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A broadening of the market is beginning, says Dynamic Funds' Noah Blackstein
CNBC Television· 2025-06-26 12:09
joining us now with more on the markets, Noah Blackstein, Dynamic Funds, senior portfolio manager. Uh, no, we u, you know, we looked into the abyss when we I think the S&P got down to God, was it 4,800. I don't know where it was.We're we're almost all the way back to new highs. More new highs or now we look around and say, "Okay, what do we do?" Um, we're back to where we started the year basically up a little. We're up just a little.I mean from from the abyss we're up a lot obviously but um you know just f ...
Is the Fed's pause making investors nervous or excited?
Yahoo Finance· 2025-06-25 21:52
As inflation remains steady, the Federal Reserve’s next move could sway markets. In this episode of Stocks in Translation, RBC Capital Markets senior US economist Michael Reid joins Yahoo Finance Senior Reporter Allie Canal and Producer Sydnee Fried to discuss the Fed and what’s to come for interest rates following Fed Chair Jerome Powell’s announcement that they will remain on hold for now. The trio also takes a look at the labor and housing markets, and how to break down the statistics and sentiments from ...
Fed should cut rates at its next meeting, says Solus' Dan Greenhaus
CNBC Television· 2025-06-25 19:48
Let's bring in Solless Alternative Asset Management's Dan Greenhouse. Now, good to see you. To cut or not to cut, that is the question.What's the answer. I listen, my personal view is uh well, listen, as a general view, I think people agree if not for tariffs, they might have cut at the last meeting and probably would be cutting at the next meeting. There's no probably the Fed chair himself said it.Yeah. Well, listen, I I don't think he's articulated as clearly perhaps as he did yesterday and today, but I t ...
Goldman’s Kaplan on Powell, Tariffs, Harvard, Texas
Bloomberg Television· 2025-06-25 19:09
Obviously, we have to start with Capitol Hill. Jerome Powell just on the Hill. He's under really direct pressure from President Trump or President Trump is putting pressure on him to cut those interest rates, but he's planning to wait, citing inflation.How do you expect this to be received by the business community. I think Powell's comments are probably right in line with what the markets and the business community are expecting. I've said this a number of times.We're likely in a disinflation world. I mean ...
AI’s Impact on M&A
Bloomberg Technology· 2025-06-25 17:38
M&A Trends in Tech - Acqui-hires are increasingly common in AI, with companies valuing the talent and expertise of acquired teams [2][3][4] - Smaller investments and acqui-hires can be viewed more favorably by regulators from an antitrust perspective [5] - M&A activity is picking up, with buyers in AI and digital infrastructure becoming more active [8] - Private equity firms have significant dry powder and are looking for deals [9] Factors Influencing M&A - Geopolitical conditions, tariffs, and events in Ukraine and the Middle East are key factors [10] - Interest rates are a key determinant of M&A activity; stabilization or improvement in the forward curve could boost deals [10] - Predictability in antitrust regulations is adding positive momentum to the M&A outlook [11] - Improvement in IPO markets is needed to provide private equity firms with exit opportunities [12] - A disconnect between buyers and sellers on valuation, influenced by interest rates, remains a challenge [14] Specific Areas of Activity - Traditional media companies are restructuring and reevaluating their portfolios due to the disruption of streaming [16] - Sports have become an area of growth and interest, driving up sports franchise values [17] - AI is a dynamic force in M&A, particularly in specialized hardware and hardware integration (software meeting silicon) [18] - Data center deals have doubled in 2024 compared to 2023, driven by the need for greater infrastructure and cloud services [21] Regulatory and Political Environment - The DOJ and FTC are signaling an openness to considering transactions with remedies [24] - The administration is focused on "America First" initiatives and ensuring equality of messaging, particularly for conservative viewpoints [26] - Companies need to understand the administration's objectives and incorporate government relations early in the deal planning [27] - Regulators are focused on tech, particularly regarding free speech issues, but are showing optimism by considering remedies [30]
Donald Trump: "We Have a Stupid Person at the Fed"
Bankless· 2025-06-25 17:01
I got a call from Congress last night. Sir, there's a problem. I said, what is it.Money is pouring in. We don't know how to account for it. I said, check the tariffs.$88 billion came in from tariffs, no inflation, and it's going to get even more. So, I know what I'm doing. So, we have a a stupid person, frankly, at the Fed.He probably won't cut today. Europe had 10 cuts and we had none. And I guess he's a political guy.I don't know. He's a political guy who's not a smart person. But he's costing the country ...
