alix: and goldman sachs now out. fixed trading come of the number we are watching, at just $1 billion, estimates for $1.3 billion. investing bank revenue, $2.14 billion, but the fixed number looking light. no loss was $5.51 a share, idea what that encapsulates yet in terms of tax reform right up. overall trading revenue with $2.37 billion. so, i do not know, aside from look like adoes messy quarter to take a look at the stock. up to tens of a percent -- up 2/10 of a percent. david: they look good in the investment banking. fixed misses estimates. they did report a loss of share, but that could be tighter taxes. alix: it is unclear. david: i've not seen the number yet on exactly what they will write off for taxes. alix: it looks like investment banking was really the strong thing for goldman sachs. now flat in premarket as well. we need to take a look at the report. alison, we are looking at the press release, anything jumping out? alison: a miss on fixed income trading, something people have been watching. and we did

david is the president of goldman sachs. the reporting we have from our legal reporters, he had a former assistant who was supposed to be charged with receiving his wine shipments and transporting them off to his wine cellar. this person, according to an unsealed indictment actually was taking that wine and reselling it, stealing from david solomon. shery: the indictment doesn't specify the vintage or anything else. but it says the person accused may have sold some of the wine for $133,000. >> i don't thick the indictment included exactly what price he was able to fetch for these allegely sold bottles of wine. but ones reported stolen, it seemed david solomon had paid around $130,000 for it. this was again paid to help oversee his wine collection was actually stealing from him according to this indictment. >> we don't have a comment from the ex-assistant or the attorneys, and this is all according to people familiar with the mat other? >> exactly. the assistant is no longer working for david solomon. >> thank you very much.

>> so goldman sachs is slipping for two reasons. the first is the tax bill hasn't delivered as big a benefit as some hoped this man faess as their effective tax rate only falling from 28% last year to 24% this year and the one off charge for q4 largely due to repatriation expenses impacting capital sufficiently that it will limit buybacks for 2018 the second reason is that trading was disappointing. much worse than peers. driven by fixed income commodities and currencies which was down 50% trading remains the most important part for the full year, it was 37% of revenues for context, this compares to 56% of revenue in 2010 that said, i've just got off the call with the cfo an he was as optimistic as you would hope given the numbers, that trading could turn around going forward. both for cyclical and structural reasons. now on investment banking, goldman sachs revenue u is stropg, but a smaller part of the pie. bank of america's numbers were solid. trading down 9%. decent loan growth shares slipped during the earnings call when brian

trading will be key for goldman sachs. will they be worse than the rest of the pack or better than the rest of the pack like bank of america has been just now. cost-cutting has been key for brian moynihan at bank of america. the efficiency ratio at 62%. a bit hoyer than they would have wanted albeit, expenses for the quarter, 313.3 billion, stays within the annual target of 52.3 billion. the loan growth numbers has been strong, given that others have been low single digit and bank of america has been cautious in this area. loans in consumer up 9%. loans in wealth management up about 7% in corporate up about 4% so their loan growth number looks impressive relative to recent past. overall a decent set of numbers for them guys >> all right wilf, thank you for that we look forward to spending more time with you sorting through these numbers and hearing from you on goldman sachs in a bit. >> you saw the stock up by 1%, then just below that so the street running through those numbers. >>> when we come back, much more on the bank

there was the security of goldman sachs. they came with a dog and watch this and i later found out it is just a bunch of kids outside. a bunch of kids with signs and they got bloomberg and wall street journal and the financial times, front page of 16 newspapers the next day and we humiliated goldman sachs by backing away from that. that is the power to say if you give money to these people these are the consequences. there is nothing illegal about the transaction. there is a great deal of power in raising consciousness of causality of the choices we make impacting the lives of others and this is called asymmetrical because i consulted with the asymmetrical warfare group. i was academic review for special operations command on counterinsurgency so i know a little bit about the subject. here we are spending all this money, sending all these kids into warfare to be blown up. i going later to reintegrate the fighters and kids get their legs blown up. you cut off the money. i have this concern about trying to cut off funding as a

goldman sachs is worth less than morgan stanley. we will talk about that and the barclays story later on. it is making changes as well. europe a less solid session. andet to the mliv team edits you on what is happening with the treasury market. it could be seen what is going on with the dollar as part of the ecb same as well as we work our way to word -- toward the ecb meeting. a lot to think about. the euro is the bulk of the index. the pound trading softer against the dollar. let's see what is happening in commodities. off, it was a windy night in the u.k., it is weather related. let's get a first word news update. juliette: china's economy has filled its first year acceleration since 2010. growth picked up six .9% from 6.7%. industrial production rose beating estimates but retail sales missed forecast and fixed asset investment climbed the least the century. sanders saidry trump will support the plan to temporary government funding ahead of the shutdown deadline. some cloutpaul ryan as he tries to bring a little -- reluctant cons

