so start with morgan stanley buying the july 26 calls, 26 expiring calls, the 45 strike in morgan stanley that is just out of the money from where the stock was trading before these hit 3,000 of those were bought, they paid about 75 cents. and i think that they are just looking for the entire cycle -- we talked about the anticipation of earnings. and you just wonder where that level is of optimism right now and maybe the banks can actually beat something or impress people enough that they can still continue to make a move to the up side. so these 45 calls are pretty interesting. 3,000 of those were bought here is the next interesting thing. jpmorgan, they bought 3,000 calls there. they went to the july 26 expiring calls as well but they went to the 1116 there. trading 114. they paid about a dollar for these calls. so 3,000 here, 3,000 there, both of these two financials, morgan stanley on the 18th, jpmorgan on the 16th, so clearly earnings are in the target of where they are looking. a i like what we're seeing here. i heard a bit of the guys were having sounds like they are getting more b

alix: if you are a morgan stanley -- david: if you are a morgan stanley shareholder, what do care about most? we've seen some likeness in trading, but which do you care about, growth management or equities trading? about thecare more growth management. things were probably we getting for the equities trading business exiting the quarter, and maybe analyst estimates didn't catch up that much. i will be focused on the opportunity from a competitive standpoint where they've really gained the most chair across trading over the past few years, with deutsche bank now seeing their pullback. that seems like an opportunity longer-term, and i think that is more important for business. alix: wrap altogether for us. we have all the big six banks out. what is your big take away so far? alison: muted trading environment. estimates probably coming down out of this quarter, just because trading, we got a little bit of excitement at the end of the quarter, but that -- thately s immediately sated. the revenue environment has weakened. it comes down to cost. we haven't seen the cost numbers yet for morgan

our stock of the hour is morgan stanley. wall street's biggest trader saw the largest drop this quarter. taylor tate -- taylor riggs is here look at the reasons why. taylor: all of the analysts calls interesting. morgan stanley is the biggest equity shock. the fact that they had a bigger iss was acted m little bit concerning. if we look at all the banks, goldman sachs is the second-biggest equity trading job and they had a better-than-expected gain. there was a fight between number one and number two. on the yost call, james gorman -- on the analyst paul, james gorman said we've been posting quarters,r multiple we expect to maintain market share. trying to reassure analysts that the equity shock and turnaround. we also have a big wealth management business that posted better-than-expected. there are some bright spots. the bottom line here, upon intended, remains healthy. they continue to post record profits across the board for all of these banks. we know there have been concerns about the equity trading business, but the co

because morgan stanley is not as the source of pride -- as diversified, morgan stanley took this pretty hard. paul: wall street's trading divisions have the worst first half in the decade, so quite were results so bad? >> it is a combination of things. if we want to use a sports metaphor, clients are all on the sidelines. we have an uncertain macroenvironment. we don't know for sure if the fed will cut rates. we have a global trade war, worsening conditions on the macro fund for global growth, so a lot of clients have not decided how to reposition for this outlook. they have stayed on the sidelines. that has had a pressurizing effect on all banks and their trading divisions. shery ahn: let's look at the rest of the year. we are now expecting fed rate cuts. how does this impact the outlook for banks? >> it is all about the fed now. things were asked repeatedly on calls this week what it will mean for profits. when the fed cuts rates, that will pinch margins because they won't be able to charge as much for their customers. banks have been talking about the potential impact on revenue all

stanley's track record, but i want to delve into a point morgan stanley was making, which is markets are being too sanguine when it comes to what low bond yields indicate around the world, and that's what we're seeing right now, more than 25% of sovereign bonds around the world are negative yielding. why shouldn't the markets care about that are you worried at all that we're facing inverting yield curve here in the united states and bond yields are terrible around the world >> well, i would say this. if the fed cuts, the yield curve is going to steepen. that's number one. number two, in terms of around the world, we have seen a massive underperformance of other assets around the world relative to the u.s. and for one thing, europe is the next japan we actually have still pretty decent growth here and one of the things that mr. liesman said is just, again, not on, not correct. we have had the longest post-recovery post-world war ii, but it's been the slowest, most boring recovery in the history of recoveries. we have yet to get frothy. typically, recessions happen when we see some sor

