thank earnings out a little early from bank of america. -- thank earnings out a little early from bank of america. here are the numbers. sonali: there is one line that sums it up and one of the first lines he makes and his presentation, the economic recovery is gaining speed. yesterday we were so worried about loan demand. bank of america is showing you if consumers are not taking out loans, their finding other ways to put their money to work. for bank of america, one thing that means is $100 billion more in investment assets, for example. can they find more ways to make money even in that debt tepid to men? they have been shifting toward fee-based revenue for some time. the other thing i give america had done was say they're going to buyback $25 million worth of stock over time. brian moynihan is showing you where not only making money, we are making enough to give you back billion's of dollars to investors at a time when costs are still $2 billion above where they were before this pandemic. jonathan: looking forward to catching up. citigroup coming out a little bit later. bank of ame

net interest for income for bank of america fell 16%. cost portion, that is where bank of america got hit. this was surprising to markets. we expected week loan growth, but costs not related to interest payments rose 15%. they did sound confident it is a one time thing. they are shaking their real estate portfolio. the cfo on the call saying, we are sitting in the middle of a pandemic with a lot of covid expenses that have been more sticky than we had hoped for, but they are going to come out. no question about that. still that optimism, not enough to save the tumble in shares. annmarie: what a blowout for the bank. thank you so much, dani burger, for that recap. france, the latest country to record more than 100,000 deaths due to covid-19, as new variants spread. we will talk european markets, next, and the impact of all of this. this is bloomberg. ♪ annmarie: good morning from bloomberg's european headquarters. 6:30 in london. i'm annmarie hordern. strong retail sales a standout and chain's data dump. the economic momentum slows in the

this is a space bank of america is involved in. including the recent announcement of $1 trillion environmental business commitment. what else is needed to help scale sustainable business activities to meeting the paris climate accord, and especially, how can we help high carbon emitting sectors transition to a low carbon footprint? alex: so there are a lot of studies out there. one of my favorites is one that was done late last year by the global financial markets association. in terms of how much capital is needed to achieve net and the -- zero and the aims and we need to invest somewhere between $3 trillion to $5 trillion a year. that's investments by governments, by companies, by investors, in order to achieve those aims. that presents an enormous opportunity for financial institutions. when you pair that with the responsibility that we feel to address big global issues like climate change, which really led to our net zero commitment, this really has led us to have $1 trillion goal over the next 10 years to help our clients to de

of 2.5% goldman sachs helping the dow and overall markets yesterday and could continue today bank of america citigroup and charles schwab reporting and a number of big names reporting tomorrow >>> a mixed picture over seaove overnight. let's look at the early trade in europe not a huge growth trend. the major index is up ab about .30% >>> let's dive into the markets now and back to the hotly anticipated market debut for coinbase be bertha is here with that and other news as coinbase is rolling on >> reporter: the largest exchange by market cap coinbase poised to pick up where they left off after the spectacular debut yesterday. shares are higher in the pre-market the stock closing at $328. up 11% in the pre-market it opened at $381. soared to $429 that is still well above the reference price of $250. meantime, the cdc panel decided to postpone the decision on johnson & johnson's covid vaccine as it reviews the blood clotting disorder. the panel voted to reconvene in one week when it will decide what it will recommend to the cdc on the vaccine that postponement means the pause on the j&j vacc

bank of america is next up today.nbase share whipsaw in the crypto exchange debut as bitcoin falls from record highs. the biden administration is set to be readying sanctions against russia over the solarwinds hack an alleged elections meddling. manus, good morning. before the blackout period begins on friday, a last dose of what jay powell is thinking and really the headline is just about what's going to happen first. clearly the bond taper. he said is going to be well before the time they even consider raising interest rates. so a little more clarity on the fed's timeline. manus: i think what he wants to do is shift the dial, from saying when you get the vaccination rate at 75% to be the summer. i think he's trying to take the narrative back. i think he wants to reset the agenda. there's a lot of risks out there and we need to keep that in mind. the preconditions are likely to be met before 2022 for a rate hike. annmarie: we have discussed a number of times this week the jackson hole meeting at the end of august wil

of course, what is actually priced into the market? we do have banks rolling out. citigroup up, but just slightly. bank of america did release billions of credit reserves. they do see a robust pipeline for the second quarter in terms of investment banking. citi exiting about 13 retail platforms across asia, and they say they see very healthy consumer, the best that they have seen in exiting a crisis. that is a quick snapshot of what is happening here in the u.s. like i was mentioning, very good retail sales numbers, as well as jobless claims dropping. here with us is carl riccadonna. walk us through the numbers. carl: a slew of strong data. the retail sales data shows the stimulus check from the treasury really driving the pickup and consumption. those $1400 checks from the treasury department that were mailed or electronically transferred in the month of march, that was about $300 billion in total, dwarfing the size of what we saw would be brighter stimulus round in late december, early january. what we are seeing here today is very much consumers writing that wave, and i think it is important to note that those

