in tonight's game. he tweaked his ankle during game one. tried to get back into the game. steve kerr did not relent and kept him out. he says he can play. coach kerr is less committal. he says other warriors have t

we begin our review of earnings with morgan stanley. >> morgan stanley climbing up the fourth quarter. profit beast -- the estimates thanks to cost cutting and -- beat estimates thanks to cost cutting and trading revenue less than expected. it bloomberg intelligence says the drop was worse. in a headline, they will be more aggressive on cost cuts if revenue falls. what is left to cut and how back -- bad can it get? >> there is always fat to cut. a fixed income business across all of wall street is really struggling. it has been a liquidity story, a story of credit markets freezing and a lot of overindulgence in credit during the qe era, which is trying to find its way as we moved out of the qe era into the -- in the united states. that is a problem for a lot of these banks that built up huge businesses in underwriting, corporate loans, corporate debt and finding the new equilibrium, which is less of that in an era where we are not going to expect -- expand as much during a 2009 period. >> we have sales from the biggest pharmaceutical company. third-quarter sales rose by 5% narrowly be

we have three other companies, big companies, goldman sachs, morgan stanley, citigroup, all had some sort of deficiencies they have to address. that said. a lot of experts are looking at this saying this is a plan about failure. the banks are actually in much better shape than they were eight years ago. they have more capital. using less borrowed money. liquidity, ability to access money is much better the weave shouldn't be so scared. that is falling on deaf ears with the public. when we look at the public's trust in financial institutions at an all time low of 8% right now. >> what do the banks have to do now? >> all are going to have to resubmit or plug the holes that were identified in the plans by this october. next summer they resubmit altogether. very weird thing though, we had weak bank earnings, this report, bank stocks were up 7% last week. >> jill, thank you very much. >> thank you. >>> a plan to cap oil production may have fallen apart when iran skipped a meeting in qatar. 18 opec and nonopec nations discussed a temporary freeze on drilling to increase global oil prices.

if you can go before goldman sachs, morgan stanley and end up after an hour's work, $225,000 check. and that's your life. then refuse to support the fight for $15. need to have a $15 an hour national minimum wage, well i think you are living in a world far removed from where working people are. the truth is the minimum wage today is a starvation wage. $12, it is not enough. the american people in state after state, now are moving to $15 an hour. she is behind the curve. >> you are suggesting. >> maybe if you make $225 in an hour, you maybe don't know what it is look to give on $10 of minimum wage. >> on the crime bill a lot of discussion of the 1994 crime bill which you voted for. she supported. do you regret your support for that crime bill now in retrospect. >> that bill whenever you have a piece of legislation, a big bill. a lot of stuff in it. it had the violence against women act. during my tenure as mayor of burlington, worked hard against domestic violence. ban on assault weapons. something i believe infer vently. believe in 1988 when i ran for office. there is no debate that

morgan stanley, goldman sachs and northern trust. you see, the central states pension fund is the only major private pension fund where all the discretionary investment decisions are made by financial firms. not our government. and there was a court order from 1982 that has made the decisions for the retirees' billion-dollar fund. so the government basically turned this money over to the big banks. hm. does this sound familiar? this was the result of the department of labor wrestling control of the fund back in the 1980's away from organized crime who used funds as their own piggy bank to build parts of las vegas. but the real irony here is that the teamsters' pension funds disappeared more quickly under wall street than it did under the mob. how about that? ask the retirees how they feel and they'll tell you. they got their money under the mob control and i'm not arguing for mob control. i'm arguing for fair treatment of pensioneers in our country and getting the money they earned. time has not been friendly to the trucking industry

morgan stanley reports on monday. then next week, goldman sachs preparing to reveal apparently the worst set of earnings in a decade on tuesday. >>> five of the eight big banks have been told by u.s. regulators that they have until october to come up with a new living will plan after failing the latest bankruptcy test. the results highlighted the too big to fail worries that still exist among lawmakers and show the continued reliance of lenders on taxpayer funds in certain stress scenarios. joining us on the phone is the vice president of equity research financial at rafferty capital. we have a whole host of banks coming up. let's talk about some of the big ones like wells fargo, jpmorgan. jpmorgan, solid performance at their consumer unit. investment banking not so. >> well, i think that's what you can expect to see for the rest of the earnings season. in other words, the traditional banking business in the united states is actually doing really well. loans are growing at above average pace. interest rates did go up

citi on friday and morgan stanley and goldman sachs monday and tuesday, respectively. as for these big banks, this week, what should you expect in terms of earnings. jpmorgan chase, 13% drop in earnings per share over the same time last year. that's according to thompson reuters ibis estimates. wells fargo down by 6%. b of a, 24% drop. and citigroup, 30% drop. now, overall, again, for the season, the earnings expectations for the seconder as a whole looking for a 9.5% drop in earnings, over the same time last year, and just very, very modest. almost flat revenue growth the same time. melissa, bank will be huge in focus this week, only because mau most of the big guys report early this week and next. >> dom, thank you very much. we asked is there opportunity in the banks or should you just simply avoid the space? let's bring in our banking bull, charles burbinski and bank bear steven masoka. good to see you. steve, i'll start off with you. as a bear, you say everybody knows the yield curve is not going to steepen much. doesn't everybody know that? isn't that risk alread

