Bloomberg Businessweek Bank Earnings Begin as Traders Digest Fed Speak
7 snips
Oct 13, 2026 
Natalia Emanuel, a New York Fed economist, explores how hybrid work shapes creativity, mentorship and caregiving. Yale lecturer and Bloomberg Opinion columnist Gautam Mukunda examines AI-driven cyber risks and the case for tougher regulation. V-Square founder Mamadou-Abou Sarr discusses bank earnings, interest rates, AI valuations and whether massive tech investment can deliver cash flow.
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Higher Rates Keep Bank Income Growing
- Higher rates support bank net-interest income because bank balance sheets benefit from lending and deposit growth.
- Herman Chan said another hike could strengthen 2027 net-interest-income growth at JPMorgan, Wells Fargo, and Bank of America.
AI Stocks Still Have Investor Patience
- AI-linked stocks showed resilience as morning losses faded, suggesting investors still believe heavy investment may eventually produce returns.
- Mamadou-Abou Sarr distinguished valuation risk from market sentiment, which continues to sustain the trade despite stretched prices.
AI’s Real Test Arrives With Cash Flow
- Hyperscalers issued $219 billion of investment-grade debt by August, exceeding their 2025 issuance.
- The current phase is about deploying capital and building data centers; the real test begins when cash flow must validate those investments.