Albertsons ipo. All of the stories that we cover so closely i know. And banks already rallying today off that deregulation news earlier on the day theyre up 1. 6 at the moment. The top of the s p 500 sector. We have a huge show coming up on closing bell. On the day, we get the stress test results that sara mentioned. Well be talking to the ceo of barclays in a rare exclusive interview. Thats just about five to ten minutes away after the close, the they will join us this is the sign for the first time in months so lets get the pictures here mike santoli is here for the markets. The moves and valuations he is tracking the surging covid19 cases across the u. S. Mike, first to you. We have a pause today in the markets within a pouz. That is similar to a couple weeks ago. We this that big down day number real sustainable followthrough to the down side why is that . It doesnt seem like theyre overleveraged in a way that kree auts a liquidation cycle on the down side. There you see that flat lining there above the lows we saw of a week ago monday. I think the way to think about it is this pushpull between concerns about the pace and strength of the reopening. But then again supportive credit and financial conditions and also rotation within the markets. You mentioned the strength in the banks. That actually has been something that is taking up the slack today for the indices. Here is stocks versus bonds. So far this quarter, the quarter about to end, of course, next week a lot of people on wall street handicapping how much money by Pension Funds and other asset allocators may have to come out of stocks and reallocate it back into bonds just because of the vast outperformance of equities over bonds you see here, more than 14 on a less than three month basis. So just on net, its going to be tens of billions of dollars. Probably the estimates vary. Some of this is already done it does create at least a perceived head wind and maybe an actual head wind going into next week st if you remember back in march as were ending the First Quarter, a lot of talk about how much money had to go into stocks by asset allocators. They outperformed by more than 20 so far that quarter. A little bit of a head wind. Probably a temporary one i would want to point out if you own a blended mutual fund, vanguard balance fund 60 there are 40, theyve done great flat this year total return kept pace with the stock market with less risk over the last two years as well even though there is not a huge amount of breadth today, given where we were just before the open just immediately after the open and the fact we declined so much yesterday, quite encouraging to see green on the screens in this final hour of the trade. Yeah, you would say basically, it shows that there is not really anything that has built up a lot of immediate stress in the system and created extra selling. Really changed the overall story. Do you have the shakeouts when the big Growth Stocks dont do their share as happened yesterday. And today, you know, theyre not really leading the way theyre not falling apart either so you do have other stuff like smaller stocks and the banks there to take a little slack on a day like today all right mike, well see you soon mike santoli apple announcing theyll close 14 more stores in florida as coronavirus cases in the u. S. Continue to surge. Meg terrell with the details for us, meg . Hey, sara you can use apple as a mark of the epidemiology what is happening with the hot spots in the united states. Now with the 14 stores theyre closing across florida and places like ft. Lauderdale and miami and orlando, you know, this add two stores, they already closed in houston, south carolina, north carolina, and arizona. This was the original announcementst 11 stores that they closed a couple last week states, florida, arizona, texas adding record numbers of cases in the recent days the hospitalizations also incredibly concerning in the areas. The darker yellow is seeing increasing hontizations on a seven day average. The most and texas really, of course, a focus here the state announcing to day, the governor, that theyre pausing theyre reopening plans. Freezing the state where it is not actually taking a step back. Except for hospitals in four counties where theyre banning elective surgeries to make sure they have capacity for covid19 patience that has houston officials sounding alarms saying theyre almost at the limit the normal capacity and now theyre going into that Surge Capacity in texas. So concerning picture there, guys but we heard from the cdc director today that were in a different situation than we were a few months ago with a lot more younger people now being infected back over to you i just wanted to ask about the age. Are the states breaking it out by age and the fact that we are hearing from some of the governors that a lot of the cases are young, should we be encouraged by that . Should we be discouraged by it that younger people are getting sicker if if hospitalizations are going up it really depends on who you ask, sarah now were picking up just more folks. So thats a good thing but he also said that it is possible that these people will spread disease to people that are more susceptible to more see disease. They have to see if hospitalizations and deaths then do pick up as a result of these younger folks getting infected we would love more data. The cdc saying we need more granular data. Meg, thank you very much for that we improved a bit during the top part of the show the s p 500 is up 1 the we have 53 minutes left of the session. After the break, a live interview with the ceo of barclays on the markets Global Economy and how the business performed since it came into play youre watching closing bell on cnbc. