tv Bloomberg Markets Americas Bloomberg April 10, 2017 12:00pm-1:01pm EDT
>> from bloomberg world headquarters in new york, we are going to take you from washington to san francisco and shanghai in the next hour. you're the top stories out of bloomberg and from around the world. faces a significant pay cut and a regulatory probe for trying to unmask an anonymous whistleblower last year. he has admitted and apologized, sending a memo, saying he got to personally involved. wells fargo's board is firing back against the x ceo, the board taking the pay because some -- because he allegedly reacted too slowly in the sales practices scandal. gm's market value to become the most valuable automaker in america a week after tesla insed ford's work in value the relative value of elon musk company. tradingalfway in the
day. abigail doolittle joins us now with the latest. there has been a mysterious downturn in stocks. >> we are looking at volatility. we have the dow, the s&p 500 and the nasdaq trading in unchanged fashion earlier. i have all been on pace for their best day since april. the nasdaq has been up half percent. it is not clear what has caused this downdraft of the s&p 500. you see it led lower here. the big question after last week's decline, mainly on a tuesday rehearsal. a bearish rehearsal. the question will be whether or not that happens again. shetocks over at bc ig, thinks there is more of a pullback ahead of the s&p 500 and we have been in bloomberg with g #btv 7651. this is a three-month look at sentiment, investor sentiment plus options. we see it at levels not last seen since the election.
investors are becoming more concerned over the macro risks. this, once again today. kevin kelly at recon capital earlier told me that apply volatility is rising as we go towards burning season, especially towards technology and financials. it is monday and we have a bit of a merger monday. we have chatter about deals. .5%, up for its fourth day in a row. up more than 35% over those four days after europe is said to be interested in perhaps buying acorn. that is about $700 million more that acorn isort trading currently. at 146%, after they bought the company for $1.6 billion, trading higher after swift transportation did a $5 billion
merger. then, up 3.5% after starting in advance from elliott management to reshape the business. finally, going cross asset classes, you look at gold and oil. a bit of a mixed picture. gold, golde reversing an earlier declining. it is unclear what is happening back there. but we could find out why we are perhaps moving more towards a risk lost deal. >> thanks so much. there is still a supply industry affecting the oil market as well. we are talking about the m&a story later in the show. barclays ceo aces a pay cut and the regulatory probe for trying to unmask an anonymous whistleblower last year. the u.k. financial conduct authority is investigating both his individual conduct and the bank's response abilities. that is according to a statement from berkeley.
staley says "i have apologized and accepted its conclusion that my personal actions were errors on my part." in a memo to staff he said he got to personally involved. 20 me now is a bloomberg television configuring editor, covering wall street for quite some time. are bloomberg intelligence analyst calls this situation a sideshow. he has been trying to turn the bank around. do you view it that way? >> obviously it is not as important as trying to get his investment banking business back up and running. where it should be is a competitive threat to the new york bank. awever, it is revealing character. that is interesting. i knew him when he was at j.p. morgan chase merger. i find this very out of character. i am a little surprised.
