wells fargo up and premarket.erg. ♪ alix: wells fargo coming out with earnings a bit early. stock up in premarket. actually erasing some of its gains, now flat. sonali basak has more. sonali: this is about half of what we saw over at j.p. morgan. athave net interest income $11.3 billion, higher than analysts expected. a little bit of good news for wells fargo. that efficiency ratio is a bit high, especially relative to what we saw at its rival j.p. morgan this morning. we are going to expect that to inch higher for the period. the question is what do they expect when it comes to net interest income for the rest of the year. alix: and average loans were coming in just about 0.9% higher. do we expect that to now change really quickly come another thing can actually expand their balance sheet for the fed? sonali: i wouldn't get too excited because there are limitations on how much they can extend their balance sheet, but it is something to look out for, how much they will take advantage of that opportunity. we see a

>> well, i think what you learn from jpmorgan and wells fargo is wells fargo is closer to the consumer felt like there was especially on the part of the investors after the call was over because of their exposure to consumer and restaurants and jpmorgan's closer to wall street. they have those kind of loans b, but it's not as much so i think the smaller the bank gets, the more they're going to be exposed to small you don't want to be the bank that made a whole bunch of million dollear loans because that's going to be a problem. you want to be the bank making the $300 billion loans i think wall street will do okay not something you're going to cheer because you don't want people to get mad again like they did in '08 and complain the that wall street's the only one making any money this is a main street recession and if you're a lender to main street, there's nobody there now and if there's nobody there, there's no payments being made so you know, wall street's doing fine but main street is shut down and that's where the small banks lend so you got to be careful with the smaller banks. >

gl they had opened hirer this morning, jpmorgan and wells fargo. provisions for potentially bad loans spiked 8.3 billion for jpmorgan, 3.8 billion for wells fargo. even that was not the worst case the ceo said could be higher over the next several quarters relative to what we took in the first quarter while charlie schaffer said it wouldn't surprise me to continue to add to reserves. here's jamie dimon on the unpredictability of the months ahead. >> this is such a dramatic change of events there are no models that have dealt with gdp down 40%. unemployment growing this

wells fargo has 3.1.il on paper really in march. -- we have not seen the full impact from the coronavirus. it is likely we will see increased reserves in the second quarter and a disappointing return on capital. reserves are being increased on the consumer side. we have distressed industries. the largest one is commercial real estate, construction. ,e all know about airlines hospitality, and other areas affected by consumer spending. tom: how is bank of america doing? arethey competing retail, they competing in other areas or are they showing excellence? america's share price is down steeper than the rest of its peer group. for have a broad base community and consumer banking along with corporate. bank of america from a capital perspective is still very strong. for bank of america the dividend is safe as it is for other banks. conversationious bank of america is mostly on america first, most of its revenues are in north america. something that struck me that jamie dimon said on the get thes we can help co

we have jp morgan now wells fargo later in the cfo of wells fargo to join to see if 5% tangible equitiesics for jp morgan -- i would have it intellectually said, yeah, i see that, but to actually see it in a bloomberg headline is extraordinary. thingse: yeah, a lot of have been extraordinary, tom, in the last couple of weeks and months. jp morgan, doing much better than expect when it comes to training and that in premarket means it is doing a little bit better than expected. we also i this great story that china and the chinese authorities are now awaiting merging their biggest brokers to take on wall street. that is an interesting angle we will talk more about throughout the day. alluding mr.michaud after this the transactions to be seen within the financial space. we have much more to come today, including a digestion of the jp morgan earnings. if you have a terminal at home, i can't say enough. the perspective on this first look at the major banks. later today, the or :00 p.m. hour, look for an import conversation with -- 4:00 p.m., look for an important conversation with the chief f

morgan and wells fargo yesterday. the pboc cuts medium-term borrowing costs again amid expectations of further easing, after the imf warns this year's downturn could match that of the great depression. we are just under an hour away from the start of cash equity trading across europe. let's take a look at how futures are trading. we had gains in the cash trade yesterday in europe, with the exception of the ftse, and big gains in the u.s. to close the session last night. mixed trade in asia as the earnings season began to kind of way on some investors sentiment. as a result, we see european futures down this morning. nasdaq, u.s. futures down as well, about two thirds of 1%. let's get you the bloomberg first word news from the terminal. president trump says he is suspending u.s. funding for the world health organization while his administration reviews its response to the coronavirus. he says the who was slow to share information about the outbreak, leading to thousands of deaths and economic damage. it is not clear wh

