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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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Charlie Kirk posthumously awarded Presidential Medal of Freedom by Donald Trump

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Charlie Kirk posthumously awarded Presidential Medal of Freedom by Donald Trump

Charlie Kirk has been posthumously awarded the Presidential Medal of Freedom by Donald Trump.

The USA’s highest civilian honour was received by the conservative activist’s widow, Erika, at the White House.

Mr Kirk, 31, was fatally shot on 10 September while speaking at an event at Utah Valley University.

He founded Turning Point USA and toured American university campuses, debating students about current affairs.

Erika Kirk at the White House. Pic: Reuters
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Erika Kirk at the White House. Pic: Reuters

Erika Kirk and Donald Trump. Pic: Reuters
Image:
Erika Kirk and Donald Trump. Pic: Reuters

Addressing those attending the ceremony in the White House rose garden, the US president said they were there to “honour and remember a fearless warrior for liberty” and a “beloved leader who galvanised the next generation”.

He said Mr Kirk’s name was being entered “forever into the eternal roster of true American heroes”.

Mr Trump described Charlie Kirk as an “American patriot of the deepest conviction, the finest quality and the highest calibre”.

He said his nation had been “robbed” of an “extraordinary champion”.

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Has Charlie Kirk become a MAGA ‘martyr’?

And Mr Trump said Mr Kirk was assassinated in the “prime of his life for boldly speaking the truth, for living his faith, and relentlessly fighting for a better and stronger America”.

The ceremony coincided with what would have been Mr Kirk’s 32nd birthday.

Mr Trump described Erika Kirk, now head of Turning Point USA, as someone who had “endured unspeakable hardship with unbelievable strength”.

Read more:
What do we know about Erika Kirk?
Charlie Kirk’s movement is growing in wake of his assassination

Charlie Kirk. File pic: AP
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Charlie Kirk. File pic: AP

A 22-year-old man, Tyler Robinson, from the city of Washington in Utah has been charged with Mr Kirk’s murder. Prosecutors said they would seek the death penalty.

At a memorial event held at a stadium in Arizona, Erika Kirk told an enormous crowd she forgave her husband’s killer.

“The answer to hate is not hate,” she said.

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Grammy-winning R&B and soul star D’Angelo dies after ‘prolonged battle with cancer’

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Grammy-winning R&B and soul star D'Angelo dies after 'prolonged battle with cancer'

Grammy-award winning R&B and soul singer D’Angelo has died following a battle with pancreatic cancer, his family has said.

He died on Tuesday, leaving behind a “legacy of extraordinarily moving music” following a “prolonged and courageous battle with cancer,” his family said in a statement.

The prominent musician, born Michael D’Angelo Archer, was 51 years old.

A family statement said: “We are saddened that he can only leave dear memories with his family, but we are eternally grateful for the legacy of extraordinarily moving music he leaves behind.

“We ask that you respect our privacy during this difficult time, but invite you all join us in mourning his passing while also celebrating the gift of song that he has left for the world.”

The singer rose to prominence in the 1990s with his first album, Brown Sugar.

The track “Lady” from that album reached No. 10 in March 1996 and remained on Billboard’s Hot 100 chart for 20 weeks.

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Stars of sumo head to London’s Royal Albert Hall – and noodles sell out

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Stars of sumo head to London's Royal Albert Hall - and noodles sell out

They’re getting through 70kg of rice a day and the wholesaler has run out of noodles. Yes, Sumo returns to London on Wednesday.

It’s just the second time a Grand Tournament has been held outside of Japan – and this is a sport that has records going back more than 1,500 years.

It’s 34 years since the Royal Albert Hall hosted the only previous such event on foreign soil – and the appetite for tickets meant all five days sold out immediately.

Much of the focus is on the two grand champions or yokozuna, the 74th and 75th men to attain the rank.

They’re the Mongolian Hoshoryu Tomokatsu, plus Japan’s Onosato Daiki – who this year became the quickest wrestler to achieve the rank in the modern era.

“I’m happy that Sumo is back after so many years,” Onosato said. “I hope I can show the UK fans how fantastic Sumo is.”

“Being a yokozuna has a lot of responsibility,” Hoshoryu told Sky Sports. “We have to show everyone an example of what a yokozuna is – and that’s very difficult.

“My uncle was a yokozuna – and I’m happy to follow in his footsteps. But I came here to London as a yokozuna which he didn’t, so I’m even happier.”

The two are already great rivals.

Onosato Daiki became the quickest ever to achieve yokozuna rank. Pic: AP
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Onosato Daiki became the quickest ever to achieve yokozuna rank. Pic: AP

At the recent Aki Basho – the most prestigious tournament on the sumo calendar – the pair finished with identical records after 15 days of bouts.

It all came down to a final play-off between the two yokozuna – the first time that had happened in 16 years. It was Onosato who came out on top on that occasion.

Hoshoryu says he is a big fan of basketball and football. He follows Chelsea, although his favourite players are going back a bit: “Didier Drogba and Petr Cech. He’s the ‘keeper. I like this guy!”

Early starts and a hearty stew: The life of a rikishi

The wrestlers – or rikishi – have a rigorous training regime.

They live in communal blocks called stables and practice starts early. Perhaps surprisingly, everyone skips breakfast. After training and practice – and for the younger rikishi, chores – the wrestlers all eat together.

The staple of their diet is chankonabe, a hearty stew packed with meat and vegetables. The feeding of the 40 rikishi who have come over for the five-day tournament is a challenge in itself.

Donagh Collins, the CEO of co-organisers Askonas Holt, said: “We are going through 70 kilos of rice a day. Somebody told me that the wholesaler for the noodles has run out of noodles. We’re really pushing the system here.”

The ring – or dohyo – is just 4.55m in diameter and quite small when two giant wrestlers leap at each other.

The aim of the fights is to either get your opponent onto the floor – or, more spectacularly, shove or hurl them out of the dohyo, so spectators in the ringside seats may be getting extremely up-close to the wrestlers.

The last time the tournament was in Britain, the massive Konishiki, known as the Dump Truck, took centre stage.

The giant Hawaiian was the heaviest-ever rikishi coming in at 287kg – or 45 stone. That’s a lot of wrestler to dodge if he comes falling out of the ring towards you.

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The Royal Albert Hall may be firstly a concert venue, but it has hosted the likes of John McEnroe, Lennox Lewis and even Muhammad Ali.

And for the next five days, the cream of the world of sumo will be thrilling the crowds – provided a new noodle supplier is found.

What is a yokozuna?

Yokozuna is the highest rank in sumo, with its name meaning “horizontal rope” and refers to the rope worn around a competitor’s waist as they enter the ring.

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