i want to draw your attention to brian moynihan, ceo of bank of america. he's looking at bank statements from his customers, anybody who has $5,000 or less, their cash balance is 30 to 40% higher that's obviously because of payments coming in from the government or stimulus and that's a surprising number maybe a better statistic than i would have anticipated. >> it doesn't surprise me, becky. i listen to brian. sharp guy. in addition to the policy, you would expect that to hit people's bank accounts two things occurred. one is people are precautionary savi saving during this time period one of the things that makes the cycle worse rather than spend money, they actually save money because they're cautious and then the other thing here is that because of the lockdowns people have consumed a lot less of the stuff they would otherwise consume. so it doesn't surprise me at all. i would suggest that remember the economic pain of this crisis are in the lower echelons of the labor force. those aren't necessarily people who are banking at bank of america and they a

bank of america ceo brian moynihan joins us exclusively. >>> plus shanghai disney has reopened, after more than three months, but things won't look exactly the same. cnn goes there to show what you it looks like on the other side, and every day potentially risking their lives during this pandemic. i'm not just talking about medical workers. i'm speaking about transit workers, so how are they protecting themselves? technologies advisor. me too. me too. and if you're a small business, we're with you. standing by you every step of the way. bye bye. the story where the chances are low, and the cost is high. the sacrifice is real. it's all around us. but this isn't a story about how tougher times beat us. this is our comeback story. the time when we rally and come from behind. the time when we defy the odds and get back to work while the whole world watches. yeah, this is your comeback story. and when it's time to come back, we'll be ready. >>> on friday we got the worst jobs report in american history but it is going to get worse before it gets better. white house officials predicting eve

shery: that was brian moynihan.ic slowdown hits economies across the world, commercial real estate prices are expected to drop. the worlds biggest investors are sitting on piles of cash, preparing for a once-in-a-lifetime opportunity created by the pandemic. joining us for the story is john gittelsohn. powderh is there in dry ready for deployment, and how soon could we see some transactions? i cannot imagine the market being too active right now with so many restrictions. the restrictions are a big deal in a lot of cases. people cannot go out and look at buildings if they are going to buy them. if you are going to buy something that is a few hundred million dollars, you want to actually make sure that the doors were, the windows shut, all of that stuff. -- work, the windows shut, all of that stuff. there is $328 billion in dry powder, and that is just in private equity, ready to buy real estate. they need a lot more clarity in the market before they start putting that money to work. playerssome of the presumably are

brian moynihan spoke with david westin. take a listen. >> this is a health care crisis.starting to see the health care crisis be mitigated, not solved yet, you are starting to see the economy start to recover. the approach to winning the war against the crisis for us has been a customer centric, community centric, employee centric move. we have been supporting claes and try to make sure they have the credit and capital -- clients and make sure they have the credit and capital to do what they need to do. you can see that in the loan balance extended to ppp loans and other things we have done. we have helped our consumer clients through waivers. we have helped our teammates by saying no layoffs. they know their job is secure. we have helped our communities by contributions of $100 million in cdfi investments. about $170 million is already out. all of that is offsetting the impacts of the current second quarter. we don't see it much differently. we are starting to see us coming out of the other side of this, frankly. >> we have heard from the federal reserve and they have e

it will be talking with brian moynihan shortly.were i talked to lloyd blankfein about what the difficulties would be in bringing people back to work. we haven the long run to contemplate that people will go back to work. it, look when you do what happens to some of these aren countries where they new exposures. the second they go back to work, that will be an expectation whenever they do it. when we look back at this at some time in the future, if we go through that anyway, people will be critical that the official sector sacrificed

