The First Look - Andy Cinko, Bloomberg News
Jan 11, 2013|
The First Look - Andy Cinko, Bloomberg News
Transcript - will not be 100% accurate
915 here at the financial exchange -- is not a filling in for Barry Armstrong who is. Still it is worried the Caribbean he's not safari with Susan on strong is relaxing and is Adirondacks. Easily just found out he's not coming back till Tuesday folks so of course were thrown him under the bus because we don't know why we're thinking he needs Monday to rest. And rejuvenate his well strenuous. We couldn't catch -- first class flight on Sunday night -- we'll catch on Wednesday. In any case we are now joined by -- -- from Bloomberg and I'm guessing you are not on vacation right now. I am not I'm I'm in cold. New Jersey waiting for the rain to count. Let's yeah that sounds great news so I'm excited I'm excited for you and I don't know are you planning on watching any of the football games this weekend. I and of the giants and fortunately it didn't make the playoffs. And I and I can hear you rubbing that in him weeks -- but -- well I'll have a cold one in Miami and but with the other playoff game will. Will let bygones be bygones and let's get back at -- you know talking about what happened yesterday we saw weekly unemployment claims come out. Anything stand out here pretty much par for the course what we've been seen the last couple months. Honestly no news -- jacket bit the same old same old firing Dartmoor the last. -- the doesn't look like. Companies where -- you know handing out any more pink slip and they were. You know at the possess the sincerely mean that. Job growth will pick up -- decline. You know there's that you are not related but really -- the news in the weekly report that that signaled anything. Really I think the big news coming out yesterday finally being made official. President Obama officially nominating Jack -- for the secretary of the treasury. What is your take on this -- as it relates to the economy and do you think they'll actually be able to haven't confirmed. Before this big debt ceiling debate starts. Well they they -- get it done because we know that mr. Geithner wants to leave by somewhere around January 25 would give them a couple of weeks to get it done I mean Jack -- is a well known. Washington. Person it shouldn't if they're going to approve -- shouldn't take very long commitment of the there's not a lot of mystery around him. In terms of what it means for the economy and or relieve the debt ceiling to that the big thing. You know Tim Geithner has been wanted to relate the president talking points to congress. You know Jack we may very well be in the very same position considering he's been around that several White -- It will be interesting to see if he can ameliorate perhaps some of the the president talking points trying to cut a deal. With congress regarding the debt ceiling. A couple of things do you sort of stand out here at the he did not have the banking and international Rolodex that mr. Geithner and because remember mr. Geithner was that the new York and for many years. Before ye it was called -- -- the Treasury Secretary says he knows all the big thinks he has by name and for many years. Active and have quite the same. Relationship. As mr. Geithner. And that lastly in terms of the international perspective. You know mister Geithner again knows many of those over these politicians and banking regulators by name. Jack we did not because he -- would didn't travel in the circle though -- there maybe a little bit of that tension there. And then and then maybe a little bit of that preparation if you will between the Treasury Department and the Fed again because Tim Geithner. Worked at the bed and -- mr. Bernanke and everyone's so well Jack we live -- learn a lot of things. Obsolete talking with Andy -- from Bloomberg News and Andy. Wells Fargo reported earnings earlier this morning. How -- those looked and and really what does this say about where financials are going over this quarter on really panic going into the the first -- when he thirteen. Yeah the the big thing that we're watching once again -- this thing called net interest margin that big gap between what it cost. The banks to get money like deposits and what they -- out that. And once again at Wells Fargo the ballot that 3.5 six cents last quarter. And that's lower than where it was in the third quarter and lower than what analysts were expecting though. You may see some pressure on banks stocks because just like last quarter Wells Fargo -- the first one to report a drop in net interest margin and that weighed on all the other banks which subsequently did come out and report. A lower margin. Terms of their earnings -- -- Wells Fargo beat expectations 94 cents or an estimate of 89 cents but yet. The stock in the premarket is trading at. Roughly 34 words that the Bible college. That -- was at 3540 yesterday's he's talking about -- you know roughly 75. Then dropped here. In the premarket you know and and again part of that have to do -- charged often. And and problem -- problem on that was not all that great. Last quarter though. You know I it's sort of OK kinda report not great not blown the doors off. -- -- Also some other news that came in late last night off from overseas Japan came out. And they unveiled a stimulus program that it is now backed by their new prime ministers so. What does this do for their economy they've obviously been having a very rough time over the last twenty years now what does this do in order to potentially. Get them out obviously they have all kinds of demographic problems but can this actually help them in any way to recover some -- there. Well the biggest thing when he's attempting to do it to weakening yen. In the hopes. That that will bring in more profitability for Japanese companies from overseas right in the yen is weaker in the dollar's stronger and US sales forest state on that Petra. They're gonna bring it a lot more revenues simply because the yen is so much weakness that's one thing. It also trying to do that despite the deflation that's been going on in China. And I hope that that would spark a revival in the economy because again you know falling prices is no need to buy something today -- would. -- five the last tomorrow or next week or next year so there's not a lot of economic activity. Associated with deflation because of that. And as you mentioned yes the Japanese. Population is growing older there are you were younger people to support that old population. And Japan is not very big on immigration unlike the US you know it's more -- let the closed country. In terms of people moving and staying there so they you know they have quite have you issue to get over that that. The job they is that taken out of very large diamond is trying to get a lot of. Spending aimed at reviving the Japanese economy so far Japanese stocks have responded by rallying because there is big hope. That that spending will weaken the yen and that will be very good for Japanese corporate profits. All right well Andy I appreciate you coming home with us this morning and -- Would -- get back to that wonderful Jersey weather and. Hope that that thank you -- All right that was -- cinco. From Bloomberg News coming up we are going to be joined by Jennifer at this from the Boston Herald talking about the high end housing market. In the city of Boston that's coming up in a couple minutes right here on the financial exchange.