but initially wall street likes goldman sachs numbers. the stock rallied. only after the conference that it took a nose dive. it was actually intracall that it was nose dive ceo marty chavez, he said the trading business and i quote continued to operate in low volatility low activity environment. second, everyone has been salivating over how much stock the banks can repurpose. chavez suggested it could come back at a slower pace. expecting to have a 24% tax rate this year. a lot of surprises here. many of them negative. the response to this confusing quarter, the analyst all over the map. they either raised or maintained the price target and jpmorgan cut theirs. kbw, bemocut them. what do these guys agree on? on the bullish side, oppenheimer argued it was -- interest rates start climbing again, that is happening the world over and going to be good for goldman, sooner or later bonds will be attractive deutsche bank boosted its makeup wells fargo argued that a term might be in the works. have gone well ten-days may not a quarter make, but positive they expect

you're looking at goldman sachs. what do you think one should do here following earnings an following the stock going down? >> yeah, thanks, julie. you look at what they have, they had a mixed bag of news. a lot of good numbers, a will the of good things, revenue, income was great, discounchting what they're taking as a charge from the new tax law. consumer banking, investment banking, great numbers. huge share buyback. on the flip side, some metrics that weren't so great, investment banking was so low because of the low volatility in the marketplace here. and you know what could be significant is that the proposed credits that they're now going to get from the new tax laws, many analysts thought they'd be paying as little as 17% now 24%. stock is eing said, trading and trending a lot of volume. what i like here in gelledman sachs is not necessarily that the stock is going to bounce back or rebound in the near future. i love selling a foot spread here. if he stock goes down, i don't mind owning it. what i'm doing is

goldman sachs could be just below that level, in the high teens. for goldman sachs, the key thing is trading the last couple quarters they significantly underperformed their peers. looking at down mid teen percent year on year based on what some others have reported if goldman sachs does worse than that, it's a continuation of that recent theme. it's about 37% of their total ree revenue, and costs will be important for both on the bank of america side, we look for deposit beaters you kind of look at things that could derail that positivity, one is looking to pay that big consumer base more money in terms of deposits. so far deposit beaters have been low. we'll look to see whether that continues or not bank of america the clear out-performer, and goldman sachs one of the clear underperformers. be interesting to see if they can turn around. >> 6:45, bank of america i forget when goldman sachs is, after that >>> shares of juno therapeutics soaring on deal talk landon dowdy has more on that. >>> shares of juno therapeutics moving higher. reports that c

ben: well, goldman sachs has an awfully smart people. i'm probably not the right person to ask about this because i've criticized them very severe ly over a many number of years but i don't see anything wrong with getting the smartest possible people to work in your administration whether they have goldman sachs on their resume or not. i want smart people. i don't care where they come from. i don't care where they come from the projects or they come from park avenue. if they're smart, hard working capable well informed and are patriots above all i want them to be working for us and by the way, i have nothing against corporations making lots of money. that goes into people's retirement accounts and college endowments, hospital endowments. that money does not come from buying yachts for people to have wild parties on and bringing out party girls and dancers and strippers and so forth. it goes to pay for people's educations and retirement. there's nothing wrong with having a rise in the stock market and nothing wrong with people that can pr

so we remember the good old days but the kids with whom i protested in front of goldman sachs are now 20 years old. they don't remember the good old days the way we do at all and they still reject it unilaterally which is amazing to me. there was the security of goldman sachs and the game with the dog with just a bunch of kids outside. they got bloomberg and they got "wall street journal" and they got the financial times. it was for a page of the paper the next day and we humiliated goldman sachs so that's the power to say if you give money to these people these are the consequences. so really, and there's nothing illegal about it. really there's a great deal of power and raising consciousness of causality of how the choices we make impact the lives of others and i go into this because i used to -- with the asymmetric warfare counsel and i was the academic reviewer on counterinsurgency for columbia so i know a little bit about the subject. and you know i thought here we are spending all this money sending all these kids out to be alone up and i go in later and and -- the irony is you

bank of america, goldman sachs before the bell this morning. how markets react after seaside yesterday. meanwhile, giant fireball lighting up the night sky as seen from six states. scientists explain that a meteor was the reason for the extraordinary experience. got to see this. back in a minute. how do you win at business? stay at la quinta. where we're changing with stylish make-overs. then at your next meeting, set your seat height to its maximum level. bravo, tall meeting man. start winning today. book now at lq.com start winning today. my name's dustinhey, dustin. grab a seat. woman: okay. moderator: nice to meet you. have you ever had car trouble in a place like this? (roaring of truck) yes and it was like the worst experience of my life. seven lanes of traffic and i was in the second lane. when i get into my car, i want to know that it's going to get me from point a to point b. well, then i have some good news. chevy is the only brand to receive j.d. power dependability awards for cars, trucks and suvs two years in a row. woman: wait! (l

