brian moynihan had the courage to but the efficiency up in a gorgeous chart. number was a brilliant 60% after the pandemic and in the pandemic my is not. do you have a belief that the banks could get back to the efficiency ratios of the past, or is that days gone by? ken: it is only for the problem banks where the official -- efficiency ratios will stay elevated and that will be citi group and wells fargo. four of america, jp morgan, -- for bank of america, j.p. morgan, that is yes. with investments in digital and technology that has enabled them to improve that ratio. it is a simple ratio that captures their whole business. it is kind of a second derivative for analysts as we look at what is performance. tom: i see a moonshot on the chart and it is what jon is talking about. we are using digital, we are using our phones. we all move money around to our kids. ken leon, what does zelle mean for brian moynihan, jamie dimon, and the rest? ken: you definitely want to be a player and take advantage of how society is changing behavior, how they shop and how they spe

ceo brian moynihan, good afternoon to you thank you for joining us >> good to be here, wilf good to see you again. >> we want to kick off on the economy. we'll get to the earnings in a moment but hot offeni listening chair powell you're seeing credit quality metrics were pretty good and another reserve release was possible how much of that do you think is down to the stimulus that's out there, compared to fundamentals and this growth and bounce back being sustainable? >> let's back up and talk about the broad economy. bank of america securities research team one of the best in the world has a 7% gdp growth predicted for 2021 and 5% for next year. a strong growth rate and economy gotten back to where it was pre-pandemic and so that's the backdrop what we see in our consumers is they're spending 20% plus more money in '21 than they spent in 2019 in the second quarter, that's growing as we've gone on and that's going to be clearly a record amount of spending that shifts to travel and entertainment as things opened up, and on the consumer side staying with that for a second rkt the stimulus

dani: we just heard from brian moynihan. wells fargo's cfo has been speaking to bloomberg. down the bank's second-quarter earnings. >> you think about loans. it is a little bit of the same story as we have been seeing. in our commercial banking business, we are continuing to see those decline. clients have a lot of liquidity, there are supply chain issues, huge demand. they are not able to build inventory. we have not quite seen the inflection point. i think people are hopeful that at some point over the coming quarters, we will. manus: let's bring in our financial reporter. we caught up a little bit earlier, the very symptom of the matter -- very simple fact of the matter is, i don't need to borrow, i are saving -- i am saving a few dollars, and i am not rushing out to leverage up. that is not good news for main street banking in the u.s., is it? >> this is the stimulus that really helps the banks get through the pandemic last year. it helps them avoid widespread defaults. but it has caused issues this year. customers are still not prepared to spend. there is growth in som

commercial loans down 22 do we ever need to borrow money ever again >> well, i mean, i think that brian moynihan would tell you we're about to have an explosion of loans jamie dimon thinks there's about to be an explosion of loans. do you know that travel loans are up 8% from 2019. that's a phil lebeau emergency number >> travel loans. i mean travel expenses travel expenses. up 8% from 2019. up 8%. people who have money will travel it's the millennials they feel so confident they've embraced delta and not just the airline. >> no, which we'll get to. and credit quality obviously has improved as you said we've got a lot of reserve releases investors don't really react to that. it helps profitability a great deal you can see what moynihan had to say. consumer spending he says has significantly surpassed pre-pandemic levels. deposit growth as we were just saying is very strong and even loan levels have begun to grow. >> and yet his stock's down. >> they didn't hit some of the estimates i guess. >> missed on net interest. okay, net interest margin. all i can tell you is that interest income did not g

our interview with brian moynihan is just ahead and don't miss out on another big interview.e exclusively from the ceo of the indonesian investment authority. this is a new sovereign wealth fund. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> this is "daybreak asia." i am vonnie quinn. jerome powell says inflation is likely to remain high in the coming months before moderating. however, he told the house financial services committee that the u.s. economic recovery has not yet reached the central bank's goal for scaling back its massive monthly asset purchases. >> while reaching the standard of progress, it is still a ways off, participants expect pr

brian moynihan, they're not adjusting their full year forecast forex pens for the next couple of years people like to see the expenses number higher than expected net interest margin, 11.61 is down a lit more. >> cnbc viewers will get to hear from brian moynihan on those issues with you at 3 p.m. later today. >>> when we come back, airlines set to report. we'll get you ready for delta's numbers plus an interview with the ceo ed bastian at the top of the hour we're right back after this. undeniably versatile. unlimited 2% cash back. this is the card built for... ...real life. (dad) she's gonna be a drummer. (cashier) yeah she is. that's gonna get loud. (dad) right? (vo) the new wells fargo active cash visa credit card. unlimited 2% cash back on purchases. that's real life ready. competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, t