morgan and wells fargo today.et aside for loan loss provisions is really the most significant piece we are watching. konrad is an analyst at da davidson and is watching this. we knew this would be the thing to watch. are you surprised we were lossaching levels of loan provisions near 2009? david: not necessarily. we are certainly in uncertain times with the economy shut down, hopefully not too much longer. uncertainty regarding the government programs, the banks, and now with the new accounting rules for the banks, they now have to provide or up to 2.5 years of consumer charge-offs and like learn -- lifelong charge-offs. some is a shift in accounting pulled forward a lot of credit losses. what was a little surprising for the investors for jp morgan is after the books were closed, the economists change their assumptions to more dire forecasts over the next quarter. they did forecast further provisions over the next two quarters. we have seen u.s. banks being supported recently but what happens given the dire foreca

john shrewsberry, wells fargo ceo.alio, bridgewater associates cochairman and cio, he will join us at 10:00 a.m. new york time. we will be back in a moment. this is bloomberg. ♪ romaine: keeping an eye on rising a little bit after hours. dow jones headline saying that the treasury department in the u.s. and airlines have agreed on principle to some kind of aid package. so here itt 2% or after hours trading. care andn to health johnson & johnson. bloomberg spoke a little bit earlier with the cfo of johnson & johnson about the outlook. >> with respect to the vaccine, thing continue to progress. identify a lead candidate with two backups. we are now doing lead research. byhope to be inhuman september, with a readout by late september, with the hopes of producing a billion vaccines by the early part of next year. we are simultaneously ramping up manufacturing capabilities across the globe. czar very much on track to what you heard a couple of weeks ago. it's understanding, vaccines take years. what makes this different? jo

remember, this is wells fargo. ceo, charles shot, just came into power back in november of 2019. we saw the stock moving up 2 and-a-half percent ahead of the earnings, maria. the stock is actually up a little more than 2%. so basically they missed and they're saying that their customers, they're suspending residential property foreclosure sales which is something we saw. they're offering fee waivers for customers, providing payment deferrals among other actions. remember, they're trying to keep customers in line. the biggest part of wells fargo's business as you know is the mortgage side of the business. and that's where they really have to make sure that they keep things kind of afloat. some net chargeoffs and different things but overall not a big surprise for wells fargo and the stock is moving higher. it's actually pulling back a little bit, marie y it's up about a little more than 1% right now but that's the news from wells fargo. maria: and this is pretty much in step with what jamie dimon was saying in terms

the federal reserve is easing restrictions put on wells fargo. >> kpix 5 explains the move will help tens of thousands of businesses. >> reporter: this is a major break for many small businesses including this restaurant in san jose, which was forced to close because of the coronavirus, so not just good news for the business owner, but especially for the employees. >> george's san jose restaurant called vito's was thriving for years but then claim the coronavirus. >> business fell off immediately. >> reporter: george was forced to lay off most of his 30 employees because of the crisis, but now with the federal reserve easing restrictions placed on wells fargo bank, he may soon be able to restart his payroll under the so-called paycheck protection program even though the restaurant is still all but closed. >> it's the difference of being able to pay employees and not pay employees. >> reporter: one of his cooks came in today to put together some lazania for a catering job, but there hasn't been much work for anybody. >> i'm working two jobs right now and they are not working at all. >

sara, this morning we also got earnings, as you well know from wells fargo and jpmorgan wells fargo'sonference call just begun, still relatively new ceo charlie scharf in charge jpmorgan added 6.8 billion but the question is, will there be more after that? is that going to be sufficient to deal with the deterioration and credit both corporate and personal balance sheets or is it simply a downpayment on a lot more pain to come? >> right, and what kind of pain is expected? obviously we've got those numbers and that's a good way to characterize it. also "the fairly severe recession planning" jamie diamond's quote is how long it lasts and whether there's a second wave. bank of america did a fund manager showing extrem pessimism and the biggest factors managers are worried about is whether we get a second wave of infection. we don't know that, don't know if there are drugs in place to prevent people from going to the hospitals, trying to follow the medical data as much as the economic and financial data. one thing getting a lot of attention in the trader notes this morning and tweeted by s

there were talks going on between the fed and wells fargo. wells fargo said they couldn't participate in the programs because it was just underneath the cap in terms of its total assets tremendous demands on its balance sheet because companies are taking down credit lines among other things now, some of the restrictions. wells fargo has to give any of the gains from the ppp program and the main street lending back to the treasury or to an authorized nonprofit that the fed oversees fed board of governors voted unanimously on the lifting of the cap. >> fascinating we should point out that wells fargo had already said and committed that they would give fees from the ppp program to charity before this announcement nonetheless, two things that stand out to me we've been chatting about this offline, one is that the fed saying for any further loans they do on under that a program, they must go to charity, i.e., enforcing a promise wells had made on their own behalf and that language making it very clear this is only a temporary lift of the asset cap