." >> morgan stanley is downgrading global equities as powell gets tough for questions from congress >>> plus, a day of several big downgrades, apple, verizon and the regional banks and a sudden pickup for retail "the halftime report" with scott wapner begins right now. >> welcome, good to have you with you on a monday joe terranova, we have the chief investment officer and adam parker, ceo, and we begin be the markets. the stocks under pressure this hour follow through perhaps from worries that the strong jobs report may keep the fed from keeping interest rates as much as some hoped. throw in some big-named downgrades and big picture, joe, okay, we said morgan stanley, okay, they have been negative no big shock right? mike wilson sat on this desk and you have got his view. now they say they're putting their money where they their mouth is lowest level in five years big reason lower returns. al plain and simple. right call or not? >> i disagree with the call. disagree with the call because i'm not certain -- first of all, morgan stanley as a wealth management company, i'm surprised t

. >> absolutely let's stick with earnings for a second morgan stanley reports today how is business at the bank in your view? >> well i think morgan stanley is a little bit interesting when you look at bank earnings like bank of america as we saw yesterday. and jpmorgan, where they're really heavily bolstered by consumer unit you "don't ask, don't don't have that with morgan stanley but much of the topline is imangted by trading revenue and corporate actions, and that's we've seen that's been a challenge for these banks that could be -- >> a bright spot for morgan stanley we'll see and finally microsoft who knew they're tiebl hold a one trillion e evaluation what do you expect to hear tonight from microsoft? i think microsoft is pretty good and market -- is not expecting a lot if you look at volatility they're expecting what a 3.5% move but microsoft will be pretty good they haven't disappointed yet. banking on helicoptered growth in the cloud. jason thank you for joining us. >> thanks for having me. >> well coming up more troops are headed to the border and dhs chief shedding back to

at morgan stanley we are looking for two. frances: -- lisa: if the fed cuts rates, consumers will be more encouraged to buy. companies will have more firepower to continue the cycle. won't that be net good for the banks? betsy: that's a question we get from a lot of people. if we were earlier in the cycle, maybe i would bring down my expectations for provisions a little bit more, but we are 10 say, we, and like folks are late cycle. is it one more year, five more years? don't know, but there is less room for me to cut provisions this late in the cycle. companies have increased their leverage. consumers have increased their leverage. at some point, we are going to get a cycle. david: we talk a little earlier about the fact that what the fed does it seems a little less effective than it used to be. will that two cuts, affect things like loan origination? will people be asking for loans? frances: it is really just a shock absorber as opposed to a cycle changer. right now we are not looking for a recession in 2020, but we are loo

stanley and head of that group welcome back what have you all done at morgan stanley? you have like a kind of -- this is year three of kind of an incubator program. >> an accelerator like those that exist in the market but we focus specifically on mul multicultural and women entrepreneurs and give them three thing, cash, content, a six-month program with excellent content where we actually leverage the in-house expertise of morgan stanley professionals but also our external network and then we also connect them to our investment banking, sales and trading and other clients that might help scale their business. >> you started with 300 politics and win know it down to ten into which morgan stanley puts its own skin. >> that's exactly right. that's what is significant the fact that we've never had a supply issue if you talk to people today about why don't you investor more with women? why don't you invest more with mul multicultural entrepreneurs, the first response you get, i can't find any how big is that market well, let me say it again clearly. there is not a supply i

morgan stanley has turned bearish. the bank cutting the global equities allocation to the lowest in five years. it is the outlook for stocks looks particularly poor. in a new note, morgan stanley says the profit forecast remains too optimistic. and that is the bloomberg business flash. tom, francine? newcine: greece's center-right democracy leader is set to take over as prime minister. we saw him being appointed moments ago in a ceremony that follows. handed him election a mandate to tackle the nation's chronic troubles. take a listen to the prime minister elect. >> i feel like i have a strong mandate to deliver on my agenda, which is an agenda to grow the economy and create more jobs. but also to make sure that people feel safe again. francine: our guest joins us. it wasu look at greece, a surprise just a couple of years ago and now the darling of the stock market. and will he do better things for the economy? >> the listen to be learned here is that politically, we have moved on after four years of tsipras. political

plus morgan stanley betting on the rise of the machines, and it's paying off. we will tell you how its robotic strategy is beating thmaete rks. we'll explain on "power lunch. e million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this. >>> welcome back to "power lunch. i'm mike santoli at the new york stock exchange apple rallying into tomorrow's earnings report after ubs said this was the strongest seasonal stretch for the stock, so is this truly a good time to buy this time around harry and dina are your trading nation team today. so ari, put the stock in context for us obviously, a very dramatic reversal off that low in early january after the company warned about poor iphone sales. but the

