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Speaker 1: Let's look under the hood right now, and that with

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Speaker 1: some of the individual movers. Christina Kino Bloomberg, Managing editor

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Speaker 1: for Markets Live. Christine, let's start with the banks, starting

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Speaker 1: off the earnings recording season and the banks, what is

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Speaker 1: the big takeaway for you?

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Speaker 2: First off, Well, John, the big takeaway is that banks

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Speaker 2: do love all this volatility. Record stock trading revenue for

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Speaker 2: JP Morgan and Morgan Stanley so JP Morgan seeing a

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Speaker 2: forty eight percent increase in that revenue to more than

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Speaker 2: three point eight billion. Lisa mentioned that there is evidence

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Speaker 2: that they're preparing for an economic downturn. Is very evident

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Speaker 2: in what they're doing for the money that they set

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Speaker 2: aside for sour loans. That's up to nine hundred and

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Speaker 2: seventy three million, way more than the predicted to under

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Speaker 2: ninety million that analysts saw, and that is definitely one

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Speaker 2: of these size you know, they're shoring up there their

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Speaker 2: coffers and they're trying to prepare for what's to come,

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Speaker 2: which is potentially considerable turbulence. According to CEO Jamie Diamond.

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Speaker 3: Now, this record volatility, this wasn't accounting for the most

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Speaker 3: recent week, right because the quarter ended a couple of

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Speaker 3: weeks ago. So it's interesting that even before this week

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Speaker 3: there's still problems.

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Speaker 1: So they're going to see more trading problems.

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Speaker 2: More basically, yeah, yeah, I think so. So there's going

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Speaker 2: to be a law for investors to like heading into

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Speaker 2: the second quarter. I mean that share shares though, are

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Speaker 2: kind of flip flopping. They're up just over two percent

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Speaker 2: at the moment. We did see some pre market weakness

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Speaker 2: for for JP Morgan, so a lot of volatility again,

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Speaker 2: but this is the sort of environment.

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Speaker 1: Okay, that's that's the trading part. What about the other

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Speaker 1: parts where the banks make money or lose money? How's

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Speaker 1: that business doing?

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Speaker 2: Yeah, well, I mean they're still kind of it seems

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Speaker 2: like they're still doing well. You know, looking at Morgan

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Speaker 2: Stanley for instance, they're also hitting a record trading revenue,

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Speaker 2: right so they saw four point one to three billion,

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Speaker 2: but the reaction to that seems a bit more lukewarm.

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Speaker 2: I think we're seeing for Morgan Stanley though, higher expenses

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Speaker 2: for their part. That's at twelve point one billion for

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Speaker 2: non interest expenses because of the fact that they laid

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Speaker 2: off about two thousand employees in March, and you know

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Speaker 2: that added to their serviance costs of one hundred and

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Speaker 2: forty four million.

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Speaker 1: Okay, so in terms of cost controls, who's doing what

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Speaker 1: that that's a big theme too.

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Speaker 2: Yeah, definitely, John, because I think you know, heading into

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Speaker 2: the second quarter, we are seeing a lot of volatility

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Speaker 2: that's definitely going to be good for banks. But then

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Speaker 2: it's a question of are they going to be able

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Speaker 2: to keep those costs under control and kind of really

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Speaker 2: maximize the revenue that they can read from what's happening

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Speaker 2: in markets. And so yeah, there's a lot to be

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Speaker 2: said about differentiating between these banks if they're all generating

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Speaker 2: really sky high revenues, and it's really going to be

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Speaker 2: all about how they manage the cost side of things.

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Speaker 2: And that's probably what the investor are going to be

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Speaker 2: looking at in terms of kind of which bank is

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Speaker 2: doing the best and where are they going to be

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Speaker 2: putting their money for investors?

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Speaker 1: Right, what else are you looking at?

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Speaker 2: Looking, of course, at some of the casualties of this

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Speaker 2: raging trade tensions between US and China, Texas instruments very

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Speaker 2: much call in a cross hairs there. That's some more

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Speaker 2: than seven percent today and that comes after we heard

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Speaker 2: from a Chinese Semiconductor Body, which said that the government

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Speaker 2: will put tariffs on chips based on where they're manufactured

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Speaker 2: rather than where they're shipped from. And so what that

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Speaker 2: does is it does clarify the kind of costs that

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Speaker 2: Texas instruments companies like Intel will incur if these trade

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Speaker 2: you know, terriffs will push through between US and China.

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Speaker 2: But it also makes it very clear that the cost

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Speaker 2: is going to be much higher than what they're dealing

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Speaker 2: with now, and that's really weighing on Texas instrument shares.

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Speaker 3: Christine, you're the managing editor of Markets. What else are

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Speaker 3: you looking at? There's there's a lot going on in markets.

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Speaker 2: There's a lot in Marcus. I mean, you know, I

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Speaker 2: love a macro story. So you know, treasuries, John you

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Speaker 2: mentioned earlier. I mean, that's still very much in the crosshairs.

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Speaker 2: We're seeing yield higher across the board todayarticularly in the

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Speaker 2: long end of the curved last light lookers. Ten year

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Speaker 2: yields up about eight basis points, thirty year yields up

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Speaker 2: about six basis points, and that really speaks to kind

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Speaker 2: of I think the lingering inflation concerns that are stemming

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Speaker 2: from this potential trade war that's emerging, particularly between the

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Speaker 2: US and China. So the two world's biggest economy is John,

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Speaker 2: I mean, you know, and Emily. I think it's really

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Speaker 2: impossible for the global economy to not feel the impact

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Speaker 2: of that, particularly when it comes to inflation,