What to expect from the big banks’ earnings reports

Welcome back! President Joe Biden’s re-election campaign faces critical momentSenator Peter Welch became the first Democratic senator to publicly call on the president to withdraw from the race – And some Democratic leaders may now also be open to ditching Biden. Hollywood is also starting change the tune.

Today, all eyes will be on Biden’s solo press conference, concluding this week’s NATO summit.

But for now, our main focus will be on Wall Street as the big banks prepare to report their earnings.

What’s on board:

First of all, it’s (almost) show time.

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Revenues to look out for

And so it’s earnings season again on Wall Street.

First up, JPMorgan, Citigroup and Wells Fargo will report their second-quarter results tomorrow.

We will see more results next week, with Goldman Sachs and BlackRock releasing their results on Monday and Bank of America and Morgan Stanley on Tuesday.

To find out what we can expect from these conversations, I spoke with Kaja Whitehouse, senior finance editor at Business Insider.

She told me that, among other things, bankers and investors will be closely watching Jamie Dimon’s retirement, news about banks’ adoption of artificial intelligence, and whether more banks will start charging consumers for current accounts.

To explain it better, here is my conversation with Kaja on Slack.

Will investment banking return?

Wall Street banks have waited two years for the return of M&A, IPOs and other fee-generating corporate deals. Finally, there are signs that activity is picking up.

When Jefferies releases Q2 results In June, the company said investment banking revenue rose 8.6% from the previous quarter and 59.4% from the same quarter a year ago across all business lines. Jefferies is much smaller than JPMorgan and Goldman Sachs, but its earnings are still closely watched as a hint of what’s to come.

Will Jamie Dimon share more details about his upcoming retirement?

In May, the CEO shocked Wall Street by saying he planned to leave in the next five yearsAs Wall Street’s longest-serving and most high-profile CEO, his successor and his plans for the future are important topics at the dinner table.

Will banks start charging fees for everyday consumer products like checking accounts?

Last week, Marianne Lake, CEO of JPMorgan Chase’s consumer and community banking division, suggested that banks they could start charging for things that are currently free. This includes checking accounts and financial planning tools.

What is happening with artificial intelligence?

We are always looking for news on AI adoption, including how the technology can help companies maximize their potential and reduce costs. In the last quarter, BlackRock CEO Larry Fink said Artificial intelligence has helped asset managers increase productivity without having to increase headcount.

3 things in the markets

1. We are on the brink of an abyss when it comes to unemployment. The post-pandemic job market boom has cooled. Unless the Fed cuts interest rates, the latest surprise increase unemployment will worsensays economist Neil Dutta.
2. Private equity investors are preparing to take over commercial real estate. Investors have more than $250 billion in cash earmarked for North American real estate, a sign that companies are preparing for a well-aimed attack on a besieged sectorwhich is struggling with high interest rates and job vacancies caused by the shift to remote work.
3. After a series of great successes for Tesla, Elon Musk has once again become the richest man in the world. Musk’s net worth increased by $67 million during a 10-day rally in Tesla shares, which increased his total net worth to $274 billion. He surpassed Jeff Bezos, the previous No. 1 rich guy, by $53 billion.

3 things in technology

1. No rizz? Big Tech may be to blame. The 35-year-old FAANG executive is ready to settle down, but the demands of his job have made dating in Silicon Valley difficult. He described the last decade of dating ups and downs — including one terrifying crisis situation.
2. Samsung ring to rule them all. The Korean electronics giant has unveiled its brightest new device yet, AI-powered fitness tracker ring.Galaxy Ring is direct competitor to the Oura ringand a step away from a smartwatch, although Samsung still has there are plenty of them to be enough for everyone. It also launched two more foldable phones.
3. Will new social media apps be able to extend their 15 minutes? You’ve heard of Instagram and TikTok. Then there was BeReal, followed by Lapse, NGL and, most recently, Noplace. If the latter doesn’t ring a bell, it’s because they largely failed to survive their initial hype. Alternatives to Big Social have been popping up frequently, but so far, none of them stayed for long.

3 things in business

1. Locked down and with nowhere to go. More and more complaints about illegal evictions, with tenants often left without helpThose on the margins of the rental market – for example, those living in long-term motels or informal caravan parks – are particularly sensitive. To make matters worse, the police rarely punish property owners severely.
2. David Zaslav would like a new president. The Warner Bros. Discovery CEO, like many tech and media executives, is no fan of Joe Biden’s antitrust policies. But while others in the industry have been reluctant to say so, Zaslav has been clear: He wants someone else responsible.
3. Montana’s housing crisis serves as a warning to older homeowners. Owning a home does not guarantee financial security in old age because The current housing problem in Montana shows. While property values ​​have skyrocketed, the costs associated with owning them have also increased, which can leave older homeowners with no choice but to move into a smaller home.

In other news

What’s happening today

• Delta Air Lines, PepsiCo and other companies we report profits.
• CPI data is published by the Bureau of Labor Statistics.
• President Biden concluded the NATO summit with a press conference.

Insider Today Team: Jordan Parker Erb, editor, in New York. Lisa Ryan, executive editor, in New York. Joe Ciolli, executive editor, in Chicago. Hallam Bullock, senior editor, in London. Annie Smith, associate producer, in London. Amanda Yen, colleague, in New York.