morgan stanley is due out any moment right now. the estimate calls for a profit of $1.14 a share on revenue of $9.99 billion. stock is up going into the numbers, up about 1%. we'll bring you the numbers an full analysis coming up. microsoft, a name to watch this morning. this as the technology giant warns of hundreds of attempted election related hacks from other countries. we're watching netflix, the streaming giant takes a big hit after reporting a loss of u.s. subscribers and slow growth overseas. the stock down better than 11% this morning. futures are lower, indicating a decline of the start of trading of about 17 points on the dow, down almost a point on the s&p and down 10 points on the nasdaq. stocks were down yesterday as earnings season exposed weakness in growth outlooks for some companies. industrial and energy stocks the biggest drags. plaintiffs in worries a that the -- there's worries that the economies and profits will slow down the second half of the year. dow industrials were down 116 points, nasdaq lower by 37. g

this is not really a new coall for morgan stanley. they have been negative, somewhat bearish, at least cautious, on the market going back at least to the second quarter of 2018. then in the early september, they said well, maybe their call was a little premature. even in late january, after the market rallied very sharply off the december lows, they said it's time to get out of stocks, we really don't see much potential from these levels. liz: okay. >> then in april, they tried to, you know, they said look, maybe we were a little off on our timing, but they still had a very bearish call. all this is coming from their chief equity strategist. i'm not sure exactly who penned the report they have out today but it's obviously the same undertones they've had for close to a year and a half now. liz: okay. but phil, we know that we are now in a decade-long bull market and yes, today is the running of the bulls. that's already begun, that insanity. as we look at the running of the bulls here on wall street, how much longer does it really run?

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. >>> let's send it over santoli. >> and we want to get the most favored nation consider the united states the most favored nation. look at this percentage of world market capitalization accounted for by the united states equity market up to 56%. this an all-time high. steady climb throughout the last, what, eight or nine years. an old story, we know that investment dollars have come here united states has better growth in the developed markets higher financial quality all the rest of it bit but you have to ask how long can it persist trades at a tremendous premium a lot of effects for this. other world are markets have less technology. less kind of stable growth we've heard it all >> and it didn't tell the actual story because for example china's gdp percentage is much higher than it is weighting and that is a msci decision. nonetheless, if you snapshot from 2011 to now, what it correctly points out is the outperformance of the equity markets because the weightin

atley: betsy gray took over morgan stanley, cutting state street from overweight to underweight. heavy itn being how exposed the trust banks are to the curve. we have seen yields drop. they are heavily exposed.

morgan stanley is a bit of an outlier in their expectations. finally, i want to talk about deutsche bank because wall street is very concerned about this they're talking about laying off 18,000 people. a lot of people in the overall business of trading and it is very simple what happened to deutsche bank. when you have the rise of electronic trading, when you have problems with the overall market here, with indexing, the rise of exchange traded funds and fewer active managers trading, it is very simple what happens on wall street you get lower volumes and you get lower profits and that's why a lot of people have been exiting the business deutsche bank was a major player, but not the number one player and now you see consolidation in this industry going on look at deutsche bank, this was a positive initial discussion when they announced the layoffs. up earlier over in europe. now it is turning negative, down 6% on the day. even a major reorganization like that isn't helping this. this stock is $25 in 2015. that's what happens when you have major

morgan stanley wrapped up the round up today. the ceo said the bank is focused on expense control going into a. of uncertainty. a a period of uncertainty and period of rate cuts instead of hikes. we are joined now by our bloomberg columnist. in times of stress, you need to act more quickly. perhaps this is leading some traders to look at 50 basis points instead of 25. >> the timing is suspect because of the feds back out. is about to start. sometimes, when they have something in mind, they are extra forceful in the days before that. between richard clarida and john williams, two of the big three, in terms of fed speakers, they are saying we need to act preemptively and aggressively. you are close to the zero bound, you need to go hard and fast. it is starting to get people concerned that it will be 50 basis point cut. caroline: we have been hearing of the need for shock and awe that we might see from the 50 basis point cut. we asked someone earlier how much they see yields on the u.s. 10 year going. >> all the way down to zero. i

morgan stanley going under on global stocks. the lira getting battered as the central bank governor was dispensed with. what does that mean for rate cuts? dollar korean won is a little bit on the move. a three-weekp into low. trade tensions rising. japan and korea. there was a survey in japan about pushing a little bit of pushback against korean exports into japan. nejra. the indian rupee slapping a 10 day winning streak so we are seeing a little bit of weakness and in u.s. futures as well. stocks dropped on friday following the jobs report is not cute offers we are seeing here in falling from record highs in u.s. stocks, too. the 10 year yield jumped 10 basis points on friday. the two-year yield coming down, hitting a 1.87 handled on friday. manus. manus: thank you. let's talk about the curveball that was thrown at the turkish market. president erdogan backed the .entral bank governor the move comes weeks before a policy decision on july 25. he reportedly told lawmakers to get behind the government's economic policies, includin

