jp morgan a priest -- jp morgan appears to be strong on all counts.losing a little bit, bouncing off its lows of the session on the morning. you're seeing some buying in the tre

jp morgan a priest -- jp morgan appears to be strong on all counts. the dollar losing a little bit, bouncing off its lows of the session on the morning. you're seeing some buying in the treasury market, but not so much in europe. european stocks hitting a 20% bounce up from the bear market in 2020. a little bit of selling on the bond market as growth questions continue and oil takes another leg lower. let's get right to the bank numbers. jp morgan shares up by about 2%. they reported blowout fixed income and trading revenue. with us now is alison williams -- is sonali basak. sonali: provisions for loan losses are really skyrocketing here, more than $8 billion expected. a lot of it is coming from the consumer business, where those provisions are more than $5 billion. on the other end of the loan but, we are expecting lower net interest income this year. also, as one would expect with lower interest rates, that would come into about $55 billion, lower than the 57 billion dollars initially estimated. on the bright side, we saw net interest income for the

jp morgan 6.8 billion, now the reserve is 10 billion. 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

for goldman sachs, they are keeping pace with jp morgan. estion tomorrow is what does morgan stanley look like in trading as well. they are going to want to show that they were able to hold ground among those big three. i do want to mention one more thing. they did post some losses among equity investments, which we did want to see. it looks like they sold some assets also during the quarter, so were able to harvest some gains. that aeague pointed out 10% decline of the equity and debt holdings would be a significant impact to revenue, but it was not a huge impact in this quarter, which is a good sign for this business that they have been growing. one more quick when is that consumer banking rose 39%. so all of those aspects i was telling you about savings and deposits, goldman was really able to show up in the first quarter and show that their model is good for this type of environment. alix: and just to reiterate, we got some clarification on the investment banking revenue. it actually came in at $1.74 billion, so still he beat, but not as

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

if you think jp morgan is best in breed and you think they deserve that premium valuation, you've got to be looking at a stock that can rally 15% from here. >> 4% down, 9% up. crazy week for jp morgan chase >>> on deck, can tesla thrive even in the shaky economy where under $2 a gallon gasoline is widespread we'll talk more about tesla and its big week plus, is there any reason to invest in any casino company right now? some are indeed making the case and we're going to hear that case coming up on a special live bonus hour of "fast money" on a friday >>> welcome back just a reminder, the white house is holding its daily briefing on the coronavirus. any key headlines there about reopening the economy, economic aid, the small business program, the payroll protection act, of course, we will bring it to you or bring you live into that press conference for now, let's do what we do on cnbc and talk about the economy. but let's focus in on one company. that is tesla, because tesla through it all continues to make money for its investors, global pandemic or not. in fact, shares of tesla up mo

jp morgan and wells fargo kicked off big bank earnings, setting a grim tone as firms face unprecedentedstandstill. today, bank of america, citi, and goldman sachs are set to report, followed by morgan stanley on thursday. let's get to dani burger to discuss the results. what are the big takeaways from jpm and wells yesterday? dani: it is a sobering glimpse into how severe the economic downturn was. jp morgan fell less than 3% yesterday despite posting the worst profit in more than three years. the real eye-popping figure here was how much more pain and credit loss these banks are bracing for. provisions at jp morgan more than $8 billion, a 400 percent increase from last year. combine that with wells and that's $12 billion just from fore two banks set aside bad debt. see some stronger trading numbers from firms that we hear from today, but still early indications do suggest the worst is not limited to jp morgan. they are still competing for market share, and then you have goldman likely to be hurt, so m&a should be interesting. but this crisis is different from 2009. these banks are bett

hoping us as well is joyce chang, and jp morgan, running all the research capabilities.ce, on the international markets, bruce kasman has been extremely pointed that, yes, this will occur, but there will be long-term ramifications. for the audience worldwide, what are the ramifications once we are through this pandemic? joyce: i think the ramifications are going to be a much higher debt burden. we are already going into this with business debt at a record level to gdp, so it is a lot of the same outcomes that we saw in the global financial crisis. you will have a weaker balance sheet. so that means you will be looking at what the credit losses are. so there is the immediate short-term income impact, and the question is, can that be addressed quickly? how will that rebound look? but then you have the longer-term implications of a much bigger fiscal deficit, higher debt burden, and questions about the potential growth rate, what that is going to be after this recession. we are taking a look at cumulative losses that are for income as much as 7% of gdp, fiscal deficits that