i also know tim main, the guy andhe was recruiting reportedly the person he was looking to defend. >> figuring out who the whistleblower was. >> he is a little bit of a controversial person so maybe that added to the feeling inside that maybe he was not the right guy to be bringing on now. better.ey knows he should have known better. i have written about whistleblowers at barclays. peters a very, he was never particularly well either. marks it have an issue with whistleblowing generally, but jes staley should not be reaching down into the organization to try to unmask a whistleblower. that is just not kosher. >> as markets improve more broadly, is this something that is going to be damaging to
morale potentially? to curve the recovery in any way? >> i think it does hurt the was a lowing function at barclays. it is supposed to be anonymous. you are supposed to be able to report these things and not be unmasked. if the ceo is trying to unmask you that is not good. however, whistleblowing on wall street, unfortunately is a bit of a sideshow anyway. it is one of those things that people pay lip service to but don't care that much about. i don't think they really want whistleblowers to be doing much more than making phone calls internally and they don't want them causing much trouble. but his biggest response ability now is turning around berkeley. he appears to be doing that to stop. we are in crisis management mode for this and he did the right thing. now he has to start doing the right thing and put this behind him. .e is going to take his pay cut
you are going to learn from this and then we will go along. >> certainly, they are not reacting as though this is a big crisis for the country -- the company. we spoke with gary cohn last week about financial regulation and glass-steagall. i want to talk you about it. we come up with a 21st-century modern glass-steagall we may be able to tailor regulations for different aspects of the financial markets, different aspects of the financial institutions. that would allow things to get more aggressive toward smaller and medium-sized companies. >> should we see operations separated once again? >> this was a story from last week. >> is this really going to happen either? >> first, to turn the clock back a little bit, this is a john mccain-elizabeth warren combo. it is not something you see very
often. 21st century glass-steagall act was something that was proposed two congresses ago and went nowhere. it was brought back by a was that warren last congress and went nowhere. i am really surprised -- surprised to hear gary cohn talking about this. frankly, if you really think he isit, which i think kind of playing elizabeth warren here, because if it were to happen and i don't think it will , i am not sure you would want to unstable the thing. who would benefit the most? it would benefit goldman sachs the most because they have the smallest loan books. the smallest commercial banking footprint. they have no branches. they do have this online effort market that they have started. this would really hurt jpmorgan and bank of america. to lesser degree, morgan stanley. with goldman's three biggest competitors, it would help goldman sachs. once a lukewarm figures that
out, she would have that happen. >> that is something bloomberg news has written about a little bit as well. giving cover to some of the investment banks. >> of which there are many left. >> quickly, i want to end on bank earnings. is there anything particularly big that you are investing. the interest has been more favorable to the banks. >> i have set this for two or three years. this is a new golden eight on wall street, we are seeing in the numbers. with this regulatory environment, it really is not getting any better than this. this benign regulatory environment, low interest rates, improving economies, less competition, does it get any better than that if you are goldman sachs or jpmorgan chase? that is why it is not going to happen that they split investment from commercial banking. when they did that in 1934 they only affected one bank.
j.p. morgan and company. that is my morgan stanley was formed. now it will affect everyone. it is not going to happen and it is not what clients want to have happen either. clients want these big banks to provide all of these services. that is why they do. >> no rocking the boat. >> i don't think so. not beyond the shot across the bow from donald trump. but i don't think there is more rocking. >> thank you so much. bill is a bloomberg television contributed editor. let's check out first word news with mark crumpton. >> president trump says neil gorsuch will be "a truly great supreme court justice." after a to fight in the senate, gorsuch, a 49-year-old appeals court judge from colorado was sworn in this morning with two ceremonies. the first took place in the justices conference room with chief justice john roberts administering the oath. later, a public ceremony took place at the white house.