morgan stanley is looking for the weaker dollar call. why? matthew: we have been looking for a weaker dollar for some time. i think the issue that we've been seeing, why has the dollar been weakening despite the fact that we have gone from pricing in two rate hikes as of last november and now we are pricing in four rate cuts over the next year is ultimately because the u.s. is the best house on a bad block. we are seeing investors are coming to the u.s. not just for high-grade fixed income securities but also equities. we are seeing defenses outperform. seeing utilities, staples, they all doing very well in equity complex. that is because people are nervous. people are uncertain about the future, given what is going on with trade and global growth, the two issues that powell is highlighting. that is why the dollar has been strengthening. once the u.s. will start to show its true colors, things will change. jonathan: are you comfortable with this dollar weaker call? mike: it has been our call for a while. talking to our ethics team, they -- ta

romaine: more for morgan stanley thursday morning. and now, to our bloomberg reporter. coming up, blue apron, adding beyond meat to its meal kits. that is coming up next. this is bloomberg. ♪ ♪ want to bring you some breaking news, stocks, two breaking stories. the railroad missing on second-quarter earnings, missing on second quarter revenue, and, more importantly, their full-year revenue, they are looking at a decline of about 1% to 2%. they had previously protected growth for the full year. you see shares down about 5.5% to get on the flipside, united airlines actually rising a bit after hours, the company saying there second-quarter operating revenue and a lot of other key metrics also rising, slightly above what analysts were expecting, also giving a full-year forecast on capacity a little bit light of 3% to 4%. going redue apron is hot, the meal kit maker saying be beyond meat option will offered. they will have the blue apron menus added in august for joining us is an editor over at bloomberg news. what is so fascinating is that blue apron, arguably much more

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. did you know that feeling sluggish or weighed down could be signs that your digestive system isn't working at its best? taking metamucil every day can help. metamucil supports your daily digestive health using a special plant-based fiber called psyllium. psyllium works by forming a gel in your digestive system to trap and remove the waste that weighs you down. metamucil's gelling action also helps to lower cholesterol and slows sugar absorption to promote healthy blood sugar levels. so, start feeling lighter and more energetic by taking metamucil every day. >>> in corporate news, ab inbev seeks 9.$9.88 billion for its aa unit there are more than 50 beer brands in that region. >>> coming up on the show, the competition everyone in the office will be talking about today. it's a rivalry that goes back centuries. the details when "worldwide exchange" returns. there's brushing and there's oral-b power brushing. oral-b just cleans better. it's the one inspired by dentists... with the round

morgan stanley -- who is doing them best? allison: one thing with morgan stanley, golden has equity trading results. that raises the stakes for morgan stanley. we expect they remain the global leader but are they keeping pace , and in the longer term is there opportunity for them to gain more share? the second key metric for morgan stanley is their pre-taxed margin in the wealth business, bank of america called the record. 29% on the surface. enough to make that a new record and we are expecting to see good things from morgan stanley. david: based on what you have seen so far, particularly bank of america, if you had to make a move, either go heavy or lighter. which would -- we would you go? upside or downside? a good question. we are comfortable where we are but if you had to push one way or another, i would say tactically you could see upside. the expectation levels were pretty low coming into this earnings season. as we progress through earnings season and this contrasts with other areas of the market, they are starting to

morgan stanley has turned bearish. the bank cutting its global equities allocation to the lowest in five years. it's is the outlook for stocks over the next three months looks particularly poor. in a new note, morgan stanley says profit forecasts remain optimistic, and orders for manufacturing keep getting worse. car sales showing sign of recovering from a historic slump come arising in june for the first time in 13 months. sales were up on was 5%. chinese car dealers offer discounts to clear out inventory. some employers are putting an end to weekend and late night emails. according to "the wall street journal," they are concerned about employee burnout. firms care consulting have software that puts messages sent after 10:00 p.m. on hold until 6:00 the next morning. i'm viviana hurtado. that is your bloomberg business flash. alix: i love that story because it is so unrealistic. david: exactly right. i bet you the ceo has figured out a way around that automatic putting it off. alix: like a phone call? it is called the

