nearly 3.6 trillion worth of assets managed by the anonymous charles schwab and company. he founded the brokerage firm in 1971 with a $100,000 loan and has since grown into a financial services or not. mister schwab's memoir invested lays out his passion to change the way we invest in the hard work ingenuity and entrepreneurship that propelled his vision into one of the leading financial service firms in the world. from studying economics at stanford university guiding his company through decades of economic transformation andfluctuations , he recounts the defining moments of his life while providing unique insights into the evolutionary dynamics of entrepreneurial companies. today we are pleased to be able to have a conversation with mister schwab about the how to's financial management and his advice on obtaining a fulfilling career and life. please join me inwelcoming charles schwab . [applause] >> that a lot of my hands out here, thank you. it's a real pleasure, i stacked the deck here. i was thinking you might want to quit while you're ahead. >> let's start at the beg

schwab today. david: was that something you decided you wanted to do? charlesvid, it started out, our company started with a shoestring. we did not have much money. and i had a tough time raising money because wall street certainly did not want to help me develop competition for them. so, as a consequence, our ads, when we first started in 1975, it would be one column, three inches. come and save 75% on your -- so people kept coming into our company. and as we grew over the next couple of years, we had some profitability along the way, we were growing very nicely. once we had a nice article written in "the san francisco examiner" about us, they used a picture of me, leaning over the old machines, and there i was, my directing advertiser said, why don't we use sure sometime? it will show there are real people here. i said, are you kidding me? what is my mother going to say? what is my father going to say? what is my wife going to say? and my friends? that i'm some kind of egomaniac? and they finally convinced me after some conversation, he said, just try one. i

that is jeff kleintop, charles schwab chief global investment strategist. coming up, it is a public policy challenge. we talk with pimco had a public policy libby cantrill. this is bloomberg. ♪ ♪ david: this is "balance of power ." president trump addressed the nation last night about the coronavirus outbreak, but it wasn't enough to calm markets. today, house democrats are introducing their own legislation to offset the economic fallout. speaker pelosi is planning a vote on that today before congress heads out for a weeklong recess. for more insight on public policy, we welcome libby cantrill, pimco head of public policy. welcome back. we have this democratic plan. we don't have a republican plan that i'm aware of. is there any chance for what the democrats are proposing right now? libby: i think what majority leader mcconnell said today on the senate floor was that parts of this could potentially get votes in the senate, but as a package, it is very unlikely to be able to get republican support. just to be clear, what is in this bill is pretty targeted to

charles schwab with a warning. >> we've been cautious on high yields for quite a while as the cost oft debt or the ability to refinance that debt gets more difficult, as spreads widen for some of these lower quality companies, that then you add on a faltering economy. you are really setting yourself up for some disappointment here. our conviction is we probably have a ways to go before this has played itself out. jonathan: back with this, subadra rajappa, mike schumacher, and victoria fernandez. it was the story in 2018 when the primary market started to seize up and the fed said we have to do something. do you think this is the number one thing they're looking at right now on their dashboard? the idea that primary markets are starting to seize up worldwide? victoria: i think it is one of the things they are watching. liquidity in the markets is extremely important and if that liquidity starts to dry out, yes, the fed will step up and do something, and central banks. but i don't think we are that point right now. people are pulling back on the issuance they are saying. we have had spr

liz is the chief investment strategist for charles schwab and company. looks pretty cataclysmic.is driving this? liz: obviously we know the virus and unique uncertainty with regard -- we know it will get worse before it gets better. theconomic impacts, the impact on corporate earnings. then we have the double whammy of the opec talks in the crash in oil prices and how that filtered into thecomy, but also significant this locations in the corpora bond market. more recently, dislocations in the treasury market, whi is why the fed stepped in with what it did today. fortunately it has been a triple whammy, not just the virus. judy: layman's term, is there nothing to reassure investors, the markets, right now? liz: we saw shock and awe out of the fed today, but that is just to stabilize the treasury market. the fed has been honest innn saying they do much to ease the pain of a pandemic. they cannot crte a vaccine or sts. there was a realization that central banks have limited power. i think we probably need a bit more shock and awe from government authorities, something on the fiscal

