we spoke to john shrewsberry, wells fargo's cfo, about the loan-loss provisions. hn: as it relates to loan losses, that's right, there is a new accounting standard that came in in this quarter. our provision is not terribly different as a result for this quarter. .t is a life of loan estimation but we analyzed our allowance under the old gap and the new gap and came with two similar outcomes. to get to the heart of your question, you are estimating via assumptions about the passive gdp growth, positive or negative, and the path of things like unemployment, home price appreciation, commercial real estate valuations, the s&p, a variety of things. you are estimating the impact of loans you have in your books. front-end loading what the law's content might be if those scenarios play out. because it is so early in the process, the facts changed on the ground in march and even the latter half of march as banks were closing their books. but folks are doing their best who estimate great scenarios, running that through models, and set aside the right amount. that's a big pi

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

the cfo, john shrewsberry, joinings us now. very good afternoon to you thanks for joining us. >> thanks for having me. >> i feel like there's a sense on the calls that provisions are going to get much worse in the quarter ahead. the stock opened higher. it's now down by about 4.75% similar theme comeing from jpmorgan is that fair do you think provisions for bad loans in q2 could be bigger than they have been this past quarter? >> hard the say. i think that the economic forecasts are changing rapidly at least over the last several weeks they've been generally been getting more steadier ra rather than softer those are meaningful inputs into how people are calculating future expense the big question is when the economy will reopen and when people can go back to work and go back to spending money and consumer spending is is down markedly year over year and that has an impact so there are specific areas like energy, et cetera you were talking about just a moment ago where there were some id owe sin cattic things that have happened.

you later, and we've got an important interview on this topic, we'll talk to wells fargo's cfo john shrewsberryells fargo and othe nate. l cts ough still in the green. stay with us ♪ ♪ ♪ ♪ ♪ ♪ ♪ >>> welcome back to "squawk on the street." time now for an update on the covid-19 virus and for that we go to rahel solomon. >> hi, david so new york governor cuomo says his state is succeeding in slowing the pandemic and saving lives. he blasted president trump for claiming sole power to reopen the economy. >> we don't have a king. we have a president, and that was a big decision we ran away from having a king and george washington was president, not king washington so the president doesn't have total authority. it's very clear states have power by the tenth amendment, and the president is just wrong on that point >>> airlines around the world will lose $314 billion this year due to coronavirus, according to the industry's trade group that loss estimate is up 25% in three weeks. >>> and personal computer shipments sank more than 12% in the first quarter, according to gartner research firm. demand jump

don't miss, by the way, first on cnbc interview coming up later today with wells fargo cfo john shrewsberryanks reporting results. wilfred frost joins us with more first on jpmorgan. >> reporter: hey, andrew we mentioned the revenue and eps numbers for jpmorgan revenue in line. miss very much on the credit costs and the provisions at $8.3 billion. provisions for credit losses well above last year's number of 1.3 billion for the same quarter. another gauge on this, if we switch to total credit reserves, there was an additional 6.8 billion this quarter on their books they have 25 billion total reserves built up over time. that means they've reserved 2.3% of their entire trillion dollar plus or so loan book as for this quarter's bill that splits to roughly 2/3 from the consumer, 1/3 corporate would be corporate focused on oil and gas, real estate, and retail now the key thing for the call will be what have they factored in in terms of timing to get to that estimate. we mentioned strong trading revenue earlier as expected. also wanted to mention within asset management it rose 7% by cumulative