bank of america chairman and ceo brian moynihan speaking to bloomberg about their results. >> at the d of the day, the economy affects of a bank like ours affects the whole financial system. the good news is this is a health crisis in the very good news is you are seeing vaccine numbers go up and the ability to reopen, and you are seeing people move around, so our spending levels for our bank of america consumer customer base work record in the first quarter. march was the biggest month ever. if you go back and compare it to 2019, they are up 2%. there's a bigger number growing at a faster rate, and yet, people still have a lot of the stimulus in their accounts and have not spent it. we have a group of americans and a group of people around the world who are not back to work yet, and we need to get that done, whose businesses cannot open yet because of the nature of them. we need to get those done, but a big part of the economy, and our predictions for the economy for the next couple of quarters are for it to be bigger than it was before the pandemic, and that is very good news. when

citigroup, bank of america, can they do the same? trading and the results have been weak. the consumer sector will be a concern for bank of america. anna: dani burger with the latest on the banking sector. a bit of breaking news coming through. it is moving one stock in particular. according to a business insider report, a court in germany has ruled that berlin's rent cap is unconstitutional. deutsche's particular share price up by nearly 5% on those reports around the rent cap. this has been a long and rambling story. the cost of living in berlin and the legality of measures imposed to deal with that. coming up later in the program, we will be back to the bank earnings came. we will be speaking to the ceo of bank of america, brian moynihan. we will be sure to bring you all the highlights tomorrow morning at 10:00 p.m. coming up, we will talk about emissions. this is bloomberg. ♪ ♪ anna: welcome back. half an hour trading session. u.s. features have been more positive. they work during the last hour and continued to do so. nasdaq are

it is really a bottom as it gets for bank of america. wur uber bullish on the markets. recovery is 50% of the survey. sam is standing by. he debates more cerebral issues. owes our senior pharmacuticals analyst. here we go. fauci says they didn't pull the trigger too early on pausing the johnson & johnson shot. did they? >> good morning, manus. if only i was in the same camp as the good dr. fauci. i absolutely think they have done absolutely the right thing . imagine the other version of this reality working out. some newspaper, in amazing journalist gets hold of the information when the cases have risen to seven, eight, nine and 10, and think about that consequence. you cannot have this. this is the job of the c.d.c. and the f.d.a. this is the job of the mhra, the job of the e.m.a. they have to do this. there is no question about this. annmarie: completely. it shows there is transparency, especially when you have things like a lot of vaccine hesitancy in the united states. sam, you mentioned in your research that it doesn't exactly matter for the u.s. vaccine program, b

failure to prevent some of those outages but it's heating up. >> kate rooney, thank you. >>> bank of america and citigroup both out with strong earnings but the stocks are lagging. what are the key takeaways >> the big headline was citi pulling out of 30 markets within its global consumer bank, including china, india, korea, australia and russia they will now operate out of just fourth wealth hubs in asia and europe, london, uea, hong kong and singapore it's a major stop by the ceo as part of a strategy refresh she told me earlier that we believe our capital investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our businesses in asia the cfo said it would free up about $7 billion in capital. $4 billion in revenue and $3.3 billion in costs bank of america and citigroup had strong capital markets and a big eps beat driven in part by provisions for bad loans switching from a cost to a benefit. both saw costs rise year over year while that was expected somewhat this quarter, it was larger than expected for bank of america 15% o

bank of america reporting the results this morning for the quarter. stock as you can see is trading higher after the company earned 86 cents a share. both of the numbers topped the estimates. bank of america announcing a $25 billion stock buyback plan saying this will be consistent with fed restrictions. again, these numbers, we weren'ting expecting until 6:45. we have will frost has confirmed these with the company you can see bank of america is up 2.5% for a gain of more than $1 andrew, good morning good to see you. >> good morning. good to see you. welcome back an update now on the j&j vaccine. paused by the cdc and fda. a key cdc panel met yesterday, but postponed the decision the panel voted to reconvene in a week to investigate six cases of women who developed the blood clots from the vaccine serious. one of the women has died. the pause of the vaccine will remain in place during the investigation. a setback. it continues to remain a setback. we will see what the cdc decides to do and if they allow the vaccine to be given to certain groups of pe

weiss owns bank of america and goldman. s the story here >> i thought that bank of america was a lot cheaper stock. i didn't know where the marginal buyer for jp morgan was going to go from. clearly it was a mistake, but, you know what? i made some pretty good money in bank of america and i think their ceo is unsung of all of the ceos out there i'm sticking with it i'm not buying jp morgan at this level. jamie dimon is most outfront in terms of the press brian stays under the radar a little more, but you will make money in banks no matter what you own. i think going forward you make more money in bank of america. >> kari, your position is square into how jamie dimon is thinking about the future of banking himself, right in the letter he wrote today i referenced earlier about how bullish he is on the economy in 2023, he did talk about fintech and the threat that fin ttech hs to the banks paypal is your largest position. >> well, paypal has been a stock we have owned for years, and we believe that the market for transactions f