the story is goldman sachs is preparing a crypto trading desk. i am sure a lot of people who talk to you want to get in on the action. there's so much to do even on the sidelines for dipping in a toe? joerg: i would say that isn't a theme of getting in for institutional investors. for private investors there has been a lot of hype. people attending the conference here really don't see cryptocurrencies as an investable asset yet. the focus is on "yet." a lot of people are doing their homework are's -- on seeing maybe in the future this could be something bigger. moment, for the institutional investor base, it's an interesting story, but it is far from being a really seriously investable asset class. matt: bitcoin and blockchain stories are one of the most read stories on the bloomberg because of the drama, the volatility and i am sure you are right, most people are looking from afar. what are the other most read -- one of the other most read stories on the bloomberg has been about lipids and it seems to have gone up -- method -- mifid and it seems

the biggest gap was goldman sachs. the wealth management business up 10%, margins a bit lower, but not a lot of drama. tomng up in the next hour, , friend of president trump, will join us. ♪ alix: knocked off its pedestal. morgan stanley climbs above goldman sachs for the first time since 2006. the wealth management fees hit a record. one step forward, two steps back. apple is repatriating millions of dollars in a win for president trump, but a government shutdown still looms. 2.6% forields above the first time since march. david: welcome to "bloomberg daybreak." i'm david westin mumbling alongside alix steel. alix: we had the nasdaq and the s&p closing at record levels yesterday and now futures are flat. euro-dollar in little bit stronger. the dollar weaker against most currencies. i'm watching the 10-year yield. 2.16 is how we print -- 2.61 is how we print. more on one of our top stories. morgan stanley's solid beat. the stock almost up 2%. allison williams is here to break it down. the highlight for morgan stanley

. >> he joined goldman sachs in 1985. inman sachs 1985. became a partner in 1994 and rose up to be a member of the management committee. he was the chief information officer of goldman sachs. he left in 2002 after 17 years and formed doing capital -- dune capital. he also was involved in the business.ent he financed a number of movies including avatar, mad max, and movies like that. meer that occurred, he told that a dinner once that he would become the campaign finance chairman for donald trump. i said you will never be heard from again because -- [laughter] >> that is correct. >> but my predictions are usually wrong. it worked out well for you. you became -- >> and for the president. became secretary of the treasury and were confirmed february 2017. have you talk to your accountant about your own taxes? are they going up or down? [laughter] >> well i am definitely making a lot less money in this job. but my rate is going up. given california and new york, my rate is going up. mr. rubenstein: are your friends still your friends because th

goldman sachs stayed down. but i'm with you that's an interesting name i thought their earnings were spectacular. they missed in fit that's down 50%. i think we expect what is going to be bad. what's going to be good? when you shine the light on investment banking for goldman sachs, $2 billion. i know it's only 23% of what they do, but still there is something there. if that turns into thick if they actually returns, they have been wrong forever. goldman sachs has been killed in that trading world they have been wrong, wrong, wrong, in the commodity space. >> it seems what apple announced today reignited the belief that tax reform has more juice and financials -- we forgot that financials were going to be the biggest beneficiary but maybe there are other legs to this and apple also saying it's going to have $2500 in bonuses in the form of stock to its employees that's another leg of wealth effect the, right, for the consumer >> no question. >> i think it's front loaded that's why the airlines and autos are kick

coming up, the attention of goldman sachs. this is bloomberg. >> earlier this week, goldman sachs made a bet on what could be the future of banking. the firm announced it is partnering with an online startup to commit $259 to make real estate investments through the platform. ryan, what does this investment mean for you? >> we are incredibly excited about the partnership. we believe it is a testament to the value proposition of our platform. to have a partner like goldman ands is really a great step our overall mission of expanding access to quality real estate investment through people with more technology. not toave been fortunate have to do much in the way of marketing. most of our customers and clients are hearing about us through the word-of-mouth. we have a bunch of inbounds through our website really, it is a network effect through primarilystors, through offices and other institutions. >> how many more partnerships of this kind will we see from you? >> we are focused first and foremost on goldman. is able to provide th

matt miller with the chief economist at goldman sachs. fascinating conversation about what is driving u.s. growth. we will bring you more from the conference later in the day. jeff curry will be joining the bloomberg team at 11:30 a.m. u.k. time. a bit of breaking news. we got emmanuel macron, the french president, in china at the moment. a lot of focus on the airbus story and whether they are going to be able to sell aircraft there. macron said they will finalize that order very soon. those planes, we hear, will be delivered in 2019-2020. he said the orders are for 13 different airlines. as soon as we get confirmation, we will bring that to you. manus: we've had a little bit of inflation data. softer inflation data gives the pboc chance to focus on debt. consumer prices at the lowest level since 2017. kit juckes is with us from societe generale. you take the past 24 hours from china. it happened just after an a and i came off. the chinese are getting peeved that they've got such a strong yuan. they have got a strong yuan. what does this

