j.p. morgan's. alix: j.p. morgan media call starting now. the cfo saying j.p. o maintaining dividend payments. in europe, dividend buybacks are a no go to free up loans. is there a breaking point where you see if this crisis goes on for x amount of months, these banks need to rethink their programs? hasd: buybacks basically been tabled for the moment, as you know. in terms of cash dividends, from our perspective, if we are still sitting here in december or january, looking up fourth-quarter earnings, and provisioned numbers are at similar levels as today, then i think dividends will be considered as a potential draw on capital for the banking industry, but we are not of that opinion, that bank dividends are particularly vulnerable. we don't think you will see this high a level of provisions over the next three to four quarters. kind of a broader question, but to shareholders want banks to take on more risk to help support the economy? do they want them to, say, pay employees who don't come into work? do they want a higher efficiency ratio? do shareholders look a

housing j.p. morgan chase to raise mortgage borrowing standards its economic outlook darkens it just got harder to buy a house from tuesday this week customers applying for a new mortgage will need a credit score of at least $700.00 and we acquire to make a down payment equal to 20 percent of the home's value but this is an interesting concept one of fairness as it relates to the economy and it's not really baked into the american system is not designed to be fair because fair is what is fair for one person is unfair to another person and that's a highly subjective term what america relies on is free market capitalism relies on competition and that if you are successful competing then you succeed remember in america possession is 9 tenths of the law now if you don't compete successfully then you get thrown out of the game basically but that's the way it is in the united states and. having said that when you talk about banks being bailed out by the fed and you talk about all of the high yield bonds being

bilton, as we see fx of j.p. morgan go to a weaker euro call, john bilton, j.p. et management. equity markets up today. 18.03, a good time to speak to mr. mcveigh of tkr -- kkr. henry mcvey. this is bloomberg. ♪ ♪ you are watching bloomberg "surveillance." shares of boeing are surging as the beleaguered aircraft maker is making plans to restart jet making in seattle, ending a shutdown last month from the coronavirus pandemic. over 30,000 workers will return. alarmom is sounding the on disruption, telling customers they need to place orders for parts at least six months ahead of time. that is a surprisingly long leadtime. end with billionaire sheldon suspending -- for the las vegas sands all the industry is shut down. almostar, he collected half of the $4.2 billion payout. the sands is looking to buy existing resorts from others. that is your bloomberg business flash. francine: earlier on i spoke to luke ellis, the chief executive officer of the largest hedge fund and we spoke about flows and how many clients wanted to redeem just because they had problems in terms

that fell lower than expected at j.p. morgan. fixed income shining so brightly and morgan stanley being the leader in equities and trading volumes being where they are, the hope is trading will hold up for this quarter. that is in hindsight. we do not know what the next two quarters will look like. david: one of the things everyone will be looking at will be controlling the cost. we note will be a rocky road for the banks. thank you very much for sonali basak. power,"p on "balance of we will talk to massachusetts attorney general maura healey, who is using her office to try to protect those most vulnerable to the coronavirus. that is coming up next on "balance of power" on bloomberg television and radio. ♪ nowadays you do more from home than ever before. the xfinity my account app puts you in control with digital tools to give you the help you need when you need it. get fast and easy answers with personalized help 24 hours a day, 7 days a week. change your wifi password to a phrase that's easy to remember. even troubleshoot your

well clearly all the banking stocks not just from j.p. morgan and for a move wells fargo do trade to the downside 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 to 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 trading stocks or at least that j.p. morgan chase so we saw record revenue over there but clearly banks are preparing that things will get darker before well business overall turns around and the stocks were among the biggest losers. ok if they want to talking about something else as well the question of debt relief for poorer countries dealing with the crisis both the i.m.f. and the g. 7 countries have been discussing this issue how important is this for investors. well for some important besser said sir very important because at the end of the day if yo

