Our next guest is pretty bullish on the regionals for 2026. Erica Ngerian, UBS senior equity research analyst focusing on the large cap banks joins us this morning. Erica, happy Friday.Good to see you. >> Good to see you. >> I was going to ask you whether or not the environment can get any better, but I think you probably think it can.>> Look, I mean, especially for the regional banks, right. They have really suffered from all of the market share loss and direct lending to the non-banks. And last Friday, th ...

Core Perspective - The article discusses the political strategy of Democrats focusing on the concept of "affordability" to critique the economic performance under President Trump, highlighting a disconnect between political messaging and the economic realities faced by many Americans [1][5][6]. Economic Sentiment - Affordability is defined as the ability to meet basic needs without financial fear, such as paying bills and providing for children, which resonates with a significant portion of the population currently struggling economically [4][5]. - The perception of economic hardship is prevalent, with about one-third of the population feeling economically insecure, leading to increased reliance on credit cards for essential purchases [5][11]. Political Messaging - The article emphasizes that political leaders, including President Trump, may be out of touch with the public's economic feelings, as they attempt to portray the economy positively despite widespread concerns [6][7]. - The discussion highlights the challenge for Republicans in addressing economic issues without appearing disconnected from the realities faced by voters [7][10]. Policy Implications - The article suggests that the current administration needs to implement effective policies, such as deregulation and healthcare reforms, to improve economic conditions for average Americans [8][12]. - There is a call for Republicans to propose tangible solutions, such as direct payments or subsidies, to address the economic challenges and counter the favorable perception of existing healthcare policies [9][10].

What is FSOC. >> FSOC is the abbreviation for the Financial Stability Oversight Council. It was a council created in the wake of the financial crisis to make sure the financial system didn't blow up again.It's composed of top regulators. The Treasury Secretary is the chairman. The head of the Federal Reserve is on it.Top financial regulators from the federal and the state level are all part of the group. They're supposed to monitor the financial system. Over the years, what they have generally done is they' ...

We got some uh breaking news I want to get to right now from the Treasury. Some big changes coming to the Financial Stability Oversight Council. Our own Steve [music] Leeman, economics, senior economics reporter joins us with that exclusive story.What you got. >> Hey Andrew, CNBC has obtained exclusively the contents of a letter written by Treasury Secretary Scott Besson, proposing a pretty radical rethink of how the government will promote financial stability and prevent systemic risk. Rather than addition ...

Over the past year, the Fed has reduced their target rate by 175 basis points. And it now stands at three and a half and three-quarter percent. Noteworthy, in today’s meeting, there were three dissents. Trump’s man, Stephen Miran, wanted a half a point cut. Obama’s man, Austan Goolsbee, didn’t want any rate cut. And the Kansas City Fed’s Jeffrey Schmid, also voted against the rate cut. Stock markets roared with the Dow up almost 500 points, the S&P 500 almost hit a new high, and bond yields came down, inclu ...

Core Viewpoint - The market is anticipating a 25 basis point cut from the Federal Reserve, with discussions around the implications of this decision for the financial sector being crucial [1][2][3]. Federal Reserve Expectations - The market expects the Fed to potentially go on hold for the January meeting and resume cuts in March, influenced by economic data [5]. - The upcoming Summary of Economic Projections (SCP) is expected to indicate one or two cuts next year and the following year [4]. Banking Sector Insights - The larger banks are benefiting from a resurgence in capital markets activity, including M&A and deregulation themes, leading to a constructive outlook on bank stocks [6]. - Factors contributing to the positive performance of bank stocks include loan growth, higher fee income, and positive operating leverage, which are projected to continue through 2026 [7]. Regional Banks and Competition - Regional banks are facing challenges due to a lack of economies of scale and a deteriorating regulatory environment, which may hinder their performance compared to larger banks [8]. - The banking industry is seen as needing consolidation, with some mergers expected to proceed more smoothly than others [9]. Fintech Impact - The competitive landscape is intensifying with the presence of fintech companies, which are forcing traditional banks to adapt and invest significantly in technology [11]. - Major banks are projected to spend around $80 billion on technology this year to keep pace with evolving market demands [11]. M&A Activity - There is ongoing M&A activity within the banking sector, with banks expanding their financial services offerings and forming strategic partnerships [12].

Core Viewpoint - Wells Fargo projects a bullish outlook for the S&P 500, expecting it to reach between 7,400 and 7,600 by 2026, indicating a potential gain of up to 11% driven by consumer spending, AI investment, and deregulation [1][2]. Group 1: Market Performance and Projections - The S&P 500 is currently up 16% this year and is on track for its third consecutive year of double-digit gains, having previously logged over 20% gains in both 2023 and 2024 [3]. - Wells Fargo's forecast for the S&P 500 aligns with other positive outlooks, with predictions ranging from 7,100 to 8,000 [2]. Group 2: Key Drivers of Growth - Three main factors are expected to support stock prices in the upcoming year: lower interest rates, benefits from the AI investment cycle, and increased consumer spending due to larger tax refunds from the One Big Beautiful Bill Act (OBBBA) [3][4]. - The OBBBA is anticipated to provide consumers with one of the largest tax refunds in decades, enhancing their spending power [4]. Group 3: Historical Context and Implications - Historical data shows that when the Federal Reserve cuts interest rates while the S&P 500 is near record highs, the index has always been higher 12 months later [5].

The Trump administration’s decision to waive $11 million from Southwest Airlines’ fine for its 2022 meltdown is the latest in a string of deregulatory moves that are a boon to airlines while weakening consumer protections for everyday flyers. https://t.co/tz7V0k0tL1 https://t.co/DpKdshQT5D ...

For Airlines, Trump’s Deregulation Is Gift That Keeps On Givinghttps://t.co/BA4JeSdNbt https://t.co/e4bVjXjTs7 ...

AI Policy & Regulation - The report mentions Donald Trump's AI Action Plan advocating for deregulation to achieve "global AI dominance" [1] - Some members of the American right express concerns regarding the AI Action Plan [1]