that was administered by justice anthony kennedy for whom gorsuch once served as a law clerk. foreign ministers from a group of seven industrialized nations have called a special meeting, following last week's chemical attack in syria in the u.s. military response. they are hoping to pressure russia to end its alliance with bashar al-assad. secretary of state rex tillerson said "we rededicate ourselves to hold into account any and all who commit crimes against the innocent anywhere in the world." in egypt, the president is ramping up the fight against terrorism after deadly bombings in two christian churches. 43 people were killed and the islamic state claims records ability. the president declared a three-month state of emergency. he also created a new anti-terror unit with sweeping powers. in london, thousands of police
lined the streets to say goodbye to the officer killed in a terror attack outside the houses of parliament. keith palmer was guarding the power of westminster when he was stabbed by an attacker who was then shot by police. 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. a programming note, to hear all be fixed income news for this week, tune into bloomberg's real yields, airing thursday at at friday.instead of this is bloomberg. ♪
>> this is bloomberg markets. i am julie hyman. ford has big ambitions in china for new growth. tom mackenzie asks the ceo in shanghai about those plans and the meeting between president trump and china's president she. >> when you have those for leaders who meet face-to-face, they become people to each other. , i think,at basis reading the reports from the meetings, that is a very firm foundation to then go off and toe concrete advances strengthening the ties between the countries. enormous, mutual ties between the two countries from a trade standpoint. we have to tread carefully on that because the economic relationship is the basis of the overall relationship. i am glad to see both leaders meeting early on. >> for many people's perspective, there is one area where china could really make sense to try to level the
playing field, whether that is the joint ventures or the tariffs. is that something you think is possible now? >> china is a very important market and tangible reforms and openings are needed because the thing there is, how do you make sure you decreased policy uncertainty, boost business confidence but also create equal opportunities for each nation. i sit on the manufacturing council and we all share the same objective. we want a very healthy and vibrant u.s. economy. inwhat are the opportunities china in terms of sale and how much can that be relied upon the relaxation of the rule? less than 2% of the total market here is take up trucks. >> even with that it is the fourth largest in the world. what we have seen is the thinking about
changing some of the restrictions, which we think would grow the customer appeal. a couple of provinces have done that already. what we have done, the orders we raptor, we new f-150 think this is a huge opportunity for us to build brands in china. >> there is a 70% target for full electric vehicles by 2025. what investment is required to get there and what does it mean for any reengineering of your supply chain? >> we see an opportunity to grow our collection byproducts. a verylaying out compelling electrification plan for a vehicles and that is a combination of, we think moldmers are going to grow -- grow more warm. they are encouraging the industry to move that way. this is part of their .nnouncement they are investing four and a
half million dollars between now and 2022 lend byproducts to argue around the globe. >> we have seen a bit of softness in the sedan segment. what are your forecasts for 2017? are we looking at a prolonged period now? >> we have seen the market plateau, albeit at a high level. our call this year is to be about 17.7 million units. down slightly from last year. what at a relatively high level, we are seeing some more competitive pricing standpoints. but with a great product lineup and keeping our cross structure in line and staying focused on satisfying our customers. the main drag? the change in interest rates? the fact that incentives have reached their limit? butrees can grow forever, at 17.5 to 18 million units in the industry that is very
healthy. you also have interest rates coming up, which may squeeze some customers out of the marketplace but i don't view it as a crisis. >> given the environment in the u.s., do you envision adding additional production lines in that 12 to 24 months? >> our approach as a company is to make sure that we are very disciplined. we are going to continue to do that in the investment that we have announced. we are investing in a lot of our next generation products. disciplined.ry the industry is leveling off. >> that was the fourth ceo speaking from shanghai. time for the bloomberg business flash for the biggest business stories in the moves now -- in the news now. toyota is going to invest to upgrade kentucky assembly plants, part of a $10 million investment plant over the next five years.
the japanese automaker is struggling through declining sales of its passenger cars as suvs continue to dominate the market. the manufacturing chief spoke with bloomberg tv. >> we are pleased that the suv and the truck market is doing well. there as compliment well. but we think we will be able to bring some of the resurgence back over to the sedan market. >> last year toyota added 700 employees to support the production of the camry sedan. it has been the nation's top-selling passenger car for more than a decade. global retail lows have extended into m&a. murders have been falling. apparel, shoes and jewelry have fallen 12%. retail these brought in the smallest premium since the recession in 2008. the data compiled by bloomberg reported a drop to 3.4% from 23% in one year earlier. other e-commerce companies are writing down all traffic and it is already crowded.
>> secretary of state rex tillerson is meeting his counterpart from the group of seven nations in the italian city of lucca today and he is scheduled to travel to moscow to discuss airstrikes on syria last week. kevin cirilli is here in new york and he has the latest on this situation which seems like it is now quite a tense one. are tillerson and the russian secretary going to meet easily? >> it is unknown. aides were telling me that all of the attention is going to be on secretary of state rex is going to see if he to continue using the rhetoric that he has used last week as well as on the sunday shows
about trying to draw a line in the sand, differentiating the administration from vladimir putin. >> you mentioned on the sunday show this was his coming out over the weekend. he has taken a little bit of a backseat in public. do we know if tillerson is now having more of a voice privately as well in terms of influencing u.s. policy? >> i speak with its on capitol hill to republican members who have been critical of secretary tillerson as well as trump. when you talk to people like john mccain and lindsey graham, these are senators who are not fans of this administration's foreign policy, particularly with how they have interacted with russia. thetheir response after syrian missile strike is that they feel that was an appropriate response and they feel this is a direct contrast to another president they had problems with, former president barack obama.