you have the likes of charles schwab down 2.5%, raymond james 3%.wngraded because the analyst says low rates provide an existential risk, in the likes of comerica lower by 3% or maybe less because bank profits are in lower rates. david: thank you very much to kailey leinz. coming up, balance of power continues on bloomberg radio and we will talk with the ceo of agriculture lender kobane on how the coronavirus may be affecting farmers as phase one of the u.s.-china trade agreement appears to be up in the air. we will talk with about the election in israel. live from new york, this is "balance of power." ♪ when you move homes, you move more than just yourself. that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity

managing director at charles schwab. thank you so much.igns are the market to look to to know if what we are seeing in u.s. equities is a false bottom or not? time fors a confusing retail investors, and if you think it will be the typical metrics people look to in terms of technicals and valuation metrics, you could say that those are less relevant in this pandemic driven market. what we are suggesting to our clients is that one of the key ofngs to look to the numbers diagnoses of covid-19. fundamentally, the resolution to this issue at the world is dealing with is a medical one, and things will begin to turn whenmarkets become -- consumers spend more, activity resumes, and that will not happen until we see that curve flattening around the world, so we think that this is probably, from an investment point of view, something that is very dependent on the health care approach and the approach taken by countries all around the world. nejra: richard, if you are focusing on the health care approach and you have president trump planning to rank

last week we had fidelity, charles schwab and td a mayhair tra a mayor trade having issues.ut i'm told that this is unprecedented and will likely raise the alarm. if you are a broker and people can't get a hold of you, that is, quote, a big problem write a brian, back to you. >> so bk, robinhood is a free app. but that will still -- reddit threads are colorful >> the ethos is move fast and break things but the prison oblem is you arew in a regulated industry. so i think that the regulators will have to take a look at this and say that is great that you built this app that is free, you are selling your order flow, that is how you get paid, but if you are opening it up to the general public, it has to work on days like today or days like friday so that is the bigger thing. >>> coming up, gold getting a big bid where options markets say that gold may be moving now. and be sure to tune into our ongoing coverage on the wild ride on wall street and where we stand with the very latest on the coronavirus, a markets turmoil special tonight at 7:00. turmoil on the up side i consulted

what is charles schwab? right. pay up, $600.

first glitch we've seen at robin hood they found a way to trade with unlimited margin fidelity, charles schwabnd td amareritrade were experiencing issues last week robin hood apologizing to users on twitter, but getting plenty of questions over if and when they're going to compensate users for any losses due to the outage >> i imagine there are people saying, i wanted to buy apple before this 6 or 7% move and i couldn't >> we looked at some of the top stocks on robin hood last week you had virgin galactic, and a few of those stocks are trading at 50 or 58% of their trading volume some on twitter are speculating that could be due to millennials -- we'll see when they open again if that's the case >> that's a great point. kate, we appreciate it tough tough day for those trying to get to their robin hood accounts >>> there's one commodity out there that is immune to the corona virus >>> take a look at shares of twitter, the stock is soaring about 7.5% today on reports that elliott management is taking a stake in the company. the activist firm is seeking to place dorsey because of the tension betw

liz ann sonders joining us from charles schwab. let's carry on the conversation. we are watching markets that are down and down hard in the equity space, if you're in the commodity space. bonds obviously catching a huge bid. let's figure out exec lou area going next. vonnie: we are going to get to abigail doolittle with a comprehensive view across asset classes. abigail: thank you. it is certainly an ugly day for markets around the world. the s&p 500 down 5.5%, its worst day since 2011. right at the open, down 7%, triggering a circuit breaker. however, you still see the sellers very much in control, wanting out of risk assets on virus fears and what the fallout could be on this. we have the vix at its highest level since 2008 and 2009. we had complacency for such a long time last year. that is showing in the vix. the stoxx 600 down the worst since 1987, so no area is spared. take a look at the italian equity index, its worst day since 2016. northern italy is under lockdown relative to the virus. if we flip up the board, we are going to see what is going on with th