joining us now is brian moynihan brian, a verygood afternoon to you. thanks for joining us. >> nice to be here thank you. >> brian, lots to dig into on the ppp which we'll get to in a moment, but if i may, i wanted to start on the broad rer economy. we've been debating all week what the hikely shape of recovery is. and i know at bank of america, you have sort of a clearer pulse check on exactly what spending is looking like for r corporates and consumers and i wondered what insights you could share with us on that front. >> sure. it's a pleasure to share some of the insight we get from our 66 million consumers and our tens of thousands of companies. before we do this, we've got to remind ourselves this is a human and medical crisis as that can resolve, you'll see the economic situation get better what we're seeing in spending today, we talk about consumer spending, consumer's use of money, not only debit card spending, but also the broader ways consumers spend money year to date, it's flat to year. it was growing on the upper single digits almost 10% t

david: bank of america's brian moynihan. brian: the u.s.ill be dependent on the activity of the consumer base. david: gillian tett. gillian: we have had an extraordinary disconnect between the economy and the stock market. david: lloyd blankfein.

entertainment still down 90, and brian moynihan talking about loan deferrals here's what's he said. >have seen the deferrals in our customers accounts fall dramatically we had probably a million in the first couple weeks, fist three weeks, and then we have had in the next five, six weeks after that, a total of half million. it's really dropped. the last couple weeks in mortgage, for example, very small. why is that happening? i think people have adjusted asked for deferrals. they were shocked by what happened once they got the deferral in the mortgage area, 20 odd percent of the people who asked for a deferral made their payments, which means they were in a different position when the payment time came than when they asked for deferral >> he added apparel spending up 50 month on month as people are starting to broaden their spending palterns. >> burlington didn't have that great of a number because burlington was closed by the government viewed as nonessential when you interviewed dollar tree, i really am curious what philbin says about apparel they had a very bad apparel lineup durin

david westin will speak with brian moynihan later on bank of america, give us an update on bank of americabuy?t a nu ?- buy ken: the stock is trading at 22% to book value. a new bookraded value that shows opportunity. the risk is whether there is going to be greater stress for bank of america in terms of loan provisions and credit reserves. i think that is going to be manageable and we will probably take our biggest shock in the current quarter ending in june. it may not be as bad as what the stocks have done. not only bank of america but other large banks. there are the analyst out looking at bank of america for the last 8-10 quarters, this bank was either number one or two in execution. conundrum in terms of the value of the stock, near-term concern on credit risk and management stress on execution. aspect here wer want to speak of because we are always about a month away. what does the federal reserve do in terms of annual stress tests? synodnate resisted -- the reviews the doom scenarios -- the synod reviews the doom scenarios. tom: this has been generous. thank you so much. this morni

brian moynihan expects a more modest increase around 10%.vron have made a rare move against the energy board, calling on them to disclose lobbying efforts to fight global warming. hp is signaling the pandemic has disrupt this by chain of the second largest computer maker. revenue fell 11% in the latest quarter. they missed estimates. they are delaying a $15 billion share buyback plan until the market stabilizes. that is your bloomberg business flash. francine: the fed is thinking hard about targeting yields on treasury securities as a way of ensuring borrowing costs stay at rock bottom. john lewis spoke to us exclusively. >> we are studying carefully and will be discussing as a group, so i don't have anything i can say about what will or will not happen, but my view is the focus is always on how do we best use the tools we have? our guidance, use whether it is the balance sheet or other actions we take, to achieve our goals? it really depends on how the economy is likely to evolve. there is a lot of uncertainty that.that we are -- about we a

to, i everyone you talk spoke to brian moynihan yesterday, he said it is all about the consumer. you are a student of the market. tell me how you tell the difference between a bull market and a bear market rally. abigail: lots of signs, and that is something that has been on my mind. it is probably too early to say this is a real bull market for the very reason that if you work to go back to this time in 1929 to 1932, the initial fall was a decline of 44% followed by a 46% rally and then what ultimately turned into an 87% decline. let's hope that does not happen. on the s&p 500 off the march 23 low, we are up 40%. we have not quite eclipsed that 1929 rally that led to a dark days. let's not hope that happens. would not want to see is the sector composition we have today and not just the stay-at-home stocks. if it is the stay-at-home stocks that continue to lead, that would suggest there would be more stay-at-home cannot the reopening everybody is hoping for. david: thank you so very much. that is abigail doolittle reporting on the markets. hot rhetoric from president incompetence