of jp morgan.are wondering what type of shape we will be in in terms of coronavirus and have -- and the impact it will have on the economy. will it be a that are you or v? my best guess is a sharp incline out. give me what you are using to model what kind of recovery we are likely to see here. john: the historical precedent but that the economy, response to a markets do, meaning six out of the last seven recessions, the recovery has been as sharp as the move down into recession. but looking how equities, credit, commodities, currencies, bonds paved after that, there is so much variance that i don't think you can use as a starting point. what will the economy do and therefore what will the markets do? you have to keep taking these on its own merit. we know that pretty much every country except china is going to go for a very gradualist approach in terms of the opening economy. that is why you are going to get a much shallower move back to normal growth than what you have seen in the past. when you l

then you have banks like jp morgan, which has an extended credit card arm. goldman sachs and morgan stanleys that are more reliant in some ways on heavy trading, that could see gyrations. which is the best, which is the worst bucket? marty: what we look at, first thing, banks really move in a macro sense. there's very little differentiation amongst the group as they come down and up in these big macro events that we go through. 2018 really reflected that as we went through those compression years, and then the next years when he saw the bounceback. what you need to look at is really not profitability in the sense of returns anymore. it is really about capital, which banks have the most capital to be able to burn through longer and be able to sustain themselves before they have to start giving up on dividends or raising more capital. that is where you start to look at where those cushions are built and how much earnings power they have in the first line of defense to offset that. so far we have seen, across the board, banks being able to pay for what they need

a little bit later, we have jp morgan owning's -- earnings. little bit later on, the cfo of wells fargo joins us. this is bloomberg. ♪ this is ""bloomberg surveillance," i'm francine lacqua in london. a lot of the focus will be on earnings. this is as economists looked on the impact of the lockdown. analysts will try to figure out what the earnings season will bring. gold slipping from a seven-year high. if you look at jp morgan and wells fargo, the global heavyweights in the banking sector that actually will come out with earnings a little bit later. then we have audi saying they may restart car production at the end of next week. this is bloomberg. ♪ these days you need faster internet that does all you expect and way more. that's xfinity xfi. get powerful wifi coverage that leaves no room behind with xfi pods. and now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device that's connected is protected. that's a $72 a year value. no one else offers this. faster speed, coverage, an

we saw equity derivatives strong for jp morgan. l look to morgan stanley to have similar results. j.p. morgan had a strong fifth quarter. they 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

citicorp, jp morgan, wells fargo, and bank of america.o you think that's a good thing to have only four big banks that are based in the united states or is it working? brian: i think it works well. a large amount of the industry, 5000 banks, so you have much more varied financial industry. one thing that makes our industry strong is the variety of participants. we have the largest market share along with those colleagues. if you look at us as a percentage of gdp relative to other countries, it is a completely unconsolidated business. we have the largest retail share, about 15%. if we were coca-cola or pepsi, we think that is not good market share. so there is a lot of room to grow. david: what percentage of profits or revenues are from outside the u.s.? a large percentage? brian: 15% to 20%. david: are you reasonably happy with that? is that where expansion can come? brian: we are expanding outside the united states, and so we have a business and all of the made trading venues that we do in capital markets, trading for asset managers. we

jp morgan versus guggenheim meinhard saying the s&p could fall by 14%.ook at the rest of the market stories. it is about stimulus. a trillion dollars of stimulus coming to bear. rallies. a constructive call with the saudis, 9 million barrels according to my guest. cable more to do with dollar weakness than the severity of bad news about oris johnson. he is in intensive care. nejra: let's pick up on that. boris johnson in intensive care. coronavirusnister's infection worsened. he remains conscious. scientists predict the outbreak will peak in the next seven to 10 days. foreign secretary dominic raab is temporarily running the government. >> the government's business will continue. the prime minister is in safe hands. the focus of the government will continue to be making sure the prime minister's government, all the plans to make sure that we can defeat coronavirus will be taken forward. well investor optimism of the outbreak drove the benchmarks to a three week high, further stimulus is needed. nancy pelosi told democrats on a private conference call. th

this is marv a risk for lending type it -- more of a risk for lending type businesses like jp morgan,ank of america where they take huge provisions and are not sure there will be enough, versus goldman sachs and morgan stanley where they do not have that risk. there is a lot of uncertainty around the markets and m&a is something you asked about. acrossbeen a weak spot fx. sort of a stall in closing deals and the concern is as the pandemic impacts the world economy, will you see a hurt to the pipeline? even though we hear a lot about bankers talking, we are not seeing execution and as long as you have the uncertainty that is helping to fuel trading, it is having a negative impact. francine: thank you so much, alison williams. ♪ ♪ alix: all three earning. results out and about 15 minutes, closing out reports for the big banks. jobless jolt. estimates for initial jobless claims from last week range from 2 million to 8 million. and just covered in oil. opec releasing its monthly report as some crude sales were single digits in the u.s. welcome to "bloomberg daybreak: americas" on this thu