Relatively High Rates, Buyouts Aid Capital One Amid Weak Asset Quality
ZACKS· 2025-06-25 15:36
Key Insights - Capital One Financial Corporation (COF) is well-positioned for growth due to strategic acquisitions, higher interest rates, a strong balance sheet, and a solid Credit Card segment, although it faces challenges from elevated expenses and worsening asset quality [1][9] Growth Drivers - Capital One has engaged in strategic acquisitions, including the acquisition of Discover Financial for $35.3 billion in May, aimed at transforming the credit card industry and unlocking shareholder value [2] - In 2023, COF acquired Velocity Black to enhance customer experience through innovative technology, reflecting efforts for revenue diversification [3] - Despite a marginal revenue dip in 2020, COF has a projected five-year compound annual growth rate (CAGR) of 6.5% for revenues and 4.3% for net loans held for investment (LHI) from 2019 to 2024 [4] Revenue Trends - Credit Card segment revenues are projected to grow at a CAGR of 4.4%, while total revenues are expected to see a CAGR of 5.5% by 2027 [7] - Net interest income (NII) is projected to grow by 4.5%, 4.9%, and 3.5% in 2025, 2026, and 2027, respectively, with net interest margin (NIM) expected to reach 7.03% in 2025 [12] Financial Position - As of March 31, 2025, COF's total debt was $41.8 billion, with cash and cash equivalents at $48.6 billion, indicating a strong liquidity profile [12][14] - The company has investment-grade credit ratings from major agencies, enhancing its access to debt markets [13] Credit Card Segment Operations - The Domestic Credit Card division, which accounts for 94.9% of net revenues, is expected to see revenue increases of 3% in 2025, 3.1% in 2026, and 7.2% in 2027 [16] Challenges - Capital One faces deteriorating asset quality, with provisions for credit losses and net charge-offs (NCOs) rising, reflecting a 13.4% CAGR over the past five years [19] - The company has experienced a 6.8% CAGR in expenses over the last five years, driven by increased marketing costs and inflationary pressures [21] - Total non-interest expenses are projected to increase by 12.5% in 2025, with an estimated efficiency ratio of 59.33% [25]
Markets Approach New Highs on Cooling Tensions
ZACKS· 2025-06-24 22:46
Market Overview - Market futures are rallying due to the absence of negative news, with tech stocks reaching record highs and the S&P 500 only about -1% below all-time highs [1] - The Dow gained +507 points (+0.62%), the S&P 500 rose +67 points (+1.11%), and the Nasdaq led with a gain of +281 points (+1.43%) [2] - Oil prices are declining, with WTI at $64.91 per barrel and Brent crude at $65.08 per barrel, down from $65 and $67 respectively [3] Federal Reserve Insights - Fed Chair Jerome Powell remains firm on keeping interest rates steady despite pressure from Republican members, citing cooling inflation but potential price increases from upcoming tariffs [4] - Employment numbers are softening but not indicating a sudden rise in job losses, with Continuing Jobless Claims not yet reaching 2 million per week [5] Company Performance: FedEx - FedEx reported fiscal Q3 earnings of $6.07 per share, exceeding the Zacks consensus of $5.93, with revenues of $22.22 billion surpassing expectations of $21.73 billion [6] - Both Express and Freight businesses outperformed, with increased export volume indicating a pull-forward of activity ahead of upcoming tariffs [7] - Next-quarter earnings guidance has been lowered to $3.40-4.00 per share, below the Zacks consensus of $4.05, leading to a stock decline of -4.4% [7]
Fed is in no hurry to cut rates, says BNY's Vince Reinhart
CNBC Television· 2025-06-24 21:03
Well, joining us now is BNY Investments chief economist and former Federal Reserve Director of the Division of Monetary Affairs, Vincent Reinhardt. It's great to have you back on the show. Welcome.I want to start right there because we've had a lot of Fed speak to start the week and certainly Powell with his semiannual testimony on the Hill, part one of two days here today. The market seems to be taking his messaging maybe slightly more doubbish. But I'm not sure it's the right way to take his messaging, bu ...
Why the Fed is 'late to the game'
CNBC Television· 2025-06-24 20:45
So, one of the very valid criticisms of the Federal Reserve, where I worked for nearly a decade, is that they're looking at very lagged data that really is backward-looking as opposed to trying to pay closer attention to some of the especially rich realtime economic data that we have in hand right now. Unfortunately, it feels like the Fed is pretty much what we call behind the curve. So, they should be lowering interest rates and yet because they're driving using the rearview mirror, they're late to the gam ...