jp morgan and wells fargo out today. crude oil down on was 5% again. it can't catch a break these days. the 10 year yield at 74 basis points. guy: let's talk a bit about what is happening here in europe and around the world, equity markets and the virus story. we are starting to see maybe some indications that we are seeing a plateau in the number of cases in countries across europe. we are also starting to see some countries reopen their economies, starting to ease their lockdowns. however, countries like the u.k., france, and italy extending theirs. , headtalk to peter garnry of equity strategies at saxo. my question to you, is there a greater risk that we get more upside from here, or a greater risk that we retrace these recent gains? peter: i think we will retrace these gains. risk isthe downside bigger than the upside risk at this point in time. the s&p 500 and european equities are trading on sentiment of a faster recovery. be many falsewill starts in reopening the economy. of the earlyis one lessons we are seeing from asia. we did a study lookin

wells fargo reported an 89% drop in net income.are setting aside billions in loan-loss provisions as the coronavirus pandemic brings the u.s. economy to a virtual standstill. jamie dimon says the road to recovery will be a long one. he tells investors the u.s. economy will not only reopen until at least the summer. more highlights from the banks earnings calls coming up. let's get a quick check on the markets. the s&p 5

but wasn't even allowed to submit an application was no go wells fargo basically said. >>we're not sure when it's going to get opened up, you know maybe later, but right now we're not taking applications is participation in the ppe program has been limited because of sanctions imposed due to past rule breaking. >>but today the federal reserve temporarily lifted those restrictions in a statement wells fargo said it is looking forward to expanding relief to many more small businesses and nonprofits again jacob brown i'm a client wells fargo for 33 years had this business for many years. and i'm i'm just worried about the families that di employ them not able to play right now. >>and also for myself the paycheck protection program is supposed to be a lifeline for plateau builders and other small businesses but the red tape has people like jacob round feeling like they're being pushed to the back of the line just feel in secure. i just feel. >>horrible. >>and you know these big institutions. i would would be there for us. i mean right now we're going to try with different l

wells fargo telling some clients to look elsewhere. in an email, the bank told customers because of the backlog it is facing, the program must be fully subscribed. before lifting the bank's 2018 error on asset caps so it could make more loans to small businesses >> thank you when we come back, check out what's happening with goldman with another outlook for the global economy as some say the crisis may be nearing its peek increasing calls for dividend suspensions and what it means for investors. later on, one market watcher with the names to watch in a very busy hour ahead when cnbc tus tethis at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. >>> welcome back to cnbc looking at the futures market

morgan and wells fargo, the chief financial officer of wells fargo joined us later today. bloomberg. ♪ francine: this is "south africa cutting its benchmark rate fro o to .5%. cutting its benchmark rate from -- i don't know whether it is having a huge impact on brand. this is the power of the bloomberg terminal. even when you are working from home, it makes things quite easy when you look at rand. if i am looking at rand, you cannot see it on screen, but i do have it here. att at 18.15 that rand 18.15. -- rand at 18.15. overall this is what the markets are doing. it is a big day, a shorter week than usual. the shorter week than usual because of course yesterday in the u.k. and in the e.u., it was a bank holiday because of the easter bank holiday. u.s. futures actually gaining, but i would say a lot of the focus is on the earnings season, probably the most uncertain earnings season on record after the coronavirus pandemic upended the global economy. if you look at gold, it is rising toward a fresh seven-your high. now, we will have a lot of earnings -- a fresh seven-year hi

morgan and wells fargo.n we have banks really being affected by everything from yield curve inversion to the fed's latest actions to really uncertainty over their lending prospect, what are you watching for in order to gauge the health of the banking system? carol: we've got that piece but you also have the banks going into this and a lot stronger position than we did in 2008 and 2009. on the flipside, you have low interest rates causing record amounts of requests for refinances. the new home market in certain the home sales market is actually doing ok because people are moving, in some cases, to the extent they have pretty reliable employment prospects, they are trying to move and take advantage of those low rates. some banks have been recording mortgage rates have been drifting up because demand has been so strong in everyone's working from home so getting those things process is difficult. carol, as you say, you say this almost every time this time is different but this time it really is different because

morgan chase, charles scharf, ceo of wells fargo, michael corbett, ceo of wells fargo, michael corbettcitigroup, alcala, ceo of visa, michael b bock, ceo of mastercard, noah wilcox, ceo of grand rapids state bank and we had numerous others also on the call and ijust numerous others also on the call and i just appreciate them. they are way ahead of schedule by the way. we are way ahead of schedule. the patient protection programme has been incredible. —— paycheque protection. but on the incredible success of the programme, iam announcing but on the incredible success of the programme, i am announcing that i will be asking congress to provide an additional $250 billion for the paycheque protection which will help keep americans employed to facilitate a quick and full recovery. we a re facilitate a quick and full recovery. we are doing very well and looking very bipartisan. people want to do it and the plan is amazing. they are processing hundreds of thousands of loans. this is the big banks that are doing it, the kennedy banks. the biggest banks right now in our country are doing it and