even as i think they are hard to make all of this on top of good news from gilead about remdesir jp morgan morgan and wells fargo terrified me of gigantic loan losses down the road i'm not hearing about mass contact tracing which are needed if we're ever going to reopen to a robust economy i doubt the market will revisit the march lows it won't surprise me if we got hit with a pullback since we're over bought as we are oversold that is not what the market cares about at this moment at the end of the day, the stoom is made up of big, huge companies not the backbone of our economy. you don't have to like it. i know i don't but it is the big dogs with pristine balance sheets and jieg andic scale that survive this lockdown unlike mom and pop outfits, they could afford to go without customers for a very long time it is unfair it's wrong but like it or not, it's reality. let's go to daja in california >> caller: what is going on, jimmy. cramerica. how are you. >> hanging in. how are you partner. >> caller: doing all right calling from california and from bucks county, pennsylvania, your old stom

jp morgan's stock up more than 4% in the premarket.g has extended a temporary production shutdown in the seattle area until further notice, because of the coronavirus. company stopped work at the plant last month, at the time just for two weeks. boeing says the health and safety of employees, families and the community is shared priority. boeing's stock up almost 3 and-a-half percent in the premarket. well, new hope this morning for people battling the coronavirus. gilead sciences may have a possible treatment. the anti-viral drug remdesivir. more than 1700 patients have taken the drug in emergency use capacity. remdesivir is an experimental drug to treat ebola. gilead plans to have a million doses of it by the end of the year. here is your tiger king report of the day. fans of the netflix series in for a big treat. an eighth episode is reportedly set to be released this week. the former business partner of joe exotic announced it in a clip. netflix has not confirmed the episode, though. tiger king has become a must see since the premi

. >>> banks also underperform after jp morgan and wells fargo see their bottom lines hit >>> the imf warns the global economy is facing the worst down turn saying at least the financial system is in better health than it was in the 1930s. >> on the economic front, it makes a big difference there are lenders of last resort they are able to come in and show sufficient liquidity and play a major role in supporting funds and households >>> we have an important oil report just crossing let me walk you through the latest it has said global oil demand will fall by a record breaking amount because of the lockdowns due to covid-19. it has brought mobility almost to a halt. crude will drop an average of 9.3 million barrels a day in 2020 that is a record demapped in april will fall by 29 million barrels a day to a level not seen in a quarter of a century the economy is under pressure in ways not seen since the great depression businesses are failing and unemployment is surging. the activity has fallen dramatically almost everywhere expecting a 4.8% fall in global economic growth this year on th

jp morgan is something to be concerned about. the same thing with wells fargo. in europe, the retail is sagging. sectorh for the still continues. the dax is trading up and german bits are catching a little and the spread is widening out. the volatility continues to come down. 40 whenearly breaking it comes to the vstoxx. monitor what is happening around the world. we are headed toward the european close. it looks more positive than it did earlier under the big story continues to be the efforts being made by governments to reopen markets, the effort being made by governments around the world to support small businesses and the everett for central bank to support the credit market. let's get more insight into the bond and credit space. the fed and other central banks continue to make significant efforts. the fed is buying commercial paper today. nice to have you on the show. we are in a situation where central banks are buying aggressively. spacere buying in the bbb and the high-yield space. what you make of price discovery right now? how realistic are these marke

david stubs, at jp morgan private bank.ll have plenty more on the debt debate and we'll talk about europe and leaders and we'll talk about the u.s. this is bloomberg. ♪ francine: this is "blurring surveillance." francine: this is "bloomberg surveillance." what is your biggest concern about europe. i know there's been a fight with the south and the north about corona bond and debt-free forgiveness and we heard about the e.c.b. probably taking junk bonds as collateral. is there enough solidarity or do you think we're at breaking point in europe? david: i think both of those things are true, that not enough solidarity for my liking for a grand project, the ambition of the euro and the incredible differences between some of the economies within it. i still think we're a very long way from a true breaking point and the real pricing in of breakout risk we've seen obviously in the early 2010's and again, around the greece issues in 2015. i think that we have significant enough programs from the monetary policy authority to control

jp morgan is first up. don't miss our interview with wells fargo's cfo later today.rump says he hopes to reopen the nation ahead of schedule. he says he has total authority to do so. extendst macron france's lockdown to may 11. u.k. is planning its own extension this week. the daily rate of death in britain is expected to keep rising. welcome to "daybreak europe." after the best week for equity , we do start on the front foot. exports in china dropping a little less than expected. u.s. futures in positive territory. as we head into one of the most uncertain earnings seasons on record. a great quote i saw from one of our own analysts talked about the first quarter being history, the second quarter being a mystery. that is how we are set up ahead of the earnings season in terms of equities. the 10-year treasury yield is steady. strongly asng london reopens today. we take a little bit of dollar weakness. you have the commodity currencies outperforming. oil slightly on the front foot after the market seemed a little bit underwhelmed yesterday by the opec-plus deal. coron