he went out to california and without their to drum up business for goldman sachs but then formed his own firm, doing his own business, but increasingly he got into documentaries, making his own conservative filmmaking. initially made one about reagan in 2004 and in 2008 started making other documentaries related to the tea party and conservative movement. how the elite especially got off scott free in the crash. to the establishment -- >> host: that was the head of goldman sachs, former head, let's lehman brothers go because he couldn't stand them. fair and balanced so to speak. hank paulson targeted them. he was out there and got into the moviemaking business. where did he get the title generation 0? >> guest: you talk about generation x and generation y, the generations may have nothing less, the debt continues to build, to meander along and her president obama we see a revival but there is as you know. a great parallel out there in that $20 trillion in debt and when you look at entitlements, something like $70 trillion that is owed, conservative maybe, maybe it is more than. that

goldman sachs and jpmorgan have been hired to lead the deal. those are two firms that have worked with the company through their equity capital raising and credit line extensions as a private company. now they are also opening up the books for pitches from other banks who want to help run this deal. another one we are seeing right out of the gate in 2018. the folks i was talking to after we broke the news are pretty psyched because we have been waiting for a turnaround to get bigger names start to get public. this is a good indication more might be to come. emily: we have been waiting, indeed. what do we know about the price valuationhe potential my compared to the $10 billion they privately raised? caroline: -- alex: the folks i talked to before the stories that they could expect this valuation. the company was locked in and there private trading round. but in aftermarket trading, this could trade up through that. where that puts this in the 's, around seven to 10 on the list in terms of size. in the past five years alibaba , was the biggest,

this next bubbles you know you know sense to pop so we'll see when that happens you mention goldman sachs which would obviously have to come up in a conversation like this and actually lloyd blankfein c.e.o. of goldman goldman sachs tweeted this after trump's speech yesterday he said give truck credit for campaigning where there are no electoral votes his message at davos promoting america's interests doesn't mean withdrawing from the world agreed now can we stick with international commitments on environment trade and defense so there's actually currently thirty according to the world trade organization thirty five new bilateral and regional trade pacts that are under consideration the u.s. is only in on one of them so the world is moving forward regardless of the new positioning that donald trump is trying to get for the u.s. can you just jump in and out of these agreements when you want to michel. no you cannot but as a new president you can stop or let's say and do everything that was done before if you don't agree with those policies and then start resigning one by one of course othe

and then we humiliated goldman sachs. and so that's the power to say if you give money to these people, these are the consequences. so really -- and there's nothing illegal about that transaction. so really there's a great deal of power in raising consciousness of causality, of how the choices we make impact the lives of others. and i backed sort of into this, and -- my country, i used to consult with the asymmetric warfare group which is counterunurgency. i actually was the act -- counterinsurgency. of i know a little bit about the subject. and, you know, i thought, you know, here we are spending all sending all these kids out into warfare to be blown up, and then i go in later to reintegrate the fighter and deal with the kids with their legs blown up. i said, you know, the irony is you could cut off the money. so i always had this concern about trying to cut off, cutting off the funding as an effective counterterrorism tactic. and then i realized it was a much bigger problem that is everywhere. and i talk about how your

[applause] let's hear it again for jeffrey sachs. [applause] the cofounder of the future now action i'm the one who drew the short straw but i'm very excited to speak with you today. thank you for the incredible presentations and for having us here it is an honor. i remember how excited i was when you were founded three years ago. i was in the state senate at the time in new york and it was such an exciting mission to see what has come so thank you for your years of incredible work. they asked me at the conference last year the likelihood of being up here anything other than a state senator i would have said that was very unlike unlikely. i began realizing things were different i got invited to a holiday party. talk today by the government and looking to hang out, have some eggnog and described the legislature that never happened ever in the nine years of office. literally. i thought that there had been a misunderstanding. but it wasn't a misunderstanding. it was something else, something had happened. something changed hard to say e

this next bubbles you know you know sense to pop so we'll see when that happens you mention goldman sachs which would obviously have to come up in a conversation like this and actually lloyd blankfein c.e.o. of goldman goldman sachs tweeted this after trump's speech yesterday he said give truck credit for campaigning where there are no electoral votes his message at davos promoting america's interests doesn't mean withdrawing from the world agreed now can we stick with international commitments on environment trade and defense so there's actually currently thirty according to the world trade organization thirty five new bilateral and regional trade pacts that are under consideration the u.s. is only in on one of them so the world is moving forward regardless of the new positioning that donald trump is trying to get for the u.s. can you just jump in and out of these agreements when you want to michel. no you cannot but as a new president who you can stop or let's say and do everything that was done before if you don't agree with those policies and then start resigning one by one of course

