1 00:00:00,040 --> 00:00:08,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The. 2 00:00:08,720 --> 00:00:12,520 Speaker 2: Stock Movers Report, your roundup of companies making moves in 3 00:00:12,600 --> 00:00:15,880 Speaker 2: the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,880 --> 00:00:19,240 Speaker 3: Let's take a look now add some stocks making news 5 00:00:19,280 --> 00:00:21,880 Speaker 3: in the week ahead. I'm Nathan Hager, joined by Bloomberg 6 00:00:21,920 --> 00:00:25,880 Speaker 3: Intelligence senior US Banks analyst Herman Chan, and it is 7 00:00:25,920 --> 00:00:29,240 Speaker 3: all about the banks this week, with three heavyweights kicking 8 00:00:29,240 --> 00:00:33,640 Speaker 3: off earning season on Tuesday, JP Morgan, Chase Wells Fargo 9 00:00:33,840 --> 00:00:37,120 Speaker 3: and City Group. Herman, let's start with the big guy. 10 00:00:37,240 --> 00:00:40,280 Speaker 3: What are you watching for from Jamie Diamond in company? 11 00:00:41,200 --> 00:00:44,160 Speaker 1: Yeah, it's going to be a great and interesting quarter 12 00:00:44,360 --> 00:00:47,839 Speaker 1: for Jamie Diamond, JP Morgan and the rest of the banks. 13 00:00:48,240 --> 00:00:55,000 Speaker 1: We're an interesting setup heading into earnings with heightened Jipoo concerns, stackflation, potential, 14 00:00:55,320 --> 00:00:58,120 Speaker 1: private credit worries. That's all been weighing on the group. 15 00:00:58,520 --> 00:01:01,080 Speaker 1: On the other hand, one cre is looking to be 16 00:01:01,120 --> 00:01:05,280 Speaker 1: pretty solid, with JP Morgan expecting fifteen percent growth in 17 00:01:05,560 --> 00:01:08,560 Speaker 1: trading revenues and also investment banking could be up that 18 00:01:08,640 --> 00:01:12,399 Speaker 1: same level as well. We're also seeing a pickup in 19 00:01:12,640 --> 00:01:17,480 Speaker 1: commercial lending activity, which is helpful across the group, and 20 00:01:17,520 --> 00:01:22,720 Speaker 1: some margin stability and really good performance across the credit 21 00:01:22,800 --> 00:01:26,920 Speaker 1: quality as well, so macro concerns, but the underlying fundamentals 22 00:01:26,920 --> 00:01:27,880 Speaker 1: still look really strong. 23 00:01:28,040 --> 00:01:31,000 Speaker 3: What has you thinking those underlying fundamentals still look strong 24 00:01:31,120 --> 00:01:33,880 Speaker 3: given you know so much of the concern we have 25 00:01:34,000 --> 00:01:36,640 Speaker 3: in the market right now around all the uncertainties and 26 00:01:36,680 --> 00:01:38,720 Speaker 3: the economic impact from the war Iran. 27 00:01:39,520 --> 00:01:43,400 Speaker 1: That's right. I would characterize the economy right now as 28 00:01:43,480 --> 00:01:47,760 Speaker 1: really resilient. So we're seeing that resiliency flow through into 29 00:01:48,040 --> 00:01:52,120 Speaker 1: the bank's earnings and profitability. On the other hand, really 30 00:01:53,040 --> 00:01:56,280 Speaker 1: what we're focused on going forward is what's going to 31 00:01:56,280 --> 00:01:59,400 Speaker 1: happen next and guidance will be key for across the 32 00:01:59,440 --> 00:02:03,160 Speaker 1: banks that we cover. Are we seeing any sort of 33 00:02:03,280 --> 00:02:08,680 Speaker 1: cracks and credit due to higher energy costs that consumers 34 00:02:08,720 --> 00:02:12,040 Speaker 1: are facing today. Are we seeing any cracks and credit 35 00:02:12,280 --> 00:02:15,359 Speaker 1: on the commercial side as well? And is the market 36 00:02:15,440 --> 00:02:20,800 Speaker 1: volatility affecting some of the backlogs for areas like investment 37 00:02:20,840 --> 00:02:24,120 Speaker 1: making and ipo? So those are questions that the bank 38 00:02:24,120 --> 00:02:28,000 Speaker 1: man teams will need to answer on the first quarter 39 00:02:28,040 --> 00:02:28,840 Speaker 1: earnings calls. 