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. >>> new developments this morning in the case against jeffrey epstein. good morning, sarah. >> new developments not only with episfeen but u.s. labor secretary acosta who said the plea bargain in 2008 was the only way that he could insure epstein went to jail but a former florida state attorney is calling that totally false >> laborer secretary on the defense. >> backs are important and they're being over looked. >> rebuff

morgan stanley is looking for that weaker dollar call. why? for ahave been looking weaker dollar for some time. the issue we have been seeing, why has the dollar been weakening despite the fact we have gone from pricing in two rate hikes since last november, now we are pricing in four rate cuts over the next year. the u.s. is the best house on a bad block and we are seeing lots of investors come to the u.s. not just for high-grade fixed income security but for equities. we are seeing defenses , staples,, utilities they are all doing very well within the equity complex and it is because people are nervous. people are not certain about the future given what is going on with trade and global growth which are the two issues that powell is highlighting. that is why the dollar has been strengthening but once the u.s. shows its true colors, we think things will change. comfortable with that dollar call? >> it has been our call. sometimes the rate differentials threaten currencies, sometimes they do not. there has been a dollar flight but if you look

with morgan stanley. this is bloomberg. ♪ morgan is pushing its use of artificial intelligence beyond investment banking. the asset management arm is investing in machine learning hedge fund. this is according to persons familiar with the matter. it will operate within jp morgan 's $15 billion fund of hedge fund business. we are joined by bloomberg's hema. what is the purpose? walk me through this. guest: machine learning is what they are focusing on. jp morgan calling it a fund of hedge funds. it will invest in hedge funds, specifically machine learning funds. sophisticated a machine learning try to g they are seeking, but they can be more emerging to more established. it is really the next push for jp morgan alongside morgan stanley which have been investing a lot in these kinds of technologies using ai, machine learning. they have been hiring up quantitative talent as well. really interesting to be investing in a fund of machine learning hedge funds. taylor: i remember in 2008 and in the past decade,

morgan stanley says a 50 basis point in july. markets pare back expectations. growth herek tuesday. the european commission cuts growth and inflation forecasts. 's and parliament kickoff the next crisis of trying to avoid a no deal brexit. david: welcome to "bloomberg daybreak." just before we came to air we the u.k.involving the ambassador to the u.s. has resigned. alix: did he really have any choice? david: there were those cables leaked that were very frank about his assessment of the president, and it was not very flattering. it was business as usual, but five hours later that proves not to be the case. david: but president trump really had gone after him, even calling him stupid and things like that. at the same time, the british government backed him. but it is hard to do your job if they are not going to talk to you. alix: for sure. but also the leaking. he was supposed to report back. that was the point. in the markets, we are seeing a bond selloff headed into the fed , particularly on the long end and in europe. german bund yields are at their highest level since three week

morgan stanley is looking for the weaker dollar call. why? matthew: we have been looking for a weaker dollar for some time. the issue that we've been seeing, why has the dollar been weakening despite the fact that we have gone from pricing in two rate hikes in november and now we have four rate cuts over the next year, ultimately, because the u.s. is the best house on a bad block. investors are coming to the u.s. not just for fixed income securities but also equities. we are seeing defenses outperform, utilities, staples all doing very well in equity , complex. it is because people are nervous, uncertain about the future, given what is going on with trade and global growth, the issues that powell is highlighting. that is why the dollar has been strengthening. once the u.s. starts to show its true colors, things will change. jonathan: are you comfortable with his dollar weaker call? mike: it has been our call for a while. sometimes these rate differentials drive currencies, sometimes they don't. i agree there has been a dollar flight. but is t

race with morgan stanley. this is bloomberg. ♪ taylor: jp morgan is pushing its use of artificial intelligence beyond investment banking. the asset management arm is planning a strategy to invest in machine learning hedge fund. this is according to persons familiar with the matter. it will operate within jp morgan's $15 billion fund of hedge fund business. we are joined by bloomberg's hema parmar. what is the purpose? walk me through this. hema: machine learning is what they are focusing on. jp morgan calling it a fund of hedge funds. it will invest in hedge funds, specifically machine learning funds. unclear how sophisticated a machine learning they are seeking, but they can be more emerging to more established. it is really the next push for jp morgan alongside morgan stanley which have been investing a lot in these kinds of technologies using a.i., machine learning. they have been hiring up quantitative talent as well. really interesting to be investing in a fund of machine learning hedge funds. taylor: i

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >>> welcome back to "squawk alley. turning to apple shares still in the red this morning, but our next guest remains establish on the stock, saying that worries over china numbers are just noise that's wedbush securities analyst as well as tom fort who also has a buy on the stock. gentlemen, it's nice to see you in person this morning dan, you've been conducting checks, your team has, component makers on the ground in asia so looking at the note this morning, which shares are reacting from rosenblatt securities, why do you think that fears may be overblown? >> in terms of all of our checks, we see a slight tickup in terms of units, 180 million for the year and in terms of china, weapon continue to have 60 to 70 million iphones in the next 12 to 18 months for us, even though there's a lot of noise, i think th