>> goldman sachs and jpmorgan will be leading this deal. pictures toaking fill the rest of the book. goldman sachs and jpmorgan have extended credit to this company in the past. jpmorgan led a $6 billion credit line last year. goldman sachs has been involved in the credit and helping the company raise as a private company. you will start to see this jockeying start to happen among the firms to get a name on these bigger deals, especially as the rest of these 10 billion plus evaluation private tech company start to move closer to the public market. mark: we had spotify last weekend dropbox today. what does this tell us about the timing? >> people on the street .2 2017 2017great year -- point to is a great year. the quantity was one we hadn't seen for years. now, with spotify and dropbox, adt looking to raise more than seemslion in its ipo, it there's a lot of momentum from these tech companies to actually get public. which hasn't been the case since 2014. inhave seen a big lull u.s. companies deciding to get their cash from the public market

investment bank goldman sachs said the tax reform will cut its twenty seven thousand profit by about five billion dollars while other companies including german company heidelberg cement are also affected negatively by the changes to the u.s. tax code once these charges are booked however companies have a lot to look forward to in the long run but all profit from paying less corporate taxes in the us. on this let's go over to our man on wall street a quarter yes so it seems that companies will have to step in line to reap the rewards of this reform what will that mean for them. well it's probably a one time event and if we talk about those deferred tax s. it said the company would have paid those anyway just later in the future and as we've just heard in the mid and long term especially companies from the financial industry from the energy industry it will probably in the long run profit from the new tech system and we've also seen seen it on the stock market those stocks have not been highly damaged by those a one time payments all right we've got some new highs on the nasdaq and th

and the goldman sachs chief economist. plus, autonomous cars may be on the markets sooner than you think. >> i would say 2021, 2022. abigail: coming up, more of the week's top business headlines. a bitcoin champion unveils a plan to build the goldman sachs of cryptocurrency. >> as far as his crypto net worth is concerned, he is all in. abigail: this is bloomberg. ♪ ♪ abigail: this is "bloomberg best." i'm abigail doolittle. let's continue our global tour of the week's top business stories in asia, where north and south korea held their first formal talks in more than two years. >> north korea said it will send athletes and a high-level delegation to the winter olympics in south korea next month and wants to resolve issues through dialogue and negotiations. delegates said south korea wants both nations to march together at the games. the two sides are holding talk s in the village along the heavily fortified border. >> overall, a positive mood, because both sides have a lot to gain, at least on the olympic issue. the so

investment bank goldman sachs said the tax reform will cut its twenty seventeen profit by about five billion dollars while other companies including german company heidelberg cement are also affected negatively by the changes to the u.s. tax code once these charges are booked however companies have a lot to look forward to in the long run all profit from paying less corporate taxes in the us. on this let's go over to our man a wall street quarter yes so it seems that companies will have to step in line to reap the rewards of this reform what will that mean for them. well it's probably a one time event and if we talk about those deferred tax and s. it said the company would have paid those anyway just later in the future and as we've just heard in the mid and long term especially companies from the financial industry from the energy industry it will probably in the long run profit from the new tech system and we've also seen it on the stock market those stocks have not been highly damaged by those a one time payments all right well we've got some new highs on the nasdaq and the s. and

investment bank goldman sachs said the tax reform will cut its twenty seventeen profit by about five billion dollars while other companies including german company heidelberg cement are also affected negatively by the changes to the u.s. tax code once these charges are booked however companies have a lot to look forward to in the long run but all profit from paying less corporate taxes in the u.s. . on this let's go over to our man on wall street a quarter yes so it seems that companies will have to step in line to reap the rewards of this reform what will that mean for them. well it's probably a one time event and if we talk about those deferred tax s. it said the company would have paid those anyway just later in the future and as we've just heard in the mid and long term especially companies from the financial industry from the energy industry will probably in the long run a profit from the new tech system and we've also seen it on the stock market those stocks have not been highly damaged by those a one time payments all right we've got some new highs on the nasdaq and the s. and

goldman sachs said calm markets are why they were rubbish. yes. when you are in the business of speculating, you need that to happen... perhaps they should be trading bitcoin. there is a lot of fluctuation. though that is the next move, probably. but it has, again, as we said before, when something goes up so aggressively, it comes down very aggressively. you are not a fan? not especially. it is in the financial times again. so much to read about bitcoin. tell me about this. a p pa re ntly bitcoin. tell me about this. apparently most of us are happy with the 25p levy on hot drinks in disposable cups. we are all for it because we want the planet to be well. that is the take on a story if you ask someone, would they be willing to do this in the future? many people would say yes. when push comes to shove, will people opt for this? you will find less drinks in disposable cups, won't you? 1496 of people, only i4%, they said they we re people, only i4%, they said they were unlikely to opt for... change their behaviour. yes. we know this has to change wi