vonnie: jp morgan has been saying fade the release bounces. on your side of the bank, would you say the same thing? i'm cautious on over extrapolating the short-term moves because for me, i still think there are significant uncertainties as to how this plays out. one of the signals i will be watching for airy closely over chinaxt few weeks is how goes about lifting their lockdown measures and how quickly they can get their workers back to work while trying to keep a second wave of outbreaks under control. we are seeing stories over the weekend that actually, you are starting to see a few concerns rising again about the potential for that second wave of outbreaks, so i would expect china to give you an earlier lead on how this is going to play out across other developed markets. vonnie: i've been reading that as well, and it has been pretty obvious that markets are taking their cue from other market. we feel like maybe we are a couple of weeks behind europe. certain countries in europe are a couple of weeks behind italy, and so on. for markets

also joining mike and i is joshua younger, head of jp morgan u.s.egies and derivatives. i mentioned we will get a lot of supply coming online today. what is the appetite despite the data for investors to keep buying u.s. treasuries? ua: it is one of these big a nose. there is clearly an appetite to buy treasury, the question is how much. the cbo forecast showed a federal deficit of $3.7 trillion. we have not done that since the second quarter. it is a question of how bad that deficit gets because these are always projections and their uncertain. keep in mind we are talking about receipts and payables. we know how government wants to spend and how much they would get in in taxes. the second is how the treasury will fund that since the data has been in the short term insurance and treasury bills, but ultimately that will have to get turned out into longer maturity securities and that is where the questions live. they are introducing new maturity to try to diversify that demand based. think the treasury will have to find out, like the rest of us, by tr

jp morgan chase out last hour.imon saying the likelihood, quote, of a fairly severe recession made it necessary to build credit reserves of $6.8 billion. resulting in total credit costs of $8.3 billion for the first quarter. wells fargo also building up reserves and saying it is committed to using financial strength to support the u.s. economy. both companies reporting earnings that were below expectations. we knew that was going to happen because it's been a dead first quarter. jp morgan shares non nonethelese up 1%, wells fargo down a fraction. johnson & johnson out with a double beat this morning, it is increasing the dividend by more than 6%, stock is up three and a third percent on j offend & j e company continues to look for a vaccine and goes to clinical trials later in the year on the vaccine. futures pointing to a rally at the start of trading. the dow industrials right now bouncing up 324 points, this is the high of the morning, up one and a third percent, the nasdaq up 135. this on top of dow and s&p 500

let's talk to karen ward, chief market strategist emea, jp morgan asset management. line with us. good to speak to you. we have gone, 15 days ago we were in the lows of the bear market on march 23. we are in a bull market in some parts of the world. how convinced are you by the upside we see in markets earlier this week? byit fundamentally driven better expectations around the virus, or is it short covering nothing to get positively excited about? i have not turned significantly positive. in my view the progress we have made in this story is that we know shutdowns work to contain the virus. we have seen infection rates peak. that is not enough, we need a clearer sign how we will exit the shutdowns. on that, whatever part of the world we look at, we are looking at asia as the lead indicator, there is not enough information on exactly how we exit the shutdowns. we do not have either the medical solutions nor the practical solutions. we have some way understanding, not q2, that is awful. it does not matter. i do not think we are in a world where we have conviction that

now ise, joining me samantha azzarello, jp morgan investment management global market strategist.his, we still get earnings. verizon having to cut its earnings growth forecast. how do you model your price to equity valuation, price to earnings when we don't know what earnings are going to be? samantha: that is the key question right now. the street is expecting -15%, -16% earnings growth for the quarter. i think it really comes down to how do we reopen the economy so that corporate earnings can then go up. that is the order of operations. if you are looking at the valuation like you mentioned, it is not really telling us anything because that is quite skewed. even though the market might be a little more risk on and has definitely recovered quite a bit since the bottom, which looks like that might be the market bottom that we reach, we would say we are still quite risk off and quite cautious going forward. alix: we have seen that was in the equity market, even if we are pushing higher. is that the safest place to then be? samantha: it works really well as an index over the last 10