40 00:02:29,040 --> 00:02:32,080 Speaker 3: And when it comes to Wells Fargo Herman, how are 41 00:02:32,120 --> 00:02:35,200 Speaker 3: they doing now that they're not under that asset cap 42 00:02:35,240 --> 00:02:36,120 Speaker 3: restriction anymore. 43 00:02:36,800 --> 00:02:37,280 Speaker 2: That's right. 44 00:02:37,320 --> 00:02:39,600 Speaker 1: So that's going to be one of the growth stories 45 00:02:39,639 --> 00:02:43,800 Speaker 1: for the banking group. And in the first quarter reporting 46 00:02:43,880 --> 00:02:47,840 Speaker 1: where another quarter outside of the asset cat we're going 47 00:02:47,880 --> 00:02:51,200 Speaker 1: to see some strong balance sheet growth for Wells Fargo, 48 00:02:51,360 --> 00:02:54,639 Speaker 1: continuation of what they were reporting in the fourth quarter. 49 00:02:55,120 --> 00:02:57,760 Speaker 1: That's really going to be reflected in areas like trading 50 00:02:57,800 --> 00:03:05,600 Speaker 1: assets within the bank and also in areas like lending 51 00:03:05,639 --> 00:03:09,320 Speaker 1: in the markets business lending to these non bank financial 52 00:03:09,320 --> 00:03:13,639 Speaker 1: institutions that I alluded to earlier. So it's one other 53 00:03:13,680 --> 00:03:16,040 Speaker 1: thing that we're looking for is maybe a rebound in 54 00:03:16,040 --> 00:03:19,760 Speaker 1: the capital markets results relative to its peers. I would 55 00:03:19,880 --> 00:03:22,400 Speaker 1: mention in the fourth quarter they lagged a little bit, 56 00:03:22,440 --> 00:03:24,920 Speaker 1: so hoping for a rebound there in the first quarter. 57 00:03:25,280 --> 00:03:26,920 Speaker 3: And when it comes to a city group, we had 58 00:03:26,919 --> 00:03:29,520 Speaker 3: some recent reporting from Bloomberg News that they might be 59 00:03:29,639 --> 00:03:33,760 Speaker 3: thinking about buying a regional bank to grow their business further. 60 00:03:34,160 --> 00:03:36,440 Speaker 3: How real is that? Do you expect that to come 61 00:03:36,520 --> 00:03:37,280 Speaker 3: up in the call? 62 00:03:38,120 --> 00:03:38,480 Speaker 2: I do? 63 00:03:38,800 --> 00:03:42,240 Speaker 1: I think analysts will probe on that. I think in 64 00:03:42,320 --> 00:03:50,720 Speaker 1: the near term probably Jane Frasier, their CEO, pauses that potential. 65 00:03:51,480 --> 00:03:55,880 Speaker 1: In the near term, I think that's really reflected due 66 00:03:55,920 --> 00:03:59,880 Speaker 1: to the fact that their evaluation is relatively weaker than peers. 67 00:04:00,040 --> 00:04:02,520 Speaker 1: They're going to need to improve in order to make 68 00:04:02,640 --> 00:04:06,480 Speaker 1: an M and A deal work financially. That being said, 69 00:04:06,720 --> 00:04:10,360 Speaker 1: they have a investor day coming up in May, so 70 00:04:10,440 --> 00:04:14,760 Speaker 1: we'll hear more about that in the first quarter reporting, 71 00:04:14,800 --> 00:04:18,240 Speaker 1: and we think first quarter results really lays the groundwork 72 00:04:18,320 --> 00:04:24,280 Speaker 1: for some positive news heading into the investor Day. 73 00:04:25,960 --> 00:04:29,960 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 74 00:04:30,080 --> 00:04:32,640 Speaker 2: us throughout the day for the latest roundup of companies 75 00:04:32,720 --> 00:04:35,800 Speaker 2: making news on Wall Street and for the latest market 76 00:04:35,839 --> 00:04:40,320 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 77 00:04:40,400 --> 00:04:43,880 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 78 00:04:43,960 --> 00:04:45,440 Speaker 2: the Bloomberg Business app.