>> now that tillerson is troubling to moscow, what do we know about that trip and what does the timing of that trip say , that it is still going on as of right now, following the stretch? >> timing is everything. mar-a-lago last week covering president trump as well as president xi jinping, they were at the dinner table, having dinner while u.s. forces were striking syria. he was having dinner with xi as that was being carried out. if you look at how immediately secretary of state tillerson came out to criticize russia, saying that they were incompetent or complicit and then you have the moving of ships off of the north korea sure. again, signaling a change in foreign policy. ,ow you have them going their to moscow, presumably to meet with his counterpart. let's not forget boris johnson, also in this mixed. he is not going it alone. including german chancellor angela merkel who has been
trying to wait and see what this administration is going to be one russia, suddenly everyone seems to be on the same page. >> fascinating. thank you so much. i am glad to hear, good to see you in person. she washington correspondent kevin cirilli. details, theys to trends and stories in m&a now. at&t's purchase. what it means for mobile. this is bloomberg. ♪
we were talking about a leg down in stocks and it looks like that is continuing to some degree. abigail: it has indeed. we do have stocks ever so slightly lower. about thisisome potentially is investors really showing their nerves is the fact that we had a big bearish reversal where stocks have been sharply higher and then closed lower. the nasdaq itself had been up more than half a percent earlier. we had the fear gauge or the vix up 8% at its highest level 2017. you take a look at the intraday chart of the s&p 500 and we see some legs lower here. initially midmorning we saw one leg lover. now the leg lower most recently taking us down lower. a bloomberg intelligence whategist is saying that is behind this small leg lower for the s&p 500 is a report that china has moved 150,000 troops to the border between china and north korea to that northern
border. vincent cigna rela says this is on the chosen website and it was yesterday. vincent does call it a rumor, but we do see the movement for stocks. we have haven bonds trading higher. we take a look at the 10 year yield along with bank stocks. the 10 year yield down about three basis points. it had been higher, but it tells us haven bonds are rallying perhaps on this report about chinese troops. on that move down for yields, we have the banks also lower. the biggest drag on the s&p 500. earlier in had been higher. now we have things trading lower . and onat g #bt grouv top we have the financials up 17%, the best sector out of the election. dragging to some degree,
although a little bit of a recovery on the bottom. we have technology and yellow. the point though is that march was the worst month for the banks since brexit. one analyst thinks a bear market could be ahead. if that happens, we see that the s&p 500 has really flatlined as the banks to trade down in march. it suggested we could see more flatlining for the s&p 500 or even a pullback that some analysts are expecting on the weakness in the banks. julie: we shall see going into a big banks earnings reporting period that begins on thursday. phil: calling it a golden age for banks. we will see if that continues. it's not an assembly a golden age for deals. time now for the "bloomberg markets" deals report. we zero in on our m&a business and trends. at&t thinks a deal with straight path and a big health-care provider is in talks to live generics drugmaker acorn.
