Are trading with julie hyman. Julie i thought you were going to say david gura, a big unc booster. Direction here. Returning to the platelet we have been seeing with the sideways movement, there are some lagging groups, financials are down, Technology Shares as a group are down. I want to dive into tech a little bit more. Seen that group outperformed recently, with the nasdaq, the only one of the three major averages three at 10 record highs in the past week or so, although its little changed today. One of the factors in the group thats not doing well is nvidia. The stock was downgraded to underweight, analysts saying there are signs of saturation in the market for desktop graphics chips. Those shares one of the worst performers in the s p 500. Lets take a look at amazon and google today. A very different tale for these two. At aboutares trading 900 a share. Alphabet is going lower, bmo saying also that ad revenue is facing Competitive Pressure from amazon. Amazon named a top pick, and the price target is going to 1200 a share. Amazon kleiman also been largely has been doing well with the exception of today, the focus is back on facebook, alphabet, or google as well as netflix and amazon. Theres an index of these stocks and white and the s p 500 is in blue. Directionally, theyve been going the same way. This is since the election, you see a drop in the fang stocks relative to the s p 500, but then they have been recovering particularly as weve gotten into the month of march. Now ill performing by little bit better of a margin. Bitutperforming by a little better of a margin. Also doing well is tesla, after the company came out with deliver numbers that the estimates and the shares are continuing to go higher today, of another percent and above 300. 900 for amazon, above 300 for tesla and this market cap approaching 50 billion. We talked about how it had overtaken ford, now is getting close to gm and market cap. And scarlet an incredible rise. Oliver jamie dimon released a letter to shareholders laying out his views on wall street, washington, and the world. The bank expects to firstquarter trading revenue to be up quote modestly yearoveryear. Jamie says there are no plans to move people in the next two years, but there will be pressure with activities to the european union. He notes that america has one of the highest Corporate Tax rates in the world and that it cost quote considerable financial damage to the country. Goldbergned by jason from the office in new york. Take on what was surprising. The here did he add to table that we havent heard from him before . 10 pages on the company as a whole, 15 pages on policy reform they would like to be seen. That stood out to us. With jpmorgan specifically, if you go back for five years ago, he talked about wanting to buy back stock not above 1. 3 times trade this year he mentioned two times but with a number he would go to thats potentially higher number which implies hes contributed very active share buyback. He tries to develop the case that increase capital and quarterly requirements for the Banking Industry in relation overall has stymied loan growth over the last several years, particularly loans to Small Business and mortgage banking come almost pleading to the in administration to roll back and get lending going again. Anythingdid you learn that would cause you to change a rating or your price target on jpmorgan . Mr. Goldberg weve been constructed on the shares of jpm for quite some time, if anything, this reinforces our view that they have a very Strong Management Team in place in addition to his letter, each a the business line heads has letter to shareholder dictating what they see as the future. Generally speaking, we think this company is very wellpositioned industry that should be receiving telephone better fundamentals going forward. Oliver this is an annual letter, but when you see jamie dimon come out, hes very vocal and it seems like hes been more talkative about the Global Economy and the u. S. Political landscape in the past year or so. As an analyst, how did that factor in to the way you assess the company and the overall marketplace for its business when you have a ceo whos out there talking and getting a lot of information about what he thinks is going on . Mr. Goldberg its beneficial. Hes been very active and we believe with this new administrative new at administration, hes on these president s Strategic Advisory some ofd hoping shape the regulation and revelatory environment going forward. I think the Banking Industry in general has a lot to gain from reduce regulation, given seven or eight years of ramped up regulation, benefit from improvement in lower Corporate Taxes and every structure. Anything that can be done to improve the u. S. Economic outlook, they would likely want to see. In a live blog in the jamie dimon letter was in the Public Policy clearly reflected jamie dimons efforts in washington very entire focused on the United States. Is the bank gets roughly a quarter of its revenue from outside the u. S. Does that mean jpmorgan and the to. Banks have less ability glean whats happening overseas than they do in the United States . Mr. Goldberg no, just given that the vast majority of their revenues are in the u. S. , if you read it, he talks about mexico and china in terms of whats going on about those countries, he also talks about how Global Financial reform needs to be more harmonized and not giving any have one country or one region unfair advantages. He also talks to expand both in the u. S. As well as overseas, adding corporate breaking offices in additional countries. Brexit,we talk about its and adjusting point as article 