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back markets rebounding sharply from march lows with financials leading the charge today an exclusive interview, barclays ceo joining us thank you for joining us how you doing very well, thank you. Very well. And i want to kick off with the rebound i eluded to that weve seen in the markets. From where you sit, does it make any sense to you that youve seen markets rebound so aggressively when the economy still is to follow you have two forces. You have an Economic Contraction in many ways unprecedented but on the other side of that, you have had fiscal and monetary response by the develop countries. But also unprecedented the ability of federal governments and Central Banks to reenergize the countrys quaun take theive easing and direct lending to consumers and businesses and were trying to balance that out one thing i say for sure, the amount of injection of liquidity by the Central Banks has really calmed the markets down quite a bit. People are trying to find relative values. That is the long Term Economic impact on this pandemic. But given the robustness of fiscal or monetary measures, its not that surprising that the markets held up the way they have we heard from some of the Leadership Teams of some of your u. S. Peers the start of the month a couple weeks ago. They seem to suggest that when were talking about trading and Capital Markets that performance in q2 is better than q1. What i would say is that, you know, the financial crisis of 2008 and 2009, the epicenter of that crisis really were the best i think one of the responses by regulators and governments around the world from that financial crisis was to seek a lower role of Bank Balance Sheets and financing the developed world than we historically there is mute aol funds and by insurance companies. They use the Capital Markets as financing vehicle more so, perhaps than the banks themselves and what weve seen, i think, over the last couple months is thats sort of worked. The banks are not the epicenter of the financial challenge by and large, theyre doing reasonably well. And the Capital Markets are extremely robust again, the monetary and quaun take theive easing has been very big issue. You have Central Banks around the world. That is something that no one would have imagined. The high yield market, et cetera, so those banks like barclays that have a very significant role in the Capital Markets and training and underwriting the securities that go to the insurance companies, et cetera, they have had a very good First Quarter we saw it with our results and our market revenues doubled in the First Quarter versus 2019. So for sure the Capital Markets i think are paying a very significant role in trying to get the financing of the developed countries going. The short end of the curve is trading there. And andrew bailey, the new banking governor seemingly reluctant to rule it out altogether what would be your take on negative rates yeah. St you know, i think its a real open question. Whether negative rates really have much throw away in terms of getting Economic Activity going. And they clearly put pressure on the financial industry and for sure when we look at the balance of barclays business in the First Quarter, our Investment Bank and Capital Markets had a double digit return on capital. Our Consumer Bank which had generated that fell to a single digit number and in parts because the Interest Rates were coming down so low i think the governor of the bank of england is keeping his options open negative Interest Rates and in particular, you know, translating the negative Interest Rates to the market themselves its an option that people dont want to discard. I dont think people can do it right now as a very powerful mechanism to get the economy moving are we going to get a v or check mark is it the slow and steady path towards coming back . The imf put out a World Economic forecast that is dire yesterday for global growth. And says that its not going to be made up that much based on the loan activity youre seeing out there and seeing from the place thats reopened, whats your best bet of how quickly well recover half of the uk economy goes through the payment types at barclays. We have a good read there. I say right now we are more optimistic about the robustness of the recovery today than we were a month and definitely two months ago in terms of spending and Consumer Spending and corporate spending on essentials and nonessentials is encouraging that we are into a into a recovery so i would i think we would believe that the recovery will be is not too far away and clearly the pandemic itself and the uk and in europe, i think the numbers are pretty encouraging as well. That being said, the unemployment numbers are deeply troubling. You have o to expect that is going to vn impact on consumer demand over the median term. I think that our view is probably have morrow bust recovery but dont underestimate that there will be a long term demand challenge driven by unemployment so were not going back to the 3 unemployment levels that we were looking at towards the end of last year any time soon uk regulators forced you to cut your dividend. U. S. Regulators deciding today whether to do that with the u. S. Banks. Do