joining me now is jeffrey mccracken. let's talk about at&t first of all. who ever heard of straight path? essentially i it's a spectrum buy. about fiveis is all to the and at&t trying to get out in front of where the networks are going to sometime down the road you are going to be able to use your phone and start your car before you get to it and it's all warm. or communicate with your garage so that grosz stores are open to and the lights are on. that's where the markets are going and they want the 5g for the internet end of things. at&t has been inquisitive. directv years ago and they bought time warner last year. it's not surprising they did this today. julie: are there more guys out there that own spectrum? jeffrey: we are in the spectrum auction, which should be wrapping up in the next week or two. we are going to see a lot of
deals before the auction winds up. we have sprint and dish all out there. i would not be surprised if something happens between those three, whether it's sprint and t-mobile or dish and t-mobile. something will happen between now and the end of the year. julie: another space to watch is generic drugs or copycat drugs. withw a deal happen europe's biggest publicly traded drugmaker and then there's talk of a bid for acorn. what is attractive here? jeffrey: there's a lot going on in a generic space. mediciness copycat and that's the biggest generic company that exists in europe. that was a pretty interesting process. they finally teamed up and they did not have them one overnight. you have just been a lot of generic deals the last couple of years, companies like my lan and teva have been
buying a lot of generics. there's a big push to keep prices down and generics of the way to do that. esenius isat for us anr going after akorn. will others weigh in and try to make a lockdown? julie: if you look at the cycle of the generic drug deals, where are we in that? jeffrey: i think we are getting near the end of the cycle. in general, it's not been a great year for m&a. when you go back to the election late last year in the united states, people assumed, ok, with trump we will have lesser regulatory scrutiny. he is going to embrace a lot of m&a mama but that hasn't really happened because they're still so much uncertainty about how this administration will handle things. are we going to see tax reform? are we going to see the patriots and of the billions and trillions of dollars sitting overseas? how will they handle really big deals on the come down the pipe? will he tweet about a deal?
someone said to me that the biggest concern for the ceos is that they do not want to be caught in a twitter were with the president of united states. julie: that's a pretty big risk. we were talking with kevin cirilli moments ago that world leaders are doing the same thing, watching this administration, and business leaders are doing the same. at what point does the necessities of business overwhelmed this waiting game? at what point do you say, ok this is the status, not knowing it's the status quo? jeffrey: i think the most important deal of 2017 was the deal that got announced in 2016, the deal for at&t and time warner. if that gets through regulators and goes without being tweeted about i think everyone will feel more couple. whether that is three or six months from now come i thin, i k until we get to that point, deals will be relatively slow. occasionally we will see m&a and a five dollar or $10 million --
$5 million or $10 million deal, otherwise they are just hitting the pause button. those of the kind of deals where a number one is buying a number three. those are kind of the deals that happened every year. if they have to put it off, it's not detrimental the business at least as of right now. julie: as of time warner, you say three or six months. is there any clarity on when that is going to happen? jeffrey: not yet. the kind of deals that i think are really going to struggle right now are any deals were big industrial company is buying another big industrial covenant company. united technologies and honeywell talked last year about what would have been and $100 million deal of these big industrial giants. that probably would've cost 10,000 or 20,000 jobs over the course of time. deals like that where one of the headlines is x amount of jobs or
meaning of synergies, jobs getting cut, those are the deals being hold off on because they really worried that this administration and the president an in particular will scare them off with a tweet. julie: we will be watching this every monday, every day as you will. jeff mccracken, thank you so much. jeff is the executive editor of our global deals team here at bloomberg. let's get a check of the headlines for the bloomberg first word news this afternoon. mark richt and has more. -- mark crumpton has more. mark: rex tillerson's mission to moscow just became more compensated. he will be friend a different message after missile attack against syria. he is likely to get criticism from russia's foreign minister and the kremlin says there is no plan for president vladimir putin to meet with secretary tillerson. the u.s. is making a show of
force for north korea. american warships have now been sent toward the korean peninsula. secretary tillerson has warned that pyongyang has made significant advancements in developing newly or wetlands -- nuclear weapons and president's jingping should take a look. controversy in the wake of a trunk rampage that left four people tha dead. he allegedly went underground and alluded authorities trying to deport him. a second person has been arrested. slightly more than half of red district voters in the usa that president trump should be forced to release his tax returns. that is according to a new bloomberg morning calle consult nationa, but only 45% say
the tax returns are relevant to the president doing his job. global news toy for hours a day are by more than 120 cut -- 24 hours a day powered by more th n journalists and analysts all over the country, this is bloomberg. julie: why investors push this market value cap forward and general motors. this is bloomberg. ♪
francisco with more. i guess we like to talk about this story because it is a race, so to speak, and tesla has been such a momentum stock. what does this tell us about really what it is is elon musk's valuation? what are people expecting from him? cory: i think this tells us everything. this is the most important thing there is to know about tesla. that tells us a lot about business journalism, too. the 10th a look at stocks and market caps on is a proxy for the success of a business. when you look at the run of the companies they they have had and you compare tesla to ford and gm over the last few months, you see a spectacular sprint in market cap for tesla. when you look at the market cap itself, look at these market caps and we will see tesla suddenly surging. nothing has dramatically changed in that short time in terms of auto sales whatsoever for any of these companies.
