Tom is in washington, d. C. Tom it came out widely as expected. There were some nuance francine through the night. It was fascinating to watch the political derby at about 10 00 last night, maybe 10 30, particularly the tension among rubio of florida on the republican side. Lets go to some of those results. I think we know seven states in seven states for donald trump and Hillary Clinton the opening frontrunners but then it gets a lot more interesting. Well get to the secretary in a moment. For mr. Trump it is simple. Mr. Cruz of texas wins throw states. Really quite a speech from him and mr. Rubio needed badly to win and he won late in the night in minneapolis. 23 of the delegates are taken out by the secretary and by mr. Trump. 285 delegates for mr. Trump of 1237. 23 . Hillary clinton with 544 delegates, 2383. Mr. Rubio, i guess his staff breathes a sigh of relief and says we took minnesota. Here is donald trump going after mr. Rubio. I know it was a very tough night for marco rubio. He had a very tough night. He worked hard. He spent a lot of money. He is a lightweight as i have said many times before. Im not sure who that guy is standing behind mr. Trump. Governor christie looked a little lonely last night. Over to the democrats, francine. Secretary clinton, who did she go after . Not mr. Rubio. She went after mr. Trump. It is fair tonight that the stakes in this election have never been higher. And the rhetoric we are hearing on the other side has never been lower. Trying to divide america between us and them is wrong and were not going to let it work. Tom francine, very quickly, your thoughts viewing this from new york city. How odd was super tuesday for you . Francine it was baffling. I had not been looking at the super tuesday as much as you have over the last couple of decades. It is baffling and also when you look at the markets, these Political Risks are not really priced in at the moment. Not today. Tom strongly agree we havent priced it in, at least at this moment. Mr. Sanders of vermont won four states. There were places the secretary expected to lose, vermont, minnesota, oklahoma and colorado. 23 of the delegates for secretary. Mr. Sanders compare to that 544 has 349 delegates. There is the super tuesday Early Morning wrapup. One of the things well be talking about certainly as we go to michigan and the big state of florida, the winner take all. An important state, clearly critical for mr. Rubio as well. We need to go to london. Here is caroline hyde. Caroline u. N. Secretary general ban kimoon said the ceasefire in syria is loosely working. He said government and rebel forces need to show their good faith that humanitarian aid can be delivered to those living in areas under siege. In spain, the head of the socialist party is asking eople to join an alliance. If they reject the plea for a coalition they would have two months to elect a Prime Minister before they would have to hold another election. London has beaten out new york and five other cities to be the capital. It is more internationally diverse. New york has the largest number of jobs in the financial sector. Tom . Tom thank you so much. Equities, bonds, commodities, up, up, feeling a remarkable change looking at bloomberg across our assets. Were not on the 2 watch but get there go quickly. Nymex crude lifting with brent as well. Oil an see brent, european the quote levated, is flat out wrong. That is 11433. On dollar yen, we have seen a weaker yen the last few days. Francine . Francine this is the picture, i want to show you basic resources. Global equities rallying, gaining momentum in asia. Emerging market currencies also strengthening. Better than expected ecodata not only from the u. S. But also from australia. The ftse is really benefiting. It is one of the biggest gainers. It has lost a little bit of momentum. It is still gaining 0. 2 . Copper gaining some 1. 4 . Lets bring in our guest for the hour from wells fargo. George, great to have you on the program. When we look at negative rates and are trying to understand what the next move is, similar to what we had in japan, do you worry about banks . George i think negative rates specifically, it is to a doubleenled sword. It is indicative of weak global growth. Inflation concerns and this happening upheaval across the market. The banks in particular are challenged in that part of the world. It is very hard to generate reasonable profit when your yields are negative and yield curves have very flat. What is created is companies attached to the government directly or indirectly in that they are very high quality, they fund at governmentlike levels, they are doing just fine. Companies that are very growth sensitive are not. They have to pay high borrowing costs. Credit is constrained and specifically the banks kind of sit in the middle. If youre a bank with lots of capital and youre well funded, youre doing ok. If you have to earn your way out or recapitalize your earnings, it is going to be heavy. Caroline how do you marry that with the Political Risk sweerg. Super tuesday, quite baffling but were not seeing any risk placed on the market. George High Quality Companies are holding in reasonably well both on the credit side as well as on the equities side. You look at the multiples on consumerrelated companies here in the u. S. And they are trading at a pretty nice multiple. The same can be said in the credit market where the credit spreads are relatively tight and the borrowing costs are low. Once you are dependent on political decisions, it is a much different question. Tom george in your world, what is the correlation right now to other Asset Classes . Are they going in lockstep with everyone with the improvement we have seen in the equity market . George Corporate Bonds have been at the leading edge of this whole cycle. Corporate bond markets are in a state of upheaval now. Were seeing