Deal reshaping the storied Investment Bank, Morgan Stanley Ceo James Gorman will join us in the next hour. A mega merger, increases the projection of expenses saved and the guidance which well get into, as well. Giving up control of victorias secret selling a 55 stake to siycamore and stepping down. Well start with the deal of the day. Morgan stanley agreeing to acquire etrade valued at 13 billion. 58. 74 a share three months after schwab and Td Ameritrade announced a merger deal a lot of discussion of why not robin hood an enwhat it means for the sort of the framing of their Wealth Management business, jim. It is kind of amazing about 5 million accounts, maybe more robin hood with 10 million accounts in no time they were land speed record for accounts their success is driving everything they have the millennials. They have a different orientation. They have the easiest site to use. All hand held. Theyre racking up customers i have had robin on a couple times. Theyre the biggest threat
Highest level in two years trade headlines have us on record high watch for the s p, a closer call for the dow and nasdaq and would be the 27th record close of the year for the s p. Joining us for the other, stephanie link, good to have you here this afternoon. What does it mean . The computers take each headline as if its fresh what a difference a year makes is all i have to say last year we had tight fed policy, no idea what would happen with trade. This year we have much more accommodating fed and seems were getting some pieces of certainty on trade may not be what we want but making progress. Now i would argue a lot of this is priced into the market given weve had Market Expansion on the multiple but, you do not fight the fed and at the same time the ism and pmis are stabilizing and the data this week has been pretty good on other data points on the economic front we might have risk to the upside in growth for 2020 and thats why the cyclicals are rallying ive been biassed, its been
Official approval. Speaksstanleys boss exclusively to bloomberg, warning the fed against cutting rates. Ive supported the latest fed rate cut and i suspect they will do one or two more. But then it is time for a pause. Shery more from that exclusive interview with james gorman ahead. Plus in Bloomberg Technology global link, aps incremental tweaks to the iphone lineup. We will ask if that is enough to lure buyers. Thats get you a quick check of how the markets closed in the u. S. A bit of a rocky session for markets. Gains and losses but throughout the session getting a bit of a boost. The dow up three tents of 1 . The s p 500 unchanged. Media reports talk about chinese purchases of u. S. Agricultural goods. Greato have not so optimism when it came to bail trade negotiations and those concerns wait on tech stocks with the nasdaq unchanged. We have Energy Stocks higher with oil fluctuating after the National Security advisor was let go from the white house. Lets get you started with a q
U. S. And china are trying to temper some of the repercussions trade war is having. You can see euro stocks gaining 0. 6 . The yen is also a good litmus 7. 81and you can see one of 107. 81. Tomorrow, we also have the ecb to look out for. Coming up, we speak to the former u. S. Ambassador to the European Union. Dont miss that interview at 10 30 a. M. London time. We talk u. S. Foreignpolicy and brexit. Lets get straight to the first word news. U. S. Goods to be exempted from tariffs last year were announced by china at the top of the list are pharmaceuticals and lubricant oils. Beijing is seeking to ease the impact from the trade dispute without lifting charges on agricultural item like soybeans and pork. The ministry of finance says further rounds of exemption will be released. Morgan stanleys ceo warned against the fed cutting too easily but says he supports of the reductions made so far. He made the comments at the Columbia Business School in new york. I have supported the latest fed
Lets get a check in on the markets. European equities are pretty flat. The stoxx 600 struggling for direction. You heard and the headlines, three key things we heard. The dovish message from Jerome Powell reiterated and we got better than expected data in terms of retail sales and factory output, pushing the 10 year yield up. It also pushed the dollar higher and we hold on to those gains. The question as whether President Trump can have the weaker dollar at the same time as a strong economy. And can he have gains in stocks as the same time as a trade war continues . As you made those comments, the s p 500 took a hit, dropping for the first time in six sessions. Coming up, we speak to the oecd secretarygeneral. Dont miss that interview live. Lets get bloomberg first workers. Word news. The u. S. House voted to condemn comments from donald trump that are racist. Week, he tweeted for congresswoman should quote go back to where they came from. Trump says he is not racist and does not have