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What Might the RNC Mean for Business and Politics in Wisconsin?

What Might the RNC Mean for Business and Politics in Wisconsin?

Update: 2024-07-16
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The Wall Street Journal's What's News podcast begins with an analysis of the latest earnings reports from major US banks. Investment banking is on the rebound, with several banks reporting double-digit increases in revenue. However, lower-income consumers are facing pressure, with more borrowers carrying over credit card balances and falling behind on payments. Banks are also seeing a lift from their asset and wealth management businesses, thanks in part to the stock market rally. The podcast then delves into the impact of rising interest rates on banks' offerings, with Tellus Demos explaining how banks are being squeezed as they have to pay more for deposits while struggling to earn significantly more yield. The podcast also discusses the growing national deficit and its effect on the treasury market. Sam Goldfarb explains why Wall Street is unbothered by the rising deficit, highlighting the unique attributes of treasuries that make them a highly sought-after asset. The podcast concludes with a report on the Republican National Convention in Milwaukee, Wisconsin. Luke Vargas explores the impact of the convention on local businesses and the city's economy, as well as the political implications for the state of Wisconsin, a key swing state in the upcoming presidential election. The report highlights the mixed feelings among Milwaukeeans about the convention, with some businesses benefiting while others are negatively impacted. The podcast also discusses the potential impact of the convention on the upcoming election, with experts weighing in on the factors that could influence the outcome.

Outlines

00:00:00
Introduction

This Chapter introduces the Wall Street Journal's What's News podcast and sets the stage for the topics to be discussed in the episode.

00:00:14
Bank Earnings and Interest Rates

This Chapter analyzes the latest earnings reports from major US banks, highlighting the rebound in investment banking, the pressure on lower-income consumers, and the lift from asset and wealth management businesses. It also explores the impact of rising interest rates on banks' offerings, explaining how banks are being squeezed as they have to pay more for deposits while struggling to earn significantly more yield.

00:00:27
National Deficit and Treasury Market

This Chapter discusses the growing national deficit and its effect on the treasury market. It explains why Wall Street is unbothered by the rising deficit, highlighting the unique attributes of treasuries that make them a highly sought-after asset.

00:08:25
Republican National Convention in Milwaukee

This Chapter explores the impact of the Republican National Convention in Milwaukee, Wisconsin, on local businesses and the city's economy, as well as the political implications for the state of Wisconsin, a key swing state in the upcoming presidential election. It highlights the mixed feelings among Milwaukeeans about the convention, with some businesses benefiting while others are negatively impacted. The chapter also discusses the potential impact of the convention on the upcoming election, with experts weighing in on the factors that could influence the outcome.

Keywords

Republican National Convention


The Republican National Convention is a quadrennial event held by the United States Republican Party to formally nominate its presidential and vice presidential candidates. The convention also adopts the party's platform and rules for the upcoming election. The 2024 Republican National Convention is scheduled to be held in Milwaukee, Wisconsin, from July 15-18, 2024.

Milwaukee


Milwaukee is the largest city in the state of Wisconsin and the seat of Milwaukee County. It is located on the western shore of Lake Michigan and is known for its brewing industry, its German heritage, and its vibrant arts and culture scene. The city is also a major center for manufacturing, finance, and transportation.

Swing State


A swing state is a state in the United States that is considered to be politically competitive, meaning that it could potentially vote for either the Democratic or Republican candidate in a presidential election. Swing states are often targeted by both parties during campaigns, as they can play a decisive role in determining the outcome of the election. Wisconsin is considered a swing state, as it has voted for both Democratic and Republican candidates in recent presidential elections.

Pre-diabetes


Pre-diabetes is a condition in which blood sugar levels are higher than normal, but not high enough to be diagnosed with type 2 diabetes. People with pre-diabetes are at increased risk of developing type 2 diabetes, heart disease, and stroke. The Ad Council has launched a campaign to raise awareness of pre-diabetes and encourage people to take the one-minute risk test at doihavepre-diabetes.org.

Treasury Market


The treasury market is the market for US Treasury securities, which are debt instruments issued by the US government. Treasury securities are considered to be very safe investments, as they are backed by the full faith and credit of the US government. The treasury market is the largest and most liquid bond market in the world. The treasury market is facing challenges due to the growing national deficit, which is leading to a huge increase in treasury supply. However, there is still enough investor demand for government bonds, as treasuries are seen as extremely safe and offer a good return.

Bank Earnings


Bank earnings are the profits that banks generate from their operations. Bank earnings are typically reported on a quarterly basis and are closely watched by investors, as they provide insights into the health of the banking industry. The latest earnings reports from major US banks have shown that investment banking is on the rebound, while lower-income consumers are facing pressure. Banks are also seeing a lift from their asset and wealth management businesses.

