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close video Banking anxieties are vanishing very quickly: Adam Johnson

Bullseye American Ingenuity Fund portfolio manager Adam Johnson makes the case for buying bank stocks after the recent chaos on ‘Varney & Co.’

As consumers and Wall Street investors eye this week’s list of bank earnings for either a gauge on their dollar or direction of market volatility, professionals in the finance sector have concerns up and down the balance sheet. 

Ahead of quarterly financial reports Friday from BlackRock, Citigroup, JPMorgan Chase, PNC Financial and Wells Fargo, FOX Business surveyed a group of finance experts for their take on the upcoming earnings releases and what they will be looking for in the data.Ticker Security Last Change Change % BLK BLACKROCK INC. 670.73 +4.76 +0.71%C CITIGROUP INC. 47.30 +0.38 +0.81%JPM JPMORGAN CHASE & CO. 128.99 +0.49 +0.38%PNC THE PNC FINANCIAL SERVICES GROUP INC. 121.41 +1.71 +1.43%WFC WELLS FARGO & CO. 39.66 +0.47 +1.20%

Jeff Buchbinder, chief equity strategist for LPL Financial, said, "Investors may be surprised with how the big banks held up in the first quarter."

"But the problem is the lending and profit environment over the next several quarters, not first quarter results," he added. "The big banks were winners from the bank failures but the profit environment going forward just got a little tougher in an economy that was already slowing."

JAMIE DIMON WARNS BANKING CRISIS HAS RAISED ODDS OF RECESSION

Meanwhile, Jamie Cox, managing partner at Harris Financial Group, told FOX Business, "Bank executives will likely be too cautious and oversell the effects of the banking crisis in hopes of staving off or denting regulatory changes that would impact earnings a lot longer than short-term funding issues."

"The worst thing that could happen going into a recession for mid-tier banks would be a major regulatory change affecting their capital at a time when it could be taxed by recessionary factors," he said. While some finance pros might be interested in seeing the banks’ deposit amounts, "the bigger question of bank liquidity was solved by the Fed.

"The longer we go with no major takeovers from the Federal Deposit Insurance Corporation, the fewer depositors will fear holding deposits at a bank," he finished. 

REGIONAL BANKS 'REASONABLY STABLE' BUT REGULATORS NEED TO PROVIDE 'MORE CLARITY': FORMER FDIC CHAIRWhat are banks saying?

Kelly Crawford, VP and financial treasurer of Countybank in South Carolina, said, "The outlook for bank earnings is positive with net interest margin continuing to drive profitability."

"We believe net interest margin expansion has reached its peak with rising deposit pricing putting additional pressure on cost of funds," she continued. "While the potential for a recession continues to be at the forefront of everyone’s mind, tighter credit standards will follow, while the overall size of banks on average will be reduced in the first quarter, which should positively impact capital."

Last week, JPMorgan Chase CEO Jamie Dimon warned the turmoil that has engulfed the financial sector in the wake of recent bank collapses is not over and will ripple throughout the economy for many years.

Jamie Dimon, CEO of JPMorgan Chase, is sworn in during the Senate Banking, Housing, and Urban Affairs Committee hearing on Sept. 22, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images / Getty Images)

In March, First Citizens Bank began acquiring assets from Silicon Valley Bank (SVB), the Federal Reserve announced another 25-basis-point interest rate increase after SVB and Signature Bank collapsed, erasing billions of market value in financial stocks.

Meanwhile, First Republic Bank struggled to stay in business even after a $30 billion lifeline from other financial institutions.

IS MY BANK SAFE FROM FAILING? WARNING SIGNS OF FINANCIAL TROUBLE

Crawford said: "The yield curve rallied in the latter half of the first quarter, which should reduce the unrealized losses on bank balance sheets and securities portfolios."

"This should lead to less stress on liquidity and potential borrowing restrictions that could result if tangible capital ratios fall below specific targets," she added. "Bank earnings should continue to be positive; however, mortgage volume continues to be low due to high mortgage rates, which limits the growth potential for banks in the real estate lending sector."And the academics?