brian moynihan, ceo at b of a. we'll be right back. stay with us. irm? and mine super soft?r 360 smart bed, you can both adjust your comfort with your sleep number setting. but can it help keep me asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. and snoring? no problem. ...and done. will it help me keep up with him? yup! so i'll wake up ready for anything? oh, we've got your back. so you can really promise better sleep? not promise. prove. and now, save up to $400 on select sleep number 360 smart beds. ends wednesday. some companies still have hr stuck between employeesentering data.a. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single, easy to use software. visit paycom.com, and schedule your demo today. maria: welcome back. disney shares are under pressure this morning after reporting ear

tomorrow, i'll be talking with brian moynihan, chairman of bank of america.g up here, we have representatives dwight evans from the state of pennsylvania. ♪ david: welcome back to "balance of power" on bloomberg television and radio. i'm david westin. of thented dwight evans venue represents the district in and around philadelphia. congressman, walking. -- thank you for joining us. it looks like a third of the cases are in pennsylvania. tell us the situation in your home district. right now, kind of waiting. system, red has a light, green light, blue light, that goes across the system. a lot of the economic impact along business but as well public health. our hospitals have been taking a lot of weight, not as much as new york, but we have at our challenges. we are basically trying to figure out a way to deal with this pandemic. people are very much cooperating, trying to figure out the best way to handle it. is there pressure within your constituency to get back to business, get back to work? a lot of people are out of work. no question, that is a factor. the

what's the reopening going and what do you see in the future and if we listen to jamie dimon and brian moynihan, both at the center of the economy they seem optimistic about their business so i'm hanging on to banks i don't know -- i am concerned that the rally has come too far too fast, but i feel the game's a little rigged with the fed there and potentially additional stimulus that, you know, they have put a floor under here. >> boeing shares are moving higher and we have breaking news in the company phil lebeau has details. here's why numbers are move, boeing started its plant in washington that doesn't mean you will see a plane coming out of the plant for the next couple of days and it takes a while for the system to wake up and they said within the last month that they're waking up the assembly line and they've officially begun production at that plant in renton, washington, and you will see the first ones roll out of there for the first time in the next couple of months and guys, this is the beginning of boeing starting on the 737 max slowly bringing back production and remember, when it

so when you look at the diversity that bankamerica has under brian moynihan, they have diversified revenue streams of not only capital markets and the investment banking revenues and also consumer revenues and commercial revenues, and i believe that's the ultimate goal of goldman sachs is getting into that type of model >> in thiss environment, stock picking will be difficult, and what are your top picks, gerard? >> i think top picks will be important because some banks will behave and work better because of the underlying credit quality and one of the best things investors can own is bank of america the valuation is very attractive and moynihan has led to the recovery in that bank and has built a conservative balance sheet and that is very important in this type of environment. another bank that i think is very strong is this truist truist is the merger of bbnt and suntrust they have enormous cost savings coming and not only that, they've been able to build up their loan loss reserves more effectively than other banks in preparation of the problems that the banks will have in the second h

david: that was bank of america chairman brian moynihan. time to check on what is going on in the markets. for that, we turn to abigail doolittle. today, the markets cannot decide where they are going. abigail: fluctuating, the major averages are, between gains and losses. the nasdaq outperforming. the s&p and the down mainly lower. this reflects tension that we have seen all year. the best day in about six weeks yesterday, the bulls charging time will's conversation -- conversation over the weekend saying that they will do what it takes to support the system. today, the testimony of jerome powell and steven mnuchin not doing much for the markets. not a lot of new information coming out but just enough keep those gains in place. attention i was talking about, we have seen -- the tension i was talking about, we have seen the tech sector leading, consumer and health care toward the top, but the banks once again getting hammered. that is a cyclical sector. the fact that you have this year's rally and the recent rally, not quite as economically

