worldwide, a number of stories, including 21 days to the election. both campaigns gearing up and fine-tuning. we are distracted by bank earnings. jon ferro, jp morgan doing better than good. citigroupi am getting , on first blush giving us the same enthusiasm we heard from jp morgan. jonathan: jamie dimon s jp morgan delivering the beat, and it looks like city group is repeating the action. figurepoint out, the eps third quarter, $1.40. a little bit of an upside surprise here. i believe we have sonali basak with us. what are we seeing. sonali: we are seeing a beat on revenue, on fixed income. we are seeing loan-loss provisioning higher than what jp morgan put in, but lower than what analysts expected. perhaps wall street has just gotten it wrong compared with the banks are expecting in terms of loan losses. they are higher than jp morgan, so we are going to want to understand why the divergence, but overall, pretty clean numbers here. tom: as we see the numbers come out, we a
ins a draw as they say soccer right now. jonathan: i m not sure anyone calls bank earnings season the great derby. darby.y the fixed trading revenue number. equity sales and trading revenue. message fromng the the city ceo. balance sheet a has plenty of capacity to serve clients. this is the continued message that the balance sheet is not an issue, this is an earnings issue. the balance sheet is still strong. tom: every bank has different language. 20 some billion dollars of cost of credit. citigroup and jp morgan lifting a little bit. wells fargo is its own story. sonali basak joins us now. we have citigroup out here now i want to go back to wells fargo. how broken is wells fargo? a $2.4 just posted billion loss. down to is being cut $.10 compared to $.20 expectations and $.51 where it was before. they are putting up a fraction of what they had before. they are jp morgan with relatively solid results in the face of a tough time. jonathan: is there a broad take away yet for
underperformance of large cap technology and outperformance of value. guy, what did you make of the action today so i know you remember everything, so you may recall yesterday s show every once in a while something sticks with you, like an onion or something like that, yesterday there was something said on the show that resonated with me. we were talking about the vix. he correctly said just because you have an elevated vix, it s not any deby definition a negate thing for the market today illustrated that exactly i m shocked by today s performance. the reversals we saw yesterday should have followed through today. maybe that happens tomorrow, i don t know what i make of it is the resilience of this market continues to be unprecedented, in my opinion. still label me a skeptic let s pause this conversation we have some breaking news from moderna. the stock is up in the after hours session. meg? this is the phase one study of moderna s covid-19 vaccine program. the full re
is real simple. the economic gloom is tangible and the market brushes it aside. good morning, everyone. this is bloomberg surveillance. on bloomberg radio, on bloomberg television. the bid keeps coming in. it is not about being up. it is the quality of the up that is so important. jonathan: the last several months, rotation on, rotation off. it was rotation off since june or so. in the last several hours, rotation back on. that means the cyclical parts of the market do better, tech underperforms. the treasury curve steeper. dollar in the mix as well. that is the thing a lot of people were trying to position behind. it didn t quite develop over the last month. it is back on this morning. betterldman sachs with than good earnings. i have not gotten the appropriate up remotes the appropriate eyebrow, what s amowiczropriate abr briefing. lisa: there s an incredible dissonance between the pessimism we are hearing from the banking chiefs right now and the optimism you hear f
coming up for the rest of the hour. the chairman and ceo of train technologies trane technologies, they do hvac. we will talk about how you recondition all of the air-conditioning units that we have to allow us to basically eat and drink inside. a really important conversation as we think what will happen as we approach the autumn and fall. what will happen to the service side of the economy. the banks are in big focus. 93%man sachs reporting a surge in revenue on the stocks and bond trading in the second quarter. highlights is our bloomberg wall street reporter. they have a lot of questions about the m&a environment. goldman the lead m&a advisor. the backlogn saying is higher, but he expects activity to continue in the next two to four quarters. , but we will see them come back. there are a lot of uncertainties. one question was about the election season. solomon warned that is a ways away. as we know in the u.s. there are major uncertainties with how large-scale deals a