50 gets triggered. Jamie dimon says while there may not be changes in the next couple of years, there are going to be changes that we for see happening moving people out. Is that a risk, something that has to happen, or does it have a Material Impact on how you evaluate brexit itself is they have to make major shifts around the world . Mr. Goldberg the Banking Industry in general, u. S. Banks are going to have to adjust. You have potentially move certain businesses or operations outside of u. K. Into other parts of europe. At this point, its a cost of doing business. Think is quite manageable in the context of the banks earning capacity. Andill play out over time their Unanswered Questions of how its all going to fair out. Oliver if you think its more of a onetime charge, in some sense . Mr. Goldberg the bigger impact is what impact it has in the overall economy and the economies of europe, as i said earlier, banks reflect the economy and thats probably they are concerned then moving people are getting different licenses are finding out how to do business differently as the laws allow. Scarlet jamie dimon currently speaking at a yahoo special town hall event. These are live pictures of Ceo Jamie Dimon speaking with yahoos finance editorinchief. Ryan moynahan making some comments, the ceo of bank of america saying the white house has a jumbled trade message that needs to be fixed right away. Tell us what the impact is on Banks Like Bank of america and jpmorgan, what investors cant get a clear read on how the administration moves forward with trade . Mr. Goldberg the market still like uncertainty, and if you look since theyve had health care delayed, or has been some choppiness in the market, particularly banks. It may not be entirely true. Are ad of the day, banks reflection of the economy, and to the extent that Economic Activity could accelerate, we think loan growth and bank revenue its quite important from that respect. Scarlet jason goldberg, Senior Bank Analyst at berkeley, thank you. At barclays, thank you. Mark debate on president Trumps Supreme Court nominee is underway. Republican and Democratic Leaders are casting blame. Democrats have secure the votes to block the nomination of neil gorsuch, but Senate Majority leader Mitch Mcconnell is poised to change Longstanding Senate rules to get gorsuch confirmed by civil majority. The president hosted town hall at the white house today about 50 ceos gathered to discuss the state of the u. S. Business climate. The president , who meets thursday with chinas xi jinping gave details about what you plan to discuss with the chinese leader. We are going to have a fantastic meeting and we are going to talk about a lot of things, including north korea. A problem, and its really a humanity problem. Were going to be talking about that also. Mark the president declared recently of china wont help solve north koreas weapons program, the u. S. Is prepared to go it alone. Hasecurity council scheduled an emergency meeting for tomorrow, following the suspected chemical attack in syria. The u. S. Ambassador nikki haley, the Current Council president made the announcement today in response to the request from britain and france for an Emergency Council session. The attack killed at least 58 people. Diamond known as the pink star sold for 71. 2 million and 70s auction in hong kong. Setting a new world record for any diamond or jewel. Mixed cut diamond smashed the 60 million resell estimates that by 70s when it went on the block. The gem is the largest flawless fancy vivid pink diamond ever graded by the gemological institute. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Scarlet, any truth to the rumor you made a bid . Scarlet i will stay quiet on that one. Still, and unexpected larger from fed president jeff lacker. What the fed will look like without one of its more hawkish members. From new york, this is bloomberg. Scarlet this is Bloomberg Markets, im scarlet fu. Oliver im oliver renick. Richmond fed president Jeffrey Lacker is resigning immediately. Know, andat we whatever back story we have figured out so far . Lacker was due to retire this year, its happening immediately. The circumstances are surprised given the way the richmond fed has prided itself on being this bastion of central banking rectitude. Throughthat jeff lacker his statement and subsequently confirmed to us on the telephone by mr. Lacker, this concerns the 12obe of these september 20 fomc minutes. They opened the floodgates again and added an extra layer of treasury purchases and listen to forward guidance. Medley published a report in october, the day before a september meeting came out, foreshadowing this further swaying of easing in december. The report was called december band, and this erupted a while ago, theyre been multiple investigations, the fed ran an investigation, the fed ig ran an investigation, jeff lacker talks about the fbi talks about seven district of manhattan. The plot thickens, and we find out more in the coming days. Thank you so much, dan moss. Oliver still ahead, President Trumps auto factory push may be in jeopardy at following yesterdays weak sales numbers. This is bloomberg. Scarlet in business, disappointing auto sales yesterday may signal the Industry Sales winning streak could be running out of gas. Carol massar and cory johnson are here. Were joined by the ceo all the way from michigan. But the notion that this is technologytment in driven changes happening in the audio industry. To be here. Cited yesterday was a big day for us. We announced an investment into water attack, a Venture Capital fund which is a really big move for us as a company. It does three