Martha, Kennedy, New York discussed on Financial Exchange with Barry Armstrong
Chuck it's mike it's tucker here today as we head towards the weekend and not really can be take full weekend off because we had this g twenty summit that we are in the midst of right now with a big meeting expected between between president trump and president gee early in the morning in what is called japan standard time also known as korean standard time we looked this up previously and so that's going to be sometime late tonight is when that meeting is likely to be occurring eastern time and you're gonna have autofocus there just because of the escalation of the trade conflict that we've seen in the past the role really two months now yeah we are and you have place your bets i guess chuck that you think best case scenario here is a suspension of higher tariffs on the additional three hundred billion dollars of goods i've come out and said i really wouldn't be surprised by much of anything at this point i could see suspension i could see a broader deal getting done i could also see absolutely nothing getting done and tariffs going in july fifteenth august first so i really not sure what to expect to your every media outlet is reporting that it is very likely that lisa suspension of escalating tariffs happens here so there won't be any new terrace going into place but i dunno everyone's thought that about a month and a half ago and that didn't happen so so we're gonna be waiting on that we don't have any additional news to report right now but we'll certainly have something on monday there's no doubt about that i don't know which way it'll be but we'll have something then some news that we got over night actually rather late yesterday afternoon the federal reserve just went through the stress tests with the big banks all of the big banks eighteen of them in total are required to submit to these stress tests that have been in place since the financial crisis to make sure that they don't blow up the financial world again in while i think there's some valid questions about whether or not you know banks can hide things to make these stress tesla better than they want better than they actually are there's no doubt about what the results showed yesterday every single one of these eighteen banks past the second round of these stress tests and so that's that's pretty impressive there's usually one or two of them that has a tough time santander as traditionally been deutsche bank deutsche bank santander just a little bit tough time passing some of these but all eighteen of them have and you're gonna see additional buybacks stock buybacks boost to their dividends more payouts from these banks what we're expecting at this point and so while none of these banks ended up failing these these tests j._p. morgan capital when did have to resubmit their capital return plans nor to stay above the threshold of the fed specified so they got what is called for anyone familiar with golf this is literally what it's called the mulligan and pretty much if they're initial plans don't pass muster they resubmit and say okay here's what we're gonna do actually and that's how they are able to pass as a result of this you have all kinds of additional capital distribution plant coming out here so you've got additional buybacks and dividends coming here you have a couple cases j._p. morgan in particular They asked for a massive buyback. massive buyback boost going from about twenty billion dollars up to twenty nine billion so a fifty percent boost in the amount of stock they're going to be buying back they also bumped their dividend from eighty cents a share up to ninety you've got wells fargo bumping their share their dividend from forty five cents to fifty one bank of america bumping for fifteen cents a share to eighteen goldman sachs giving a fifty percent dividend boost his wealth eighty five cents a share to one twenty five morgan stanley bumping their buyback plan by twenty percent me like across the war just a whole bunch of capital flowing out towards bank stocks shareholders the financial sector as a whole up just over one percent but banks in particular as a sector are up about two percent today on a day when the market's up what a tenth of a percent at fifty percent looks like yeah i mean you go down the list and i'm just pulling out kind of the four biggest ones they're baked america two and a half percent wells fargo of two and a half percent goldman sachs two point four j. p. morgan chase up two point six so by the way we are on pace right now if the market closes about where it is we'll have the best first half of the year for the s&p five hundred since nineteen ninety eight Which I don't really think is a good indicator. i'm not really sure what that says look at and you're like okay ninety eight will the market didn't really fall apart in ninety nine two thousand and one we're particularly good so the z. over the next ten years after that pretty much the whole decade after that hot garbage for market so we'll see so other things that are happening in the banking sector goldman sachs and ally financial both of these companies have offered high interest savings accounts in recent years to try to get people onto their platforms goldman through their marcus platform which really no one had heard of because they just started i think three or four years ago they had been advertising rate of tuna quarter percent ally had been advertising rate of two point one percent i'm sorry two point two percent both of them cutting the rates on these accounts by point one percent even though the fed has not yet cut rates they have yeah it's sort of in anticipation but we see this in a lot of different areas right you know you see at the gas pump for instance right how long does it take for price cuts to happen at the tank versus price increases and so it's the same sort of story here and you know forever ten basis points that ally lowers savings rate the company's boosting their earnings by three percent so they can get away with it at this point in time and that's why they're doing it's not anything tied to the fed funds rate or anything like that it's just take interest rates overall have come down even the fed hasn't cut them do shop around at all at banks for different interest rates i do mainly just that i'm well informed about it if people ask me about it i don't use a high yield savings account because really i just have my checking account money and then the rest is the rest is invested but yeah i take a look around takayuki around at all not really to be honest adult this day and age you know back a few years ago right you've had that i and g direct account that was paying you know five six percent interest compared to bank america which was that one percent so spread these days you're looking at you know zero percent interest versus to it's just less of a spread in terms of what you're getting so i think it's tough to people to get excited about it so that's what's happening in interest rates again if you have an account with bank of america you're not getting anywhere near two percent to begin with you're getting negative when you consider all the charges yeah you have to imagine that you know some of the big boys are going to follow suit pretty shortly especially because i it's i feel like it's almost more challenging for people to move today also just because of all the direct deposits people have no have bill pay set up and i don't wanna change that it's it's just it feels a little overwhelming to people big news on the real estate frontier back in the nineteen seventies jackie kennedy bought about three hundred acres on martha's vineyard and so this ended up becoming known as redgate farm Slash airline. Kennedy is now listing this compound for sixty five million dollars, which so I guess, it's pretty good growth, right here. Here's the thing, doesn't it seem cheap for three hundred forty acres. no well i'm not saying it's like a forcible but you think about like some of these penthouse apartments in new york city that go for you know ninety one hundred million dollars in just look at it and maybe this is just personal preference wouldn't you rather pay way more for three hundred acres on martha's vineyard i mean tough the end of the day it's a summer house yeah i mean i think that's part of the price point as well new york is like you're in the middle of everything and everything's ready there for you if you're buying sixty five million dollar house you can get from martha's vineyard to the city of boston in about twenty five minutes through val you can help the copter yeah maybe the jet i think sixty five millions fair I don't too low. a love us debating whether sixty five million dollars price have got sixty eight maybe i would've listed like the agent commission is on this here's the other thing compare this to the previous record for sales on martha's vineyard the previous record is two and a half so this would double it and that was back in january by in a state that was previously owned by the former washington post publisher katharine graham and so this again is one of the kennedy comments keep mind they still are going to have they still have all the stuff on the cape that they're going to be only be worried about the kennedys i you know something tells me that they might be okay okay they might let's take break when we come back we've got action movie trivia and then also some disappointing news to report as far as a remote broadcast we are hoping to do later this year that now just seems unlikely to talk about on that when we come back on the financial.