j.p. morgan, and it was 2.4, five times book and it's a whole book value of j.p. morgan that's lost, and obviously, they're going to have more big write-ups and they'll have more big charges, but i think this dichotomy where j.p. morgan is trading and where the rest of a lot of big companies are trading, not all, but many that's a big disconnect and i don't know where that will continue and i called the krp, and i think that's kre and that divergence is too big. >> i heard that jop morgan hassa i ceo that people are pretty fond of. >> yeah. >> i'm told. i have learned a few things in the last couple of months on "fast money. karen, we'll get you in a second in a 20-minute run of breaking news, we have more breaking news and this time it is on uber and for that let's go to deidre bossa out west >> it just doesn't top uber with the driving guidance also taking a writedown of 1.9 to 2 billion on investment and dealing with the assistance program for drivers and delivery people as we expect it will r

so i think out of the names in the space, j.p. morgan is more interesting to me and i'm surprised it hasn't done better than it has. >> grasso, you've been in the housing sector a lot does that sound interesting to you? >> i would actually push back against him on that. i think that the buyer is a more affluent buyer that uses the product so i don't know if this stint in the marketplace mid-economy will take out the majority of people that actually want the product and think about this, we're all sheltered in place. i go around my house every day when i finish the show or finish watching the show and i look around at what i need to do in the house. we're all getting stir crazy so i think these improvement products actually have a tailwind as we come out of this economic cycle >> i know. i was thinking of regrouting the shower the other day and i'm thinking, what am i doing here karen, i don't know if we know the extent of the impact even on an affluent buyer. do you feel comfortable that these -- that this segment is insulated? >> no. i

now i want to bring in shawn here shown earnings are out for wells fargo and j.p. morgan as we just said christine just said that if they and they have foreshadowed that the rest of the earning season is going to be pretty bad even with the negative revisions that look is not great so then why are we seeing a rally in markets here on tuesday and really almost the last week when we knew these were coming. yeah absolutely now we've had is really you know you we've had a sell off that was 35 percent the and then we're seeing the recoil of that and more of that just because you've got institutional shorts that are covering those shorts and you cover a short with a buy so that makes buying pressure you've got institutional traders that go in for quick trades of a day or a week or a month that's pushing things up and that can evaporate and turn very quickly as well and then you've got the retail money which are just regular everyday mom and pop people they're fishing for bottoms that's going in and trying to buy on this as well and it's pushed you know the market back up toward

tuesday giving us a 1st look at how devastating the recent shutdowns have been for corporations j.p. morgan reported that it missed expectations with earnings plunging e.p.a.'s at $0.78 down 71 percent from the 2 dollars and 65 cents reported q one of last year profits dropped to 69 percent year over year which is the biggest annual drop since the financial crisis as the bank recorded a surge in credit losses to 8300000000 dollars as a braced for surge and defaults j.p. morgan also announced that it has added $6800000000.00 in reserves this quarter as c.e.o. jamie dimon emphasized the need to remain well capitalized and highly liquid given the strong likelihood of a severe recession now much of the optimism stems from improving conditions as 10 states have reported that they're making coordinated efforts to reopen businesses shut down by the coronavirus now these include washington oregon and california led by california governor gavin newsome and new york new jersey connecticut delaware pennsylvania rhode island and massachusetts led by new york governor andrew cuomo now collectively these

citigroup, j.p. morgan all reporting. jp morgan set aside the most cash in a decade. u.s.the treasury department to access billions of dollars in aid. it is a temporary lifeline, as the industry waits for customers to travel aai

j.p. morgan had a strong fifth quarter.highlighted rates currencies and emerging markets, which is the hallmark of citigroup. we expect decent trading out of citigroup tomorrow. amanda: who is most exposed to the fed's recent actions? ,avid: in terms of the rate cut i think bank of america would be one of the names, actually. but our point was that when it wrote tangible of it was a credit story and not a rate story. what we will see over this quarter and next quarter is although the fed has cut rates thebasis points in march, funds have not moved down. and mortgage rates have not moved down with treasuries, but the banks might report a little might bed the outlook better than what we are expecting because of those dynamics. banks, as you noted, play an important role throughout this whole recession. will they be positioned, and some better than others, i will guess, to do what they need to do on the other side of it? despite the fact that will have high loan losses and defaults, will they be ready to support parts of the e

