Sam Dickie: Fisher Funds expert on what the latest US bank earnings say about the economy

The major US banks have reported their earnings, and experts say these results can offer a clear snapshot of the state of the US and global economy.

JP Morgan, Goldman Sachs, Bank of America, and Citi were among the major banks reporting their results, leaving investors to speculate about the wider implications.

Fisher Funds expert Sam Dickie explained further.

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Episode Transcript

Speaker 1 (00:00):
Now onto actually serious subjects is what it was. All
serious obviously, But the biggest US banks have just reported
earnings and they give us one of the clearest snapshots
of the health of the US and the global economy.
And Sam Dickey from Fisher Funds has been looking into
this for US and he's with us now. Hello Sam,
good evening, right, So run me through it. Who reported?
Were the results good or were they bad?

Speaker 2 (00:18):
Yes, Jam Morgan, Golden Sachs, Bank of America, Morgan, Standing,
and City all reported and results were stellar. They beat
expectations by a mile. And the driver was not good
old retail banking, but it was trading. So if you
think about all the volatility from Iran, the AI frenzy,
the unexpected wash fed tightening, that all causes trillions of

(00:41):
dollars to need to reposition fast, and the big banks
clipped the ticket on every trade. So Goldman's Equities desk,
for example, made a record profit for any bank ever
in a single quarter.

Speaker 1 (00:54):
So what are they saying about the health of the
US consumer?

Speaker 2 (00:59):
That's the interesting parts. So despite Iran, despite sticky inflation,
despite higher petrol prices, the US consumer is remarkably resilient
and JP Morgan's card spending, for example, was up almost
ten percent year on year, and they lowered their expected
credit card default rates so fewer people are falling behind
and expected wells. FAGO, a big retail bank covered there,

(01:20):
said consumer trends and resilient. Sorry, consumer trends and resilience
have been very strong. It's hard to see that changing
the short term. And Jamie Diamond, he's always good to
listen to. He said the whole environment was as close
to as good as it gets, but he gave a
typically sobering caveat where he said we're facing an increasingly

(01:41):
complex set of risks and warned when the credit cycle turns,
losses will be worse than people expect. And he also
said that the lower income consumers are already pulling back.

Speaker 1 (01:51):
What does that mean for investors?

Speaker 2 (01:52):
Do you think? Well? I think it's exceptional. Resilience from
the world's biggest consumer segment, despite Iran, despite inflation, is encouraging.
But bear in mind Diamond's warning. When things are as
close to as good as they get, watched for risks
building beneath the surface. Sam always good advice.

Speaker 1 (02:08):
Really appreciate it, mate, You look after yourself, Sam to
Key Fisher Funds.

Speaker 3 (02:11):
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