>>but wasn't even allowed to submit an application was no go wells fargo basically said. >>we're not sure when it's going to get opened up, you know maybe later, but right now we're not taking applications is participation in the ppe program has been limited because of sanctions imposed due to past rule breaking. >>but today the federal reserve temporarily lifted those restrictions in a statement wells fargo said it is looking forward to expanding relief to many more small businesses and nonprofits again jacob brown i'm a client wells fargo for 33 years had this business for many years. and i'm i'm just worried about the families that di employ them not able to employ right now. >>and also for myself the paycheck protection program is supposed to be a lifeline for plateau builders and other small businesses but the red tape has people like jacob round feeling like they're being pushed to the back of the line just feel in secure. i just feel. >>horrible. >>and you know these big institutions. i would would be there for us. i mean right now we're going to try with different

morgan and wells fargo reporting today.tors will be looking for clues about how badly credit has been hurt as the coronavirus pandemic has swept through the economy. the forward-looking metrics to watch include provisions and net chart. -- also in focus will be dividends. we will be speaking to the cfo of wells fargo right here on bloomberg tv. speaking of credit, oaktree capital management was a strong buyer of corporate debt last month. however, the cofounder howard marks says he tried to be disciplined enough to have money left for the next day. he spoke to bloomberg exclusively about his risk reward calculation. >> hi thought that the lows, 23,h were reached on march ratio hadisk reward become significantly in favor of reward. the lower prices go. the more the potential from a rebound and the less the potential for further declines. point thatt at that the ratio had become very favorable. today, obviously, less so. and as you mentioned, about half of the 34% that the market had declined between february 19 and march 23

but the problem is that wells fargo doesn't want to make these loans.nd to the extent they're going to make the loans, they're going to make the loans to their customers or the people that are the least risky. and here's the irony of it the companies that are the least risky are the ones that don't need it. the ones that can pay it back are the ones that don't need the loans. you need to be making these loans to the riskiest loans, the people who are fighting for their life, who have 25 or 250 employees that are risking losing their jobs. you've got to create an incentive where the loans go to the riskiest people, not the least risky people >> finally, are you advising your businesses that you do advise to pay rent in april and maybe may? >> well, here's the crazy thing about the program, is that prior this program rolling out, almost all of our companies had negotiated deals with their landlords to defer rent. one company who is trying to get a loan right now told me the other day, they said, i don't know what to do, because i already worked on a deal

the name i hear in the spotlight, not for a good reason now, is wells fargo. i have spoken to several wells fargo customers and these are people that run the small businesses that you want to stay in business right now and keep their work force going. one gentleman, i'm going to feature him in a piece on foxbusiness.com, has 300 employees, has 300 million in revenue each year, he is a manufacturer of children's furniture, he was told point-blank by wells fargo he cannot get a business loan to keep his people employed and he wants to keep them employed, by the way, because wells fargo is hampered or there is some sort of conditions put on the bank from its fraudulent account scandal, that because of that scandal, and apparently maybe some capital requirement, i'm not sure what, but this is what the bank is telling him, it cannot make that loan. so that guy is in a real catch 22 because he can't go to any other bank. jpmorgan chase won't take him because guess what? he's not a client of jpmorgan chase. bank of america obviously won't take him. they are not even

plus, jpmorgan and wells fargo kicking off earnings season. both stocks under pressure right now. we'll tell you what jamie dimon says that has all of wall street talking. small business loans from the government they begin to hit the banks. the ceo of junior's cheesecake who received more than $5 million will tell us what it means for his business >> yes, he will. looking forward to that. thanks let's look at the naz sdaq which is paving the way higher amazon and netflix is hitting new highs. there it is with the gains now approaching for netflix 5% let's get to bob for more on this big market rally. bob. >> it's hard to believe but we have retraced 50% of the losses in the s&p 500 from those numbers about towards the end of february towards the end of march 23rd that was the lows. we traced 50% of those lows. the biggest ones out there microsoft, apple, amazon, google, facebook this is more than 20% of the s&p, these five. apple shipped 2.5 million phones into china last month. that was much higher amazon is sitting at a historic high when these five stocks move like this, every