chase was, but here's the thing j.p. morganing they'll cut their estimates for iphone sales by more than half and they remain on the stock. can you square these things. do you agree with either of these call sfls. >> i think you have to look at iphone sales in terms of the company's prospects. 85% of the 5200 teens that they surveyed said they are not that is really important and this continues to be a powerful brand and i think that carries the day in terms of the long-term prospects of the stock. if you look at iphone sales for all of this, and better sales for iphone 11 than was anticipated and if you look at diversifying into other businesses whether it's finance with apple pay, healthcare and wearables, but there was room there for the couples to grow, and look, the multiple at nine times is still higher than typical, but certainly not 19 times versus where we were a week ago for me it's a stock you can earn in the long term even if you see sales because you will see disruptions from store closures and supply chain issues

j.p. morgans of the world citibank bank of america all that stuff but the problem is especially in the situation it's not those big banks that are having a liquidity crisis as it was back then or credit crisis or credit crunch it's these small and medium sized enterprises that operate all the goods and services and deliver all those goods and services that they're the ones that are in trouble at the moment you know the last mile distribution in terms of money the former bank of international settlements. guy is talking about is explicit lee picked a graphically portrayed and a money velocity chart that we spend showing for a few years money velocities come to a dead halt it's just gone down every single year because the money doesn't get to where it's going on purpose that's by design because if it did then people would use it in ways that would increase the money velocity and wages would start going up and then the wall street ponzi scheme would come crashing down would have come crashing down earlier because that's inflation and inflation is the death knell to bonds and the bonds for 40 years

seize energy assets of shell companies they've lent to which are now on the brink of insolvency j.p. morgan wells fargo bank of america and city are each in the process of setting up independent companies that own oil and gas assets of course those are members of the federal reserve banking system j.p. morgan bank of america citi bank and wales far right to fracking industry being an industry that we've been saying now for 10 years is cash flow negative from day one and energy negative from day one takes more energy and then comes out more cash goes in that comes out and now it's going to be harley supported by the federal government how is that different than soviet union 1950 it isn't it's exactly the same so again we're talking about supply and. demand but supply and distribution of that supply there was no shortage of suckers this in these past 10 years no shortage of them why because interest rates were is 0 they kept going to 0 and negative in some places so they need to deal that any cost because we have these boomers about to retire on these huge promises given to them 2030 years ag

j.p. morganhase posted their highest low loss provisions in a toade, setting aside money cover defaults across the economy. the wells fargo senior executive vice president to get some insight. provisions taking center stage here. investors looking past first quarter revenues and earnings numbers. clearly, a lot of things have changed since then. what you can show us is the amount of damage the banks could see in the months to come. wells set aside $4 billion. give us some insight into how you came to that number. there is a new accounting rule that requires banks to set aside money earlier in a cycle. how much of that is due to damage you estimate is coming down the pike? >> thank you for having me. when it comes to loan losses, there is a new accounting standard this quarter. of loan estimation, allowancelyzed our under the old gap and under the new cap. ,he difference in this quarter and to get to the heart of your question, you are estimating via assumptions about the path of gdp growth, thing

president and coo of j.p. morgan chase, came up co. president and coo of j.p. morgan chase, charles scharf, ceo of wells fargo, michael corbett, ceo of wells fargo, michael corbett, ceo of wells fargo, michael corbett, ceo of citigroup, 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

we are really focusing on the credit outlooks coming from j.p. morganlso big focus on balance sheets. su: absolutely. it is important to point out this is a very big week because we've got bank of america, citi, goldman sachs, morgan all reporting this week. wealthy the investors are going to focus on is first of all non-how they are going to fair because banks have already been hit hard. if you take a look at the charts, you can see the banks have lagged behind the s&p 500. the first quarter index fell from 43%. bank'sons and the exposure to the hardest industries -- travel, hotel, airlines as well as trading revenue will be closely scrutinized. let's talk about the loan loss provisions because a lot of analysts say they are set to jump. some are saying they could more than double at the largest of the u.s. banks, particularly in the consumer units were a lot of investors will want to see how much was set aside. haidi: in the meantime, mike mayer has cut his estimate for banks for a third time in a sobering time. it goes to the question that is being a

coming up next, what we learn from the earnings reports from j.p. morgan and wells fargo. ill have the details. this 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

