tom: a good summary from adam cole with rbc capital markets.: there is a little chance that the house democrats' package will be turned into law. a $3 trillion package includes and food stamps. passage in the house would give the democrats a marker to sit down while they position themselves for the election. investors are waiting to hear what fed chair jerome powell has to say about the prospect of mass bankruptcies and long-lasting unemployment. he is likely to call on congress to provide additional relief signals that gain he is opposed to cutting the benchmark interest rate below zero. the british economy has plunged into what may be its deepest recession in more than three centuries. -- was down 2% for the quarter and things are expected to get worse. the bank of england is forecasting a staggering 25% contraction. the judge in the case of former national security advisor michael flynn is saying not so fast. the justice department wants to dismiss the case but the federal judge emmett sullivan wants to hear what outsiders think. pleaded gui

but is rbc -- does rbc have a view on yield is it for's into economics?- as it folds into economics? peter: we certainly do. marginally higher, 10 to 15 basis points, certainly in europe there is less aptitude to go there. but overall, we are expecting very low interest rates, certainly central bank rates to stay where they are currently, for a prolonged period of time. so much,r, thank you peter schaffrik of rbc. peter: thank you for having me. tom: particularly good there on the german banking question as well. one of my favorite guests, joseph stiglitz, look for him in the 8:00 hour. stay with us. this is bloomberg. ♪ ritika: this is "bloomberg surveillance." let's get your bloomberg business flash. last$17.7 billion in the fiscal year, after writing down the value of investments, uber.ing wework and who a sign of the massive changes coming to the airline industry, we will separate -- the world's biggest online carrier will be cutting 30,000 jobs. emirates may also speed up the a380.ment of its fleet of the massive double-decker plane can hold almost 5

helima croft, rbc capital markets. great to see you be well. take care. >> thank you >>> speaking of in person, berkshire hathaway's annual shareholder meeting had just a slightly different feel this year, obviously, going entirely virtual for the first time ever. we don't need to tell you why. warren buffett addressing the state of the conglomerate on an empty stage in nebraska and generating plenty of headlines in the process becky quick joining us now to wrap it up becky, he said a lot but the airline comments, they're the ones getting all the tensiatten and moving the markets. >> good morning. as you said, it was a different feel this year none of the 40,000 people who are generally there. he took to the stage, show must go on, and he made the comments. he made the case that you should never bet against america but really the headline that came out of this was the news that he had sold his entire stake in all four of the airlines he built up united, delta, american and southwest. he had a stake of 10% in each of those heading into this. he

equity strategy at rbc capital markets. i always love speaking with lori, not only because she is really smart, but because she is also experimenting with this homeschool situation, which has led to questionable productivity of all of the parents out there. john has done a really good job highlighting how people are moving to cyclical stocks, financials and energies seeing a real gain recently. i am wondering how far this rally can go if we don't see momentum continue in the amazons and netflix. what is your thought? lori: i think it is a limiting factor to some extent. these are the biggest in the market, and you need them to go up if we see the market continued to climb higher. if they don't, you have to see a lot of the other big sectors in the market do a lot of heavy lifting. that is just because of the disproportionate market cap share of some of those big tech companies. other areas like financials are just going to have to work even harder. i've watched the financials. it is another trade that has only taken off rec

will opec ultimately let the world down rbc health elima croft is here that's next. save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you'll only have to pay for the data you need- starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile. >>> at some point, manufacture you will return to an office building likely in new york city, boston or d.c. but vertical cities with high buildings face unique challenges not only keeping people safe but making sure employees feel safe and can come back to work. rxr realty owns more than seven buildings in new york including 75 rockefeller plaza we spoke with the ceo and some of the new changes implemented >> we've created a product called rx well which provides our tenants with the tools and protocols a

taylor: alex zukin of rbc capital markets, thank you for joining us.twitter, shopify allow its 5000 employees to work from home indefinitely even after the dangers of the covid-19 pandemic fade and cities start to lift shutdowns. the ceo of canadian e-commerce giant spoke to bloomberg's emily chang in an exclusive interview earlier this week. >> i do think we are seeing the end of the office. it used to be that office was a place where work is being done. and being remote really meant you are using some digital crutch to be basically in the office. i think what covid is going to accelerate is something that would have happened anyways, but many years from now that really everyone rearranges their understanding of -- at least for companies that can do it, of how the work is digitally done. expect the -- we majority of people that work from home in home offices in the future. emily: what percentage of people would still be in the office on a regular basis? tobias: i would say 20%, 25%. emily: really? tobias: i think that -- i come across a lot of people