because of past practice scandal surrouing wells fargo. the federal reserve kept the amount that the ban and issued a 10 billion wells fargo says a few for questioned alone under the program. the bank will contact you within a few days with details.the ceo of jp mgan chase is predicting we are headed for a major recession of course beuse of the pandemic he expects grs domestic product plunge at quarter, a down turn that is xpected to last through the rest of the year. the unemployment rate expected to spike as high as 14%. he had harsh words forus leaders. he says the lack of preparation for the pandemic is hurting e country now. coming up tesla they give us a behind the scenes look at how they're makingentilators out of car parts and thfinal word on howe should be cleaning our fruits and vegetables and when weeks they are the u.s. could face. it most metastatic breast cancer is relentless, but i'm relentless too. because every damatters. and having more of them is possible th verzenio, the only one of its kind proven to help you ve signif

wells fargo does a sizable amount of small business loaning.y have a lot of previous customers that would benefit immediately. they're on the ground throughout the country. so, yeah, i think for this purpose, it's -- the continued to desire to punish wells fargo for its consumer issues, which were significant, i don't want to suggest otherwise, but this is kind of coming up despite your face. they could be part of the solution. >> sheila, in the announcement wells fargo put out to say they only had capacity to can $10 billion for the ppe program, in march alone they extedded $77 million of new and increased loan commitments to clients in response to this crisis, just not through the ppe program. >> right >> i guess it highlights underneath that asset cap, they have flexibility for which types of loans to prioritize so i just wonder whether you think they should be favoring the pdp program more even if this asset cap doesn't get lifted or whether they're using the current environment a little bit to put pressure on the fed >> well, that may be i

morgan and wells fargo. we will have the details.s is bloomberg. ♪ earnings, jp morgan the lowest profit since 2013, setting aside $8 billion for bad loans, setting the scene for what we can expect from coronavirus. joining us now is our guest. thank you for standing by. the key take away from bank earnings, how much they are setting aside for loss provisions, was it remarkable to use the numbers we have seen so far? thought jamie dimon in particular decided to go big and just take the number up quickly, which is fine. it is really a presentation issue. you are taking cash and moving it to reserves, so you are not spending the money yet come but you say i have losses coming. i think the whole industry will do that. in my model, i had taken it up 100%, and i was going to double it again in the second quarter, which gets us to 2008 -- 2009 levels of reserve, but -2009 levels -- 2008 of reserve, but unemployment, you take those up as well, and you have small and midsize businesses disrupted. they tend to follow unemployment, but this wi

we spoke to the cfo was wells fargo -- of wells fargo. >> as it relates to loan losses, that's right. a new accounting standard that came in in this quarter. our provision isn't terribly different as a result for this quarter. estimatione of loan but we analyzed our allowance under the old gap and under the new gap and came to a similar outcome. the difference in this quarter is that you are estimating the a the assumptions about capacity, gdp growth. the path of things like unemployment. home price depreciation, the s&p, a variety of things. you are estimating the impact on loans you have on your books. loadingainly front end what the loss content might be if those particular scenarios play out. it is so early in the process. the facts have changed on the march as banks were closing their books. folks are doing their best. scenarios, running that through models, and setting aside the right amount. that's a big piece of this. mccormick is still with us. how are you factoring your expectations for earnings into your overall strategy? jim: yeah. listen. i think earnings like gdp, as we

have plunged in the 1st quarter as financial institutions brace for a surge in loan defaults wells fargo reported an 89 percent drop in earnings as it satisfied almost 4000000000 dollars to cover potential losses on loans to consumers and small businesses earlier america's biggest bank j.p. morgan chase and i was 69 percent drop in 1st quarter earnings as a boost to its reserves ahead of the booming downturn. for more let's cross to financial correspondent against course in new york yes those figures from 2 of america's biggest banks are pretty dire how have the markets reacted. well clearly all the banking stocks not just for a merger p. morgan and for a move wells fargo didn't trade with the down site in an overall by the way upbeat trading environment clearly those banks they are preparing themselves that we will see a lot of clients being unable to pay back their debt paying back the credits if it comes to credit cards if who comes through mortgages the energy industry or also the retail sector is the only good news from those numbers was actually that trading over old trading bonds