will fr wilfred frost monitoring it, as well >> we broke that j.p. morganse most likely will not be ready to accept applications tomorrow as you just said, the treasury secretary made some fresh announcements and alterations to the tpp plan increasing interest rates from 0.5 to 1% and i can confirm that had never been a concern of chase's that alone won't change their decision on this, their readiness. their concern is they haven't had the broad guidelines from the sba in time to be ready for tomorrow and under that same issue, i can confirm that one of the other top four lenders in the nation whoey spoke to about 20 minutes ago and also in the same position. without those guidelines they are also not ready to go by tomorrow though they had a slightly more optimistic tone to it saying if the guidelines came in they could be ready within a couple of hours after that again, not something we got there from secretary mnuchin in the press conference one other point that stood out to me during the press conference, brian. the treasury secretary made clear than th

every economic report i read today from goldman, from bank of america, from j.p. morgan, they all said the same thing. that next month will be far worse, far worse, because this is when we're going to see -- in other words, the month we're in now. when we get those, at the beginning of may, then we'll really see exactly the depths. so in terms of a national unemployment rate, and bear in mind we started at about 3.5 to 3.7. we're now over 4 or 4.5%. and expect that to go up, don, at a very fast rate. perhaps, as high as 13 to 14%. so i'm not trying to frighten and i'm not trying to worry. people are well aware of it because, you know, for the hundreds of millions of americans who are not infected, who have lost their jobs, they know exactly what i'm talking about. and it's the help for those that is now so crucial. >> well, speaking of people who lost their jobs. people filing for first-time unemployment claim. i mean, that system has not gone smoothly at all, richard. >> there is two different things here, don. the unemployment claim. 6.6 million people filed for it ove

j.p. morgan, the nation's largest bank is one of the banks that has essentially delayed the implementation of the program. the online portal is done but not ready for use because they want to make sure that they get through all the kinks. one of the problem i think j.p. morgan faces throughout the banking business, they will get a rush of applications, they want to make sure the portal can handle the applications and the last thing that they need is to be sued, some monday morning quarterback and as what happened in 2009 when the feds, after they forced j.p. morgan to buy their intake of risky actions started suing j.p. morgan and j.p. morgan had to pay settlements for following the feds directive and buying the banks. they want to make sure and following the directives this time that they have all their eyes darted, tees crossed so at least a j.p. morgan from what i understand this portal and the small business loans can be ready as late as monday. like i said, they have the system mainly togeth

>> j.p. morgan thank you all we'll si see you tomorrow. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >>> hey, i'm cramer. welcome to "mad money" and cramerica. other people want to make friends but it is my job to educate and teach you so call me or tweet

we will see that with j.p. 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

i remember j.p. morgan trading in 84 and even if book value, and you can still pick up j.p. and levels that you would have signed up for in spades so to me, banks and gold >> tim and the end of lent, you can raise a glass virtually together >> it will be under control. looking for the easter bunny, but i'm looking for retail sales on the macro front and china also has import and export number, but obviously earnings and lvs and even schlumberger, all very important >> karen >> for me, it's what the bank s say and not at all what they're going to earn and it's about what are they seeing and what actually happens to the balance sheets if they have forbearance on loans and those get marked down and that gets to guy's point to book value. how badly do they think book value will be hidden and any testing news on the expanded testing will be important. >> that's huge steve grasso, what are you looking at, buddy? >> yeah. so i'm not interested in earnings yet as the rest of the group is i'm not interested in economic data yet i'm interested in the human toll and i keep tuning in to

shut down the economy seemingly because of a very aggressive newly concocted flu virus citi group j.p. morgan morgan stanley b. of a goldman sachs per the comptroller of the currency i want you to know this 8 years and 2019 each of these 5 mega banks held something else like at least 30 trillion of notional derivatives each representing 83 percent of all banking derivatives this is a fiscal powder keg i mean the owning powers behind these banks and that's essentially national central banks are pulling the plug now performing a controlled demolition if you will of unsalvageable debt and it fizzes and other structures in this wider economic system the fed already pumped over 9 trillion into this broken repo market since september 17th i think of 2009 big banks will get another 4 and a half trillion in bailouts due to this shutdowns of facts means main street. meanwhile we'll get a farcical fraction of this the same as 12 years ago as far as patterns are concerned i.e. a massive further wealth transfer taking place to a small elite in route to collapsing the system to erect a new post debt jubil