ceo brian moynihan underscored how uncertain everything was about the economic recovery, saying thatme. >> as we move to the fall in the united states, the biggest constraint other than the virus pathway is the question of, can i get people to do the work, and can i get the goods to sell? that is what we hear from our customers about. yvonne: with more results, we bring in su keenan. it was another bad day for bank stocks as investors are focused on other areas of concern. su: it has a lot to do with the stalled lending, and if you go to the basic chart of big banks, you can see those reporting, whether it was citigroup, wells fargo, even jp morgan yesterday, all a story of weaker loan growth. the issue is, will it be coming back? they believe the second quarter is a turning point. let's go to bank of america's results. they were viewed as disappointing. the stock fell the most in eight months. they fell short in terms of topline revenue. the lending income, the loans and leases, was down 12%, underscoring their belief we are at a turning point, net interest at $10.3 billion. let's g

we are going to speak to bank of america ceo, brian moynihan.ells fargo cfo will join the team later on. karim aita, investment advisor, bank of singapore is still with us. bumper bonuses on the way one can only assume. when you look at banks, they are bigger payers than the rest of the s&p 500. does that draw you to banks? do you have major exposure there? what are you saying to your clients about bank exposure? karim: on financials, we went over to january that they will perform. now the valuations are a bit hefty. if you look at u.s. financials versus world financials, it is 1.7 versus 1.27. it is also higher for the world bank as well. while we still like u.s. banks, we want to be more selective. the reason we like banks as we expect the yield curve to steepen, and we have a 12 month of 1.9%. we like u.s. banks, however we still prefer european banks because of the valuation issue. u.s. banks are expected to have a little more buybacks. a lot of banks are expected the high single digits and the next 12 months. a pullback in banks is an oppor

. >> brian moynihan, bankamerica ceeo, speaking. the big tumble after the earnings. what stood out?ificantly earlier in the session, we can see by the close, most stocks are down, bank of america in particular was considered over -- underwhelming. they fell short in the top line revenue, the stocks falling the most in eight months as a result, building back lending, income, loans, consumer banking was down from 12%, $10.3 billion. bank of america and j.p. morgan really sounding the story of stalled lending, and that is when they wrapped the season. they rallied, as i mentioned, the estimates way ahead of expectations. citi also, you know, reporting that a lot of the big new hires was driven in part by a 37% jump in equities unit. ceo james fraser saying in a statement that she actually believed her view was the total trading revenue for the industry will return back to pre-pandemic levels, the pace of global recovery is exceeding expectations, and confidence is rising. she also is preaching closely at bringing people back to work and says they are watching the delta variant closely.

interviews coming your way tomorrow we're going to hear from bank of america chairman and ceo brian moynihan first on cnbc, then you've got wells fargo's chief investment officer it all starts tomorrow, 3:00 p.m. eastern, right here on cnbc, so if you want to talk banks, you want to get insight from the guys who know it best, apparently, you have to tune in tomorrow to catch those big bank interviews >>> coming up, alibaba jumping today's session, climbing 2% on the day. we'll break down the move higher straight ahead ki> plus one investment firm is mang a big mover in the crypto space. we'll bring you the details in a few minutes. "fast money" is back after this break. feel the power of contrast therapy, so you can rise from pain. feel the power of contrast therapy, so you can rise from pain. this is dr. arnold t. petsworth, he's the owner of petsworth vetworld. business was steady, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to hi

ed bastian marriott's ceo tony capuano, brian moynihan, michael santomassimo and cathie wood as wellhief something officers coming up all day long. must-watch interviews all day. keep it right here on cnbc. >>> a few of the analyst calls of note this morning apple added to goldman's analyst focus list as a growth idea. among the kcatalyst, the iphone 12 upgrade cycle the firm has an overweight rating with a $175 target price. >>> meantime, goldman is initiating coverage of the apparel and brands sector with a buy rating on lululemon, yeti, levi strauss they say the post covid recovery period has been supportive for apparel and brands continues small growth and margin expansion one word of caution. the note notes the sector has outperformed the s&p so far this year investors should stay selective on certain stock names. >>> coming up on the show, investors gearing up for big bank earnings as john nagerian if you have not already done so, follow our podcast if you miss "worldwide exchange" check us out on apple, spotify or your podcast platform of 'lbece wel right back here on "worldwi

also brian moynihan and others. are you suggesting that might be why the bankers always want higher interest rates and with that relate to a comment you made earlier in the show? tom keene, lisa abramowicz jonathan ferro up later, krishna memani. from new york city, this is bloomberg. ritika: with the first word news, i'm ritika gupta. little more than a week before the summer olympics begin in tokyo the host city recorded a six month high in coronavirus cases. people in their 20's and 30's accounted for most of the new infections ahead of the international olympics. the head of the international olympics says measures are in place and are working. -- european governments are growing increasingly frustrating. they cite an outdated strategy for fighting the coronavirus. the travel ban is likely to come up today when the president meets with angela merkel. south korea seeks to move up its spot in the global space race. the countries science minister says this means launching satellites on homegrown rockets and eventua

