WEBVTT

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The fed is following right now what we're following in

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the markets which is regional banks and the regional banks

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are clearly not doing great. I mean, there

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already has been a tremendous decline in the share prices

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and now after earnings, they're going even lower.

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And that to me as frankly as Julian Emanuel was

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saying, tells you so much the fact that there's

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been a lot of pain priced in and now even

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more after you see what's going on under the hood

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tells you something. 5th 3rd shares down 1.4% taking

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a look at Zion's Bank after reporting earnings yesterday,

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down more than 5% in premarket trading. First Republic

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, which reports on Monday, I believe down 2.5%

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in true, which reported this morning down almost 1%

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. The story for me is net interest income.

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You are seeing it really struggle given the net interest

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margins, I should say not revenue but net interest

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margins considering how much they're going to have to pay

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for deposits at a time. When suddenly that matters

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. I don't know John to me, I feel

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like this story has changed. No, no,

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I agree. The profitability story is the one to

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focus on for the broader market. Though, for

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the macro economy, you just want to know that

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things have stabilized, right? That's kind of the

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thing you're looking at because of the stress of the

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last month, you want the stability first and then

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you wait through and work through the next phase of

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this. The first phase is shock crisis survive.

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The next phase is a better understanding of where profits

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are going and what it means for, for lending

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standards in the coming months, quarters and maybe even

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years. And as we parse through that, we

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get a whole host of other earnings and you've been

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mentioning Tesla and rightly so throughout the morning and we

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should take a look at those shares which are lowered

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by more than 7%. The loss is deepening throughout

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the morning ahead of the open. After reporting that

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they expect to keep cutting prices in order to generate

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higher volumes, the profit margin likely to deteriorate,

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further raising real questions about demand as well as the

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disinflationary forces, not just for Tesla, but broader

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as well.