rising defaults and downgrades. You look within the market, it is the part of the market most sensitive to this Pressure Point whether it is commodities or energy or metals and so that is really where the Pressure Points kind of emerge. Were starting to see some signs of improvement and some Companies Start to shift towards a slightly more Balance Sheet friendly position. I would look for your guidenses where stocks are ultimately going to go. Tom tell me about securized bonds. Where do we stand on the pricing and liquidity and the bid of fancy paper i cant pronounce . [laughter] eorge i think there are securized products like bonds and loans. The liquidity in those bonds tend to be more reasonable. Mortgages in particular are very, very liquid. As you get into more complicated types of securities, liquidity goes down and in particular when you get linked to asset s that areunder a fair bit of pressure now like leveraged loans in say a collateralized loan obligation, liquidity goes down and pricing gets more challenging and there is definitely a lot more volatility. There is a readthrough through the underlying aspect of this product. Tom george will continue with us throughout the hour. It was a super tuesday on this super wednesday. Well do what we try to do every day. Look forward to michigan, to florida. Winner take all florida. Well speak with megaan murphy and Michael Mckee. Their perspective for clinton and trump. Francine im Francine Lacqua in new york. Tom keene is in washington, d. C. Caroline g. D. P. Rose. 4 in the fourth quarter. The most in a year. Switzerland is fighting off the impact of a strong franc threatening to send the country into investigation. There has been a Silver Lining to the credit market. European companies able to buy back loans. It has generated instant profit and reduced the companys debt load. Mcclendon denies the allegations. Three years ago he was forced out of the Natural Gas Company he cofounded. Tom thanks so much. I hope caroline you were watching some of the political discourse of the United States of america, all of that the default of megan murphy. She is with bloomberg. She runs our d. C. Operation. When i come to washington, she demands to go to new york so she doesnt have to speak to me r go to lunch. Megan murphy joining us from new york and Michael Mckee in washington now to look at the consequences. Megan, let me go to you first. Your thoughts on what we saw last night. I was thunder struck by the back and forth of the pundits. The it was an onlyal super tuesday. Megan it was an original one. When i look at the main takeaway ux the crisis that we saw. Marco rubio had a tough night perfectly he really needed more than minnesota. He needed that virginia victory. This is a party that is goings to have to make some serious decisions. They are going to have to consider whether throwing money behind trump or marco and hope that he can pull out florida. If not, they are going to have to decide whether to go all in behind trump or pull a plan b. Tom we had a unique moment with judd gregg saying he will support the nominee and vin weber was very clear he would not support mr. Trump as the nominee. What will we look for in the next two or three days it is a republican establishment tries to establish any kind of momentum. Megaan they are looking to the senate and the statehouses in 2018. If they see a huge fraction of the party, the type of civil war that has long been threatened since the tea party surge, that risks the senate and risks them losing the governorships, they are thinking look, trump may be not perfect but he certainly is not the candidate we would have chosen but not to back him ruins everything we fought for. Tom lets link this other to the investment we look at every day. Michael, it has been a wild 24 hours. Donald strump going to make my smart phone 90 more expensive. Speak. Mike looking at their economic plans. Trumps economic platform sort of like his campaign, confusing, contradictory. Deporting ann documented workers. Bloomberg news suggests that could leave 8 million jobs unfilled and citizens may not want them. They will be hard to fill low wage manual labor. Social security loses 12 billion. Of course there is that wall. It would cost about 25 billion to build. Meaning of course mexicans are not going to pay for it. Meaning he has to cut spend or raise taxes to pay for it but he is proposing an across the board tax cut that would cost almost 10 trillion over 10 years unless offset by growthkilling spending cuts. They say the that the tax cuts would go mostly to the upper 1 10 of 1 . He is proposing a huge tax on chinese imports. Thats where the smart phones come in it would raise the rice from apple to walmart. Tom bow ties too . Mike of course nobody know what is his health plan is. Tom this is brilliant. This is what we like best about surveillance. Francine, have you ever heard a report like that in the United Kingdom . Francine we do have also, you know, someone in the extreme of the opposition so we could always have surprises. They are just not in this kind of race that you have here in the u. S. Megan, if you look at his policies, if you look at the economics and go back to what you were saying, plan b for Republican Party, do they split . Megan i dont think they can afford to split. Were going to see some chaotic things we havent seen. Sitting governors saying they will not support him but at the end, it is very hard. What are they going to do . Put up mitt romney . Some sort of Third Party Ticket . It is not going to be feasible. Maybe they think we can take it to a convention. Marco rubio faces challenges. Ted cruz is looking like the antitrump candidate. Maybe john kasich does well in the midwest and carries on to the convention. Francine on the democratic side, can Bernie Sanders get it back . I dont think Bernie Sanders can get it back. Hillary clintons support from africanamericans is too big. What he can do is use the money he has to push his message to drive her left and make her ontinue to focus on income inequality and the most impressive wing of the party, the Elizabeth Warren wing. Tom the basic theme i heard last night, mike, you and i saw his at the penguinscapitals hockey game. Love and kindness. Can we have love and kindness in america . Mike you can try. Hillary clinton is not proposing any deportations but she is with financial industry are losses. She wants to extend dodd frank. Put in a high frequent she trading tab. Tax. She wants to impose a buffett tax. A minimum 30 tax on incomes over 1 million. 