. >>> and brian moynihan says he's seeing positive science. >> you're seeing us come out of the -- younow, how far the depths of where we were in april and that's good news and that's due to two things one is people are starting to spend more money as the stimulus hits, generally and more importantly in terms of the paheers moving faster is t imct of the opening of various economies. (vo) our communities need help like never before and wells fargo employees are assisting millions of customers across america through fee waivers and payment deferrals, helping people stay in their homes through mortgage payment relief efforts and donating $175 million dollars to help hundreds of local organizations provide food and other critical needs... when you need us, wells fargo is here to help. >>> welcome back dow is up 187 points nasdaq outperforming again let's get a check on the markets. >> stocks are higher, near their best levels of the day so far. the s&p 500 and nasdaq both working on four-day winning streaks. that area is a yan area traders are watching in the charts to so whether it will

brian moynihan spoke to david westin and when he expects -- u.s. to recover. this is a health care crisis. as we see that mitigated the economy starts to recover, but customerach has been a -- customer centric, community center, employee centric move. we are joined to make sure they have the credit capital to do it they need to do and help them through this trough of activity in the second quarter. loansn see that with the and other things we have done. clientshelped consumer with waivers. we help their teammates by saying no layoffs, so they know that there are job is secure and getting them safe working from home and we have helped with , 700 million is already out. all of that is offsetting the impact of the second quarter. you see that with the unemployment numbers. we don't see this differently. we are just seeing it come out the other side, frankly. david: the federal reserve has expressed concern that there may that do not come out of the pandemic. commercial real estate. it are you seeing sectors that are particularly vulnerable? bean: the

coming up later today, this is an important interview -- david westin in conversation with brian moynihanamerica. really could not be better times. please stay with us. from london, from new york, this is bloomberg. ♪ this is "bloomberg surveillance." let's get your bloomberg business flash. moderna hopes to pay the manufacturing of the coronavirus vaccine with a share sales. directing 1.3 billion dollars. 20%es in modernia jump to yesterday. softbank is close to a deal to sell about $20 billion of stock in t-mobile. the japanese firm is speeding up efforts to raise cash. softbank is reporting an almost $8 billion loss in its investment business. the firm would share t-mobile shares to telecom. bed again on a short struggling rental car giant hurts. by buying credit default swaps. it has unwound the trade in recent weeks and now apollo has hertz bonds. that is your bloomberg business flash. thanks so much. equities, bonds, currencies, commodities. dow down, the vix getting back to 30. what is interesting is the safe havens really come up. swiss franc weaker. old weaker as well. brent crud

. >> we spoke with brian moynihan yesterday, the ceo of bank of america, too he talked about right noweople who have less than $5,000 in their account have more than they might normally. the averages have gone up because they've gotten stimulus checks you start wondering what happens when the stimulus money runs out, when they are paying their rents, mortgages, starting to spend money again. then when the unemployment benefits run out it makes you wonder not only how reliant the market is on the fed continuing its programs but also on fiscal stimulus and the idea that congress can get together with the president and the administration and continue those programs is that likely as we get closer and closer to an election? >> so, becky, your point is right. part of why, you know, you see it china's been pretty interesting about how it's v shaped and you hear china talking about what they're doing in terms of persistent fiscal stimulus we're putting a lot of debt onto the united states. the government is putting a lot of debt on to this fiscal stimulus you have to hope that the economy sti

matt: that was the ceo of bank .f america, brian moynihan unicredit's ceo sounded an optimistic noteitalian banks set aside 1.2 5 billion euros amid bad loans during the coronavirus shut down. that number could quadruple by the year end in a worst-case scenario. some have been issued through its german unit. to take a look at the situation is unicredit's germany boss. thank you so much for joining us. let me ask first about your loan growth in the german unit. have you been lending more during the pandemic or have you throttled it back? >> good morning and thanks for having me on your show. indeed, if you look at what is going on currently, then this is unprecedented. one has literally stopped the economyt of the german for one could say of the european economy. it is our job. we are there to help and support thecorporate clients to get needed liquidity. already before the crisis, we had one of the largest promotional loans in the private banking sector on the ground. processingwe are separate applications and trying to help the economy get the liquidity. anna: how much more are you