if anything, the auto sales numbers have gotten worse for all of them, but only marginally. i think it's really about this enthusiasm for something yet unseen. julie: we have gotten a little bit more headlines in terms of the ability to deliver on orders, etc., but something we have not heard so much about recently is solarcity, right? what is the status of that deal and what happened to all the doubts on whether that was a good move? cory: it certainly added to the cash burden of the company, but we are talking about this right now. tesla stock seems to do the best when there is an absence of actual news this morning. it's really a stock about the leaf and not evidence. it is about faith and not things c and. seen. when you compare the market cap of tesla to ford and gm and even
honda, what you see is a spectacular market cap. it doesn't tell you the whole story. i've a chart that shows those whole market caps comparing those for companies. if you go on and look at something more thoughtful in terms of ways that the actual cost of the company, someone were to buy the entire company. you need to think how much cash these companies have on hand and how much debt thaey owe. tesla added to its debt substantially when it took on the debt of solarcity, the debt represented in the yellow. ,f you were to buy all afford yes you would have to buy a lot of debt, but you also have a ton of cash on hand. the same is true of gm and less so honda. the enterprise value of those big automakers still exceeds that of tesla slightly. what this is really about is that enterprise value of the total company is still amazing when you look at tesla given
their lack of production of automobiles. julie: ok, so when does all this belief, when does all of this stock price value translate into the actual stuff? there is certainly a growth level for tesla, right? ever become worth it, so to speak? tesla and all of elon musk's ventures are all about what's about to happen or what could happen someday and whether the promises will be met. when the rubber hits the road come upon certainly intended, that is when issues arise. is the model three going to be any good? is it going to be as cheap as with $35,000 advertised? veryodel as looks different when it hit the streets as opposed to the glamorous they view had down in los angeles a month or for or year before the model s hit the street.
gm is already making a $35,000 electric hybrid car. i got in this gm fold and it was quiet and it had enough headroom for 6'5" me in the back. i thought what is this thing? the driver said it's a volt and they are trying to show off that they have got this electric car on the road long before tesla. is the tesla car going to look different than this? certainly. is it going to look cool? maybe. is it going to look like a rollerskate? i don't know, but it's me. neat. arestors and tesla stock buying into a cash burning stock that may ultimately not lead to value. it's all about belief and not financial analysis. julie: the cool factor -- it's hard to put a price on it. cory: pick about this. the car that's out there, the model s, we note that the model three is not going to have all the features.