12 million minimum wage and companies to share profits with workers. Tom lots of love and kindness. Megan, thank you so much for joining us early this morning. We have so much to talk about. Michael mckee, we will do radio later. We have somebody ration offensive line to speak to make you smarter about that. His name is lonnie chen. Out of stanford helping mr. Rubio. From washington to new york, bloomberg surveillance. Francine im Francine Lacqua here in new york. Tom keene is in d. C. We have been talking about it all month. From frankfurt were joined over the phone to talk about negative rates and the pressure we have seen on a lot of these European Banks. This is just seven days if that very important e. C. B. Decision where draghi meets on march 10. You were just at this conference. You talked about overcapacity and negative rates. Are you confident that if the e. C. B. Puts a two tier system very much like japan, withstand it . Rgio i think we are used to a lower rate environment or a negative rates environment for a while. Taking action over the last couple of years the weak price, our services, the credit side of the equation. What is going on with negative ond sheet hat your b is getting a subsidy from the left side of the Balance Sheet. The credit. We are being clearly asking for higher rates to our clients. Francine do you think that eurozone session tos are less ready . You have the swiss example. What does it mean for certain rivals . The side effects of negative rates are extremely difficult to judge. Sergio this is something European Banks are starting to get used to. Just a few months, quarters. You can see the effects of that. In order to avoid negative rates, some banks are overextending credit. Conditions that in my point of view may create in the system. In the real estate and the mortgages. And so i think the way out of this other than pricing as i mentioned before. The credit side over the Balance Sheet, the left side of the Balance Sheet and also start with the ask for fees on services that used to be subsidized by deposits. Deposits today is a rates environment or negative rates environment are also making a proposition. Francine you also talked about overcapacity. Are we going to see consolidation in the Banking Sector in europe because there has been so much pressure on some of your rivals . Sergio i think clnk i think in general, there is a huge overcapacity. The problem is really to create an environment in which we flern the mistakes of the past is that not every bank should try to copy the other but rather every bank has to find his own ways to live through the next stage, but that means focusing on what you stand for. What you good at. Either by geography or client segment. Tom you mentioned what youre good at. It is a pleasure to speak to you. Your storied career in equity derivatives and trading and working in the trenches. As you look at the strategic path forward for your bank, your competitors are slashing costs for Investment Banking. I would particularly note mr. Of Deutsche Bank with some very strong language. What everybody wants to know on global wall street is how are you going to retain your intellectual and trading and banking fighter power . Bhar you going to do in the what are you going to do in the next six months to keep that talent . Sergio everybody as i mentioned before has to find his own way. If you look at our Investment Banking, we focus very much on what we believe in our clients, our clients believe what we are good at. The Investment Banking this idea of onestop shop is dead. The story that you hear people commenting on competitors exiting, youre going to pick up the market share. Actually i think that is very little to gain if you dont. The full capacity and also in certain businesses. The reality is that the capital retirements makes certain businesses structurely unprofitable. Therefore i think so you can retain an Investment Banking franchise and experts but you need to pick up which segment you want to be good at. Tom right. Im going to assume the segment you dont want is the movie the big short. I assume you have seen the movie. You look at the trading of six and seven and 10 years ago, are we pass that on the a utility bank . Have we reached the utility bank . Sergio i think the utility bank, we would love to be to get the market for the utilities. I think we as we mentioned before, the Capital Requirements and the regulatory requirements in certain businesses impose you to stay very strict and focus on what you good at in order to be able to make your gain, make profits that allows you to pay for the capital. And eventually also a little bit more to our shoulders. It will be nice to have utility to have Pricing Power. Francine when you talk about overcapacity are you talking about the fact that there are a lot of European Banks chasing the same segment and is that one of the main risks you have control over . Serge crow s is when i look at the european landscape, you look at basically personal banking, retail banking, many aspects of commercial banking. You see huge, huge overcapacity. Actually a lot of savings on the deposit side that you know, there are banks that dont know