you think banks should be given leeway to make up their own minds on capital return plans . One thing i say, wilf, i believe it is a different dynamic today than what we had in 2008 and 2009 the level of engagement between banks and regulators are those that supervise own those that are being supervised is much morrow bust an much more constructive now than it was ten years ago. You know, were in contact daily with the bank of england, vra, sca and very, very frequently with the fed and with the ecb. I think there is a Great Exchange of data and information obviously, the pra and bank of indy and the recommendation or a strong suggestion to the banks about a 2019 dividends so we did spend that we went into this year with the highest level of capitalization, capital risk assets in the history of barclays i think there is a real desire to be cautious and prudent until we get greater clarity of the contraction. I do think that banks are in a much better position i think there will be revenue headwinds. We waived banking fees and i think on the profitability of many the Consumer Banks spending was down dramatically but hopefully the system recovers and i do believer the banks went in with a strong level of capital and our hope is within a reasonable period of time we are looking again at the ability of returning excess capital into shares given how you just described your bank and other banks right now, what does that mean for the outlook for jobs on global wall street there is some concern that, you know, youre using a lot of technology, work from home can you do more with less. So are we going to see layoffs you know, i got a question from a senior Government Official the other day much so when are the people of barclays [ inaudible go back . We have 58,000 people globally 70,000 people are working remotely so the answer is was actually no one actually stopped working were doing it from a different location clearly and one has to marvel at where we are as an industry in terms of technology and operations you know, we can process checks. Question do Foreign Exchange trades we can underwrite bond issuance, et cetera. 70,000 people working from their kitchen tables which is what im doing right now. Thats remarkable. That allows us to go much more cautiously back to work. We can focus on the health of our employees which is our third important target during the crisis but, you know, lets see how technology plays out we have weve held our Employment Base constant throughout this crisis i do think, you know, where people work from, you know, physical footprints and what not will be a lot of time to are view those things. It is extraordinary what weve all done with the operating Technology Platforms that weve got. The financial industry and Banking Industry is a robust part of employment its very important that we are part of the solution of bringing these economies back rvelgt we would look to be regarded as a partner with the countries that we do in order to help this recovery and that includes the people that work for barclays. I want to ask quickly about brexit clearly Boris Johnson has made clear he doesnt want to extend the transition period. So were six months or so away from when that takes place the hard line hes taking, as it relates to your sector, your industry zshgs that make sense to you if there were a firm cutoff who knows where well be in ten years. Would Continental Europe heres Capital Markets be ready to take share from london next year . You know, ive been ive been consistent since the referendum vote. First of all, we got barclays prepared for the hard brexit almost day one we relianced all of our branchs in europe as branches of our bank in ireland. We made the allocations of capital on the management of risk so that we are offset to run our European Business from our european banks which is head quartered in dublin. So were set for hard, soft, whatever type of brexit it s but also say right now the limelight is a little bit you know, id rather have a certainty of a brexit, hard or soft than the uncertainty of what were facing the latter part of last year the second thing i always maintained this view that london is going to stay a Financial Capital in europe and a Financial Capital for the Global Economy. Its not because of where the banks are. Its because again, so much of the Fund Management business managing all that capital is located here in london i dont think its going to leave. We have a very robust legal structure here and then ultimately, i also think that aside from the political ranker, europe and the uk have been partners in the European Union and i think they will continue to have a very high level of cooperation. I think there will be a real push towards equivalency for sure the uk wants to have the independence to make sure its looking very similar to the regulatory construct in the u. S. Keeping a regulatory, i9 is important for us so, you know, even during this pandemic in crisis, the amount of debt they have used to fund the governments is being very robust so i were still a big buyer of london or soft brexit. Good to hear, jess. On the regulatory front, i know you cant comment on the u. S. Stress test which is due in an hour but what about the news this morning from the fdic in terms of interests held against swapz and also on the volker rule. Were you surprised by that and pleased by it . You know, i think pleased by it for sure. I think from the ecb to the bank of england to the fdic and the fed, what not, the