than normal trading volume that stressed their systems and saw down time at fidelity, td and charles schwab to the same volume issue. customers taking to social media to vent some outrain about missing those trading days last week a lot are millennials and first-time traders most of them threatened to pull funds. last week we saw a class-action lawsuit filed against the start-up for negligence due to the outage we see investors telling me this could cause issues for a potential ipo for robin hood we saw them widely as an acquisition target they say if anything this calls that $8 billion valuation into question >> kate, thank you very much nice to have you in the house. we're going to get comments from hhs secretary azar eamon javers has that at the white house. >> our first on camera reactions at the white house to the market moves of today from hhs secretary alex azar in the driveway a couple minutes ago and here's what he had to say. >> president trump has delivered a historically strong economy, the fundamentals in this economy are unbelievable, whether it's employment or wage growth or

. >> you know, we look at this market here and charles schwab reporting they're having difficulty getting people to work from home not because they can't get them, but because there are all kinds of issues and i've been talking about it for a week just technology, network security areyou confident that the markets are working and not just buying and selling equities, but the markets are working at the derivative and structured product and arbitrage and all of those levels effectively enough right now, bob >> i think what you see is a replay of 2008 where the equity markets and the electronic markets are truly performing very well. nobody likes the level and a 10,000-point drop which you highlight is truly breathtaking, but the infrastructure has worked and the clearing houses and the exchanges and the broker-dealers have done a phenomenal job when you move down the automation curve where the markets are more face to face contract required and will it be on the telephone or direct in front of each other and those have not done as well and you can broadly characterize that as the credit mar

beginning tomorrow, charles schwab is temporarily closing every single one of its branches.ousand of its offices across the country, including some right here in the bay area. san francisco-based wells fargo is temporarily closing some of its branches. this is a photo of the sacramento and battery location. no word yet on when any of these locations will reopen. it's just a reality of our new world, huh, you guys? >> scary. >> thank you, michael. >>> well, coronavirus-related discrimination towards the chinese and asian american communities, unfortunately it's escalating. not only in the bay area, but around the world. as abc7 news anchor dion lim found efforts are being made to make this message clear, racism is a virus that will be overcome. >> this video captured by a shopper at a target in daly city this week shows a racially charged interaction between shoppers and an asian man who coughed. >> i don't like that. >> you're racist. >> xenophobic incidents like this towards the asian community are happening far too often in the wake of covid-19. mayor london breed addressi

liz ann sonds is chief investment strategist for charles schwab and company. the anne, welcome back t newshour it looks pretty cataclysmic. what is driving this. >> yeah.we so, obviouslyknow the virus and the unique uncertainty with regard to-- we know it's goiwo to gete before it gets better. but the economic impact, the impact on corporate engs. then we had the double whammy of the collapse in opec talks and the ash in oil prices, and how that's filtered into the onomy, but also significant dislocations in the corporate bond market, and then more recently, you had dislocations occur in the treasury market, which is y the fed sepped in with what they did today. so, unfortunately, it's been this triple whammy. it's not ju the virus. >> woodruff: so in layman'se terms, is ththing to reainvestors, to reassure the markets right now? >> well, i think-- we saw a bit of shock and awe out of the fe today, but that's really just to stabilizrthe treasury mat. the fed has been very honest in saying that they can't really do much to ease the pain of a pandemic. they can'

charles schwab of course their earnings are down. but it's going a single digit multiple stock soon on next year's earnings if it continues and the same with booking holdings this was a way for us to play what's really oversold for accounts that don't own them yet. >> so, john, that brings me to you. we sort have taken a longer term view from the investor base. now let's talk trader base you tell me what you're seeing, tell me what you're doing on a shorter term basis >> all right, scott. back in 2015, this is the last time we saw sustained levels over 40 in the vix and it lasted for about 30 days, scott. so just to give you a little historical perspective that was, of course, not during the time when we were seeing thousand point gyrations like we're seeing new number one, scott, nerve turn a trade into an investment so if you bought on a big dip, then take some profits when you see that big rally i mean monday i was down in new orleans. we had that big down day i was buying into that yesterday we had the big rally and i'm selling.