that would mean wells fargo is making most money possible, millions in processing fees. the bank previously said it is w fewer to prioritizing employees. >>> meantime, the small business loan program has been depleted. the white house and congressional leaders are close to a deal to replenish it. stephanie sierra is on the story. she is upstairs in our newsroom. stephanie, any update from the small business administration on the number of secured loans in california? >> well, dan, we learned more than 112,000 small businesses in california have at least received approval for loans under the paycheck protection program. but now that it's out of money, small businesses across the u.s. are relying on the economic and disaster loan to make ends meet. >> sales are 80% down for the owner of this furniture store in redwood hitty. >> this is the first time in 55 years we had to shut down the business. >> she applied for an economic injury disaster loan after struggling to apply infer the paycheck protection program. she waited 28 days but finally gotved.t w an absolute burde bei

don't forget as well, you had the wells fargo scandal. we all remember what happened to the ceo and other executives of wells fargo when they were pulled before congress. so the big banks are acutely aware of the fact that the regulators are looking at them. i think wells fargo in the last day or so asked the federal reserve in they could raise the asset cap placed on them back during that period and regulators really haven't responded. so in that context, there is no surprise at all that the big banks are looking over their shoulders at the bank regulators before they jump into this lending program. melissa: people have other options. i mean they can go directly to the sba. they can go to community banks and the like but certainly don't blame the big banks. what do you think is appropriate next step, dan? as they talk about maybe we do infrastructure, there is this war bond idea floating out there, what do you think would help as a next step? >> i like the idea that the white house is thinking about something like a capital gains cut or

according to that lawsuit wells fargo prioritize th companies that request large loans, en though the governnt said that the ppp applications would be a first co first serve basis. this move would result in wells fargo getting more money and ocessing fees and shake shack says itwill return the $10 million they got from the aycheck protection program. the founder and c of the burger chain announced his business was able to quote access the additional capita we need to ensure our statement also says shaikh shock would benefit from the financial boost. but is not eping the funds because it has accesto capital that others do not. we go to the north bay w where the small town of billy nus s begun offeng free vid-19 testi to alof its resident this initiative began today and will run rougthe rest of the week. the leant partnered with ucsf and raised about $300,000 tomake the drive up testing available. residents toke up the offer will reive 2 tests, e for the virus itlf as well as an antibody blood st to see if they've already contracted covid-19 test results wil take anhere from 72 hours to

is. >> i hope so wells fargo is our bank. we were put in touch with a great community bank in mississippi. that will help given the complete change in our ability to ship to wholesale clients. that number will help. we need more visibility before we can look at our future. >> we'd love to have you back. say hi to the family for us. thank you so much. >>> meantime, johnson&johnson's quarter results are just out >> it looks like a beat on both top and bottom line. we are seeing some of the impact reflected in these numbers starting with the adjusted eps coming in at $2.30 versus $2 estimated by the street. revenue coming in $20.7 billion versus the $19 billion estimate. if you look at the sales growth guidance now down 5.5% down to 2% for the year from an estimated growth of 4% to 5% looking into the segments. they sell these huge brands like tylenol and motrin consumer sales grew. a lot of that driven by the increased demand from the pandemic seening an increase in zertec and zarby's brand. medical devices down is that is an i

i spent a weekend with him charlie sharp, ceo of wells fargo. i think he's the smartest banker in the world there are a lot of smart guys. charlie sharp. most intimidating guy, too bought 173 shares of wells fargo at $28.69. 5 million bucks. i talked about him on a conference call for my charitable trust to maybe buy that stock at 8% yield just because i would finally have done something smarter than charlie sharp. >> mike mayo, thank you very much >> thank you. >> i wonder if we see more ceos like him buy their own stock and not own plans but coming out in the open market and doing it. >> michael -- he knows the book value is 70 bucks. we can just say, well, we read the excellent piece by peter and kate and say, okay, book value is really 60 all right. stock's much lower see mike buy we want jamie to get healthy fast but i bet you see we brian buy, brian moynihan they listen, they read the articles we do michael mayo talked about the idea that everyone sees the articles it is a terrible time. a month from now if it is not a terrible time will w

the micro strategist at wells fargo securities.special live coverage of the fed decision and subsequent news conference along with a suite of special guests. 2:00 in hong kong thursday. we are seeing downside pressure for u.s. futures which are down now around .1% after the s&p 500 now. it was led lower by big tech giants falling. we saw the likes of -- we saw the likes of netflix, apple, facebook, reversing gains we saw earlier in the week. take a look at what is happening with kiwi stocks. we are seeing a second session of gains. now the new zealand economy is returning as they are easing the lockdown restrictions, more expensive around the world, going for five weeks. wti rebounding after it fell in the new york session. we saw wild swings. let's get to first word news. karina: we start in china where scientists say covid-19 is going to return in seasonal form like lesser flu infections. it is unlikely the new virus will disappear the way sars did 17 years ago. a systematic effects make it hard to contain transmission. beijing i