we decided to dig a little bit more deeply and find some of the more unusual hedge fund hot dogs on rbc's list. fidelity national information services, charter communications, biogen, abbvie, lot of health care focus stocks along with merck and united health group. very interesting. and throw in salesforce along with jnj and bristol-myers squi squibb. which of these names has the best shot at remaining a hot dog in the second half of the year and which might become moldy leftovers? to the floor show. teddy weisberg and phil flynn. some of the health care names really have a shot at staying hedge fund hot dogs and beyond that. >> i think so. there's a reason for that. it's hard for me to get into individual names because we own some of those names and have owned them for awhile. bristol-myers in particular. i'm always happy, misery loves company so i'm happy when i see other folks that like the same stocks that we like but stocks like facebook, bristol, merck, johnson & johnson, these are all names that we're long. we have been long. i can understand why they want to own them because this

amy wu silverman of rbc capital markets.t to give you an update headlines outside the business world. here's ritika gupta. ritika: president trump again exposing his unhappiness with china. this time it has to do with chinese companies. he tells foxbusiness he is looking at chinese firms listed on the u.s. stock exchange -- on the new york stock exchange or nasdaq that don't follow accounting rules. the fbi has reportedly seized the mobile phone of the chairman of the senate intelligence committee, richard burr, according to "the los angeles times." burr and other senators sold holdings this year after a closed-door briefing on threats from the coronavirus. the international energy agency sees the oil market improving. the iea says demand is a little stronger-than-expected. meanwhile, supply has been reined in by a brutal price crash. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. alix: thank

i think in many ways it's a distraction from what we have to do i like to say at citi national and rbce are where we are and let's deal with it we are where we are and we have a horrible pandemic and we need global cooperation you know, as you've reported this came in not just from china, it came in from europe, it doesn't matter where it came from, it's here. how do we deal with it let's do the testing, let's do the contact tracing and let's develop the treatments and vaccines let's keep our frontline people, our courageous heros in hospitals and emt and first responders get the relief to the states so they can afford it and start putting in place, probably in a phase five bill, the recovery stimulus in the obama era it was $785 billion. my guess is, it's got to be at least 2 trillion dollars the fed can -- the federal government can afford it interest rates are at historic lows unemployment as you reported this morning is getting close to 40 million americans and there's another 20 or 30 that are understaunder employed the data lags. this calls for the '08/ '09 playbook but on steroi

rbc says it's looking beyond the covid crisis. growth will eventually resume in the commercial aerospace market and the beleaguered 737 max will get recertified in the third quarter. what's behind the secret of l brands stock jumping in this final hour despite a 37% plunge in first quarter sales? yeah, the stock is up nearly 20% right now. the secret, well, a good news/bad news situation. yes, the company is streamlining and bad, it will close 250 of its north american victoria's secret stores this year. but the ipo market is actually reopening just a tiny crack today. check out shares of select quote. they are spiking on their first day of trade after pricing the offering at $20 a share, higher than the expected range. the insurance policy comparison website has raised $360 million. right now, when folks are looking for deals, any comparison on pricing is probably going to be something that is really, really popular. the stock is up 36% to $27.31 a share. >>> amazon making a move into india's online food delivery market as the pa

strategist at rbc.a pleasure to have you is it all the central bank fear of inflation driving buyers to gold or is there anything more fundamental at work here in this market >> a lot of what has seen gold rise to these levels has been this overarching sense of uncertainty. we have seen markets come back and break down that tend to be strong and negative. gold has gotten fire under its feet because of the uncertainty. the same time, we see investors move back to public markets, we are not doing it without knowledge of the risk. investors are not only laying in to these trades but also into gold allocations this has pushed through exchange of product holdings to highs we see this around a number of measures this is not just negative rates but the economy as well driving investors to make allocations in this case what do you think that means >> if we are looking at the environment. gold is really the metal people do that through. the question is, is there uncertainty, are there economic questions or chall