she is the chief investment strategist at charles schwab. thank you so much forjoining us.nry paulson, george w bush's treasury secretary during the financial crisis of 2008. he wrote an op—ed any washington post saying, 12 years later... what do you make of that last point? is it fear that is really moving this market right now? it is fear but it is also a very unique amount of uncertainty. when we have instances in the past, whether it was the reason behind the crash of 1987 or the dislocations caused by the timber" orto 1987 or the dislocations caused by the timber 11 or to a more minor degree other natural disasters, there has been sort of a beginning and an end that we can quantify and then start to calculate the impact it is what you have on the economy and earnings. at least in the united states, we are so early in this process that we don't know what the impact is going to be, and this is not a financial system problem but so far most of the remedies being proposed are coming from central banks and from the fed, and i think there needs to be more of a focus on what

i would say other trading platforms were sitting by smugly this comes less than a week after charles schwabelity had issues. it didn't shut everything down a high-volume day. man, that would be frustrating >> if you were a tech savvy all on your smartphone >> exactly at the iowa caucus coming up, retailer target set to bring us numbers. instant reaction straight ahead. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

the chief investment strategist from charles schwab is quoted, the failure of the fed move to staunchhe market bleeding shows central banks are ill equipped to handle the economic fallout of coronavirus. the fed cutting rates by a quarter or half point does not create a vaccine and does not stop people from canceling their vacation. >> that's the whole point. there is a feeling the central banks of the world can't do much else. you go to germany and you have negative rates. in the u.s. you talk about 5/10% on the 10-year. bottom line the central banks of the world can't cure coronavirus. the federal reserve won't be able to do anything for this bug that is fatal in some corners of the population. so now we know that the central banks of the world have limited power. what else is needed? that's where the conversation has turned to a fiscal response. some kind of a stimulus program to actually help industries out there like the industries that are getting hit hardest because of the coronavirus. that could mean a tax cut, that could mean some kind of tax relief for some of these industri

significantly ahead of the there isi understand this thing called a market land owner, you go to charles schwabnd tell them i want you to buy one of these stocks whenever that one of them hits a certain mark goes down and then you bu y. i am expecting there to be a serious number of corrections between now and april 15 because people will have to sell stock. host: the vice president, mike pence, leading the coronavirus task force for the white house and daily they have been running briefings late in the afternoon at the white house. a picture of the wall street journal with the headline u.s. warns most americans to stay home. dr. anthony fauci warned it a few months before life returns to normal. he urged people to work from sociald prevent distancing. he suggested a 14 day lockdown. 14 day lockdown in the u.s. with chuck todd on meet the press. w you hising to sho comments and he was asked about that later in the day. here they are. [video clip] >> i think we should be overly aggressive and get criticized for overreacting. >> have you made this point of view known inside the as manager should

charles: well, i did. we have a mutual fund, an index fund, called the schwab 1000.se that all the time for my kids, the etf portion of the thing. i have taught them all about it, but in some respects, it is a little bit boring. i would rather have the kids buy individual stocks. so what i'm going to do, coming up this spring, we are going to introduce fractionalization of stocks. so you can buy a small fraction of facebook. david: or amazon. amazon is a high price. charles: amazon. david: amazon, let's say, is trading for $1300 a share. some people cannot afford $1300 a share. so they could buy -- charles: how about $130? how about $13 worth? david: ok. so that is something you will be doing? charles: we will be doing it for the young people. david: so as you look back on your career, the most important lesson you have taken away from what you have done. is it to innovate? pay attention to technology? be nice to people? what would you say is the key lesson? charles: i think, have enough humility in business to extract and have a team of people that you really honor

