Morning 10-14

Earnings


Bank of America’s earnings just released and give a very different picture than JPMorgan’s or Citigroup’s. BofA’s 3Q provision for credit losses is $5.12 billion vs. the estimate of $1.86 billion – Bloomberg
Wells Fargo “the bank warned that customer payment deferrals in the wake of the pandemic may delay the recognition of net charge offs and delinquencies “-BBG hmmm they don’t know how bad things are going to get due to the Government programs to defer payments, but the company only set aside $769 million in loan-loss provisions vs expectations 0f $1.65B stock -1.5%(BBG)


Very Strong from Goldman
*GOLDMAN SACHS 3Q EPS $9.68 VS. $4.79 Y/Y, EST. $5.52
o *GOLDMAN SACHS 3Q FICC SALES & TRADING REV $2.50B, EST.$2.27B
*GOLDMAN SACHS 3Q HEADCOUNT INCREASED 5% VS. END OF 2Q
*GOLDMAN SACHS 3Q INVESTMENT BANKING REV. $1.97B, EST. $1.75B
*GOLDMAN SACHS 3Q TRADING REV $4.55B, EST. $4.41B
*GOLDMAN SACHS 3Q NET REV. $10.78B, EST. $9.40B


Stimulus:


Yesterday in an interview with CNN Speaker Pelosi was in a somewhat heated debate with Wolf Blitzer on why Dems are not taking the $1.8T deal offered by Trump does this public pressure turn the tide? From politico defending doing nothing right now in favor of a potentially larger effort should Democrats sweep on Nov. 3 is not going to be an easy thing to do. I don’t think so … from IFR news “ there are no longer just two parties in disagreement, but three with the Senate, the House and the White House all in opposition as to what would constitute an appropriate policy response. The sticking point with House Democrats and the White House appears to be mainly over aid to cities and states the House heavily advocates for but where the White House is opposed feeling that it is not efficiently targeted. The Republican led Senate in a break with the White House has signaled that it is the size of the package that is the stumbling block as they are only willing to spend $500 bn rather than the roughly $2 tn supported by the President and the House. “politics!

News:
• EZ industrial production increase for the 4th consecutive month
• China’s new Loans increased the most in 6 months
• Highest EVER recorded support for independence in Scotland (58%) – Ipsos MORI (mizuho)
• Irish 10-year bond yields fall to record low -0.247%. joining in Italy which did so over the last few days, More ECB bond buying expected
• SPAIN CATALONIA REGION ORDERS BARS, RESTAURANTS SHUTDOWN FOR 15 DAYS FROM THURSDAY TO CURB CORONAVIRUS CONTAGION, ACTING REGION CHIEF SAYS
• The pork cutout pushed above $100 for the for the first time since May in Tuesday’s morning update, but by the final afternoon report the cutout had dropped back below that threshold. (pro Farmer)
• EU Leaders Draft Doc: To say there’s been no breakthrough in Brexit talks, will ask Michel Barnier to carry on with talks, EU will step up prep for a no deal ITC markets
Markets:
Natural gas roller coaster continuers -7.2% today it has been quite volatile as shifts in weather and LNG exports drive action. Dollar steady to lower most markets sideways

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.