Listen: United States, Jonathan Calva And Morgan Chase discussed on Biz 1190 Overnight featuring Bloomberg Radio
"Year yields reaching the highest level since March twenty FOMC meeting. Currently we are at two point six interesting clawed back a little bit of a recap of what happened in the regional lake when he markets to highlights I'm gonna get straight to on one hand after the market closed. You had parliament amending presidential terms any that was overwhelmingly approved that amendment that would allow the president of the fast easy to remain in office through twenty thirty. It was seen as Neville going into this. That means the presidential term gets six years instead of the current four we seven national referendum that needs to be done for that to get pushed through also full rachi, Bloomberg has spoken to the chief executive officer. He sees assets growing in the mid single digits and corporate lending rising as well after its financing book gained zero point two percent. In two thousand eighteen here's what's also standing out. The Bank is seeing sustained double digit growth in mortgages over the next five years after home financing grew twenty seven percent last year. That's got back then to some of our top stories earnings out of the United States. So far I've been a mixed bag, but financials have done. Well, the biggest US banks DP Morgan. Chase Bank of America posted record results driven by their retail the business. Black rocks fixed income products helped it's results rebound from a bumpy end of last year. Meanwhile, the White House is interviewing candidates to potentially replace Herman Cain and Stephen Moore. President Trump's picks for the fed and gonna advisor Larry cudlow says it's up to Kane himself if he wants to stay part of the selection process. So what does he is? Of course from J P Morgan Chase. He's the executive director head of for Asia. They're joins us from our studio in Singapore. Jonathan I mean, how do you read into this uncertainty around? The new term future of the fed because there appears to be quite a few people buying for it. But not enough chairs to go around. Right. Well, I think he. Yeah. I mean, you need to step back. And you know, I think the fate is obviously bigger than than any wanting to visual. It's so, you know, I think the market Kentucky excuse me from that from from from among the perspective on what the market is probably going to be focused on the data Tim evolves. From here the inflation directory and other those things are really giving very strong signal one way or the other obviously we've seen a significant repricing in terms of policy expect Tyson's of the pasta, four months, but. You know, the US economy still looks as if it's growing, but it flash obviously, clearly not not a huge threat of the month. And so we really kind of stuck in what I would call, you know, fairly broad range bound trading environment from US interest rate perspective, and it's difficult to see what's going to really shake that up the next one to two months. I it's interesting. We can cherry pick the data that we look at. That's gotta cues of. Yes economics prize is the missing by the most is twenty seventeen factory orders lower capacity utilization. But if we look John hood position in the market, I put the risky into the TV library. I always gone. Here's the put the coal the cost of protecting yourself as rising put to coal pricing segments. Pacifism is building. Again. Would you be a buyer of these kind of spreads as a protectionist measure against the dollar drawl? I think that's a reasonable strategy. This time to the sokoll. I mean, you need to kind of why I guess two things you can think about in terms of what's really going to drive the dole. I've x twelve twenty months on the one hand, you still have quite a high yield level full the Donna, but clearly. If the global economy slows down more than expected over that period. They what's the major global central Bank that can actually move the policy needle meaningful. Why will clearly that's not the be all the job. But the fate very much in that camp. And that should be dulling negative is air modeling what show is that. It's the train dole the shift in each right differential, rather than the level that ultimately draws markets of that that that long term horizon from that perspective, then you need to be thinking about well, if you are entering into all the risks that you retreat to a week global backdrop that has led by the US that has to drive, you know. US monetary policy shifts. And and obviously that can that can happen very very quickly. So from that perspective thing that's going to be an environment where the dollar will suffer Sierra in particularly from yield differential, speak different say, yes, it would be a prudent strategy to be thinking about those tops of that type of protection. John stay with us. We've got a little bit of breaking news coming in cross the Bloomberg terminal. This is one of the base of our banking system. Here. You said this is Emmerson BT first quarter net income net. Profits are two point seven four billion dirhams. The estimate was for two point three seven on total net income that's very comfortable Bates. This is good news coming through Amazon beady four point seven to four point one billion. Absolutely. So they're all talking about. I Gordon parents five hundred seventy million compared to four hundred and forty million in the prior periods. So not up on the impairments the C c a full talks here about bringing costs down the bit seven percent. From the previous co two reduction in staff costs, nor professional fees and marketing expenses twelve buys zero zero sells very bullish outlook from analysts twenty point eight percent last twelve month return on this. And as you meant. It behemoths that has been quite involved in quite a few deals abroad. And one of them was what happened in Turkey because just a few weeks ago day announced they're gonna save about seven hundred million dollars in a deal to buy turkeys Denise Bank after we saw that lira slump and economic growth stalled over there when the agreement came into effect ten months ago, a Yep. And of course, breaking down the Bank global treasury reported seventy three percent lift in net income trading revenue grew by hundred seventy percent dig into the numbers as the morning goes on Jonathan knew really interrupted by one of the biggest banks in the region. Thank you very much for being so tolerant impatient. Jonathan Calva J P Morgan Chase. We'll see you again. We'll give you more time. The next time you're up on the show.."