talking about the jobs picture bringing in tom from rbc markets. we are talking about summer jobs but let's talk about jobs jobs dare i even ask what kind of an estimate you may have on that number does the estimate even matter because we know it will be terrible nonetheless >> i think it might be the least anticipated worst jobs number in history. that number has been flagged so long at this point adp gave a flag on that earlier in the week. we are looking at the 20 million decline in the number of unemployed drifting to 17% look, again, as you said, everyone is anticipating this. if people wanted to latch on to one thing to watch one of the interesting things would be the number of people that have been unemployed and put on temporarily layoff. if you continue to see another increase there, it gives you some hope that some of these people will come back pretty quickly. >> what we are looking for, i would imagine tom, is the turn in the morning with the weekly jobless numbers that things are turned for the better. do you see that in the future? >>

the rbc have the money and the resources to push for original podcasts and the tv plus program. tracy: what is the monetization strategy? >> monetization would definitely be part of that paid subscription as part of apple tv plus or apple music. at this point, it seems these types of shows would be paid for by apple in lieu of the podcast producers not slapping advertisements on top of the programs. you see spotify doing a mix of both. they pay for shows, but there are also advertisements. itle will skip advertising, is a very small segment in their overall services revenues. it is basically tied to app store search ads. also some other applications, like apple news. but we are not seeing that is very likely for the podcasting effort. tracy: you know better than anyone, anything to boost some of that services revenue that the company more and more wants us to become hooked onto. one final question, when you talk about an original podcast program, it has to have a clear leader. who could be the front runner to lead this effort? they are looking for someone to lead the original po

usht, gerard cassidy joins of rbc capital markets. we are thrilled you are with us.w jon was to talk about the equity markets. we will get a claims report any moment that will show horrific unemployment to your state of maine. how do banks prosper with 20% unemployment? gerard: the unemployment rates we have seen are extraordinarily high. none of us have witnessed this type of unemployment. but we have to remember that the unemployment number, though it is extremely high, unemployment benefits are extremely positive for many workers. so i think what you are going to see is as the economy opens up, these people will get through hopefully this downturn with the end of lemon benefits, and they can get their jobs back. but you are right, it is a challenge for the banks and credit picture, and it has deteriorated significantly for these banks. jonathan: i think we've got some technical difficulties, so forgive us for that. thank you very much for your patience. let's talk about the rate story and why some people don't believe in this rotation into the financials. it is be

initiation of boeing with a buy over at rbc. comments at the cdc about brazil and whether or not that portends a spike for us when we finally do get to winter a lot more to come when "squawk on the street" comes back. at mercedes-benz, nothing less than world-class service will do. that's why we're expanding your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. get 0% apr financing up to 36 months on most models, and 90-day first-payment deferral on any model. there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any

they got a recommendation, a new price target on boeing from rbc. rbc thinks it's going to $164.nough for a $6 gain on boeing, moving up to $140. >>> cvs adding 16 additional drive-through testing sites, just in arizona. they will have a total of 1,000 testing sites all across the country by the end of may. the stock is up just a fraction, 63 bucks on cvs. >>> take a look at the white house. in just a few moments, president trump heads to michigan. he leaves the white house. off he goes to michigan. he's touring a ford plant near detroit. question we are asking, will he wear a mask? the vice president told us he doesn't know. we will find out soon. >>> the new jersey gym that defied the lockdown order and opened up is shut down by the health department. they say it's just a roadblock and they will be back open tomorrow. that's from the owners of the gym. we will speak to one of those owners coming up shortly. >>> a california city with just 13 virus cases says enough's enough. it's time to reopen. we will tell you about the place calling itself a sanctuary city, sanctuary from th

boeing real quick because rich you mentioned it we wanted to make that it's initiated out performing b rbc which has been a real battleground why did you buy more boeing? boeing was confronting liquidity crisis in 2020 boeing had a soupply and demand problem. the supply problem is the max. they haven't gotten it faa approved and the demand problem is the shutdown of the airline if you look forward, we see both of those occurrences correcting themselves where boeing is announced they will restart manufacturing of the max this year and also aviation will resume they have a $400 million backlog. we think the stock, if you have a learner term holding period and want to be into that industry, expect the world to resume in avenue ration, it's a great time to be buying the stock and putting it away. o. >> why is he wrong >> i think there are too many moving parts and not to make a pun. boeing has $64 billion of debt it used to be a cash machine and now it's the opposite. they have demand problems and they is supply problems. even if the max gets reapproved with energy prices this low, it makes th

