2 Burst results for "Merrill Lynch Investment Bank"
Bloomberg Radio New York
"merrill lynch investment bank" Discussed on Bloomberg Radio New York
"Puts the odds of a contraction at about 35% over the next two years Lori calvisson had RBC capital markets as investors can expect faster policy tightening by the Federal Reserve That's her bet I think at this point the feds made nobody happy but it does seem like sort of the expectations for a very very aggressive move our baked in Yeah right now the dungeons industrial average 55 points lower That is down two tenths of a percent The NASDAQ composite index down 56 points That's down four tenths of a percent and the S&P 500 is 8 points lower down two tenths of a percent right now And being led lower by healthcare and consumer Staples stocks some of the best performers though as energy prices soar The energy and the financials And we check the markets every 15 minutes during the trade today right here on Bloomberg radio I'm John Tucker That is your Bloomberg business flash Matt and Paul All right John Tucker good stuff there We appreciate that Our Matt back in the summer of 1990 before between my first and second year of business school duke did an internship at Merrill Lynch investment bank My key transaction my key transaction from that summer was a $500 million I think that was a mount liquid yield option note a lion For Kermit the energy company done in Texas Wow Yep I can't believe that you have trouble understanding crypto when you're dealing with such incredibly complex transactions I have no idea what you just said Yep it was cool Discounted note for Kermit That was pretty cool I can't remember the banker who I pitched it with But anyway that was good stuff Anyway they reported some numbers today Passing joins us here in our Bloomberg and Eric to broker studio My friends at Bank of America Merrill Lynch do It's pretty fascinating You would not have expected this to be a quarter where anything hit a record But advisory fees for the first quarter hit a record equity trading at a record and part of that was because you have buy site clients of the likes of hedge funds and other clients big investors Still taking on financing in order to engage with these markets More derivatives trading And so really robust trading desks there in the face of expected high declines Talk to me about compensation This is my favorite topic when we talk about these investment banks What are the big banks saying that Because they're paying their junior bankers a lot more I assume that means they're paying their senior bankers more how big of an issue is this for the margins It depends on who you are For Bank of America in particular remember their headcount has declined steadily over the last couple of quarters So you can raise prices for some bankers but you can also not have as many of them Bank of America is keeping control of costs and remember it's not just the bankers It's the investment in technology this quarter Bank of America generated more than half 53% of its total sales through digital means Really Yes fascinating And so you are seeing they had hundreds of patents out for more advanced technology And you do see them really keeping control over their costs at a time where they're willing to invest to gain more share in a tough market So this is the last of the major Wall Street banks to report right If you step back and look at them can you say something universal about the banks this season I go back to what Jamie Dimon and his executives said a couple of days ago which is that the probability of a recession went from being low to less low So you have all these banks that are not answering questions necessarily on what the probability of a recession is but the fact that it may happen and this is what their businesses could look like in that scenario Interestingly in the event of an interest rate rise that's more severe than initially expected Bank of America says that rates would have to rise a lot more in order to impact the way that people are borrowing because right now consumers are still pretty healthy At least how they look at it Yeah when I think about Bank of America I think about Wells Fargo I think about real lending to real businesses on Main Street whether that's Main Street small town USA Main Street big city USA but really lending to fund growth What are they saying about loan demand I mean do you want a mortgage at 5% That is that's not a bad mortgage I mean historically it's not 3% that Matt you know the mortgage arbitrageur got just a couple of months ago I spend my Easter Sunday talking about mortgages somehow but yes I mean listen it does have an impact here on residential home loan originations and you see it a lot of the major banks but the thing is credit card spend and credit card borrowing is still pretty high So there is still borrowing It's just not everywhere necessarily So in terms of assumptions right Do we have to assume that the fed isn't going to drive us into a recession and I mean because that will change loan demand right The assumption is that you can't look out past three months I see it The assumption is the next three months things could be okay But after that things are very cloudy And it's really anyone's guess where things go Remember Bank of America had sold off pretty heavily this year about 14% or so So they are rising today but it seems like these banks are trading within a range here with not too much upside until some of those clouds