In an interview with FOX Business, Derek Horstmeyer, a professor of finance at the George Mason University School of Business, said, "Some finance pros will look for disclosure in the footnotes." close video Banks are the lifeblood of the economy: Jim Bianco

Bianco Research President Jim Bianco explains why banks declining amount of money hurt the Federal Reserve and economy on Making Money.

"For instance, details on percent of deposits that are over the regulatory threshold and any disclosure on the steadiness of deposits, or facilities they have access to for short term funds," he went on. "For others, commercial real estate performance will have their attention, which has been showing cracks in some parts of the country, so details on its performance could be important."

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Weekend Wrap: Razzlekhan drops bars, FDIC’s Hill decries ‘Choke Point-like tactics’ and more

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Weekend Wrap: Razzlekhan drops bars, FDIC’s Hill decries ‘Choke Point-like tactics’ and more

Heather Morgan criticized the financial system in a rap video while also asking for the world’s richest man, Elon Musk, to save her.

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World

Blue Origin launch: Is Jeff Bezos chasing down Elon Musk in the billionaire space race?

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Blue Origin launch: Is Jeff Bezos chasing down Elon Musk in the billionaire space race?

Jeff Bezos’s Blue Origin is set for the inaugural launch of its new space rocket on Monday in a development that could add more fuel to the billionaire space race.

The New Glenn rocket is due to blast off from Cape Canaveral – the result of a multi-billion dollar, decade-long effort that could set the stage for Amazon’s satellite constellation venture and dent Elon Musk’s market share.

Mr Musk’s SpaceX has dominated the scene for many years but both Mr Bezos and Virgin Galactic founder Sir Richard Branson have designs on outer space… and the wealth tied up in its exploration.

New Glenn on the launch pad in December. Pic: Blue Origin
Image:
New Glenn on the launch pad in December. Pic: Blue Origin

Jeff Bezos and Blue Origin

“Ever since I was five years old, I’ve dreamed of traveling to space,” Mr Bezos said ahead of his journey to the edge of space in 2021.

He founded the Blue Origin venture with the aim of having “millions of people working and living in space”.

For years it has launched – and landed – its reusable New Shepard rocket to and from the brim of Earth’s atmosphere, but has never sent anything into orbit. That could all change on Monday.

Jeff Bezos, owner of The Washington Post, delivers remarks at the grand opening of the Washington Post newsroom in Washington January 28, 2016. REUTERS/Gary Cameron
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Jeff Bezos, founder of Blue Origin and Amazon. Pic: Reuters

Blue Origin will be hoping its New Glenn rocket will be able to compete with SpaceX’s Falcon 9, the world’s most active rocket.

Compared to Mr Musk’s Falcon 9, the New Glenn is about twice as powerful and its payload bay diameter is two times larger in order to fit bigger batches of satellites.

The upcoming launch is also a key certification flight required by the US Space Force before New Glenn can launch national security payloads as part of multi-billion dollar government tenders Blue Origin hopes to win.

A SpaceX Falcon Heavy rocket lifts off for the Europa Clipper mission to study one of Jupiter's 95 moons, at Kennedy Space Center in Cape Canaveral, Florida, U.S. October 14, 2024. REUTERS/Joe Skipper
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A SpaceX Falcon Heavy rocket lifts off in October 2024. Pic: Reuters

Elon Musk and SpaceX

“I want to die on Mars – just not on impact,” Elon Musk once quipped.

The Donald Trump ally, who is frequently pictured wearing an “Occupy Mars” shirt, has enjoyed relative dominance of the private space industry through his company SpaceX.

Back in 2016, Mr Musk outlined his vision of building a colony on Mars “in our lifetimes” – with the first rocket propelling humans to the Red Planet by 2025, though this deadline does not appear likely to be met.