inhe joined goldman sachs 1985. became a partner in 1994 and rose up to be a member of the management committee. he was the chief information officer of goldman sachs. he left in 2002 after 17 years and formed doing capital -- dune capital. he also was involved in the business.ent he financed a number of movies including avatar, mad max, and movies like that. meer that occurred, he told that a dinner once that he would become the campaign finance chairman for donald trump. i said you will never be heard from again because -- [laughter] >> that is correct. >> but my predictions are usually wrong. it worked out well for you. you became -- >> and for the president. became secretary of the treasury and were confirmed february 2017. have you talk to your accountant about your own taxes? are they going up or down? [laughter] >> well i am definitely making a lot less money in this job. but my rate is going up. given california and new york, my rate is going up. mr. rubenstein: are your friends still your friends because th

sachs sending things higher. good to talk to you, guys. jerry, do you think investor positioning is still conservative meaning there is still cash on the sidelines? >> all kinds of cash the numbers are anywhere for the economy between $8 trillion and $10 trillion. >> why is there an assumption if there is $8 trillion to $10 trillion or whatever the number on the sidelines that it will come into stocks or any part of it will? >> that's my point. >> okay. >> since it hasn't yet, it is not likely to be a problem there is plenty of liquidity to take on a dip or downturn in the market if you haven't put in the money yet it's hard to say the economy or the market is fully valued. you combine that your apple discussion is fascinatin fascinating. only a handful of companies have talked about the impact. but what we see is the net transfer of capital back to the united states. it's hard to envision a market that peaks with the liquidity that sits there today. when you throw on top of that all of the firepower behind the global economy and just the

investment bank goldman sachs said the tax reform will cut its twenty seven thousand profit by about five billion dollars while other companies including german company heidelberg cement are also affected negatively by the changes to the u.s. tax code once these charges are booked however companies have a lot to look forward to in the long run but all profit from paying less corporate taxes in the us. on this let's go over to our man on wall street a quarter yes so it seems that companies will have to step in line to reap the rewards of this reform what will that mean for them. well it's probably a one time event and if we talk about those deferred tax s. it said the company would have paid those anyway just later in the future and as we've just heard in the mid and long term especially companies from the financial industry from the energy industry will probably in the long run a profit from the new tech system and we've also seen it on the stock market those stocks have not been highly damaged by those a one time payments all right well we've got some new highs on the nasdaq and the

the boss of goldman sachs was also in attendance. he told the bbc that us investment banks and their plans for brexit are reaching the point of no return but it is a sensitive subject. as a uk national, i don't know what it would feel like. iam i don't know what it would feel like. i am an american. as a world citizen, i thought uk was good as pa rt citizen, i thought uk was good as part of europe. i am sure it was good both of them. i thought the uk die mentioned that the uk brought to europe improved europe. with the uk out, i don't think it is great, in my view, great for the uk and i don't think it is great for europe either, to be missing that ingredient. as a citizen of the world, in my view, and if i may indulge in some provincialism, my company stands by the open markman —— market and our commitment to the uk was good for the uk and for london. most of our european business was in a place where we do less tha n business was in a place where we do less than one third of our business echoes we keep everything in the uk and

one of because most outspoken champions plans to build the golden mist -- goldman sachs. start a merchant bank dedicated to cryptocurrencies and blockchain ventures. that growther says business, he joins us in san francisco and our other editor at large, cory johnson is in new york. they are far too large. >> you are too humble. what do we know about these plans? >> we know plenty because he has had to detail some of them. it is a complicated series of transactions, first, his firm which just created galaxy digital lp will buy a canadian startup called first going capital and then it will do a reverse takeover of a canadian shell company and then it will use that entity to raise 200 dollars in a private placement and finally, because it has that listed shall, it will start on the in toronto venture exchange, so this will be the first of its kind, a publicly traded merchant bank specializing in cryptocurrencies and blockchain ventures. 's sounds highly orchestrated, is the something he can pull off? >> he has been working on it for months. depend on the enthusiasm for bitc