fundamental things. Access tos tremendous starting logic. Secondly, the industry is evolving quickly, and we dont want to get surprise and a car out moment, so we are somewhat protected. , andndustry is changing this is an opportunity for us to advance that. I think a little bit different culture and open of peoples minds to different places in the world that are pioneering innovation and technology. And thats happening right here. We are in tel aviv in other parts of the world. Lets talk more about that in terms of what you are seeing and opportunities. I got to ask you about the news where we got car sales or vehicle sales for the latest month. Aere is worry theres slowdown within the automotive, particularly among sedans. Consumers dont seem to be interested. Are you seeing the market for cars and vehicle sales slowing down . Dataerrier yesterdays for the month was tracking in the mid16 number, which i think was while consensus, a little light. But if i look at how the year is playing out this far, is actually playing out about where is expected. Anticipating a decline in north america, and thats kind of where we are. Not a huge surprise. Carol but it is slowing. Some of the inventory levels are little elevated, but we are paying attention. It, it is still a robust number to operate in. The last point that i think is important for us as a company is 75 of our business is outside so when we see softness in the u. S. , we are still seeing growth in china and a robust market in europe. We grow at a rate must faster than the market. Were not counting on. Reduction growth to deliver our growth. Toyou were Production Growth deliver our growth. We are going to monitor it as we go forward. Cory when we look at innovation, you want to innovate a lot. One of the developments you see that is changing the business right now . Mr. Verrier the really big thing for us is propulsion. And what do i mean by that . As we look at the evolution of the vehicles going forward, theres going to be more autonomous driving. Cory in a longterm trend. Mr. Verrier our fundamental premise is these cars are still b,ing to move from a to and you will need an advanced propulsion system arid from electric and hybrid vehicles, thats where we have chosen to play. That is where we chosen to lead. Cory whats changing . The engine is changed somewhat, but at some aspects, the engine hasnt changed at all . Bigverrier we are seeing a shift towards electrification. Seeing more hybrids and more electric vehicles, and so from a borg warner perspective, we are technologiesarket that are helping hybrid vehicles to be more efficient, technology to help electric vehicles be more efficient and help automakers get the right balance between those mixes, so they can make their fuel economy standards but also give consumers a car they want. Carol our electric vehicles the solution in terms of transportation . In your press release, you say as a result of this investment and not attack, you have been able to review hundreds of global startups involved in the future of ground transportation. Are you seeing things you might be investing in already, just coming across your desk, that arent even anything we are talking about in terms of transportation for the future . I would say that what we are seeing is technologies across that spectrum that are very relevant for Pure Electric vehicles. This is the exciting part for us, we see advancements in those startups around combustion howard products and hybrid power products. Insee Technologies Management space, we see products and Battery Management space. Its a broad array, and that is what attracted us to the fun. It does bring a breath of technology. We need all three. ,e cant just rely on pure evs we cant just rely on hybrids. Cory interesting stuff that all of the carmakers are looking to so looking valley and detroit is looking to Silicon Valley for labor. Verrier, thank you. Scarlet Cory Johnson Carol massar, catch more of their radio interviews on the bloomberg. Lets get you to the Bloomberg Business flash, a look at the biggest business stories in the news right now. Itszon is expected to close 4. 5 billion deal to combine its aol unit with yahoos internet assets the summer. The unit will be risk possible for 20 be responsible million customers. Marissa mayer will not be continuing. Jim armstrong will be the unit spokesperson. I would just repeat what we said before, that marissa will stay through the next phase, and a phase of the business will be a mixture of the executive teams together. I would look for more information in q2 around that. Scarlet a new unit called oath emerges. It will increase stakes in asian assets not sold to verizon. The britain chancellor to be a checker to the exchequer says he expects banks the implementation period will smooth the process. Jpmorgan and Morgan Stanley are said to be in talks with European Capital cities. Others are currently making contingency plans for worstcase scenarios. There is a report that staples is exploring a sale from private equity firms, shares of the Office Supply chain were up the most in four years. Last may, a federal judge blocked a 6. 3 million takeover of office depot. That is your Bloomberg Business flash update. ,liver the commodities close Oil Inventories at record highs. We will find out. This is bloomberg. From bloomberg World Headquarters in midtown, manhattan, this is number of markets. Bloomberg markets. Precious metal, climbing to a oneweek high earlier this morning, the end and gold are higher. Highest they have been since the election. Prices suddenly at 1257 and change. Cocoa, seeing a lot of change today as farmers are expected to deli