coming up, jp morgan is ready for the storm. we will discuss that and global markets next. this is bloomberg. ♪ bloomberg. ♪ nejra: economics, finance, politics, this is "bloomberg surveillance." i am nejra cehic in london. let's get a business check with viviana hurtado in new york. viviana: a surge in internet offset a drop-off in smartphone demand. $5 prophet was around billion, sales rising about 5%. the companies will break out the numbers. now to boeing, the company said 787pending work at its dreamliner plant in south carolina, it's a jet factory still in operation. expecting itill when factory workers arms. -- work resumes. demand for long-haul travel evaporates. a new day for when it starts to reopen plans in the u.s. and canada. beginninger saying may 4, it will progressively restart production at factories, and that effectively extends is shut down by two weeks. rivals gm and ford have refrained from setting a restart date for their facilities. that is your bloomberg business flash. nejra: thank you so much. morgan, jamie dimon, says he sees the pandemic leading

this is bloomberg. ♪ earnings, jp morgan the lowest profit since 2013, setting aside $8 billion for bad, 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 will be .igger than 2008 i thought that industry is reacting as they should, putting aside money now, but ba

bank stocks mark their first negative session in five as jp morgan kicks off earnings season with investors anxious to find out exactly how these banks have been impacted by coronavirus. >> this is a look at european stock markets are trading. don't forget they've been closed for the long easter weekend. we saw the look out of china export and import numbers. expecting a plunge of 14% only down 6.6%. still a steel fall but much better than anticipated. that's been paused for the reopening of european markets. talk about when we'll start to see the easing of lockdowns. europe starting to layout plans. that is really starting to help out. we are still witnessing a little red ink at this stage. the other big catalyst is landmark and the production cut of oil it has been a slight increase this morning it certainly didn't move the needle on the spot as anticipated. these markets are a little more anticipated as a result of the lack of movement on the energy price. what we've got now as we switch over the charts. those boards are negatively impacted with err down 21 points translating to the red

feroli mckee and michael of jp morgan, appreciate it.ana: this is "bloomberg daybreak." shares of british banks today are lower. at the urging of regulators, the banks scrapped dividends and buybacks, trying to bolster their capital levels as the fallout from the coronavirus deepens. new york oil holding near $20 a barrel. saudi arabia stepping up production, now pumping more than 12 million barrels a day. russia says it will not boost its own output. president trump says he has spoken to both the russians and the saudi's about ending their price war. that is your bloomberg business flash. alix: thanks so much. one thing on the terminal we wanted to break into was what is happening with supercharged debt. the fear was that all of the moves from banks to other areas of wall street, they were really leveled up when it comes to companies. sonali basak joins us now. can you walk us through the risk we are actually finding within wall street right now? sonali: this is a really thorough take by my colleagues. we are dealing with leverage in su

ofe than 300,000 customers jp morgan's unit that serves smaller firms applied for the loans.0 were actually funded, just a 6% success rate. meanwhile, about 5500 of jp morgan's bigger customers applied and got nearly all of those loans. the banks as it tries to get the loans to as many businesses as possible. coming up on the program, china's reawakening economy. we will discuss what onshore demand for the dollars is actually signaling. this is bloomberg. ♪ alix: time now for trader's take. joining me is damian sassower of bloomberg intelligence. you are watching china's economy. damian: falling demand for oil in china and collapse in in and traveld -- and outbound -- in china. after plunging on the un-person into dropping u.s. rates during march, they started to back up as funding conditions normalized. by normal, i mean paying a premium to hedge the dollar condition, which was effectively removed when forward points turned deeply negative. while this increases the risk of a funding stress in china, i have to note that capital controls are very tight there. there's diminishe

jp morgan leading off with too big to fail banks. right now too big to fail is opec.s an extraordinary weekend for opec. sing the new president of the cartel donald trump is his great assistant. the president helping out in those negotiations. now there is the, now what? here we have harry tchilinguirian. harry, the one thing you taught me is all is not -- whale is not one barrel. they're all different. the permian basin oil is different from the shale of western canada is different than the easy stuff in the gulf of mexico. western canada oil fell under four dollars a barrel yesterday. three dollars a barrel, folks. what does that signal? after this agreement, there's a lot of expectation for market-driven declines in production in such countries as canada, brazil, and the united states. the difficulty is what producers are going to be forced into curtailing production and possibly shutting it down completely. in canada, when you look at the heavy canadian oil shutting down operations could cost you in the billions. in the u.s., we are likely to see much more rapid r

jp morgan kicks off earnings season for the u.s. lenders.ook at what you should expect from wall street's chaotic coder next this is bloomberg. ♪ welcome back to "bloomberg markets," this is the european open. we are seeing the ftse fall as the pound strengthens against the dollar. at their equity indexes across europe are still maintaining gains, including the dax, which is up more than 1% right now. investors today will get their first look at how the coronavirus pandemic is impacting america's largest lenders. jp morgan and wells fargo kick off earnings season today. bank of america, goldman sachs, and city follow tomorrow and morgan stanley will round out the week later on. we are going to get dani burger in right now to discuss exactly what to expect and what we should be watching. what are the key metrics we should be looking at for this season? dani: so, it is really going to be all about credit this earnings season. not really useful here because the forecasts are likely to be so wildly off. the picture has been really murky. the rea