of goldman goldman sachs tweeted this after trump's speech yesterday he said give trouble credit for campaigning where there are no electoral votes his message at davos promoting america's interests doesn't mean withdrawing from the world agreed now can we stick with international commitments on environment trade and defense so there's actually currently thirty according to the world trade organization thirty five new bilateral and regional trade pacts that are under consideration the u.s. is only in on one of them so the world is moving forward regardless of the new positioning that donald trump is trying to get for the u.s. can you just jump in and out of these agreements when you want to michel. no you cannot but as a new president you can stop or let's say and do everything that was done before if you don't agree with those policies and then start resigning one by one of course other countries have been air share from previous policy the may have not changed in the last year but trump. approach is a whatever was done before could be wrong or maybe it is maybe it is into so let's

david: goldman sachs is really moving into consumer banking. lisa: and moving in the opposite direction of someone a banks. david: that was a great conversation. at the same time, british prime minister theresa may has been speaking on davos and talked about free trade. it has not been matched by action so maybe she saying something about china. technology has been questioning some job security. she talked about artificial intelligence with ride -- driverless car's. let's listen in. this is bloomberg. >> in others like online hatred and bullying, we need norms and expectations of how civilized people should interact in ways that cannot be achieved through legislation. ♪ ever u.n.ng the first summit with government and industry to move further and faster than reducing the time it takes to remove federalist content online and increase significantly their efforts to stop it being uploaded in the first place. when he to go further. david: that is british prime minister theresa may talking about terrorism. it was home secretary and was part of her

goldman sachs and citigroup will take the lead in managing the ipo. others serving as global coordinators. this is according to people familiar with the matter. tell us this is about to happen this year? >> next week, i will probably be talking about another five or six banks being added, but when you are talking about $1 trillion to $2 trillion even if the government gets what they have been looking at, that is a number that will need a lot of banks. >> give me an idea of fees that could be paid. the biggest ipo ever, potentially. >> typically the fees are really small when the government is involved. maybe the banks can make commissions from the investors. the fees are like a fraction of a percentage usually based on , the other ipo stories we have been writing about. when the governments do these deals, and it is more a question of prestige. i worked in the biggest ipo in the galaxy. >> saudi arabia's market regulator has announced a series of new rules aimed at targeting qualified foreign investors. what impact on flows from abroad are you expecti

in white, we have goldman sachs. goldman sachs is underperforming, trading business last year was very difficult. when you see a big difference in performance, the other banks up more than 20% in the last year. goldman sachs just 6%, it may suggest some ketchup potential. something to keep -- some catch-up potential. something to look at. julia: up next we ask bob new delhi about general electric. they stock up more than 6.5% in the first week trading days of this year. turn things around after an abysmal 2017. scarlet: they look forward at the dow today. from new york, this is bloomberg. ♪ ♪ this is "bloomberg markets." i'm scarlet fu. julia: i'm julia chatterley. we are back with bob, the founder of accelerate. he is also the former ceo of chrysler, and ge power systems. ge is where we want to turn our focus. they are plunging 45% last year for the worst performance in the dow. it is the biggest gainer today, getting excited about that before the quick break we took. bob talk to us about ge? are you surprised a

goldman sachs at 7:30 this morning. we will go beneath the headline and this is a really interesting and different result for jpmorgan and wells fargo. bitcoin, bloomberg, a reporter, one of the few people who has been sane about this. is there panic in the bitcoin market? bring up the chart. this is an ugly chart. down we go. is there any sweat out there? >> there must be. there has to be. imagine investors who piled in in the third and fourth quarters last year who piled in because it was a movement and now they must be extremely nervous. you would go to cash -- do you do that with bitcoin? >> you try. i think increasingly you will have a lot of investors, retail and amateur investors who go in and can't get their money out. they are having trouble pulling money out of these exchanges which will feed. it, why?going right to if it is a legitimate future with markets and all the firms are talking about it and even done a re-can't on this but you are telling me this isn't a normal market where you can "get your money bac

bank of america kind of mixed, goldman sachs sees a plunge in trading. the ceo blankfein may call it a challenging environment. a new hot seat of a new look at the an coventry trust risk to big tech the biggest reversal for the dow since february of 16th the blue clip saw 380 points trading range after hitting 26,000 for the first time ever s&p 500 reaching 2800 before finishing lower. jim, you said this time yesterday, you don't like big opens and mid-morning you watched the transport starts to roll >> yes, it was surprising because really it was not anything happening there is nothing happening was yesterday based on unh being good it was anything that was reasonable oil going down and trades going in the wrong direction you have to base an opening on something other than gut and instinct it can turn against you. the market will come to you, there are people that want to sell there are people that want to sell right here. they're going to drill big and hope something underneath. they think these openings have little capital involvement i call them pa j