bank of america seeing jp morgan yesterday and saying i will raise. kriti: a $15 billion deal out of bank of america after a year of ecker -- eckerd -- records. last year i think the issuance was raising cash, corporate america needed that cash, you needed it to shore up there balance sheets and get cash cushions. now it seems to be about where people think rates are going and jp morgan and bank of america issued those bonds. comes after earnings that begged the question how many other members of corporate america are going to be following suit and getting that last far waiting --far-wing abililty? romaine: europe to wonder where is the cash, a lot of companies are still sitting on it. you would think that would be a good but we were talking earlier, there has been concern about -- the bloom is off the rose for a lot of these countries -- companies. kriti: it helped a lot of stocks in 2020. -- big tech names, they did have that cash, some being deployed to electric vehicles and what have you. then you see airlines, they have not only increased equity i

remember a year ago, all of these banks were putting a lot of cash on the side, you know, they're worried about credit losses bank of america a huge consumer banking component too. and that is a negative 1.86 million for their credit loss provisions right now. so those are numbers on bank of america again the stock is moving higher and excuse me and real quick back to you. 2.7 billion reserve release maria what they're saying that was due to improved macro economic outlook and balance decline at the bank and they're saying they're seeing strong growth in capital majority, and wealth management business again that's another side of their business but mortgages consumer banking, all of that a beg piece of the pie for bank of america stock up two and a half percent maria back to you. >> all right cheryl thank you so much. we're talking with marty this morning on bank earnings, marty you're seeing these numberses out of b of a and reflection of a strengthen economy -- i want to get your take on this quarter of b of a also by the way expecting retail sales to be out and up 5.9% in the month of march. after a decline of 3% in feb

for bank of america that was significantly weaker than its peers like goldman sachs and jp morgan. eak across the financials today. one of the worst performing sectors. the kbw bank index getting hit pretty hard today. it still had a pretty stellar year. we saw that rotation into cyclicals and a steepening yield curve. it is those yields weighing on that sector today. we are down some nine basis points after that retail data surprise. it is very much that as well as concern over loan demand weighing on banks of america. amanda: we did hear from the banks. decent numbers at citigroup. included news that it would exit 13 markets with its retail operations. those are markets across asia, europe, the middle east and africa. transformation is more strategic and fundamental. we are taking a soup to nuts approach looking forward rather than backward obviously that's a big step to exit those retail markets. the implication is that there may be other things that happen for citigroup what's the market thinking about what it's hearing? >> their liking what jane fraser has to offer so far. this

we hear what bank of america's ceo had to say. that's next. mberg. ♪ >> at the end of the day, the economy effects of a big bank like ours affects the whole financial services system. so, the good news is this is a health care crisis. the very good news is you are seeing the vexing numbers go up. we were ability to reopen without the risks of towns. you see people moving around. our spending numbers were record in the first quarter. march is the biggest month ever. if you compare to 2019, they are up 20%. it's much faster than they were going and 2015, 2016, 2017. there's a bigger number growing at a faster rate, and people have stingless in their accounts and haven't spent it. we have a group of americans and people around the world who aren't back to work yet, and we need to get that done, whose businesses can't open because the nature of them. we've got to get those done. a big part of the economy, and our protections for the economy to cross over to be bigger than it was before the pandemic is open and operating, and consumers are spending

and bank of america is raising wages. e on that is tom metcalf from our banking team. what is driving this? is it really the archbishop of canterbury who is telling jes staley how he should run his business? >> well, it is certainly true that you wouldn't normally expect him to be opining on this. it's a perennial topic in banking. i guess the reason it has been particularly high profile recently is probably with the pandemic, i think a lot of these more junior bankers are finding it extremely hard to sort of switch off. they literally go to bed for a few hours and then straight back to their screens, and just doing that for 20 hours every day week in and week out. after years of that, the cracks are starting to show. it's that kind of pressure from within. when you have someone like the head of the church of england weighing in, i think a few ceo's are starting to take notice as well. matt: the pressure from within doesn't get to be blown off also is something i have heard from a lot of bankers. in the past, they were wor

shares of bank of america and city go lower today. we discussed. -- discuss. bloomberg. ♪ ♪ shery: the earnings bonanza continues for u.s. bank, bank of america and citibank reporting earnings beats. citibank is making an investment in 13 markets across asia and elsewhere. >> while these are excellent choices, we don't have the scale we need to compete and we decided we aren't the best owners of them over the long-term. citi will invest behind and serve our institutional clients in these 13 markets. we have a high returning and leading institutional franchise in asia and it is an absolutely central part of our success going forward. shery: our finance reporter has more on this. we saw citi see the best stock-trading quarter since 2009. tell us what is going on. >> all of the banks reported pretty solid earnings, bank of america also reporting solid earnings today. yet the shares have come under pressure this week. what is disappointing investors about these blockbuster earnings is the poor outlook for lower growth. investors are so nervous about the picture goi

