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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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Joe Biden allows Kyiv to begin firing US rockets deep into Russia – as politician warns it ‘risks World War Three’

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Joe Biden allows Kyiv to begin firing US rockets deep into Russia - as politician warns it 'risks World War Three'

Joe Biden has authorised Ukraine to begin firing US-supplied rockets deep into Russia – as Sir Keir Starmer prepares to push for “further support” for Kyiv at the G20 summit.

Mr Biden’s policy shift means Kyiv will now be able to use Army Tactical Missile Systems (ATACMS) for long-range attacks, two American officials have told Sky News’ US partner network NBC News.

Ukraine plans to conduct its first such attacks in the coming days, the sources said, without revealing details due to operational security concerns.

The US has eased restrictions on the use of ATACMS, which have a range of up to 190 miles, after Russia began deploying North Korean ground troops to supplement its own forces in the conflict.

The development was condemned by Biden officials as a possible expansion of the war.

President Joe Biden meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office in September last year. Pic: AP
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Joe Biden meets with Volodymyr Zelenskyy in the Oval Office in September last year. Pic: AP

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A Russian politician and the son of president-elect Donald Trump have both likened the move to risking a third world war.

More on Joe Biden

Maria Butina told the Reuters news agency: “These guys, Biden’s administration, is trying to escalate the situation to the maximum while they still have power and are still in office.

“I have a great hope that Trump will overcome this decision if this has been made because they are seriously risking the start of World War Three which is not in anybody’s interest.”

Meanwhile, Donald Trump Jr wrote on X: “The Military Industrial Complex seems to want to make sure they get World War 3 going before my father has a chance to create peace and save lives… Imbeciles!”

The outgoing Biden administration’s move comes as there are concerns about the level of support the Trump White House may be willing to give Ukraine.

Mr Trump has previously vowed to limit US support for Ukraine and end its war with Russia.

In an evening address after Kyiv was given permission to fire deep into Russia, Ukrainian President Volodymyr Zelenskyy said: “Today, there’s a lot of talk in the media about us receiving permission for respective actions. But strikes are not carried out with words. Such things are not announced. Missiles will speak for themselves. They certainly will.”

Back in September, Russian President Vladimir Putin said if the US were to lift the ban on long-range missile use it would be seen as NATO’s “direct participation” in the war.

He added: “This, of course, will significantly change the very essence, the very nature of the conflict.”

The US military tests an early version of an Army Tactical Missile System in 2021. Pic: AP
Image:
The US military tests an early version of an Army Tactical Missile System in 2021. Pic: AP

Meanwhile, the UK prime minister has said he has “no plans” to speak with the Russian president as world leaders gather for the G20 summit in Rio de Janeiro.

Mr Putin will not be attending the two-day summit which starts on Monday after saying in October that his presence would “disrupt the normal work of this forum”. Russia’s foreign minister Sergei Lavrov will be attending instead.

It will take place days after German Chancellor Olaf Scholz spoke to Mr Putin on what was the Russian leader’s first publicly announced conversation with the sitting head of a major Western power in nearly two years.

Asked if he had any plans to make a similar call, Sir Keir said: “It’s a matter for Chancellor Scholz who he speaks to. I have no plans to speak to Putin.”

Read more:
Why Biden’s move will trigger fury from Moscow
The city where schools go underground to flee Russian missiles
Xi tells Biden that China is ‘ready to work’ with Trump

Firefighters work at the site of a residential area hit by a Russian missile strike in the Lviv region of Ukraine. Pic: Reuters
Image:
Firefighters work at the site of a residential area hit by a Russian missile strike in the Lviv region of Ukraine. Pic: Reuters

Speaking to reporters while on his way to the summit, he added: “We are coming up to the 1,000th day of this conflict on Tuesday.

“That’s 1,000 days of Russian aggression, 1,000 days of huge impact and sacrifice in relation to the Ukrainian people and recently we’ve seen the addition of North Korean troops working with Russians which does have serious implications.

“I think on one hand it shows the desperation of Russia, but it’s got serious implications for European security […] and for Indo-Pacific security and that’s why I think we need to double down on shoring up our support for Ukraine and that’s top of my agenda for the G20.

“There’s got to be full support as long as it takes and that certainly is top of my agenda, shoring up that further support for Ukraine.”

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One of Russia’s ‘largest air attacks’

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The latest developments come after Russia launched a large-scale attack on Ukraine on Sunday, with Mr Zelenskyy claiming Moscow had launched a total of 120 missiles and 90 drones.

