WEBVTT - Week Ahead: JPMorgan Chase, Wells Fargo, Citigroup 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Let's take a look now add some stocks making news

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<v Speaker 3>in the week ahead. I'm Nathan Hager, joined by Bloomberg

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<v Speaker 3>Intelligence senior US Banks analyst Herman Chan, and it is

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<v Speaker 3>all about the banks this week, with three heavyweights kicking

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<v Speaker 3>off earning season on Tuesday, JP Morgan, Chase Wells Fargo

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<v Speaker 3>and City Group. Herman, let's start with the big guy.

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<v Speaker 3>What are you watching for from Jamie Diamond in company?

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<v Speaker 1>Yeah, it's going to be a great and interesting quarter

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<v Speaker 1>for Jamie Diamond, JP Morgan and the rest of the banks.

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<v Speaker 1>We're an interesting setup heading into earnings with heightened Jipoo concerns, stackflation, potential,

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<v Speaker 1>private credit worries. That's all been weighing on the group.

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<v Speaker 1>On the other hand, one cre is looking to be

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<v Speaker 1>pretty solid, with JP Morgan expecting fifteen percent growth in

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<v Speaker 1>trading revenues and also investment banking could be up that

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<v Speaker 1>same level as well. We're also seeing a pickup in

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<v Speaker 1>commercial lending activity, which is helpful across the group, and

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<v Speaker 1>some margin stability and really good performance across the credit

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<v Speaker 1>quality as well, so macro concerns, but the underlying fundamentals

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<v Speaker 1>still look really strong.

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<v Speaker 3>What has you thinking those underlying fundamentals still look strong

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<v Speaker 3>given you know so much of the concern we have

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<v Speaker 3>in the market right now around all the uncertainties and

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<v Speaker 3>the economic impact from the war Iran.

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<v Speaker 1>That's right. I would characterize the economy right now as

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<v Speaker 1>really resilient. So we're seeing that resiliency flow through into

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<v Speaker 1>the bank's earnings and profitability. On the other hand, really

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<v Speaker 1>what we're focused on going forward is what's going to

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<v Speaker 1>happen next and guidance will be key for across the

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<v Speaker 1>banks that we cover. Are we seeing any sort of

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<v Speaker 1>cracks and credit due to higher energy costs that consumers

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<v Speaker 1>are facing today. Are we seeing any cracks and credit

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<v Speaker 1>on the commercial side as well? And is the market

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<v Speaker 1>volatility affecting some of the backlogs for areas like investment

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<v Speaker 1>making and ipo? So those are questions that the bank

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<v Speaker 1>man teams will need to answer on the first quarter

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<v Speaker 1>earnings calls.

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<v Speaker 3>And when it comes to Wells Fargo Herman, how are

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<v Speaker 3>they doing now that they're not under that asset cap

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<v Speaker 3>restriction anymore.

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<v Speaker 2>That's right.

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<v Speaker 1>So that's going to be one of the growth stories

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<v Speaker 1>for the banking group. And in the first quarter reporting

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<v Speaker 1>where another quarter outside of the asset cat we're going

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<v Speaker 1>to see some strong balance sheet growth for Wells Fargo,

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<v Speaker 1>continuation of what they were reporting in the fourth quarter.

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<v Speaker 1>That's really going to be reflected in areas like trading

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<v Speaker 1>assets within the bank and also in areas like lending

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<v Speaker 1>in the markets business lending to these non bank financial

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<v Speaker 1>institutions that I alluded to earlier. So it's one other

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<v Speaker 1>thing that we're looking for is maybe a rebound in

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<v Speaker 1>the capital markets results relative to its peers. I would

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<v Speaker 1>mention in the fourth quarter they lagged a little bit,

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<v Speaker 1>so hoping for a rebound there in the first quarter.

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<v Speaker 3>And when it comes to a city group, we had

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<v Speaker 3>some recent reporting from Bloomberg News that they might be

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<v Speaker 3>thinking about buying a regional bank to grow their business further.

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<v Speaker 3>How real is that? Do you expect that to come

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<v Speaker 3>up in the call?

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<v Speaker 2>I do?

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<v Speaker 1>I think analysts will probe on that. I think in

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<v Speaker 1>the near term probably Jane Frasier, their CEO, pauses that potential.

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<v Speaker 1>In the near term, I think that's really reflected due

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<v Speaker 1>to the fact that their evaluation is relatively weaker than peers.

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<v Speaker 1>They're going to need to improve in order to make

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<v Speaker 1>an M and A deal work financially. That being said,

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<v Speaker 1>they have a investor day coming up in May, so

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<v Speaker 1>we'll hear more about that in the first quarter reporting,

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<v Speaker 1>and we think first quarter results really lays the groundwork

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<v Speaker 1>for some positive news heading into the investor Day.

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<v Speaker 2>The Stock Movers report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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