morgan stanley is looking for the weaker dollar call. matthew: we have been looking for a weaker dollar for some time. seeingue that we've been , why has the dollar been weakening despite the fact that we have gone from pricing in two rate hikes in november and now we have four rate cuts over the next year, ultimately, because the u.s. is the best house on a bad block. investors are coming to the u.s. not just for fixed income securities but also equities. defenses outperform. utilities, staples. all doing very well in equity complex. it is because people are nervous, uncertain about the future, given what is going on with trade and global growth, the issues that powell is highlighting. that is why the dollar has been strengthening. once the u.s. starts to show its true colors, things will change. jonathan: are you comfortable with his dollar weaker call? mike: it has been our call for a while. sometimes these rate differentials drive currencies, sometimes they don't. i agree there has been a dollar flight. but is the world a safe haven

morgan stanley is losing ground on wall street. the biggest stock trading -- a drop in equities trading revenue, blaming lower client balances. that was the steepest decline among major u.s. banks and even surprise jump in what management fees was not enough to over set an overall all in revenue. shery: microsoft gained an extended trade. estimates topped estimates -- the cloud computing business racked up more clients for it azure web services. commercial cloud revenue jumped by more than one third. the profit margins widened to 55%. shares surged on optimism over the cloud business. paul: the outlook is bright for the world's largest contract chipmaker. projected quarterly revenue that was better than estimates and shoved off concerns about a downturn in the mid-the smartphone slump in the ongoing trade war. income in the previous quarter fell to just over 2 billion u.s. dollars. they -- it was better than analysts expected. businesses are set to rebound. shery: nvidia is considering asset sales. after the failed listing of its a

shery: we have morgan stanley, the last one, tomorrow. will we see a similar narrative? >> it will be different with morgan stanley because they are seen as a trading powerhouse and trading did not do well this week. indman sachs did do well trading, so it will be interesting to see if morgan stanley can compete with its big wall street competitors in terms of trading, but the bar is kind of low because everyone has already seen trading across most of the other banks not doing very well. paul: thanks for joining us. still to come, joe masters joins me in sydney to talk about her outlook for jobs and what is next for the rba. this is bloomberg. paul: you are watching "daybreak australia." we are awaiting june data for the us trillion market. it will be out later on today and it is traditionally one of the most unpredictable numbers. economists expecting just 9000 new jobs to be added, and it could fuel renewed expectations of another rate cut next month. this jobs read, perhaps more than any others recently, shaping up as a very important one for the rba, isn't it? >> abs

at this hour after recording quarterly results bead morgan stanley's results cap off a busy week for financials which saw all six major u.s. banks report beats on their top and bottom lines you know what bank stocks did for the week >> nothing. >> nothing down 2%. jim. >> well, but it's been a good user for a lot of the bank stocks. >> sure. >> if you look at the xlf, that's up about 17% on the year-to-date i think you have to put into perspective what you're expecting from this sector are you expecting something like technology growth rates in earnings per share or share price? i'm not, okay. what i'm looking at in this sector is a sector that's so beaten down, i really don't think it goes lower. i see upside potential of the 10% to 20% range over the next year, but i'm not looking for it to shoot the lights out. most of these stocks are trading at or around book value. that gives a margin of safety in my eyes. they're buying back shares you know, citi, shrinkage at 10%. those things get me enthused to buy the stock. >> consumer banking is winning on wall street you saw it with citi

stanley is a bit better. >> look, goldman sachs more than morgan stanley business changed entirely by the regulatory environment. they were neutered in terms of the ability to take leverage they also had a couple high-profile difficult situations they've gotten themselves into those. >> and when things went out -- >> and they're now resolved. >> and they will have the roes they had at the piques. >> head over to cnbc.com here is what else is coming up on "fast." ♪ welcome to home of the good burger can i take your order? >> vettors ainvestors are orderh fast food, but one investor says one is about to blow up. plus the bitcoins are howling and they went to under 10,000 in the last week. but something in the charts suggests another big breakout. we've got those details. much more "fast money" after the break. >>> a new cnbc survey shows a third of americans are tightening their belts and cutting spending plans, but 70% plan to go on vacation this summer 34% will spend between $1,000 and $5,000 8% will spend between $5,000 and $10,000. 21% will fly somewhere in the u.s. 9% of american

still with us is hans redeker from morgan stanley. first, i don't know you see oil in a range of 40 to 70 which is of no use to anyone. how do you see oil impacting your forecast? hans: when you have opec which is restricting supply and at the same time you see oil price declining and oil industry going up. we will have today oil inventory release and you know that there are significant demands being on its way. i mentioned in the oil market, we have noticed significant declines in oil demand to south korea, the united states, japan has been the most significant moves and those will weigh on the oil frarkt. francine: getting breaking news out of the nikkei, a japanese company, saying amazon looks fed to shift some production out of china. things like that according it h.p. and dell will move 30% of their noteboob out of china. how does it change things chinese pends on reaction. it needs to be domestic demand driven and i think they are forced by this announcement and news, they are forced to be quicker in that and i think that initia