estimates were reduced for a fourth time as jp morgan says the bad recession echoes of 2008.ak it down. this is bloomberg. ♪ tom: you are what day rate. we begin with first quarter sales at bmw plunging more than 20%. the coronavirus is heading all the german automaker markets. andflagship bmw brand, mini rolls-royce were hit and carmakers in europe have shut down their production line. bmw's are scheduled to redeem debt resume operations in two weeks. jamie dimon is warming a bed recession is on the way. tosent his annual letter shareholders and rights that the coronavirus pandemic will trigger a major economic downturn plus, he says it will moree financial stress than the crisis of 2008. -- jpd jay p morgan morgan cannot be immune and they may cut their dividend. alix: thanks so much. for more on banks, we are joined by mike mayo at wells fargo. he expects banks should grow book value and generate more than 10% returns the second half of 2021. it's great to catch up with you. fourth time you downgraded this, a total 40% decrease in earnings versus pre-virus levels. will it

world tour ha the biggest opening day for an on line demand release >> a few of the bigs including jp morganhase and johnson and johnson reporting in the age of coronavirus. here with a preview and some good news on the hiring front, good morning >> good morning. stock futures point to a stronger day of trades after a weaker day yesterday of course this follows a very strong week last week where we saw stocks rebound johnson and skron son in the health care phase and overall fvs investors are producing a weak earning stage we have had encouraging comment os ton rhus front. it appears the worst is over if we continue to be smart going forward. and one company is in focus hiring 75,000. that is am von, they're experiencing an increase in demand they're look to hire more warehouse workers so hopefully that can absorb some of those workers laid off during this economy. >> just ahead, the newest coronavirus hot spots in the u.s. >> and factories can't make it fast but how one artist has captured the item that has become a symbol of this pandemic recommend cascade platinum... ...with the soaking,

according to the wall street journal, some of the biggest banks in the nation like jp morgan chase are not ready to hand out the cash, they're reportedly still waiting on guidance from thprog work. this comes as the news that 10 million americans have filed for unemployment in just the last 2 weeks. >>> as the death toll climbs, a tragic new side effect of the pandemic is emerging. kpix 5's andrea nakano on the families left unable to say their good byes to lost loved ones. >> reporter: grissom's chapel and mortuary was one of the first in the counties to prepare arrangements for a covid-19 victim. not a single family member was able to be here to celebrate the person's life. >> because the family was under mandatory quarantine, they couldn't come be a part of it. so we thought outside the box, and we had a full funeral over the phone, and we prayed over the body prior to them being cremated. it was probably one of the saddest moment of my career. >> reporter: they've experienced a lot of firsts over the last several weeks. only 10 people are allowed to attend funeral services. fortuna

those eager to apply, banking with jp morgan chase are struggling to do so: >> it was really a decisionf do we want to keep our doors open? >> small business owner josh kisler tearing up as he comes to terms with the difficult decision, whose hours on his staff will have to be cut. >> it's incredibly difficult to cut people's livelihood. >> a tough reality facing thousands of small business owners like kisler who are struggling to make ends meet. >> it was definitely one of the hardest decisions and the hardest decisions that i made in a matter of minutes. >> like anyone in his position right now, he wants help. but as he was trying to apply for a loan he is eligible for, he received this e-mail from j.p. morgan chase stating financial institutions like ours are still awaiting guidance from the sba and u.s. treasury. as a result, chase will most likely not able to start accepting applications on friday, april 3rd as we had hoped. the delays also affecting customers banking with wells fargo. the company posting this update on their website saying we are working as quickly as possible to

we are just getting a report, jp morgan says there have been 375,000 applications.se numbers are astronomical. >> they are astronomical. in the first phase two weeks ago, we got the relief package for small business owners in the amount of $350 billion. obviously there is some high demand for that. we thought maybe by the end of the week, we might get the additional $250 billion if approved by ththe senate.. overall, small business owners and small businesses are the back phone of the u.s. economy when it comes to u.s. employment and economic growth. it is crucial to save those small companies, those small farms either way even with those loans. it is likely the unemployment rate meanwhile will bebe reachig double digits. millions of jobs getting lost in the next couple of days and weeks. this problem could be crucial to help those small business owners. brent: 300 75,000 applications. that tells you the economy is in need of major help. outside the new york stock exchange in new york. thank you. finance ministers in the european union have been holding coronavirus