it's not going to be as big. it's not going to have all the wondrous self driving automated features on it. it can't at that price point. what's it going to have? we don't know. the stock is all about hope. julie: thank you so much, bloomberg editor at large cory johnson, coming to us from our san francisco bureau. it is time now for the bloomberg business flash, a look at the biggest business stories in the news right now. beginning in india, bankers and amazon jeff bezos will fight it out over e-commerce. softbank is close to an agreement to combine its online retailer with india's market dealer flip cart. for cart got a billion-dollar investment from ebay and microsoft. amazon has vowed to spend $5 million in india. that money is being used on discounts to win customers. wall street's top regulator is eliminating dozens of contractors hired to root out
fraud. the job cuts at the securities and exchange commission raise concerns that the pace of enforcement actions will slow down. the agency bracing for possible budget reductions. the sec says that did not lead to job cuts. swift transportation and kn ight transportation have merged and will create one of america's largest they call carriers. be combined under a holding company called nights with transportation holding. that is your business flash update. wells fargo's board clause back an additional $28 million from under ceo john stumpf. the board has now clawed back money from senior leaders in the account scandal. the shareholders thought on that. this is bloomberg. ♪
julie: this is "bloomberg markets." i'm julie hyman. u.s. banks kickoff earnings this week. the wells fargo account scandal is rearing its head again. this time after a six-month independent investigation found that wells fargo's executives shrugged off the scandal. on scandal lays most blame former committee bankhead kerry stole. she struck back in saying "we strongly disagree with the report." for more, let's bring in laura keller who wrote the story. give us a little bit of the background behind this back-and-forth here. what are why did the board say it was primarily hurtful and wif why it wasn't? >> they looked at when they did it and who knew things. one of the main conclusions is
that this woman who ran the committee bank said she knew about things, but she was really --s hard person who it now who would not allow a lot of people to make changes in the bank. that was their main conclusion could joh. john stumpf, the former ceo, was her boss directly. she came through all those mergers and had been slow, this report found, to fire her and had not really given us guidance at that time. julie: she is essentially saying no, that's not the case. issue saying she didn't know what's going on? the report alleged that she turned a blind eye or that she was actively aware of some of these abuses that were happening? laura: really that she was aware of these things. the report actually specified meeting inpecific which you withheld how many people were actually terminated for all these practices over the years. later the board found out when the allegations came out with the cfp be that there were about
5300 people fired. they were told it was only between 200 and 300. there's a big difference. invest gators found anyway that it did not allow the board to have enough visibility into what was really happening. they kind of blamed her for that. what we got from her lawyer was very short. he did not participate in these investigations and did not fit for these interviews, whereas other executives did. julie: one of the additional's actions taken today was an initial clawback of john stumpf salary, $28 million worth. what are the additional consequences today or is that it for now? laura: in terms of compensation, they also voted on friday to call back $47 million from kerry of other. in terms firings and things like that, the board found earlier in this investigation that it did fire for people for cause. somewhere deputies and others worked under her but lester lee
under her. those are things that have happened already. the board said that we in the investigation found and we should've acted earlier. we didn't do some things we should have done. pulling the risk functions to a centralized person. that is kind of ongoing and happening. from the board's perspective, a lot of this is now pushed onto management to tim slow and mary and too now run the bank say there are investigations you got going on. who are these other managers mid-level that you think maybe also at fault? julie: let's step away from this for a moment. thursday is the bank earnings. how much is this continuing to overshadow how the bank is doing? and how is the bank doing? laura: for wells fargo, this is a very different bank from a lot of the other investment banks. they are different from jpmorgan and very different from goldman sachs. they really do rely on this retail customer base for a lot of their earnings. if they are not getting that,
becomes a very huge issue. they have been giving us monthly reports on different data about the consumer banks and how people are doing. our accounts being open or closed? all these things helping. -- that was me from earlier. i see you catching up. julie: i'm trying to meet this. laura: no problem. that is where wells fargo sits. where is our growth going to come from? are we going to be hurt or hindered by these other aspects? investors will want to know about that on the call on thursday with tim sloan. julie: got to leave it there. sorry about my audio snafu there. laura keller covers banking for us. we will be right back. this is bloomberg. ♪
focus on politics. david gura is on assignment this week. : secretary of state rex tillerson is meeting with his counterparts in italy today. moscow this week has been complicated by the u.s. recent airstrikes in syria. we will have the latest from our reporter traveling with the secretary of state. plus as geopolitical tensions with north korea and russia escalate, the plot is heightening with the government as lawmakers return from a recess? there's plenty on the agenda that still needs to be a compass. trade was at the top of the agenda for president donald trump and china's president as they met last week in florida. while the two leaders concluded their meeting without any major breakthroughs, the trump administration is now considering an orga