mr. gorman with our erik schatzker, james gorman of morgan stanley, and you look at the bank tightened, eachdifferent past, and mr. gorman has huge accolade for what he has done with wealth management. look at the earnings report with gerard cassidy from rbc market capital. i am going to cut to the chase. there is a portrait in the president's office of andrew jackson. this goes back to the united states fear of consolidation. out of this pandemic, will we see a rollup of the gerard cassidy world? gerard: thank you for having me on the show, and yes, i think that is going to be one of the inclusions or consequences of this unfortunate time we are living in, that in 2021 when things have settled down for the banking sector, i believe you will see more large banks, more large regional banks probably merge together as they realize the economy will drive efficiencies in higher probability. this is a difficult time for the industries and some of them will realize they will be better off merging with a large partner, and that will probably take place early to middle next year. excelou have an spre

mr. gorman very shortly. this is bloomberg. ♪ >> welcome to our bloomberg television and radio audiences, live from new york city. i'm erik schatzker. morgan stanley reported earnings this morning, and it was mostly a strong performance, given the extraordinary period we've lived through, the volatility in march. with us for an interview is none other than the firm's chairman and ceo, james gorman. thank you for joining us. james: thank you for having us. erik: you had the coronavirus. you spent a month at home, running and 80,000 person firm. how are you doing? james: you know, i'm doing great. thank you. i am completely recovered. to be perfectly clear, i had the virus, but i was one of the lucky ones. i was not hospitalized. my lungs did not get infected, which was a real blessing. unpleasant, it certainly, and those could -- certainly, in those conditions, is manageable. my heart goes out to those who had out as fortunate or who underlying health issues, and the elderly who have struggled and have tragica

mr. gorman. from london and new york, this is bloomberg. ♪ ♪ tom: good morning, bloomberg "surveillance." with us from citi, steven wieting. as a general rule with winners and losers, do i want to be left diversified now? do i want to attempt a concentration in things i hope will be successful? steven: i think that has been our strategy for the last couple of months, that certain industries will be the right ones, that you would rather be a poorly capitalized medical mask maker then being a well-capitalized airline. in a sense, we would put the sector impact first, strong balance sheets in line, and i would just say that there has been so much dispersion in pricing in the last couple of sector, onefavorite of our unstoppable themes has been investing longevity, invest in the health care sector. american health care is the biggest sector in the u.s. stock market, so having those investments in the health care sector has obviously played to this particular crisis, or any economic slump where it is

mr. gorman spring to erik schatzker. coming up later we will be speaking the cleveland fed president.miss it. this is bloomberg. ♪ >> what kind of world will we have when we have immunity from it? when we have the right testing? there are so many unknowns. back in 2008, it was a collapse of the whole financial system, and had it not been rescued, then who knows what long-term damage multi-decade might have been to the economies? >> the problem is gigantic. the result is we have to ploy our significant and we need to move very rapidly. >> more specifically, gdp is forecast to decline 30% in the second quarter before recovering in the third and fourth quarters resulting in an economic contraction for about 6% of the year. this compares to growth expectation just a few months ago. >> this is a crisis like no other. it is important for countries to use the monetary policy and use their fiscal tools to support the economic activity. that will also help financial stability going forward when you can get a stronger recovery. francine: that can be used. this is what your markets are doing goo

mr. gorman. coming up, andrew sheets of morgan stanley. please stay with us. this is bloomberg. ♪ francine: good morning, good afternoon, good evening, everyone. this is "bloomberg surveillance ," your insight into politics, markets, and economy. let's get to andrew sheets. good morning to you and thank you for joining us. we were talking about market reaction. they are looking at infections, a lockdown easing. are you worried that the markets are getting ahead of themselves? andrew: i don't think the markets are getting ahead of themselves. i think risk premiums across a lot of asset classes are still attractive. obviously we have rallied back fast, but i do think broadly the valuation picture is fine. but i do think actually the biggest risk is that it is tempting to think that kind of a faster reopening is a good scenario for markets, that the faster that things can kind of get back to normal, that will be a better market outcome. i think the real risk is that the better market outcome is that the opening is sustainable. i think what the markets are not pri

mr. gorman.ht now we want to drive forward to what we're going to be doing for the rest of this hour. gideon rose, foreign affairs magazine. onir new issue is very much climate change, be pushed to the side but i'm sure gideon rose to the essays we have seen in foreign affairs have some terrific perspective on the international relations of this pandemic. please stay with us. historic day for oil. this is "bloomberg." ♪ viviana let's get your first word news. we begin with the deal that is close on the coronavirus. president trump has joined democratic leaders and some members in his administration working on a new package that will provide up to $500 billion. more money would go to the loan program for small businesses plus hospitals and testing. now to china, the nation adding stimulus after the economy shrank for the first time in decades. thanks cutting borrowing costs. the government promising to sell another $141 billion in bonds for infrastructure spending. vice president mike pence will d

mr. gorman, just want to point out the market for you we have 15 minutes left of trade and we are racing to new session lows here. the dow is down more than 1,000 points, 1,015 points, down 4.7%. remember, this comes after a pretty strong rally for the markets to end the quarter and the week but also a pretty dismal quarter overall for stocks president trump last night warning of a very, very painful period here for the next few weeks for america. that's clearly impacting sentiment. this is the last commercial break we'll take before we take you into the close up next, uninterrupted coverage of the final minutes of trade when we go inside the market ne the dow down 1,026 points. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. there are times when our need to connect really

mr. gorman come on and speak, and he sounds like he did before, i found it reassuring maybe it's the slim reading but it's nice to see a guy back at work >> indeed. jim, highly transmissable, and relatively fatal for sure. jim, what's on mad tonight >> one of the greatest insurance companies in the world is chubb. let's find out what they're thinking mike -- a testing company, agilent because testing is the solution i think we're not as far away as people think the vaccine, sadly, i think we're far away working on it. >> see you tonight 6:00 p.m "mad money". to everybody, good thursday morning. i'm carl quintanilla with sara eisen and david faber. the s&p is in the red as the data continues to roll in negative housing starts, jobless claims and others this morning that are historic in many ways. watching oil as well even as we get guidelines, sara, out of germany, north dakota now that are basically looking at way to open their economies beginning the first of may >> president trump hosting a call with governors to talk about the reopening and what it can look like. we've got to hit the u

think what we want to do, john gorman, please, i know how you are so involved in this, from the great state of texas, would you like to say couple of words here? >> thank you mrent, thank you for convening a

think what we want to do, john gorman, please, i know how you are so involved in this, from the great state of texas, would you like to say couple of words here? >> thank you mr. president, thank you for convening a meeting, many of us have been talking together, but we can't get done what needs to be done, only you and the administration can, particularly, getting the attention of the saudis and flooding the market is really adding insult to injury at a time when our commerce is suffering anyway because of the coronavirus. this meeting could not be more timely. i agree with what's been said about the importance of affordable energy to our standard of living. really, we have changed the world as a result of the production of domestic energy here and improve the quality of life for a lot of people. >> president trump: thank you very much. john agrees, we were talking about it the other day, you have all done well, you have also kept energy very affordable. very, very affordable. a lot of it. we have not had any problems, do i see dan back there? i was looking, i thought that looked like dan. >> i want to thank you for convening this meeting, you know, under th