. >>> bank of america and citi earnings this morning, both ahead of expectation, we'll see how the shares perform though given yesterday's somewhat mixed bag. carl >> guys, we're going to dig into obviously the earnings but jim, let's unpack the retail sales number obviously well above, even goldman's above consensus. motor vehicle, 15. furniture, just 6. clothing up 18.1 those checks got spent >> i've got to tell you, carl, it is almost as if everybody has already been vaccinated. people are going places. people are doing things. people are spending. if this is what it looks like with a quarter of the country vaccinated, what happens when everybody gets vaccinated? i mean, you know, retail sales up 15, 16% i mean we have to start comparing everything to 2019 but you know what, we're blowing away 2019. in some of these numbers so carl, i've got to tell you, it's an amazing moment for the u.s. economy, and jay powell is not killing it carl, he's not killing it. he's letting it happen. >> i know you were mentioning, you were talking to joe a moment ago about why the 10-year is so well behav

i'm glad to bring in brian moynihan, the ceo of bank of america. ce of another depression like last time i talked to you. so you took over bank of america in the middle of the great recession. when is the last time you were this bullish on the u.s. economy? >> well, first, poppy, our thoughts and prayers are with the families of the indianapolis shooting victims. and we have team out there, too. so let's start with that before we get the economy. but on the economy, we -- it is really -- the predictions for the 2021 growth by our great research team are 7% gdp growth in the united states for this year. and 5 plus percent for next year which is a much faster growth rate than we've seen in the last couple of decades. that bodes well. the economy is going to cross over and be as big as it was before the pandemic. probably in the middle of this year, growing at a faster rate. unemployment is coming down and we're starting to open up the economies fully and people can now spend the checks they got by going out and eating and doing the things they'd like

america. coming up on the banks, gerard cassidy. and we will catch up with jill carey hall of america and pgim's greg peters. this is bloomberg. ritika: with the verse were news, i am ritika gupta. egypt has seized the giant container ship that blocked the suez canal. egyptian authorities are seeking more than $900 million in compensation. the ship insurer for third-party losses said claims of damages is largely unsupported. warren buffett, amazon, and blackrock are amongst the hundreds of companies and executives uniting to oppose limits on voting. they signed on to a letter denouncing any discriminatory legislation, making it harder for people to vote. republicans have been trying to enact new election rules in almost every state. we are still talking about it. bloomberg has learned credit suisse has sold about $200 billion of stocks tied to the implosion of archegos capital management. last month the firm became the center of one of the biggest margin calls of all time and cost credit suisse and other banks about $10 billion in losses. mcdonald's will require anti-harassmen

of course we are at 4125 joining us to discuss why bank of america's head of securities savita subramanianbs my attention, sell side indicators. talk us through that it is a sentiment indicator we have been tracking for decades here at bank of america. it is basically looking at what wheat strategists are telling you to allocate to equities in your overall portfolio what we found is that this is -- you know, if you take the average of all of these allocation recommendations, this ends up being a very contrary indicator of what you should actually do with your money. historically what we found is when there is lots of good news and everybody is bullish, and it look like stocks are going to go up forever and allocations grow extended those are better times to sell because chances are all of that good news has been priced into the market today, we are at similar levels of very stretched allocations to stocks in fact, we are just one percentage point away from a sell signal from this model. i think what this underscores is the fact that there is not a lot of reasons -- doesn't feel like there

economic for bank of america. this includes some of the commodity stuff.hen do we see demand start to abate? prices go up fast, so buyers have to pullback. are we seeing any indication of that in housing yet? michelle: it does not appear we are seeing that. the housing market, the biggest thing is the lack of supply, as noted. when you think about the market, we are close to record lows, the number of days in the market is short, and builders are aware. you are seeing phenomenal building permit numbers, ramping up construction to add to inventory, which helps to ease some of the price pressure, but i don't think it is a pricing issue. it is a lack of supply. one of the reasons i suggest this is that if you look at the survey data from the university of michigan for housing, people are not saying prices are too high and it's not a good time to buy, because prices are high, but we have had an influx of money comes a people have cash on hand, and interest rates are still low. caroline: it is a tale of the haves and have-nots. if you're living by to miss check

bank of america raise the their earnings, they raise it to 185 i put a 23 multiple on that. estimates for price targets are pretty much there. it seems to be around where people think the market can go i'm wonder last might on "60 minutes" he says growth will be that she should have with the panel. jeremy seeing the we're told is only in the third inning of the boom seemsly every day. as it should i think the big question is, is this a speculative bubble. street estimates >>> it's kind of hard to find of negative. into equity funds, a short interesting has had the biggest decline in 12 months, pretty much ever. equity exposure is also at multidecade highs, so i think it takes away the idea that there's a tremendous reservoir of under-invested that that is not arcably all in there are other peace pieces it to this story. i don't want to see this is doom doomsday. >>> what are the potential cata catalysts las of real fresh money coming in. >>> if i go i think you can hav relative the fact that is new is going to be so good that none of the other stuff matters. people are gig m

zelle is twice the size of venmo and 20% of the volume is bank of america. about the largest banks they are pulling their weight. having said that there is a large under bank market. there is lots of pieces for many players to gather and a lot to learn from these fintechs. you are going to see a survivor bias. the ones that make it are the big players. but i sense anger in the ceo letter by jamie dimon. we have 20th century financial industry regulation and the 21st century. banks comprise less than one third of the financing in the economy, yet the other two thirds don't have the same degree of oversight. amber: mike mayo, thank you for the set up. matt miller, i am amber kanwar, this is "bloomberg markets." ♪ ♪ mark: i am mark crumpton with first word news. six u.s. women between 18 and 48 who received the johnson & johnson covid vaccine developed blood clots after similar issues with the astrazeneca shot. >> the real thing that is so notable here is not just the cerebral thrombosis. those things can occur. it is that they are occurring together that makes