morgan and wells fargo. as you mention in your opening, the major thrust here, country to country come is on lockdown, and if and when anybody can really wish -- country to country, is on lockdown, and if anybody can relinquish the quarantine on society. francine: we will have a full round down -- rundown on the possibility of a vaccination, but we are nowhere near that yet. we also have to look at antibody testing. let's get to the bloomberg first word news in new york city with viviana hurtado. viviana: president donald trump hopes to reopen the u.s. ahead of schedule. the president saying within days the administration will issue guidance for governors who want to relax social distancing practices. the president says the guidelines will give americans the confidence they need to return to a normal life. now two big differences between republicans and democrats on capitol hill. this as the u.s. congress is under pressure to provide an of the stimulus package. publicans want to add $250 billion to the small

wells fargo is trading back down and jp morgan is just flat at this point.verall, risk on in the u.s. vonnie: we have the perfect guests. thank you, abigail too little. a legendary investor has been noticing some interesting dynamics in the marketplace and we will get to him next. this is bloomberg. ♪ ♪ ♪ york guyive from new johnson in europe. it's time for the latest bloomberg flash. bank of america has raised its price target for netflix to one of the highest. b of a is calling for shares to hit $460. is theonavirus pandemic perfect storm for the streaming service. netflix has strong content with stay-at-home orders suspending sports league and shut it -- and shuttered movie theaters. in china, shipments of the apple iphone rebound last month as they roamed -- as they rose 19% in march. that came at a time when the smartphone market in china shrank by 22%. iphone sales were hammered in february when the chinese government imposed its coronavirus lockdown. intel is seeking a bankruptcy loan that we keep the satellite service alive. the company is waiting f

>>wells fargo says it is capping the amount of small business loans that will issueda billion. it is no longer taking applications. the bank tweeted it has reached its lendin capacity because of the a big interest in the paycheck protection program. it sa it is lending to nonprofits and small businesses with fewer than 50 employees and small business that will support nonprofits the paycheck protection program launched april 3rd. it set asid50 billion in federal loan money for small businesses. it offers a one percent interest ra to busisses with fewer than 500 workers. the whole idea isto motivate business owners to keep workers on the payroll afterthat accept federalaid. thebank says that fe generated for the program will be returned to the borrowers as charitable grants because past practice scandal surrounding wells fargo. the federal reserve kept the amount the bank can issue to 10 billion. lls fargo says a few for questioned alone unde the program, the bank will contact you with details and instructions. the ceo of jp mgan chase is predicting we are headed for a major rec

then, of course, wells fargo hit the cap. we thought we had dealt with that in recent days, but he's not sure he is still going to be able to get that loan through wells fargo, and he says i have also now looked at more than 100 websites of 7-a lenders in the greater d.c. area and have found none, capital letters, none that will accept a p.p.p. application from any small business that did not bank with them before february 15, 2020. here's some other headlines in recent days. baltimore area small businesses complain of continuing problems gaining access to federal lending program. nightmare. three small business owners describe process of applyig for p.p.p. coronavirus loans. the journal, community bankers frustrated with p.p.p. rollout. another headline. this one from -- this is another part of the country. this is p.p.p. loan plan a mess so far for small businesses riding out coronavirus crisis. billions disbursed through paycheck protection program, say not yet. "wall street journal," big banks favor certain customers in $

the equity market is up and you are seeing wells fargo take a nice pop, up over 4%.s get to the first word news. your are the stories with mark crumpton. mark: democratic leaders in congress say they would propose at least $500 billion in the next round of stimulus. that is double what the trump administration is seeking. president trump he wanted to earmark 250 billion dollars in aid for small businesses. nancy pelosi and chuck schumer also want to see $100 billion for hospitals and $150 per state and local governments. european union finance ministers are prolonging the paralysis. they failed to agree on a strategy to mitigate the economic impact of the coronavirus pandemic. their teleconference lasted more than six dollars six hours, but they cannot reconcile their contrasting visions. the issue is whether the eu should issue joint debt to help economies recovered. wuhan has it is -- reopened and at least 55,000 least 55,000 -- at had train tickets out on their first day of freedom. there are a web of complex restrictions on residents. global news 24 hours a day,