are you at j.p. morganet management seeing good values based on estimates that you have right now and if so, where >> sure, brian good to be here with you guys. karen i hope to be with you in person at some point >> so before today, we came in to trading today the best ten-day stretch since march of '09 and it was up 19% in that time period. the markets don't go up by 19% in ten days because of fundamentals >> so that's out the window, but what the market is really starting to believe and really wake up to here is that policymakers want to avoid the best-case scenario and for the fiscal side that would be some sort of awful, economic fallout without any shock absorption so starting with the fed, it took them 17 trading days from an all-time high to get to zero rates and they've already done more q ethan they've done in parts of the qe programs in '08 and '09. i think that's so important and that is the latest positive development. similar to 2008, if you go back to '08 and '09, when it was finding its footi

citigroup not doing great great regions financials and wells fargo and j.p. morgan are doing their bit to drag on stocks after loan loss provisions skyrocketed and net interest margins, among other items. guy: you are talking about bowing earlier on. let's get to more about what is happening in the aviation industry. today the international airport transferred organization says it expects revenues to drop 5% in 2020, that is 25% more than the previous forecast. air traffic will be down 48%. we are joined by alexandre de juniac, director general at iata. nice to speak with you again. let's talk about your current forecast. i am curious. the number seems to be getting worse and worse. how close are you now your worst-case scenario? alexandre: that is probably the most difficult question for us. we have worse figures every three weeks. considering the set of measures that have been implemented and the length of the possible travel restrictions that they have announced, that has been months, from weeks to and in addition to the restrictions, we have a strong recession o

america and j.p. morgane banks are committing , they've made different commitments, but in terms of the banks generally supporting their staff, making payments to the staff, saying they are not going to do layoffs , obviously that makes costs a little more sticky this time. but what we are going to want to hear about is what is happening on the investment side of things. jp morgan, even though they are going to have lower costs related to less business and less volume, they are not making cuts to the important technology spending side of things, and that is what i think long-term investors would want these banks , even though in the near term, you will see cost ratios going up. alix: when you get on the call, what is going to be the biggest hole not answered yet for b of a ? alison: what we haven't seen that is a granular break out of their loan loss reserve. we are going to want to take a look at that, compared to what we saw at jp morgan. that is what i want to hear more about. to your point, what are the

decade in fact from both j.p. morgan, it was the biggest set aside in a decade. between the two banks, it was more than $12 billion. that's more than double what most analysts expected. -- jp morgangpo ceo jamie dimon would not be immune for the pandemic, but what's important to note is the damage was offset by gains in j.p. morgan chase's trading revenue. in fact, they had record revenue, $7.23 billion, from the increase of volume in trading of stocks and bonds through all that volatility. we did not see wider strings -- swings in investor reactions for wells fargo. the profit was also decimated, but they eked out a slight gain. the real takeaway was that j.p. morgan cut full-year outlook on .he net interest incomes wells fargo notably withdrew the 2020 income outcome. that further put pressure on wells fargo shares. again, these banks have maintained they are in a better position to get through hard times than they were in 2008, but we are really finding that out this week. from the banks we've had, let's get to the ba

j.p. morgan and wells fargo earnings. radio silence on capitol hill. democrats and republicans in political lockdown. good morning, "bloomberg surveillance." from new york and london, francine lacqua back in the saddle and i am tom keene in new york. francine, you look of good health, to say the least. tell us about the prime minister. i believe he is out at checkers. is.cine: he he was brought into hospital about 8, 9 days ago. in intensive care units for a couple of days and then he gave a press conference two days ago where he seemed more emotional than usual saying it could have gone either way and he really thanked nhs staff he said were by his bedside 24 hours a day. when you look at the response of the u.k. compared to other countries, certainly in europe, it has been quite different. the prime minister many times has had to do a u-turn on what he initially talked about, which was a herd immunity and then he said he would not close schools that they are closed. there's a lot of speculation going around about what they will do next, whether they