right now michelle meyer with us from bank of america. ing on the pulse of the american economy. i want to collate in all of the bank of america economic research. do you look at it as a linear path forward in the coming quarters or coming years or is there an accelerant to all of this good news? michelle: it has been somewhat hump-like in that we are looking at explosion of growth and that will lead to strong q2 and q3 growth. in q3 still very strong given the handoff for second quarter very lightly -- very likely, 8% growth. then we returned to mid single-digit oath rate. what is important when you are looking at growth rate is to think about the starting point. right now we have growth to be made up for from the covid shop. a bounce now, the data we are seeing is still quite reasonable especially given all the stimulus and other support the economy. there is still catch-up happening and in correcting for the covid shock and returning to the trend levels you have seen previously. once we close the output gap then you are running above. t

jonathan: let's bring in jared watered now, bank of america head of the research investment committee. -- jared woodard now, bank of america head of the research investment committee. what does that mean? jared: this goes from a very narrow fight on soybeans and maybe semiconductors to the future, a much more open-ended, all hands on deck globalization. that is what it looks like, anyway. if we look at the bill, one of the things we saw, although there is this bipartisan rhetoric, there is some unanimity politically in congress. congress voted unanimously i believe to de-list chinese adrs from u.s. exchanges last year. if you think about research and development which is undoubtedly the frontlines of the future of new technology and who is going to win the future, i think the china national parties congress just approved millions for r&d. -- approved billions for r&d. it doesn't sound like catching up to me. tom: folks, it is rare that someone of any bank puts out a research report where the world stops. i think jon, lisa and i can agree that when woodard publishes, the whole world st

mark of america of -- mark cabana of bank of america securities, head of u.s. rates strategy there.there is some data at 8:30 eastern we all need to wait for. morgan stanley behind us, they were better than expected. the ceo says we are better positioned for growth in the years ahead, but there is a $911 million loss tied to archegos. archegos. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. >> the consumer is, once they are let loose, they are going to start spending. >> going forward, what is going to power consumer spending is the services side of the economy, not the goods side. >> everything we follow would suggest every bit of inflation is being passed through, and then some. >> in many cases,

coming up, ethan harris, bank of america securities head of global economics. we will get his concerns about the divergence and recoveries all around the world. this is bloomberg. ♪ ritika: i'm riupta. let's take a look at your first word news. a big win for google today at the supreme court. justices ruled google did not commit copyright infringement when it used oracle's programming code in the android operating system. that spares google from paying what would have been billions of dollars in damages. the sectors hit hardest independent on our bouncing back. the ism services index soared everyone in england is being urged to take a coronavirus test twice a week, part of prime minister boris johnson's plan to reopen the economy. test kits will be free and usefulness of covid passports be assessed for widescale use. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. alix: thanks so much. treasury secretary janet yellen speaking to the

banking. brian moynihan of the bank of america, later. this is bloomberg.d morning. ♪ want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. ♪ jonathan: it is the boom you have been waiting for. from new york city for our audience worldwide, good morning. "the countdown to the open" starts right now. equity features are positive. .6% on the s&p 500. a smoothing american economy. >> we have had the speediest recovery ever. >> the economy roaring out of the gate. >> the economy is starting to open. >> the bar has been set high for u.s. data. >> expectations high. >> lofty expectations. >> the potential for another boom in the economic data. >> the second quarter is a turning point. >> there is a lot of cash

por nc cinrit g gh back >>> welcome back big bank earnings bank of america, citi topping estimates and bank of america lower with heightened expenses. regional banks also in focus the group is lower today but 20% higher so far this year. one name in particular, wafd saying despite the pandemic loan losses were insignificant. here's brent, ceo. welcome back good to see you. >> tyler, good to be here. >> not only earnings higher than the estimates 56 cents a share versus 49 cents and you said the loan losses were insignificant, you over the last year generated 9% more in total loan volume and loan originations up 49% in the midst of a very difficult economy and a time when most of your employees, i'm sure, were working remotely >> yeah, thank you for recognizing that you know, in the midst of this pandemic it was a choice many banks chose to pull back very nervous about what the economy would do we chose to take the other path. we leaned in we took the opportunity to take market share and it's fairly remarkable last year was a record year for us we had $6 billion of originations this yea

bank of america. saw them, i thought was pretty good, will from sarah, the closing bell it got the worst reaction from the market i'm going to say that the market is wrong it tumbled nearly 3% today i thought it was insulting even though they posted a top and bottom line beat like everyone else, i mean it was good bank of america has the most rising interest rates, though, because they have the enormous deposit base and not much of an investment banking business, or at least this quarter. but their net interest 16% and then treasury yields got hammered today hence the sell-off that's it. there was nothing particularly surprising in the quarter itself do not despair if we get a couple of rate hikes, this is the one to own. and we're going get it eventually put it away. don't sell one less thing to worry about now that earnings season has gotten rolling the banks are doing pretty darn good, even if the stocks don't necessarily reflect that fact. i am still bullish on the financial, especially investment