anna: that is brian moynihan, bank of america's c.e.o. there.re going to be keeping our focus on the banking sector today. here are some of the things we'll be watching out for. we will be focused on bank earnings. morgan stanley reports results at 7:30 u.k. time and then get data from the united states including jobless claims and industrial production. and jay powell will make an appearance this week. later today opec releases its monthly oil market report. and angela merkel visits the white house to meet with president joe biden. the key message she is taking if europe wants to keep its seat at the table. let's get our bloomberg news update. >> the states below the goal of vacs makes the rates. the two states with the lowest amount of vaccination rates accounted for the most infections. 21,000 new cases compared with more than 200,000 in january. still they are inching up as vaccines slow. in china economic growth slowed down largely in line with forecast in the second quarter. 7.9% from a year earlier. down from 18% in the first quarter. ret

we will be speaking to bank of america's ceo, brian moynihan, later today, as well as the wells fargoonversation coming up later. coming up on this program, apple asks supplies for a 25% -- 20% increase in output for its new iphone this year. we will talk about the tech sector, what that could do to stocks listed in europe. this is bloomberg. ♪ ♪ >> no matter what it takes. keep that in the back of your mind. >> we will continue to pay competitively and pay-for-performance, but that's part of our strategy that's been in place for a long time and will obviously continue. with respect to salaries, we reevaluate salaries every single year. and when appropriate, we make sure our salaries are competitive. anna: the ceos of j.p. morgan and goldman sachs talking about banker pay. let's get back to technology. apple has teamed up with goldman sachs for a new buy now, pay later service that will let users pay off any apple pay purchase in installments over time. the tech giant has asked suppliers for a 20% increase in output for its new iphone this year. this year's update will include a camer

conversation, i don't know, what was it a month ago, maybe it was a little bit longer at this point that brian moynihanamerica had with becky, where spending had returned or was above like pre-covid levels. to your point, people want to get out, and they're already getting out and they want to spend money. >> 2019 is looking like a bad year now 2019 we had unbelievable employment, the economy was red hot, and yet, so many companies have taken out 2019 levels we don't want to look at last year's levels obviously, but i mean, when you look at the bank group which has been -- that group is so cheap. my favorite is wells fargo because charlie scharf has just decided to put the wood to everybody. hey, how about this? can we talk warren buffett for a second, he should not have sold wells fargo, i think coca-cola put on a had very good show the other day. some of his stocks are coming alive with pleasure. >> yeah, no doubt. bob pisani as you know, jim, is following the action on the floor of the stock exchange today, hey, bob. >> good morning, scott we are sitting right at the door of a new high on the s&p 50

. >> and brian moynihan has done more for digital their digital platform is excellent. >> bank of america's>> i have canceled everybody, a lot of houses. >> you got a lot of houses my friend. >> what's your landscaping bill like >> so hideous. >> is it >> so hideous that i feel like i got to get rid of some of the properties. >> trees must be coming down all over the place with these storms that we get. >> it's not pleasant >> no. >> thank you >> you're welcome. >> bob pisani, you can now take it away. >> thanks, david good to see you. of course 1% from the new high, folks, keep an eye on that nice to see the cyclicals rebounding a little, but we've got a ways to go you look this morning, you see energy stocks, you see material stocks, you see industrials on the upside, even beating tech stocks right now that's what you want to see. that's the sector that has had the toughest time of it. if you take a look here, you know, you were talking earlier the guys about how to deal with the covid variants it's very simple it's a known unknown that's a little annoying because it implies that we know

and also we're getting comments from bank of america's ceo, brian moynihan.urpassed pre-pandemic levels, deposit growth is strong, loan levels have begun to grow is what he is saying here. so we're looking for more comments from him but also real quick i want to add this, more than 85% of the company's buildings and offices are now open, and that is another pandemic story with regard to the banks. bank of america down almost 2 and-a-half percent. back to you. maria: yeah, i mean, it's really been the capital markets businesses that have been the stars in these bank earnings, obviously you're seeing spacs and ipos and deals really drive the quarter. loan demand is still just okay. the stock right now down better than 2% on b of a. meanwhile, demonstrations are breaking out across florida in support of anti-government protests in cuba. calling for an end to the country's communist he regime. groups there chanting, quote, where are you, biden. pushing for involvement from the u.s. government. cuban american and candidate for virginia attorney general, jason mayo