schwab. a modern approach to wealth management. >> charles: six lawmakers are under self quarantine after interfacing with people who later tested positive for the coronavirus. one of the lawmakers joins me now. thanks a lot for joining us. >> hey, charles, always good to be with you. >> charles: how are you feeling? >> i'm feeling great. if that's the point that i want to make. -- yesterday about 1:15 we had been in contact with someone. we wanted to follow the protocols. the protocols are working. i think we had a previous guest that said the administration -- that could not be further from the truth. there are people that need testing, the people who are sick. anybody who is sick and showing symptoms are able to be tested. we are taking appropriate measures from there. we wanted to make sure we are doing what we needed to do. i can get back on friday and get back out to do what we need to do outside. >> charles: when and how did you find out? how long afterwards it was it that you actually came in contact. you have been shaking hands with president trump. >> we found out yesterday at 1:15. it had

schwab, a modern approach to wealth management. charleske pence meeting with cruise lines in florida, businesses getting crushed because of the outbreak as the sunshine state has two death. how are they coping? florida governor rick scott who will be at the meeting with mike pence later this afternoon. the first two deaths reported and order, the first on the east coast. how are you handling the news and what should the public now? >> i am glad the vice president is coming down. we need to have a conversation with the cruise industry, talked to quite a few people about that and yesterday, we have two deaths. here's the way i look at it. i dealt with the car when i was governor. prepare for the worst and hope for the best, do everything you can to keep the public informed so they can make an informed decision. i was surprised about the definitely county which adjoins the county i live in. we didn't know there was a presumptive case. where did this person travel, they traveled into the airport, whoever was on the flight, let's make sure they

charles sha war, u.s. bank corp. -- is it anybody optimistic about financials here. >> i sold out of schwab. they need a steep yield curve. i put some of it into my wells fargo position now that it is yielding 5.5%. you are strong mortgages you have a new ceo, an efficiency ratio that's out of whack relative to the strichlt there is a lot of overhead they can putt cut out i think he will do that. i think numbers have been cut dramatically and i think there is maybe a little bit more downside and i think the yield is nice. >> would anybody buy a financial stock right now. >> i just did. >> i mean like right now, today. >> yesterday >> i mean like goldman or citi or morgan stanley. >> i am buying cme or black rock but i think you are asking would you buy a.ka tal markets bank. i own jp morgan. to answer your question, no, you have to have stabilization in the treasury market before you step in and look at the bank. >> how about if i change that question to as a trader and investment >> still need stabilization. >> the irony is that the yields are now safe because the capital positions are so s

charles: coronavirus canceling events across the nation is the panic outpacing the pandemicgs right after this. ♪ ♪ you can get a satisfaction guarantee. ♪ you can also wonder why our competitors don't offer that. schwabmore bite! no! one more bite! ♪ kraft. for the win win. kelly clarkson! what're you doing on our sofa? hey there! what're you doing on your sofa? try wayfair. you got this! woah. yeah! let me try! all alright, get it! blow it up! that's what i'm talking about. except that's my seat, so. all right, so maybe after the movie let's talk about that bedroom of yours! when was she in our bedroom? dealing with our finances really haunted me.ttle cranky. thankfully, i got quickbooks, and a live bookkeeper's helping customize it for our business. (live bookkeeper) you're all set up! (janine) great! (vo) get set up right with a live bookkeeper with intuit quickbooks. >> this is the fox nation. >> neil: coronavirus cases keep ticking up but as over 6,000 people have already recovered from covid-19 does everyone need to calm down. a psychotherapist joins me now. thank you for joining us. >> my pleasure. this is important. >> it is important. we never hear it, 65,000 of these cases of people who hav