rafael bostic is concerned about weak price pressure, but goldman sachs is betting on four hikes this year and calling a short of ten-year treasuries as the top trade for 2018 joumanna joins us from the goldman sachs conference in london interesting sentiment there from them on the chances of a fourth rate hike. >> absolutely. as we heard earlier, they're sticking to their view of four rate hikes next year and are more affirmed by the recent price 5:sen prices with me now i have francesco garzarelli we will get into what trades are best going into next year. one of your top trades for 2018 is shorting the ten-year treasury why will that work this year >> it's interesting you ask. at the conference we heard clients express the same view, that treasury yields would go up and i think what people have in mind is a bit of a response of rates to this bullishness we see in equities, based on the growth outlook and this exuberance that we get from global gdp so here's how i think about it alongside with the consensus, there's a view that the curve will flatten and that rates in japan and euro

goldman sachs and citigroup will take the lead in managing the ipo. others serving as global coordinators. this is according to people familiar with the matter. tell us this is about to happen this year? >> next week, i will probably be talking about another five or six banks being added, but when you are talking about $1 trillion to $2 trillion even if the government gets what they have been looking at. that is a number that will need a lot of banks. >> give me an idea of fees that could be paid. the biggest ipo ever, potentially. >> typically the fees are really small when the government is involved. maybe the banks can make commissions from the investors. the fees are like a fraction of a percentage usually, based on the other ipo stories we have been writing about. when the governments do these deals, and it is more a question of prestige. i worked in the biggest ipo in the galaxy. >> saudi arabia's market regulator has announced a series of new rules aimed at targeting qualified foreign investors. what impact on flows from abroad are you expectin

for goldman sachs, we'll be stripping out one-offs jpmorgan down 17%. if goldman sachs are noticeably worse than that, it would continue the poor friend over the last few quarters. trading does represent 37.5% of goldman sachs revenues for bank of america tomorrow, trading is less than 15% of the total. expense management will be of note, it's been as area of strength, will they keep that expense targets? and he needs to be a strength in coming year. look out for where the compensation ratio comes in above or below 30% both banks will also estimate their effective tax rates. whereas the bank of america is around 20% and 25% for -- for goldman sachs analysts wonder -- guided to be -- will impact buybacks for the year ahead the medium the $5 billion in extra revenue in three years. analysts feel it's a big ask and they'll look for more details on how to reach that. >> dick bove recently came out with a report upgrading goldman sachs saying they think they're going to kitchen sink that $5 billion write-down in order to clear the deck for the rest of the ye

we have banks, goldman sachs and bank of america having disappointing aspects of the reports. goldman sachs, fixed-income trading. ford coming up with guidance for its quarter and for the year. the cfo saying ahead of the conference that earnings this year could fall to $1.45. general electric continuing to climb from yesterday. falling after it announced that big write-down related to its health insurance asset. a quick check on bitcoin, which has fallen below $10,000 a piece for the first time in quite a while. itsas retraced 50% from high in the past month. mark: 90 minutes into the wednesday session. we are down for the third day. cyclical stocks last year -- we are talking about euro terms. extending gains into the year as economiche region's momentum shows little sign of slowing. trading at a record relative to those seen as less responsive. keep an eye on cyclical is relative to defensive stocks. inflation in the eurozone stubbornly low. .9, same as the flash estimate. looking ahead, surging energy prices could feed into consumer prices and embolden policymakers. a stre

he was the chief information officer of goldman sachs. he was also head of the mortgage securities department at he left one point. in 2002 after 17 years and armed june capital, which did number of financial investments, one of which was in the bank, which he bought from the fdic. he also was involved in the entertainment business. entertainment, he financed and coproduced a number of movies -- avatar, mad max, superman, batman, other movies like that. ultimately sold the bank and before that, he told me at a dinner once that he was going to become the campaign finance chairman for donald trump. i said, you will never do you heard from again because -- [laughter] mr. rubenstein: that probably won't lead to anything. sec. mnuchin: that is correct. mr. rubenstein: my predictions are usually wrong. it worked out reasonably well for you. [applause] sec. mnuchin: and for the president. mr. rubenstein: and became secretary of the treasury, appointed by the president and confirmed on february 13 up 2017. have you talked to your accounting about

same thing with goldman sachs. it's in a tough spot with earnings we will know more by the end of the week. >> what did you do today. >> the one thing i did, i added apple. i saw huge call buying in apple. i am a believer especially after the news last night, the 20,000 jobs, the $350 billion, everything they talked about in the press conference, it makes me think apple is going to be the first trillion dollar company. they were buying the 210 calls on apple day i bought it along with hymn them. >> and you. >> i own puts. i always own puts. i want to stay with what i have. seems to be working. but i own them not for the volatility to reach 12 it's higher. i wouldn't be selling those puts on this. >> 17, 19, something like that type of a spike in volatility? >> yes, significantly higher. >> still ahead, check out shares of ibm it was supposed to be a turn turned -- turn around. jim cramer gives us his take. >>> just how wrong are wall street analysts. elliot spitzer will explain how he is keeping the experts honest.