well the ceo jp morgan chaspredicts that we're headed for a major receson because of this pandemic he expects a gross domestic produ to plunge on a 35% annual te in the 2nd quarter. adele tued that's expected to last through the rest of the year. the employment rate s expected to spike as high as 14%. head some harsh wos for us leaders saying that the lack of preparation for this pandemic is hurting the country. well some auto insue companies are giving money back to their customers because peoe of course are driving less because of the pandemic allstate ys that it will refundabt 15% of preums paid by customers in april and may totaling million american family nsurance is giving back about 200 million and both insurance companies customers who actually use their vehicles to deliver food and medicine during the pandemic. pandemic has put an economic strain on a wide array of businesses but as the virus claims more lives one indury is cing a different type of challenge. dennis shanahan repts. >>in the event of a deh a body still has to be buried or cremated in a timely fashion, even tho

the couple has retained jp morgan chase to raise capital for a possible bid on the team >> that woulde crazy if they own the mets >>> the raiders head coach is tackling a new challenge in quarantine zoom school. jon gruden crashed an online statistics class at the university of tennessee. >> all right, folks. it is class time i miss you guys. i miss seeing the faces. >> excuse me, professor morris. >> yes >> my name is jon gruden and i'm the coach of the raiders i'm getting ready for the nfl draft. i don't have a lot of time i just don't know, is it -- do you say data or data which is it? >> well -- >> i'm really sorry to interrupt. i'm a huge tennessee fan i'm a little confused. >> they can't see you. >> nobody can see you. >> there you go. you did it yeah >> thank god my wife helped me out here but no, i had some of my best memories are right down there at cumberland avenue and i don't know if chandler is awake yet. >> my hair is looking a little wild >> you doing all right you guys taking notes? i can't see your papers. >> i got my notes open >> all right you guys have a blessed da

much,da: thank you so hannah anderson, global market strategist, jp morgan asset management.r the first word headlines from new york. reporting what would be a dramatic milestone in the coronavirus pandemic. health authorities say they have the virusths since emerged. some regions are overcoming the virus. china says it's fatalities remains that 3331 with 30 new infections recorded, all imported. virus cases continue to slow in inly with the lowest cases 30 days, but has the highest rate of deaths in the world. germany is claiming limitless financial aid for businesses. angela merkel is warning that they face the biggest challenges foundation.'s there are signs the coronavirus outbreak in new york could be stabilizing. the current level of deaths and demand for intensive care beds means hospitals in a metropolitan area will need to work at an unsustainable pace. governor cuomo says the death rate has been flat for two days. southeast asian economies are boosting payouts, bringing total spending 60 billion singapore dollars or 12% of gdp. virussia's measures with related death

when you talk about a major banker who can influence policy and also make, in the cases of jp morganchase jimmy diamond was someone who was on class and director of the new york board -- is actually head of jp morgan chase. he happened to be in the height of the financial crisis when it first occurred, director of the new york fed from the wall street located this system. here's one of the people who at the time was secretary who had been, when i came in to him from a lot of relationships coming in but he was a new york fed president of the time and became the treasury secretary under obama the turn of the year after that crisis. you have all these individuals who effectively have the ability to direct policy and money coming out of washington to their own institutions which are public institutions. they trade on stock exchanges, monitoring of the federal reserve because one of their day jobs is to be the regulatory answer, the oversight body to these banks. they are monitored and yet, there individuals have such a tight relationship with the central political powers of the country t

on how granular these discussions have been, jp morgan will limit how many people can ride at once.ndrew cuomo talked about in terms of reimagining how we go to work in terms of temperature checks and masks at the desks. and the reconfiguration of workspaces like cafeterias and coffee rooms. goldman sachs is looking at a slow ramp up. coming on employees line. and then 30% and 40% etc. older, theyat are could potentially work from home for the rest of the year. the planning that is happening suggests it will be a slow process. and these banks have some of the departments around the world so they can really set the tone on how organizations will reopen around the world. anna: we are watching and to ourg from talking colleagues in hong kong and broader china. thank you, annmarie hordern joining us from new york on how they are planning to reopen their. up next, we will continue the conversation about the global economy and how it fares in the face of coronavirus. and we will be speaking to mer an interview coming up next. this is bloomberg. ♪ anna: welcome back to the european market