too.onger euro in the mix, up next, lori calvasina of rbc capital markets on this equity market., this is bloomberg. ♪ staying connected your way is easier than ever. you're just a tap away from personalized support on xfinity.com. get faster internet speeds with a click. order xfi pods to your home in a snap. or change your xfinity services with just a touch. all in one place. you're only seconds away from all of that on xfinity.com. faster than a call. easy as a tap. now that's simple, easy, awesome. >> i just don't think it's credible to believe that a long-term solution to the problems we are facing can be achieved by moving interest rates. >> economic forecasts are hazardous at best, even more so now. >> the uncertainty associated with the pandemic is not likely to go away. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york city for our audience worldwide, good morning. this is "bloomberg surveillance ." alongside lisa abramowicz, i'm jon ferro, with tom keene out today.

has very good things going for it >> let's check out shares of boeing soaring thanks to a call from rbcnalysts initiating the stock with an outperform rating with a $164 price target more than 20% higher where it closed it is based on the expectation that air traffic will rebound by 2021, that's next year and the 737 max is reinstated by the third quarter of next year and we're almost there now and is there a light at the end of the tunnel for boeing or is it still not cleared for takeoff. i know you love these puns and things guy, what do you say >> still not clear i like that that's very clever hopefully you came up with that on your own. >> i can't claim -- i can't claim credit for the clever lines of some very talented segment producers here. >> how unfortunate >> so i know you read the piece and what i'll say is they made a big deal about the defense portion of the company which is something tim has been saying for quite some time and we have mentioned that that it's totally being overlooked so i get the note and understand what they're trying to do. what i will say is this. i thou

rbc, i think initiated this stock on may 20th with $164 price target and i think and we pointed out on that day something that tim had been saying that the market had been completely discounting boeing's defense business and i think now it's being taken into consideration. i think i see what's going on and let's get ahead of whatever good news that's coming and if it's bad news we'll have the ability to turn on a dime. we'll see if that plays itself out. 180 is when the stock went from 80 to 180 in a straight line from early march to april and that's the level you're looking for, but it's a good sound bite, but i don't think they're out of the woods by any stretch of the imagination, my opinion. >> we'll keep track of the stock and back to the markets and our next guest has been trimming te techs, buying banks and let's bring in emily ronan great to have you with us. >> thanks for having me. >> how do you think of the markets in terms of this great rotation will you see new highs in the s&p 500? >> well, this sign of the broadening market is certainly a good one in term was forward loo

i also caught up with rbc's mitch steves he said this should benefit names like applied materials as he argues like nvidia and amd and it would minimize their supply chain risk. >> interesting news, josh. interesting foreign intel which already has i believe four fabs in arizona one of them employing about twice as many as tsmc plans to wonder if they get any incentives to build more or expand their two thank you. >>> still to come, we are going to get art cashin's take on today's market and the road ahead. ayl rhtack. st with us rom home and here to help. hey lily, i'm hearing a lot about 5g. should i be getting excited? depends. are you gonna want faster speeds? i will. more reliability? oh, also yes. better response times? definitely. are you gonna be making sourdough bread? oh, is that 5g related? no, just like why is everyone making sourdough now... but yes, you're gonna want 5g. at&t is building 5g on america's best network. visit att.com to learn more. >>> stocks are having their worst week in about weight weeks. let's check in with the director of floor operations. guys, happ

thanks so much for your time >> gerard cassidy of rbc capital markets. some may be thrown out with the bathwater, tim i am curious if you're finding opportunities since you advocated stock picking specifically for banks >> yeah. i think so remember, was there a time before the suntrust bbnt when we thought there was a flood of marriages of complimentary strengths. i think you also look at the money center banks and my point is that i think they were very conservative i know it's impossible to know on where they threw those loan provisions up and they were certainly putting them up there in excess in many cases of where we were in 2008 and 2009 so i think not every money center bank is created equal, but back to j.p. morgan which is best of breed which has been very conservative in how they've built this business, i think for investors that are taking a median turn view, this is exactly in a crisis like this where you get great opportunities with great franchises. >> karen, i believe we know where you stand when it comes to j.p. morgan. are there other fi