note for you as we head to break, don't miss an exclusive interview with bank of america ceo brian moynihan e o sax, and we'll be able to talk about the retail pain we'll be right back. llars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this. but not that much. i'm glad i had aflac. they gave me money when i needed it most. that's why aflac is here, to help with the expenses health insurance doesn't cover. i love that aflac duck. aflac! get to know us at aflac.com yeah, everything is runningis smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. . >>> welcome back to "squawk on the street." several airlines are considering requiring facial coverings on all their u.s. flights in response to the spread of the virus. phil lebeau has more on what airlines are and which airlines aren't phil >> well, as of right now, david, most airlines in the u.s. are saying yes, it will be required that you

into another has a lot of affect on the latter group >> and the other point i'd makes a well, brian moynihan is presenting at the conference as we speak and he struck kind of similar stones to what jamie diamond struck yesterda-- dimon yesterday including mortgage forbearance, that the data on that is improving and much reduced from the earlier weeks and again some people already making payments again. and he said data that he released in terms of consumer spending not quite as bad as some people feared down 7% in april, down 5% in may. again, painting perhaps a slightly better picture that the worst case scenario. and kind of similar to yesterday again, intra day highs for bank of america stock up about 6.4% during that presentation and i'll point out john waldron this morning programs wasn't as constructive as moynihan and dimon were so we'll be good to speak to him coming up at will 4:10 p.m and goldman sachs stock only down 10% year to date. meantime, let's drill down on amazon deidre bosa has the headlines of its share holders meeting. >> and this was their first virtual shareholder mee

morgan and brian moynihan and boa and randall stevenson, we've developed a joint threat matrix basically modeling what the different kind of consequences and likelihoods are for a whole spectrum of attacks and now we're developing a wish list and they're showing up in the solarium space, kind of working through our work to make sure that we are consistent with what really is happening in the private sector and what we need to do about it as a federal government. as i can say, an important point in this whole, i think, report, is you don't see very many words like sharing and cooperate. it is collaborate. since 87% of the critical infrastructure is owned, we have to illuminate the battlefield and share the effort of the intelligence community of our sector specific agency and then the folks that will hold the bad guys accountable, fbi, et cetera. we have to all work together and all have to be accountable to make sure that we keep america safe. >> well, thank you, thanks to both of you for that answer. we must do more to protect our nation's critical infrastructure from certainly these ty

just about every company so far from the dollar tree, mastercard, paypal, from bank of america, brian moynihaney're saying may on the consumer side, is actually doing a bit better. on a month over month basis. certainly nowhere where we want to be, but i think we're making baby steps those companies, especially on the discretionary retail side, if they have consumable exposure, they're hitting it out of the park. this is why family dollar has 50% because it's consumables but what will be interesting to me is as we get through this, there's going to be a mix again towards more discretionary items and that's when the margin story can actually inflect higher for these companies ch that's why i like target out of all of these at this point and still remain a buyer there. >> gary philbin said the same thing. starting to see the shift from the items people are buying. i'm back and i want to talk about the home builders because despite data today showing a nearly 22% fall in pending home sales, those homebuilder stocks have significantly outperformed the whole market and credit swiss believes they ha

[laughs] brian moynihan from bank of america, when asked to analyze where we are with all of this heed that in his words we are starting to come out of a hole. something that stuck out to me in these jobless numbers as we dig through them, there are some ways to look at them, is the continuing claims. they did come down 4 million which could be a bright spot in all of this as we start to see less staying on those but jobless benefits. we have jason furman, the obama economists on our program yesterday talking about the political implications, if indeed we see a sharp increase in some of these numbers or a sharp rebound and some of these economic figures as we come out of this. the political implications of it all, here's jason furman with us yesterday. >> president trump will be saying we created 1.2 million jobs last month and other will point out very correctly that we are still 15 million jobs short of where we were before the coronavirus struck. and so we will be in a situation that is like the financial crisis that we were in a decade ago, only that will be an improvement on whe