alix: pivoting off of that, yesterday and today we saw banks issuing a ton of debt for themselves. jp morgan, goldman sachs, and bank of americarning, the story was that they were taking advantage of record low yields. do you have a sense as to why they have been in the market in the last two days with such ferocity? chris: i suspect they want to prepare themselves for rising rates, but i don't know. they are always active issuers, in any case. alix: but i think the rhetoric was that changes to the slr, the supplement or leverage ratio, may have freed them up to go ahead and buy more treasuries. do you have a sense as to how they are handling that? chris: the slr is one of the worst innovations around. it is a ratio that makes no sense. so what happened in the last year really is that the fed printed next to $3 trillion of money. that money was put in banks as deposits, and then the banks put it back into the fed. it means that some of the banks are going to bump up into the slr limits. they are going to need to think at the margin about how can they artificially try to lower some of their cash and liquidity balances. i am not

lisa mentioning the bank of america numbers from michelle meyer and the team over the last couple of months. decaying where they have done their work, it is the card spending. card spending has been absolutely tremendous over the last several weeks in america, not just relative to 2020, but also relative to 2019. tom: we heard earlier from a guest on pent-up demand. maybe we are buying forward what we would buy in july, we are buying now. it was a natural disaster. we are still in the natural disaster. i noticed last night, the number of people watching babu with the detroit tigers in houston was huge because texas has people in the stands, and everyone else doesn't. it is these nuances of consumption which are absolutely original. jonathan: people want to get back to normal. i am shocked you still haven't mentioned the red sox, and shocked you still haven't taken it to get the yankees. [laughter] tom: if you are dealing with a team as esteemed as the new york yankees, you understand that anyone from boston never talks when things are good. we go radio silent. jonathan: i am going to

jonathon: this comes from bank of america. there is a high risk of participation rate does not fully recover leading to a drop in the unemployment rate and faster wage growth. the reason i bring up this line is because i want to know what that -- what the data looks like. the longer it comes -- it take to come to an agreement, where we are in this economy and how quickly we get there. lisa: some of the know are jobs in the economy our newest go jobs and some of the other jobs are being taken over by machines and computers. what do you do if people don't have those skills? they are dropping out of the workforce. how do you deal with that workforce? how do you invest in trying to bring some people up? this is going to be the conversation over the next decade. jonathon: we are going to touch on that over the next 10 minutes. we do that with jay bryson who will be joining us shortly. great to be alongside lisa. tom keene taking a long weekend. all-time highs at the close yesterday. we are down 17 and up by .4%. big tech this week,

of these are in that retail, you know, ecosystem here. you've got costco up by 1.5%. but then we also got great earnings from the big banks, bank of america and citi book as well as. as -- citibank as well as schwab. certainly, at this hour we are losing steam for bank of america and charles schwab, both down more than 3%, which leads us to wonder right now has the reopening already been discounted in most stocks? let's bring in our floor show traders, louis-and-a-half leer along with steve sarge gill foil. -- guilfoyle. gentlemen, what about that question? louis, let me can you this, have markets just kind of brushed off the reopening and said, yeah, we know about that, what else have you got for us? >> well, i think the key is you want to see the velocity of money improve. you don't want this to be a one-month wonder. and i can tell you that sporting goods sales are up even stronger year to date, clothing was even up stronger than was reported in march, autos are even stronger. and these were the top three categories in march. so this is sustainable as far as i'm concerned. liz: okay. we can start throwing up some names here. yeah, we s

i mean bank of america is talking today about the shifting sentiment. ey've seen the biggest outflows in five months. they've got the biggest amount of sales since mid-november, the fifth largest on record. what are we supposed to make of that i mean i keep thinking, you know, the environment looks so good and yet the stock market can still be at the same time so incredibly overbought. >> yeah. well, we're up 84% from the marlows march lows of this year, up 10% this year alone. people forget 10% in a year is a really good return on your money, right so we've had a really great start. but at the end of the day, we talk about what is driving all of this economic activity and what drove the markets higher. it was liquidity, monetary and fiscal policy liquidity. we still haven't even spent $3 trillion and we're about to get another $2 trillion or maybe a little less on infrastructure, and then there's another one behind that. so there's so much enormous liquidity in the system and it is not going away. we are going to have to deal with that at some point, bu

you are looking at jpmorgan chase and goldman and morgan and bank of america next week. ns and valuations are attractive. although they made a big move. i like the banks in year i th i think they made a nice move. now you have interesting dividend yields. >> that is loosening the reins to return capital. stephanie, many have diversified operations are there areas of the lenders that out perform what has your attention within that bank atmosphere >> i think you just hit it both with the yield curve getting steeper, you want to own a bank of america which has the most exposure to a yield curve steepening trading and capital markets are on fire. goldman and morgan will do well. i like wells fargo it is a turn around story. wells fargo with a new ceo he has been there a year and a half a new executive committee. the asset cap can get lifted which will be a catalyst i still think that wells is an attractive idea. i think people are skeptical about it that's where i think your opportunity is the last one is american express. that is the reopening name t & e will come back i thi