withmpact of commodities jp morgan's head of regional research.omberg. ♪ >> this is daybreak asia. the number of confirmed coronavirus cases around the world is approaching 3 million. that is according to data collected by bloomberg and johns university. more than 200,000 people have died so far with the u.s. alone suffering 53,000 fatalities. lowest inell to the nearly a month. governor cuomo says the worst point is behind the u.s. upn governments are moving towards lifting lockdowns. italy and france are said to announce a gradual reopening after they recorded their smallest rise in deaths in weeks. the e.u. has reported or than hundred thousand fatalities at is bracing for the deepest recession in living memory because of the lockdown. leading poor authorities in asia, the middle east and north america have signed a declaration committing to remain open. .hey urge collaboration the declaration ensures ships can continue to dock and cruise and personnel to be kept as safe as possible. australia is lunching a covid-19 tracing up that will tell us

news coming up from jp morgan over the next couple of minutes, jamie dimon's letter is out and he is surgery. that theing basically earnings at the bank will be in 2020. indicating the institution will not request any regulatory relief and he expects the financial stress to be similar to the 2008 crises. he is saying that the virus will include the fallout from it will include a bad recession. a dividend cut is unlikely, only out of extreme prudence, but these comments obviously paint the picture of the world's largest financial institution bearing up under the strain but certainly it is clear that that financial strain is significant at this point. it is interesting that he draws parallels with the stress being similar to that seen in 2008. more analysis to follow. this is bloomberg. ♪ we have an exclusive about emergency lending facilities put in place and the emotional reactions to what happened friday. it is a sad day. we had job growth for well over a decade, and it is hard to see the numbers so negative. i think everyone expects a very serious downward tilt on the job site and

jp morgan considering 7 million is a statistic for the thursday weekly data. right now, here is viviana hurtado. u.k., then the dramatic turn in the coronavirus outbreak, boris johnson is in intensive care. mr. johnson is receiving oxygen but is not on a ventilator. raabgn secretary dominic will step in for the prime minister and told reporters government business will continue. he is taking over at a crucial time. u.k., thein the coronavirus pandemic is expected to peak. nancy pelosi wants the next round of stimulus to be at least $1 trillion, telling congressional democrats the package should include more direct payments to people and small business loans. donald trump says of fourth stimulus it's can scatter -- under serious concession -- under serious consideration. oil produces -- producers are an end to the price war. global news 24 hours a day, on air and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. row risk on three days in a , and looking at the bloomberg

david is the global market strategist at jp morgan. that does it for the closing bell. "what'd you miss?" is coming up next where we look at how restaurants could be a luxury good. we will discuss what it looks like when the economy does start to reopen. this is bloomberg. ♪ romaine: good afternoon. broadcasting to our viewers worldwide, i'm romaine bostick. this is "what'd you miss?" scarlet: let's get you a snapshot of how u.s. stocks closed on the day and on the week. 1.9% up forng at the dow, 1.7% gain for the s&p 500, and the second straight week of gains as well. days after declaring total authority over states, the president is telling state governors it is their decision over when and how to reopen the economy. he recently unveiled general guidelines. but left all the critical questions unanswered. let's bring in josh. i'm looking at a headline that just crossed about illinois governor. sounds like the governors have a call and they are deliberating and making their decisions. now have states begun to do that president trump has punted the decision to them? >> w

christyan malek of jp morgan, thank you.oming up, it is jobs day in the u.s., and the scope of the iris just barely going to scratch the surface -- scope of the virus just barely going to scratch the surface. we will break it down with dean economist --ef point72 chief economist. alix: we are just about an hour away from the u.s. jobs report for march, expecting a loss of about 100,000 jobs. maki, point72 chief economist, joining me. for ao we do prepare terrible april number? dean: this will give us information on some timing on when the downturn started. is, that will just be a bit of information. but this report will be one of the least informative that we get because we know the april report is just going to be awful. alix: how bad is it going to get? morgan stanley had a shocking note out overnight, looking for 38% second-quarter contraction for gdp, and the unemployment rate deking at 15.7%. what is your call? dean: those numbers, while they sound shockingly weak, are somewhat realistic. i don't think anyone knows the

in fact, jp morgan committed loans in the tens of millions to both ruth's chris and potbelly separatethe weeks prior to this program being launched. and i will also just add this. 4% of the applications of these loans in the ppp, the initial 350 billion, 4% were for more than $1 million but nearly 45% were of the approved dollars under the program, 4% of applications represented 45% of the actual dollar amount which suggests that larger companies received a disproportionate share of the aid and that is on the banks. pray fopraise for the communitys for getting money out to the small businesses. this is shameful from start to finish and they all better work to fix it and that includes jp morgan. maria: well, you know what, it's also the structure of this and the treasury. because more money needs to go to the community banks. jon hilsenrath, that's where main street banks, the community banks -- we're talking about the nail salon, yoga studio, they're banking with the communities banks. those are the banks that need the money and many people told me that there needs to be a shift in th