morgan stanley is looking for the weaker dollar call. matthew: we have been looking for a weaker dollar for some time. the issue that we've been seeing, why has the dollar been weakening despite the fact that we have gone from pricing in two rate hikes in november and now we have four rate cuts over the next year, ultimately, because the u.s. is the best house on a bad block. investors are coming to the u.s. not just for fixed income securities but also equities. we are seeing defenses outperform, utilities, staples. all doing very well in equity complex. it is because people are nervous, uncertain about the future, given what is going on with trade and global growth, the issues that powell is highlighting. that is why the dollar has been strengthening. once the u.s. starts to show its true colors, things will change. jonathan: are you comfortable with this dollar weaker call? mike: it has been our call for a while. sometimes these rate differentials drive currencies, sometimes they don't. i agree there has been a dollar flight. but is t

david: morgan stanley cutting to equal weight. yvonne: the stock rallying on that, up more than 7%, brilliance china. and then, the last stock, a maker of circuit boards, zhending up close to 6% today. david: we are down 7.5% on features now, about one point five hours away from the open of cash markets. we will be joined -- we are joined by a our next guest from mumbai. >> yesterday's session was interesting. the nifty 50 was single-handedly lifted higher by interest rates. dcs also chipped in. -- nifty bank was down. single-handedly, business has managed to prop up the index. the last few days have been 11,500,ange-bound -- 11,650 seems to be the new range traders are looking to play around. it will be interesting to see how i.t. stocks react in today's session. it will be focused on what happens to these private sector banks as most of their results are coming out today. yvonne: we are watching the mid-caps private banks, they have started to report their earnings. how are the stoxx that to perform -- how are their stocks bet t

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. >>> netflix shares tumbling, down double digits now 17% off 52-week highs. the stream giant posting a miss on subscriber growth netflix also lost about 100,000 subscribers in the united states its first quarterly subscriber loss in at least eight years as netflix continues to lose license content from its library. can its original content keep people watching? let's bring in our analyst who is bullish on the stock. lowered

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i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. >>> welcome back here's your cnbc news update a strong aftershock has hit southern california. the 5.4 magnitude rumble was the larmgest so far striking the same desert region as yesterday's initial earthquake which was the strongest in 25 years. >>> and now to northern california where they're dealing with a different issue homelessness in san francisco, the number of people living in their cars or on the streets increased by 17% over the last two years. officials say the lack of affordable housing is the main factor >>> it's hard to believe but these images are from alaska where record breaking heat is is hitting our northern most state. temperatures are expected to hit nearly 93 in anchorage, the warmest it's been since 1969 >>> and queen elizabeth ended her trip to scotland today by taking a stroll through an edinburgh farm the queen enjoyedsome time wit a duck named olive who appare apparently is is very human like and no, olive was not required to courtesy

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. we run right into these crises, and we do not leave until normalcy is restored. we'd been working for days on a site in a storm devastated area. a family pulled up. it was a mom and her kids. everything they had had been washed away. the only thing that brought any kind of solace was the ability to hand her a device so she could call her family and let them know that she was okay. (vo) there for you when it matters most. join us and get up to $650 when you switch. that's verizon. xfinity mobile is a designed to save you money. whether you use your phone to get fit or to find the perfect gift, you'll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. so you save hundreds of dollars a year on your wireless bill. xfinity mobile has the best network. best devices. best value. simple. easy. awesome. click, call or visit a store today. >>> welcome back to "power lunch. president trump bashing crypto s last night and singli

we are morgan stanley. >>> okay, engine stop. override off. engine arm off. 413 is in. >> we copy you down, eagle. >> houston, the eagle has landed. >> roger tranquility. we copy you on the ground. we got a bunch of guys about to turn blue. we're breathing again. thanks a lot. >> 50 years ago today, two men worked on the moon and neal armstrong uttered "one strong step for man, one giant leap for mankind." they had the support of 400,000 people right back here on earth, many of them including those at mission control. that's where cnn's rachel crane is. a lot of people are celebrating today. give us a sense of what's going on there. >> reporter: martin, this is a real pinch-me moment because i am coming to you from the iconic apollo mission control. this is the room where it happened, where the engineers, the scientists, the flight controllers pulled off the incredible feat of landing buzz aldrin and neal armstrong on the moon 50 years ago today. it feels like the controllers just stepped away from their desk as the result of a six-year restor

