U.S. Stocks Rebound on Trade-Talk Progress


Foreign minister says the legal project process should not be hijacked for political purposes. And she says that the US should not use the extradition process for ends other than the pursuit of Justice. This CEO of United Airlines says his pilots do not need any additional training on the new Boeing jet. That's at the center of the investigation into a deadly crash in Indonesia. Oscar Munoz says United's pilots are prepared to respond to problems that might arise with automated systems on modern planes spoke yesterday to reporters and said that the Boeing seven thirty-seven max is safe and reliable United along with American in south west uses the new Boeing model that was involved in the October twenty nine Lyon aircrash Indonesian, investigators are examining the role of faulty sensor readings from an anti stall system in the accident which killed one hundred eighty nine people and apple is expanding its footprint in Austin, Texas, including the construction of a one. Billion dollar campus. The tech giant says it's also adding sites and new jobs in Seattle, San Diego and Culver City, California, while expanding existing sites in Pittsburgh, New York in Colorado, the company looks to add about twenty thousand new jobs by twenty twenty three. We begin this morning with thought leader Thursday here on the opening bell. Chuck Garcia is the executive vice president and director of commercial deposits and treasury management at associated Bank, and Chuck is back with us this morning in the thought leader chair Chuck good morning. Welcome back to the opening bell. Good morning. Nice to be here. A happy holidays to you as well. Here. We are again in the holiday season lots going on. We're gonna talk a little bit about what's happened in your world this year and other things, but let's get to some news with the fed getting ready to have its December meeting looks like another interest rate going up. How's this going to impact financial services sector? Well, it does look like it. I think there's still a tad of uncertainty. But I think what went from being one hundred percent certain is is still very high. So I think this next one is likely clearly it will have an effect really across the board commercial customers will see their rates rise from a from paying on the interest of loans similarly, consumers housing, it'd be interesting to see what happens with the mortgage industry. I think those are already somewhat built in. But clearly it's going to have a have an impact albeit relatively still historically very, very low. I think there's the mental aspect that. People say oh rates are rising. And obviously rates we pay to clients will will increase as well. Are you? What are your thoughts about whether the fed is going to continue this in twenty nineteen nine? There's been a lot of talk about this in the last couple weeks that may be December is going to be the last one for a while. I see too in the coming year. Okay. I think the uncertainty here in the US alone with the tariffs and the trade wars, you know, looming cetera. But also, there's a lot of uncertainty abroad, you have France. Now, obviously, the Brexit situation. There's a lot of uncertainty abroad, and we're all intertwined any longer. And and so I think that's going to have an impact on their desire to to be probably as aggressive as they might have been they being the fed as aggressive as they might have been previously. Do you think it's actually had an impact on businesses, especially local businesses that are they is this something that's causing them to stop and pause their plans. I think it has you know, depending on the industry you're in to raw-materials are part of your production cycle, and your and your supply chain. There's absolute evidence. Having an impact is slowing some things down. I think the farm industry to you know, living where we do. That's continuing to have a drag on that as well. How does the interest rate going up or going down impact the day to day management of financials? Well, you have to really we have to do is really stay abreast of what are what our competition is doing. So for my pain perspective what we pay and interest rates to clients. You know, be they consumers or or corporates. It's certainly today has far more interest at the individual and company level than than it would have even a year ago. It was just immaterial at that point in time. Now, you know dollars are significant enough where people are paying attention and willing to to change in today's environment. If they don't feel like they're getting a proper rate or attention from their Bank. I heard some experts talking about the interest rate hikes have come so quick and fast that they haven't had. There hasn't been enough time for them to take hold and and people have become comfortable with them. Usually there is a bigger window between interest rates is there some truth to that about it still working its way through the system each one of these hikes. Well, I see both sides. I mean, the savvy investor those with large dollars they move very quickly today. If a rate increase does in fact occur they have they effectively expected to be an instantaneous change by their Bank. You know, the the normal John Q public guy like me doesn't pay. As much attention to it. But if all of a sudden, you look up and see oh my gosh. You know, I'm still backing the point one percent. That's not fair in today's environment. You know, they may they may choose to act on that. But I think I think the the savvy investor the corporate investor in the larger dollar people are absolutely much much quicker to react today. I'm interested in your opinion about the economy as it stands right now. Are there earning warning signs out there that you are hearing about or seeing or feeling? Yeah housing. I mean housing is shown some some slowdown, obviously that's a huge component of of our industry in our economy in so housing and the ripple effect that that in fact has is slowing down, you know, they're building as many apartment buildings people aren't buying single housing contrary to what I'm saying. You're the millennials are now moving to the burbs and buying houses. So I think you have kind of a reverse effect of people that are retiring moving into the rural areas, but it isn't fast enough to keep up in so housing. I think is one of the indicators I see that that could have a drag on the economy and then again as rates rise. It makes the affordability of a house that perhaps you could have afforded two years ago. Much less today. Chuck hang on with us. We're on with Chuck or see this morning executive vice president and director of commercial deposits and treasury management at associated Bank. It's our thought leader conversation. We're going. Continue with Chuck in just a few minutes. But first we need to take a quick break here in the opening bell at five nineteen to update traffic and a couple of business headlines. First WGN traffic, central very they're very good morning. Good morning. Traffic is sponsored by Burlington. No delays on the Edens. Kennedy. Eisenhower is fine. Inbound side of the Stevenson's starting to build just around the Harlem area with some minor delays on the inbound Ryan from Roosevelt's also some build up into Halstead on the inbound side of fifty seven the Bishop Ford. However looks good along with all the toys this morning. Make Burlington your one-stop holiday shop for the hottest gifts for everyone. Name-brand watches gift. Baskets wireless, sweaters toys at a fraction of the price. Burlington gifts for everyone for a person who's traffic on demand. Get the Traffix Chicago app approved by mortgage experts have team hochburg just search T R A F F, I X Chicago mayor van of each traffic central. 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