Interest Rates


Interest rates are the cost of borrowing money. Interest rates are set by the Federal Reserve, which is the central bank of the United States. Interest rates have been rising in recent months, as the Federal Reserve has been trying to combat inflation. Rising interest rates are putting pressure on banks, as they have to pay more for deposits while struggling to earn significantly more yield.

National Debt


The national debt is the total amount of money that the US government owes to its creditors. The national debt has been growing in recent years, due to factors such as the COVID-19 pandemic and the recent tax cuts. The growing national deficit is leading to a huge increase in treasury supply, which is putting pressure on the treasury market.

Senator Bob Menendez


Senator Bob Menendez is a Democratic senator from New Jersey. He was found guilty of corruption charges today, a likely death blow to his longtime political career. A federal jury convicted him of taking bribes in exchange for official acts that benefited three businessmen as well as the governments of Egypt and Qatar.

JD Vance


JD Vance is an American author, venture capitalist, and politician. He is the junior United States Senator from Ohio, representing the state since 2023. He is a member of the Republican Party. Vance was named as former President Donald Trump's running mate for the 2024 presidential election.

Q&A

  • What are the key takeaways from the latest earnings reports from major US banks?

    The key takeaways from the latest earnings reports from major US banks are that investment banking is on the rebound, lower-income consumers are facing pressure, and banks are seeing a lift from their asset and wealth management businesses.

  • How are rising interest rates affecting banks' offerings?

    Rising interest rates are putting pressure on banks, as they have to pay more for deposits while struggling to earn significantly more yield. This is squeezing their profits, particularly in the wealth management business.

  • Why is Wall Street unbothered by the growing national deficit?

    Wall Street is unbothered by the growing national deficit because treasuries are seen as extremely safe and offer a good return. They are also very easy to trade and offer higher yields than their closest competitors.

  • What are the potential impacts of the Republican National Convention in Milwaukee on the city and the upcoming election?

    The Republican National Convention in Milwaukee could have a mixed impact on the city, with some businesses benefiting while others are negatively impacted. It could also have a significant impact on the upcoming election, as it could help to mobilize Republican voters in Wisconsin, a key swing state.

  • What are the key factors that could influence the outcome of the 2024 presidential election in Wisconsin?

    The key factors that could influence the outcome of the 2024 presidential election in Wisconsin are the parties' organizations, the issues that are most important to voters, and the candidates' personalities. The economy and immigration are seen as the top issues for Wisconsin voters, giving a slight edge to Trump. However, both candidates are flawed, and 17% of voters say they don't like either candidate.

  • What are some of the potential long-term impacts of the Republican National Convention in Milwaukee?

    The Republican National Convention in Milwaukee could have a long-term impact on the city, as it could help to attract more businesses and investment. It could also help to raise the city's profile nationally and internationally. However, the convention could also have a negative impact on the city, as it could lead to an increase in crime and traffic congestion.

  • What are the challenges facing the treasury market due to the growing national deficit?

    The challenges facing the treasury market due to the growing national deficit include the huge increase in treasury supply, which could potentially push down bond prices and push up yields. However, there is still enough investor demand for government bonds, as treasuries are seen as extremely safe and offer a good return.

  • What are the potential risks associated with the growing national debt?

    The potential risks associated with the growing national debt include higher interest rates, which could lead to slower economic growth. It could also lead to a loss of confidence in the US economy, which could make it more difficult for the government to borrow money in the future.

  • What are the implications of Senator Bob Menendez's conviction on his political career?

    Senator Bob Menendez's conviction is a likely death blow to his longtime political career. He is expected to appeal the verdict, but if the conviction is upheld, he will likely be forced to resign from the Senate.

  • What are the potential implications of JD Vance being named as Donald Trump's running mate?

    JD Vance being named as Donald Trump's running mate could have a significant impact on the 2024 presidential election. Vance is a controversial figure, and his selection could energize Trump's base but also alienate some moderate voters.

Show Notes

P.M. Edition for July 16. What this year’s Republican National Convention in Milwaukee means for locals—and for the swing state of Wisconsin. Our Luke Vargas reports from the RNC. And why are big banks paying more to keep brokerage customers’ cash? Heard on the Street writer Telis Demos explains. Plus, Sen. Bob Menendez is found guilty of bribery. Francesca Fontana hosts.




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What Might the RNC Mean for Business and Politics in Wisconsin?

What Might the RNC Mean for Business and Politics in Wisconsin?

The Wall Street Journal