rbc's mark mahaney is wit us now. happy friday. >> hey, jon. >> nasdaq is positive for the year at a time when i just talked to carl, the head of the silicon valley leadership group on cnbc, he said based on his survey job losses in silicon valley looking like they will be on par with the dotcom financial bust what is the likelihood some of these businesses even in tech haven't felt the full weight of reality because of stimulus and other things, but it's coming and are you pricing that in? >> well, i think that's a darn good question. we haven't seen the real economic impact and what happens to consumer spending and most tech is cycled against consumer spending we haven't seen what the real impact is when the unemployment rates are as high as they are and the impact on spending later this year. mighty amazon is going to be negatively impacted if we're staying close to 20% unemployment for six months. we haven't seen the impact of that yet we've seen the impact of what shelter in place restrictions do to businesses an

an alert on boeing rbc initiating coverage with a $164 price target and an outperform rating.37 max crisis not with standing rbc says it sees a favorable risk/reward profile in boeing stock and thinks its defense business is being undervalued. stay tuned, you're watching "squawk box" on cnbc >>> don't forget to subscribe to our podcast. you'll get interviews, original content and behind t-the-scenes acce access look for us on apple podcasts or on your favorite podcast app and subscribe to "squawk pod" today. that's why we create moments to feel kohler clean, every day. ♪ >>> welcome back to "squawk box. i want to draw your attention to something that shows you how polarized the opinion is in this country. regarding the federal response to the coronavirus cnbc and change research asked likely swing state voters for a one word description of how president trump has handled the pandemic you can see right here the divergence of views between democrats and republicans, it is striking >>> when we come back, we're going to check in with jim cramer as we make our way towards the thurs

still ahead on bloomberg markets: asia, we have rbc joining us to discuss the forecast on unemployment and trade tensions. plus, ken wong sharing his bets on chinese onshore and offshore stocks. that is on the way next. this is bloomberg. ♪ tencent reported in 18% rise in first-quarter revenues. platforms, search engines, so those look slightly cheaper. it is going to be important to see how strong of growth they had in the first quarter and how guidance will be in the second quarter. haslinda: having said that, what do you make of the risks? we are seeing a resurgence in u.s.-china trade tensions, perhaps also in virus cases. trajectoryhange the of the stocks and the markets going forward from here? ken: it would to some extent. if you look at where we are right now, most industries expect china to have 1% to 1.5% gdp growth for 2020. if the trade war starts to happen again and earnings starts to deteriorate and we start to see growth fall again in china, that is going to have an effect in terms of valuation and pricing. the markets haven't fully priced in a potential escalation. we d

there was a note from rbc out suggesting that by their modeling gilead will only be able to supply enoughatients with covid-19. how are you looking a the the ability to supply the globe with this drug and what kinds of pressures are you already feeling from governance? >> let me first of all acknowledge the tremendous work of the scientists at gilead. it's only been three months since we kind of became aware of this virus, and we immediately pivoted our attention to the clinical trial work and to the manufacturing supply work. completely understanding we didn't know if the medicine worked but if it did work, we would need a lot of supply and so what our scientists did, actually, in the past three months is took, as you mentioned, a very exacting comprehensive chemical process that is 20 to 30 steps, much of it has to be done sequentially and not in parallel, they took it from a 12-month start to finish time and brought it down to a six-month start to finish time that has allowed us to have exponential growth because we took the actions already in january. so we are focused on making sure

rbc, the analysts are not confident that this can be done. they say here in the u.s.ere we have the drug and we make the drug, they say only a third of the patients that need it might be able to get it this summer. for gilead, they need to make this accessible and affordable, they need to get the raw materials from asia and now they are looking for help from the world to help them do that. stuart: thanks very much. the market opens in just a couple of minutes. we will take you there. we are looking at a modest gain across the board. plenty of green. up for the dow, up for the s&p, up for the nasdaq. we'll be right back. hey, can i... hold on one second... sure. okay... okay! safe drivers save 40%!!! guys! guys! check it out. safe drivers save 40%!!! safe drivers save 40%! safe drivers save 40%!!! that's safe drivers save 40%. it is, that's safe drivers save 40%. - he's right there. - it's him! he's here. he's right here. - hi! - hi. hey! - that's totally him. - it's him! that's totally the guy. safe drivers do save 40%. click or call for a quote today. which is why wh