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Speaker 1: Bridge Wall Streets. Heavyweight banks have kicked off earning season

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Speaker 1: there and the message is pretty clear US consumer is bending,

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Speaker 1: but certainly not at this point breaking. Sam Dickey from

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Speaker 1: Fisher Funds is with me now, Hey Sam, good evening, right,

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Speaker 1: So where are we at this reporting season? Who's reported

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Speaker 1: so far? How the result's been looking.

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Speaker 2: Yes, we're less than ten percent of the way through.

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Speaker 2: But the big US banks always kick things off, and

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Speaker 2: they've got a pretty good bird's eye view of the

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Speaker 2: US and the global economy. And they mostly beat expectations,

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Speaker 2: which is quite interesting given how bearish sentiment was sort

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Speaker 2: of two months ago. So JP Morgan and City Bank,

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Speaker 2: especially two giant banks, beaty expectations and that's probably no

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Speaker 2: surprise now given stock markets through at all time highs

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Speaker 2: and bond markets have been volatile, so their trading floors

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Speaker 2: have been humming and minting cash and.

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Speaker 1: How households spending habits going at the moment starting to crack?

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Speaker 2: Yet, yes, that they do have a great view of

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Speaker 2: that and the answer is not yet. So JP Morgan's

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Speaker 2: Jamie Diamond said the consumer is resilient still and City

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Speaker 2: Group CEO said the consumer is holding up nicely. Bank

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Speaker 2: of America said solid consumer spending data and no signs

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Speaker 2: of a recession.

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Speaker 1: All right, So what rests of the bank's really worried

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Speaker 1: about here? Sam?

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Speaker 2: Yeah, so that's a really good question, because everything we've

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Speaker 2: talked about so far was backwards looking for the first half,

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Speaker 2: and most sounded notes of caution for the second half.

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Speaker 2: So Wells Fargo said they expect pressure on borrowing demand

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Speaker 2: for the rest of twenty twenty five because interest rates

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Speaker 2: remain high. Jamie Diamond lamented how expensive equity markets looked

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Speaker 2: and asset prices look pretty high. And as a group,

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Speaker 2: they all talked about the risks of geopolitics, US government

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Speaker 2: debt levels and generally higher interest rates pressuring the ability

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Speaker 2: of the US government to to pay the interest on

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Speaker 2: that debt, and of course, the uncertainty of tariffs and

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Speaker 2: whether they'll kick in in August was talked about a

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Speaker 2: lot by the big banks.

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Speaker 1: Yeah, still a lot of it on setting around that.

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Speaker 1: What does all this mean for investors? Sam?

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Speaker 2: The US economy remains exceptionally robust, and we've seen this

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Speaker 2: many times since COVID when people expected a recession as

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Speaker 2: at April for example this year, post Liberation Day and

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Speaker 2: it just remains very, very robust. But stop market sentiment

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Speaker 2: is red hot. It's been an incredible run in equity

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Speaker 2: market since April the eighth. And the only other thing

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Speaker 2: I would say is it's all about AI at the moment,

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Speaker 2: and any company with AI and the name is going up.

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Speaker 2: And it does seem like the US economy is a

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Speaker 2: little bit of a sideshow at the moment until it's not. So,

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Speaker 2: I would just say in a note caution there given

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Speaker 2: the exceptional run that equity markets have had.

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Speaker 1: And it has been exceptional, Sam, thank you for that.

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Speaker 1: Sam Dickey Fisher Funds.

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