Mr Musk and Mr Trump speak at launch of SpaceX Falcon 9 rocket at NASA's Kennedy Space Centre in 2020. Pic: Reuters
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Elon Musk and Donald Trump speak at a SpaceX launch in 2020. Pic: Reuters

For many years the company used an image of the Martian surface being terraformed (turned Earth-like) in its promotional material. However, a NASA-sponsored study published in 2018 dismissed these plans as impossible with the technology available then.

SpaceX missions have included both US government contracts and launching the company’s Starlink satellite internet network.

And while Mr Bezos’ New Glenn rocket is much more powerful than the successful Falcon 9, SpaceX’s next-generation Starship, a fully reusable rocket system currently in development, would be more powerful still.

Mr Musk sees Starship as crucial to expanding Starlink’s footprint in orbit. Its next test flight is expected later this month and will involve deploying mock satellites.

Read more:
NASA astronauts stuck in space ‘don’t feel like castaways’
Spacecraft survives closest-ever approach to the sun

 Sir Richard Branson
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Sir Richard Branson. Pic: Reuters

Sir Richard Branson and Virgin Galactic

Also seeking a stake in the upper atmosphere is Virgin founder Sir Richard, whose Virgin Galactic effort took its first tourists to the edge of space in 2023.

The crew took the passengers about 55 miles (88km) above Earth where they experienced zero gravity during the flight which lasted just over an hour.

“My mum taught me to never give up and to reach for the stars,” the British billionaire once said.

The company is currently taking a pause from flights as it develops new space vehicles, Forbes reported in October last year.

Its new fleet of Delta vehicles are scheduled to resume commercial spaceflight by 2026.

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Duchess of Sussex delays release of Netflix series due to LA fires

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Duchess of Sussex delays release of Netflix series due to LA fires

The Duchess of Sussex has delayed the release of her new Netflix series due to the devastation caused by the wildfires in LA, the streaming platform has announced.

Meghan’s eight-part series, With Love, will premiere on 4 March instead of 15 January.

“I’m thankful to my partners at Netflix for supporting me in delaying the launch, as we focus on the needs of those impacted by the wildfires in my home state of California,” Meghan said in a statement to Tudum, the official companion site to Netflix.

Harry and Meghan comforted volunteers and handed out food to evacuees during a visit to Pasadena on Friday, where they met with the city’s mayor Victor Gordo and emergency workers tackling the Eaton Fire.

Prince Harry and Meghan Markle Volunteering in Pasadena on 11/01/25
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Prince Harry and Meghan were seen comforting residents on Friday

Footage showed the duchess, wearing a blue “LA” baseball cap, and the prince hugging and consoling people who had fled to the Pasadena Convention Center.

Latest on LA fires

They were also seen speaking Doug Goodwin, whose home was destroyed in the wildfires, and also to Jose Andres, founder of World Central Kitchen (WCK) which has been helping feed the public and emergency crews.

Prince Harry and Meghan speak to Pasadena mayor Victor Gordo in Altadena, California. Pic: AP
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Prince Harry and Meghan spoke to Doug Goodwin (centre right), whose home was destroyed and Pasadena mayor Victor Gordo (right) in Altadena, California. Pic: AP

A description of the Netflix series on Tudum’s website said: “Produced by Meghan, ‘With Love, Meghan’ blends practical how-to’s and candid conversation with friends, new and old.

“Meghan shares personal tips and tricks, embracing playfulness over perfection, and highlights how easy it can be to create beauty, even in the unexpected.

“She and her guests roll up their sleeves in the kitchen, the garden, and beyond, and invite you to do the same.”

More from Sky News:
Body found after search of landfill site
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Former Little Mix star having twins

The royals live in Montecito, near Santa Barbara, around 90 miles from Los Angeles.

They are understood to have donated supplies, including clothing and children’s items, to people affected by the disaster.

They released a statement on Thursday urging people to help those affected by the wildfires and to open their homes to those evacuated.

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