don't go away. >>> coming up on the halftime report, why morgan stanley is giving under armour shares a double bogey today. from spieth to steph, we're talking where that stock is really headed from here. >>> plus, one firm says jpmorgan will be a disappointment this week when it reports. do our experts agree? >>> and our call of the day. why google stock alphabet, can hit close to $1,000 a share. that and more, top of the hour. kayla, we will see you in about 15. >> all right. sounds good. thanks, scott. >>> meanwhile, let's get to chicago. the cme group, where rick sta santel santelli, has the sanity exchange. >> there used to be a time where there was a popular adage where time is money. i think we can safely now say that's morphed into into time is dead. and then after that, beware of growth imposters. let's look at the most recent spat of important news that affect the global financial markets. ita italy, of course, one of the problems is the banks have lots of nonperforming and toxic assets. nonperforming loans, toxic assets. another round of reforms needed. greece still coming

morgan stanley cut price target on the stock to $32 from $64. shares of under arm are down more than 5% to 41.15. >>> a widely cited report shows america's top ceos saw their pay shrink by the most since the financial crisis. as mary thompson reports, there's a lot more to it than that. >> reporter: paper top executives fell 4% in 2015 in 2014. this according to a review. the annual report of companies by the wall street journal. before anyone thinks this reflects the performance, keep this mind much of the pull back and ceo pay is linked to a drop in the value of their pensions. the pensions saw gains in 2014 because of adjustments for longer life spans. this is why median pay fell to $10.8 million last year. why the decline is the largest, ceo pay at this level is still the second highest since 2007. ceos did get a nice boost in the stock incentive. their short term or cash rose 2%. small gain reflecting 2015 performance. over 290 times that of the average hourly worker. who earned the most? ceos new to the job are excluded here. there were so

our underwriters are morgan stanley, j.p. morgan chase & co, bcg henderson, ubs, and bny mellon. thank you for your support. [applause] i will say quickly, throughout our history here, i-house has convened thought leaders on international affairs impacting our demographic, global millennials. tonight's event continues that legacy, not just because of the panels of speakers. it is the inaugural event of the paul volcker speaker program, which was named in honor of paul volcker and his service to i-house as a trustee and on the board. this is the first inaugural paul volker speaker program. i think we have done him justice with this turnout. thank you. [applause] i would like to turn quickly to what will happen on the stage momentarily. this historic conversation has less to do with interest rates, whether they rise and fall, and at what percentage, more to do with the fed chair perspective on leadership and the values in their decision-making. in other words, this is a focus on values, which is i-house's mission. we hope you will agree this conversation and many more like it to co

look at morgan stanley, meeting earnings. what they did was reduce conversation costs by 19% year on year in the quarter. we know goldman, next up to report, is embarking on what could be the most aggressive cost-cutting program since 2011. the only thing you can really do in this market, as there is no visibility on when revenues will stop falling, is to take out cost. anna: and how is this -- good morning -- how is this all shaking out in the asian banking space? some banks have been getting away from things that aren't their bread and butter, others are more adventurous. >> it's a little bit of a bifurcation. you have some people who more or less had to pull the plug in hong kong like standard chartered, barclays. then you have other banks that are doubling down on asia -- credit suisse comes to mind. they are not taking out any headcount there, instead going deeper into private banking. ubs is doing the same, expanding fairly aggressively and private banking in the mainland. it is kind of a bifurcation in the market, wher

stanley boosting overall sentiment and that's really being reflected in the nikkei and top pix. let's have a look. the nikkei up over 3%. just a reminder, actually, yesterday the nikkei fell more than 3% as futures plunged more than 5% in asia trading and concerns over supply chain disruptions following the earthquake's dragged the nikkei lower, however. it's bouncing back now after the sharp fall future rebounded overnight though oil producing countries fail to agree on a cap on sunday. now the production from kuwait to reported to be falling due to a strike by oil workers. investors assuming this could help raise the oil prices. back to japan, earthquakes are heavily weighing on sentiment as you just touched on. production is halted and auto makers, semi conductor makers and land, air and sea travel is almost grinding to a halt and tourism, as well, from the likes of south korea and china. another factor we need to focus on is the shares of japanese suppliers to parts for apple's iphones, which were hit hard on monday u.s. company continues to scale back production on the flag

goldman sachs, morgan stanley, jpmorgan, they have one thing in common. all plenty to be the best deal makers the first quarter of 2016. it has really been stronger than this year, earnings on takeovers have been holding up very well against the background of trading and underwriting stocks of aonds being in somewhat slump. and that is your bloomberg business flash. have a great day. anna: thank you very much. president barack obama will touchdown in saudi arabia later, on a trip he hopes will help mend relationships between the countries. he spoke to charlie rose about the ongoing efforts to fight terrorism and tensions with other countries in the middle east over events in syria. president obama: i think there are many in the middle east who would prefer me taking a shot. but the reason is not because of some abstract notion of redline. the reason is because they view bashar al-assad as a client state of iran. and their view was, and continues to be to some extent, that what we should be doing is being a very clear military arm -assadanti-iran or anti m

while morgan stanley paid the least aal $3 billion. some of that money is going to be used to pay back customers who lost money on faulty mortgage investments. so a chapter in that egard is nclosed now in the financial crisis. of course it lingers, the effects here, aits many people still feel the effects of the financial crisis and our interest rates are still near zero as a result of all of that. >> so low for so long. >> long time. see you tomorr . >>> dave now with a check of the forecast. kind of a messy morning, but things are getting better. absolutely. wentllook forward. and all is good as far as the next seven days. and that shift is starting to take place right now outside, yeah, rain on the lens. windy conditions out at the plaza. the ice rink setting up for that springtime restaurant when people are out and about enjoying that beautiful sunshine and that is coming our way believe it or not. 45 degrees and light rain outside at this point. but we are about to see a rapid improvement through the afternoon in the city, at leas