horst schneider of bank of america. thanks for joining us. ng news in terms of russia and the u.s. russia's foreign minister speaking at a moscow briefing. he says russia will sanction eight u.s. officials in retaliation for the u.s. sanctions we got yesterday. in terms of the market, nada. dollar ruble at 75.74. seeing a stronger ruble despite the sanction words of war being thrown about. it goes to show that perhaps it could have been a lot worse and that is what the market is reacting this he least bad of all of the potential options. in the equity market is closed up, it is friday. we finished the week, stoxx 600 up for a seventh straight week, the longest week since 2018. telecom and insurance are the only ones pooping out, and the cac 40 up .8%. the dax outperforming from its exposure to china as well as for daimler. the return of the retail investor is not just a u.s. story. we will speak to the ceo of the warsaw stock exchange coming up next. this is bloomberg. ♪ ritika: this is the european close. i am life in the principal room. comi

interesting, we have the bank index down despite citigroup and bank of america and some of the other banks putting up very strong quarters. it has to do with bonds rallying. we have this big rally for bonds on the day. yields lower, pulling on the banks. that rally in bonds doesn't quite make sense with the strong economic data, but here you have it. not all-time highs for bonds, but again, it strong rally for bonds. alix: definitely breaking through the bottom it had made, so it pain trade. the biden adminstration is imposing a series of new sanctions on russia for alleged misconduct related to the solarwinds hack and efforts to disrupt the u.s. election. the u.s. said it is trying to avoid a cycle of escalation, but they have more tools in their bag. joining us for more is bloomberg's correspondent. what can they do, and what can they still do? reporter: what they did today was impose a raft of new sanctions on russia, including restrictions that were long feared on buying new sovereign debt. they also sanctioned 32 entities and individuals, and those include government and intellig

bank of america buying back $25 billion, but they're down today, because of the yields. : yep. stuart: ain't that something. thank you, susan. good stuff. >>> she hasn't been to the border yet as vice president but kamala harris says she knows what's driving the crisis. roll that tape. >> golden triangle countries, a large part of their economic base was agriculture, with the severe climate experiences have done in dampening and really harming their ability to have that. stuart: i'm sorry, i couldn't understand quite what she was saying there with a mask on. i tell you this, she is blaming climate as the reason behind the crisis at the border. we're going to have more on that, i promise you. texas congressman kevin brady says he will not run for re-election. what does that mean for the trump tax cuts that he helped pass? he is on the show. a border patrol agent posted this video. a smuggler drops a 2-year-old infant, 18 feet over the border wall. extraordinary. fox still is working to confirm that video. we're going to talk to border patrol council president brandon judd

with all due respect, love bank of america think of what they are doing to the housing market too yound the incremental new buyer in the housing market it's not just the exodus from the cities it's an exciting time. if you think about the impact, we spend a lot of time on fast money and this network trying to determine the impact overall in markets. it's not all about kamakaze investing and going with the mass crowds. this is a guy that made a call on stock and it's paid off massively. >> contessa, is this a good thing in. >> look at my illemillennials. it's also gen z. we have talked about the ways they have taken a page out of video gaming and gambling apps and they are making it relevant. they are making it easy to use the upside is that you have younger people involved with investing. the down side is it has some of the same risks in terms of problem investing or problem trading thatgambling does as well it's manager that i think you'll see regulators paying more closely attention to on that >> we know the virtual confetti is gone from those applications now. >>> turning to where

i think bank of america was early this week so look for those numbers this morning. i want to show you the price action. shaping up as follows on the equity market, higher on the s&p 500. we advance 1/10 of 1%. heading for a fourth straight week of gains. yields are unchanged, 157. the fx market, the euro-dollar a push higher. euro-dollar 119.78. lisa: as well as the weaker bond market, the higher yield the lower the price. has that gotten worked out? that is one of the questions underpinning the market moves. we expect morgan stanley first-quarter earnings, they could come perhaps at 6:30. the expectation will be for a blowout capital markets quarter. the key question will be how did their acquisitions of e-trade play into their acquisitions play into -- their acquisitions play into profitability? we get some housing data in respect to building permits. interesting to see how much optimism there is in building new construction at times of high lumber cost with -- which cap demands -- which caps demands for homebuyers. not a lot of inventory. today, president biden p

retail sales thursday, bank of america looking for 11.5% for the month of march. tom: you're going to get a lot of these numbers 12 months trailing. i am more interested in the quarter to quarter, week to week nuance. -- month-to-month, i stand corrected. but i look at where we are, and the fact is it is a boom economy. it is an original economy. this is not a normal week because it is a boom. jonathan: let's bring in brian weinstein on the bloom economy -- theb oom -- the boom economy. cpi, how are you thinking about the number? brian: the numbers will start creeping higher in inflation, there is no question. but what you do not see really, if you look historically, the market is not afraid of inflation. use a high output gaps, on appointment rate still high globally. i think the market is going -- use see high output gaps, unemployment rates still high globally. tom: where are yields now and how are they linked to the inflation call everybody is guesstimating? brian: i was thinking about that in the late 1990's and early 2000's. the 30 year tip back then was pri