>>but wasn't even allowed to submit an application was no go wells fargo basically said. >>we're not sure when it's going to get opened up, you know maybe later, but right now we're not taking applications is participation in the ppe program has been limited because of sanctions imposed due to past rule breaking. >>but today the federal reserve temporarily lifted those restrictions in a statement wells fargo said it is looking forward to expanding relief to many more small businesses and nonprofits again jacob brown i'm a client will start a former 33 years had this business for many years. and i'm i'm just worried about the families that now employ them not able to play right now. >>and also for myself the paycheck protection program is supposed to be a lifeline for plateau builders and other small businesses but the red tape has people like jacob round feeling like they're being pushed to the back of the line just feel in secure. i just feel normal. >>and you know these big institutions. i would assume would be there for us. i mean right now we're going to try with diff

wells fargo has not commented on the lawsuit.are up for america's soup companies during the shelter-in- place orders. campbell's soup company reported sales across the didn numbers, but the company points to a record number of people now eating nearly all their meals at home. the company says huge sales at the grocery stores have more than offset the recent drop in restaurant sales. it's the opposite for coca- cola, taking a big economic hit during the pandemic. the company reports sales around the world have dropped sharply since the rs were issue they blame it on a drop in restaurant orders, and they are also hurt by the fact that sports and concerts have shut down. coke certainly does well in the concessions there. that's a look at your dollars and cents. back to mike. >> thousands of events canceled this year, pam. thank you. >>> ikea is revealing its recipe for the swede meatballs you get at the cafe there, saying you can now make them at home during the shelter-in- place orders. cooks really need just a few ingredients to m

>>wells fargo announced yesterday that is capping the amount it's going to issued a small usiness loans to $10 billion asf this morning. the nk is no longer taking applications in a tweet sent last night the bank said quote due to a strong interest in the paycheck protection program we reach lending pacity in close the intake form we're lending to nonprofit and small businesses w left less than 50 employees and will support nonprofits focused on helping other small businesses the paycheck protection program launched friday april 3rd and it sets aside billion in federal loan money for small businesses. the law offers a one percent interest rate businesses with less than 500 workers and is designed to provide an incentive r business owners to keetheir workers on payroll while the country continues its battle against covid-19.the small usiness administration says it will forgive the loans issued and the interest te accrued as longas employees are kept on the payroll for 8 weeks and the money is used interest or utilities. the ge bank also announced that fees generated through the program.

then, of course, wells fargo hit the cap. we thought we had dealt with that in recent days, but he's not sure he is still going to be able to get that loan through wells fargo, and he says i have also now looked at more than 100 websites of 7-a lenders in the greater d.c. area and have found none, capital letters, none that will accept a p.p.p. application from any small business that did not bank with them before february 15, 2020. here's some other headlines in recent days. baltimore area small businesses complain of continuing problems gaining access to federal lending program. nightmare. three small business owners describe process of applyig for p.p.p. coronavirus loans. the journal, community bankers frustrated with p.p.p. rollout. another headline. this one from -- this is another part of the country. this is p.p.p. loan plan a mess so far for small businesses riding out coronavirus crisis. billions disbursed through paycheck protection program, say not yet. "wall street journal," big banks favor certain customers in $

morgan wells fargo citibank which own 81 percent of these what comes next even you know digging into the fed announced last week on junk bonds they're essentially bailing out any company that's a fallen angel so if they were a investor grade corporate rate it on a. shell to below investment grade which by the way every airline in the u.s. except for so west is no below desperate they going to sicily by those parts the question is whether or not they start moving into things like equities or high yield bonds that are junk rated so you know that's big really proving that you know they're discounting crude investors at the start there's a concept that has been floating around for quite some time called moral hazard that is if companies make mistakes should we really bail them out of course covered 19 is a pandemic that nobody saw coming however these airlines fail to put any cash in reserves as a matter of fact they've been using free cash to buy back their own stock to give their executives huge payouts and they brought this on themselves in many ways so should the public be bailing ou

then, of course, wells fargo hit the cap.e thought we had dealt with that in recent days, but he's not sure he is still going to be able to get that loan through wells fargo, and he says i have also now looked at more than 100 websites of 7-a lenders in the greater d.c. area and have found none, capital letters, none that will accept a p.p.p. application from any small business that did not bank with them before february 15, 2020. here's some other headlines in recent days. baltimore area small businesses complain of continuing problems gaining access to federal lending program. nightmare. three small business owners describe process of applyig for p.p.p. coronavirus loans. the journal, community bankers frustrated with p.p.p. rollout. another headline. this one from -- this is another part of the country. this is p.p.p. loan plan a mess so far for small businesses riding out coronavirus crisis. billions disbursed through paycheck protection program, say not yet. "wall street journal," big banks favor certain customers in $35