Two major strikes, which left a total of 18 people dead, hit a residential building in the northeastern city of Sumy as well as energy infrastructure across Ukraine, prompting emergency power cuts.

Hours later, Moscow mayor Sergei Sobyanin said Russia’s air defence units had destroyed a drone heading towards the city.

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Science

Octopuses May Become Earth’s Next Dominant Species If Humans Go Extinct

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Octopuses May Become Earth's Next Dominant Species If Humans Go Extinct

In the event of human extinction due to war or climate change, octopuses have been identified as potential rulers of Earth, according to leading scientists. Their intelligence, dexterity, and adaptability are believed to position them as candidates for developing an advanced civilisation. Professor Tim Coulson, a zoologist at the University of Oxford, suggests that octopuses could evolve tools and technologies to build underwater cities akin to human societies should the right environmental conditions emerge.

Key Traits Supporting Octopus Dominance

As per a report by DailyMail UK, there are several attributes of octopuses that make them unique. Their problem-solving capabilities, decentralised nervous system, and ability to manipulate objects enable them to adapt to challenging environments. The report further highlights that while they are unlikely to fully transition to land due to their lack of a skeleton, it is believed they could find innovative ways to extend their time out of water, such as developing breathing apparatuses.

These marine creatures, already adept at using tools and hunting, could exploit niches left vacant in a post-human world, the report adds. Octopuses are known to thrive in diverse environments, from deep seas to coastal waters, and possess the capacity for both solitary survival and complex behaviours.

Primates Unlikely to Succeed Humans

Contrary to previous theories suggesting primates might replace humans, the report reveal that researchers argue that primates face many of the same extinction threats as humans. Slow reproductive rates, vulnerability to predators, and dependence on specific ecosystems reduce their chances of survival in a changed world. The report further mentions that while intelligent birds and insects demonstrate advanced behaviour, they lack the dexterity needed to create tools or transform their surroundings on a human scale.

Speculative but Plausible Future

Professor Coulson told the publication that the rise of octopuses as dominant species is speculative. Evolution is unpredictable, shaped by countless variables, random mutations, and extinction events. However, given the intelligence and adaptability of octopuses, they remain a strong contender for evolving into an advanced civilisation in the absence of human influence, he told the publication.

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Science

AI Technology Detects Cancerous Brain Tumours in 10 Seconds During Surgery

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AI Technology Detects Cancerous Brain Tumours in 10 Seconds During Surgery

A groundbreaking artificial intelligence tool called FastGlioma has been developed, enabling surgeons to detect residual cancerous brain tumours within 10 seconds during surgery. The innovation, detailed in a recent study in Nature, is seen as a significant advancement in neurosurgery, outperforming traditional tumour detection methods. Researchers from the University of Michigan and the University of California, San Francisco, led the study, highlighting its potential to improve surgical outcomes for patients with diffuse gliomas.

Todd Hollon, M.D., a neurosurgeon at the University of Michigan Health, described FastGlioma as a transformative diagnostic tool that provides a faster and more accurate method for identifying tumour remnants. He noted its ability to reduce reliance on current methods, such as intraoperative MRI or fluorescent imaging agents, which are often inaccessible or unsuitable for all tumour types.

Addressing Residual Tumours During Surgery

As per the study from Michigan Medicine – University of Michigan, residual tumours, which often resemble healthy brain tissue, are a common challenge in neurosurgery. Surgeons have traditionally struggled to differentiate between healthy brain and remaining cancerous tissue, leading to incomplete tumour removal. FastGlioma addresses this by combining high-resolution optical imaging with artificial intelligence to identify tumour infiltration rapidly and accurately.

In an international study, the model was tested on specimens from 220 patients with low- or high-grade diffuse gliomas. FastGlioma achieved an average accuracy of 92%, significantly outperforming conventional methods, which had a higher miss rate for high-risk tumour remnants. Co-senior author Shawn Hervey-Jumper, M.D., professor of neurosurgery at UCSF, emphasised its ability to enhance surgical precision while minimising the dependence on imaging agents or time-consuming procedures.

Future Applications in Cancer Surgery

FastGlioma is based on foundation models, a type of AI trained on vast datasets, allowing adaptation across various tasks. The model has shown potential for application in other cancers, including lung, prostate, and breast tumours, without requiring extensive retraining.

Aditya S. Pandey, M.D., chair of neurosurgery at the University of Michigan, affirmed its role in improving surgical outcomes globally, aligning with recommendations to integrate AI into cancer surgery. Researchers aim to expand its use to additional tumour types, potentially reshaping cancer treatment approaches worldwide.

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