morgan stanley is looking for the weaker dollar call. why? matthew: we have been looking for a weaker dollar for some time. i think the issue that we've been seeing, why has the dollar been weakening despite the fact that we have gone from pricing in two rate hikes as of last november and now we are pricing in that rate cuts over the next year is ultimately because the u.s. is the best house on a bad block. we are seeing investors are coming to the u.s. not just for high-grade fixed income securities but also equities. we are seeing defenses i perform. seeing utilities, staples, they all doing very well in equity complex. that is because people are nervous. people are uncertain about the future, given what is going on with trade and global growth, the issues that powell is two highlighting. that is why the dollar has been strengthening. once the u.s. will start to show its true colors, things will change. jonathan: are you comfortable with this dollar weaker call? mike: it has been our call for a while. talking to our ethics team, they say, l

also at morgan stanley, micron was upgraded to equal weight from underweight. ths analyst s the trade tensions are driving short-term inventory accumulation right now. price target, $48. that stock rose more than 1% to 47.46. >>> still ahead, big pharma big profits. despite pressure coming from washington. ♪ despite pressure coming from washington. ♪despite pressure coming f♪ ♪ ♪ acquie ♪ >>> it is one of the largest-ever data breaches of a big bank. capital one financial says a hacker accessed the personal information of millions of credit card customers and applicants. the scale of the hack and questions over other potential vu erabilities sent the sto lower in today's trading session. aditimooy has . >> reporter: it is one of the biggest breaches to hit a bank, and the number of customers affey ede capital one hack areer stag. 100 million u.s. customers impacted, 6 million in canada, and amonghe data stolen 140,000 social security numbers and 80,000 linked bank accounts. also nes, addresses, birth dates and even credit card scores. capital one es

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. >>> my personal view is that he richly deserves impeachment. he's done many impeachable offenses. he's violated the law six ways from sunday. that's not the question. the question is can we develop enough evidence to put before the american people. >> that's house judiciary chair jerry nadler, sort of straddling a fine line on impeachment arguing it's too soon to begin formal impeachment against president trump but filing a lawsuit stating the committee is considering it and also suggesting in some way this is part of the impeachment process. this comes as nearly half -- nearly half now of house democrats now back starting an impeachment inquiry. joining us, joe lockhart, cnn political comment, cnn political commentator and democratic strategist. the numbers have moved. not a tidal wave but they have moved. three more democratic members of the house, all three from washington state joined this list. 103, 104, 105. they are almost at half the caucus now calling f

morgan stanley, big trading company as well. shery: thank you so much with the latest on the bank earnings season. we will have plenty more ahead on daybreak australia. this is bloomberg. ♪ shery: online shoppers are trying to take full advantage of amazon's two days of mega sales for prime members. internet searches for canceling amazon prime were 18 times higher on monday as the sales begin, suggesting many shoppers are signing up to cash in on the discounts and then immediately trying to back out for a long-term membership commitment. let's look closer with spencer soper. what does this mean for amazon then? spencer: it is tricky news for amazon. they have enjoyed rapid prime member growth. once they lock in a prime member, they can count on that for more sales through the year. the typical prime member in the u.s. spent a little more than twice as much what i nonprime member does on amazon. prime, even though it is a big tale of deals, the revenue they make is not as important as a new prime member sign-ups because that is

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i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. >>> you're looking at armored vehicles right now arriving on the national mall. a few moments ago for the fourth of july celebration. we'll keep an eye on that. i want to turn to a bomb shell verdict. it happened tonight in a closely watched murder case. a navy seal team leader, gallagher found not guilty of premeditated murder in the death of an isis prisoner in iraq in 2017. criminal defense attorney and wonderful attorney at that. this was a huge bomb shell. wasn't it? the idea he was not guilty. >> wow. without question. obviously any trial that nuances if you're not in the courtroom every day. perhaps you miss something. in following this closely, and you have seven counts of course the top count premeditated murder and attempted murder. according to to snipe shooting an elderly person. a young girl. and you have a number of people who worked with him under his who worked with him and who came in and said he did all this. they testified. and the two narrati

i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back it's 5:13 on a tuesday morning we have a major developing story that could impact you. capital one disclosing a massive data breach. kate rogers has more on that >> that's right. look at these numbers. capital one said it suffered a breach affecting 100 million u.s. customers, 6 million in canada the company says 140,000 social numbers and 80,000 bank accounts and 1 million canadian social insurance numbers were compromised. it says the largest category of data that was exposed was from credit card applications including names, addresses, dates of birth and self reported income payment