but in the case of the banks, i mean, we have our favorites, and one of them happens to be bank of americar happens to be charles schwab which is sort of a bank, but certainly it's a big financial institution. and they're both reporting tomorrow. i think that with earningsing, liz, you have to be careful because it's a trifecta. they need to get the top line right, the bottom line right, and perhaps most important of all, they need to get the forward-looking guidance right. and if companies don't do that, there's a good chance at least for the short term you'll see a little disappointment. in the case of today's reporting, i mean, all three reported great earningsing. but in a lot of cases, these stocks were already priced to perfection. so perhaps it's a case of sell on the good news and in a couple days, any weakness probably is a good buying opportunity. liz: although -- yeah. welsh scott, we got wells fargo hitting a 52-week high, so that's a nice move, certainly. tell me what financials out there or financial-related companies, i mean, let's not ignore some of the newbie names like so

jonathan: the bank of america merrill head of cmo strategy will be joining us -- cio head of strategys. that's a long title, isn't it? on the s&p, we are down 0.5%. yields of a basis point, one .645 4%. alongside lisa abramowicz, i'm to -- 1.64 54%. along lisa abramowicz -- alongside lisa abramowicz, i'm jonathan ferro. ♪ nathan ferro. ♪ ♪ >> the only real surprise for me this earnings season so far is the magnitude of the beats. >> we know this economic data is great. this is all reopening, fiscal stimulus. how much does behavior change? >> whether you are growing at 9% or 6%, the labor market is going to remain very strong for at least the next few quarters. >> i think we are in the third inning of a continuous economic cycle that will continue to bear fruit, so i don't think this is peak growth. >> where does this thing peak out? i have no clue. the companies don't have a clue.

joining us now is savita subramanian, bank of america securities head of u.s. equity and quantitative strategy. thank you for joining us. savita: great to be here. we have been fans of reopening beneficiaries and value overgrowth for a while, and it has worked. i think the question investors now have is that we have had this violent rotation into the cyclical kind of deep value stocks in the s&p 500. what next? i think that gets more nuanced from here. a lot of what we are seeing is that this value rotation is intact. i would stick with the idea that cyclicals are going to outperform defensive's and value is going to outperform growth. i would also continue to press the small overlarge cap theme. i don't think we are anywhere near done with the idea that the world is shifting from a very closed, stay-at-home, defensive and tech oriented economy to a cyclical recovery and services recovery, etc. our favorite sectors, industrials, financials, and energy. we are hearing from our president that there is likely to be some type of infrastructure bill, and if we get t

bank of america in particular said they think sterling gains will be hard to come by because a lot of the vaccination good news is already priced in and a risk rhenium has been priced out. if that moves to the euro, so we will see more reopening and more vaccinations, how does that then affect the risk premium for sterling and how that affects otherwise? dollar index around session lows as well. energy, this will be helping basic resources and material stocks within the european equity market. i would also say inventory draws are huge here in the u.s.. we are still waiting for coinbase. and what will happen when it opens. 340 is where we are looking at right now. abigail: it's unbelievable. listening to the last guest, i think $.15 is amazing. the markets in the u.s. are looking at a mixed note but more to the risk on side. the nasdaq 100 yesterday after putting its first all-time high in since february 16, now trading a little bit about takeover the russell 2000, outperforming. -- excuse me, underperforming, making up for the up 1.9%. some of that has to do the strengths of banks, go

the good investment numbers from jpmorgan chase and goldman and bank of america. eases you might recall, brian, the banks had to set aside hundreds of billions of dollars in anticipated credit losses due to the recession. those credit losses have not materialized banks are bringing that money set aside back into earnings and that's the reason for the blowout earnings. >> you think it is a one quarter phenomenon based on the yield? >> it is a good question we're expecting the earnings to remain strong this year. we're increasing our earnings estimates based on what we saw this week. i think what you will see is continued good earnings. probably not at the record-breaking pace that you are seeing this week so the investment banking results will quiet down after the first quarter numbers. you know the ipo market has been red hot particularly with the special purpose acquisition corporations >> i get the goldman sachs numbers. it always wins doesn't matter which way the market goes. they tonedend to come out on top wells fargo. very quietly with a new multiyear high fa

morgan stanley and goldman sachs for quite some time they have been some of the better positions, bank of america couple of days should cloud the view of what evening will be a very favorable one for the banks. the setup is an interesting one. the 10-year treasury began the quarter pricing at 90 basis points we're now pricing about 70 to 75 basis points higher there. there's going to be a lot of fee income that was generated on mortgage refinancing let's not forget all the underwriting that occurred with the introduction of all these new spacs. so i agree with david. i think the capital reserve release is going to be very strong, on a strong economic, optimistic feeling so that's going to ultimately lead to buy-backs as we move forward into 2022. i think the view for the financials is going to come back into play very strong over the coming days. >> david, are buybacks still the best use of their capital when they do have the ability to dp deploy it more or should it be dividends or m & a share prices have run up quite a bit. >> i've never been a big fan of buybacks i think jpmorgan is now 260 a