Squawk on the Street SOTS 2nd Hour: Former FCC Chairman, Zuckerberg vs. Apple, and Banking on Financials 1/13/25
Jan 13, 2025
Tom Michaud, CEO of KBW Stifel, shares his insights on the banking sector's earnings potential, emphasizing bullish trends. He discusses the impact of rising interest rates on financial stocks and the upcoming earnings season. The conversation also highlights Mark Zuckerberg’s criticisms of Apple, focusing on innovation and regulatory issues. Furthermore, the challenges facing TikTok amid potential bans are explored, alongside the implications for community resilience in California following recent wildfires.
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Rising Bond Yields and Economic Uncertainty
- Rising bond yields suggest future interest rates may be higher than expected.
- Uncertainty about the economy and future policies has increased the term premium.
Market Risks and Unusual Seasonality
- The market faces risks due to unusual seasonality and market concentration.
- Q4 2024 was weaker than usual, which historically suggests a flat or down Q1.
Banking Industry Outlook
- The banking industry is expected to see earnings growth after two down years.
- Asset-sensitive banks and those with strong investment banking and trading revenues are well-positioned.