leave the horizon When I think about the retail side of the business finale it's just always reach stories about bank a poaching brokers from bank B is that still a thing Oh yeah People love the wealth business And if you look at the price to book ratios a place that they are trading at it's really JPMorgan and Morgan Stanley trading more richly than anybody else which shows you there's a premium on wealth here Good stuff Good stuff Wall Street I mean some good numbers I think coming out of this first quarter maybe the expectations were a little bit low but we got through most of the big financials keeping us in the loop as she always does and only basic Wall Street reporter for Bloomberg news again Bank of America at with some numbers today the stock up about a buck 20 Now at $38 77 cents a share for Bank of America Again summer of 1990 met That's where I parked my ship in the investment banking group of mother America Good move Right now let's head down to Washington D.C. get rolling national news Nathan Hager Paul Sweeney a Ukrainian city that had been a haven from the war has now come under Russian attack officials say at least 7 people were killed overnight in the western city of lviv about 50 miles from the Polish border Former Ukrainian parliament member Hannah hopko is there This is a message from Putin that he will not stop unless we Ukraine and collect you west by providing Ukraine's weapons We need we stop Putin because his goal is to destroy what the whole Ukrainian nation Former Ukrainian lawmaker Hannah Hopkins in lviv Meantime Russian forces have surrounded the southern port city of Maria pole the Ukrainians have not surrendered Ukraine is looking for more financial support in Washington as the World Bank and International Monetary Fund gathered for spring meetings Bloomberg government's Emily Wilkins has more We heard before the weekend that The White House was going to send 800 million more for defense for weapons And this comes after president zelensky has called for a different kind of weapon Speak of assembly Wilkins in Washington Russian president Vladimir Putin has given a special designation to the army unit that Ukraine accuses of war crimes in the town of bucha Putin has awarded the 64th motorized infantry brigade the honorary title of guards the decree that he signed to cites mass heroism and valor it makes no mention of the war in Ukraine We have the first winners in the 2022 Boston Marathon Daniel Roman chuck and manuela share came first in the wheelchair races It's the first Boston Marathon on its traditional patriots day since the pandemic And the Red Sox are taking on the twins right now trailing two zero heading into the bottom of the second Global news 24 hours a day on air And on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries this is Bloomberg.
Bloomberg Radio New York
"merrill lynch investment bank" Discussed on Bloomberg Radio New York
"You And that's a Bloomberg business flash Tom and Paul Karen thanks so much Greatly appreciate it Paul sweetie and Tom keen And we're you know we're here I just want a note on a data screen with corn You move the decimal point So 800 is you move the decimal point over to $8 the bushel And I did it in inflation study today and it's not grim as it spends three or four times since time began where it was like $10 a bushel Inflation adjusted in today's dollars But just to see that number on the screen is a shock And I would suggest a kid from Maria to Ohio I mean Brian moynihan has got to be glued to the price of corn as well She'll do some Marietta alley basic here Yeah I'm fortress moynihan He doesn't get the love of diamond Should moynahan write a 44 page in the report by the way Well I think his answers to analysts will be about 44 pages today There's certainly a lot of questions about how Like what's the lead question How are consumers going to fare up if the economy gets worse I mean what else is there to talk about The things the thing is people are spending more And according to Bank of America's numbers they're spending more on travel and entertainment But what does that look like as rates start to rise There's a lot of questions about what that means for Bank of America The training business did really well again as we've seen for most of Wall Street this quarter I think the expectation was trading was going to be really challenged this first quarter And it's not as strong as it was last year but definitely better than expected Yeah way better than expected You look at the equities trading desk and you're looking at a record which is very interesting given the volatility usually we see clients step back in that kind of volatility But Bank of America says it's because of financing clients What does that say under the surface Bank of America is credit suite steps back from prime brokerage is really stepping up here And it's interesting because people were kind of worried about the buy side and the leverage they were taking off She's just so good at the jargon Yeah What is prime brokerage Brian brokerage is the beating heart of a trading desk It is the part of the bank that really services hedge funds family officers Yeah they worked out for Credit Suisse right It's a dangerous business sometimes I've got something for you The biggest Summer of 1990 I was an intern between my first and second year of business school at Merrill Lynch investment bank Liquid yield option notes lines Do you remember those times Zero coupon You say that I.