EQUITIES: Wells Fargo Results Mixed, Misses on Rev, NII and NIM

Jan-14 11:37

Wells Fargo results coming in mixed (as was the case with JPM yesterday):

• "*WELLS FARGO 4Q NET INTEREST INCOME $12.33B, EST. $12.43B
• *WELLS FARGO 4Q REV. $21.29B, EST. $21.64B
• *WELLS FARGO 4Q NON-PERFORMING ASSETS $8.50B, EST. $7.91B
• *WELLS FARGO 4Q NET INTEREST MARGIN 2.6%, EST. 2.64%" - bbg

  • Release notes: “Evidence of increased growth can be seen across the company. In our consumer businesses, credit card continues to see strong increases in spend and new accounts grew over 20% from a year ago. Auto lending returned to growth with balances up 19% from the prior year."
  • "Advisory fees in our Wealth and Investment Management business grew 8%. In our commercial businesses, loans grew 12%. Investment banking fees increased 14%. We grew investment banking market share and our M&A ranking increased from 12 to 8"

Historical bullets

LOOK AHEAD: Monday Data Calendar: Empire Mfg, NAHB Housing, Fed Speak, Tsy Bills

Dec-15 2025 11:37
  • US Data/Speaker Calendar (prior, estimate). All times ET
  • 12/15 0830 Empire Manufacturing (18.7, 10.0)
  • 12/15 0930 Fed Gov Miran inflation outlook
  • 12/15 1000 NAHB Housing Market Index (38, 39)
  • 12/15 1030 NY Fed Williams keynote remarks
  • 12/15 1100 Fed Gov Miran on CNBC
  • 12/15 1130 US Tsy $86B 13W & $77B 26W bill auctions
  • Source: Bloomberg Finance L.P. / MNI

MACRO UPDATE: Downward Adjustment Of German Growth Forecasts Continues

Dec-15 2025 11:25

Private sector German medium-term GDP forecasts have again seen a deterioration with hard data continuing to lag improving sentiment and an apparent stagnation in terms of wider economic reform from the government. The downward revisions across 2026 provide an interesting contrast to the most recent hawkish ECB repricing, and should be weighed against analysts' expectations for upward revisions to the ECB's Eurozone GDP forecasts which are to be published Thursday.

  • Updating a median estimate from seven sellside analysts that we track, Y/Y growth is expected to start accelerating in Q2 of next year before topping out at 1.4% Y/Y over the course of 2027. However, these medium-term forecasts have seen downward pressure in recent months, with broad downward revisions of ~0.3pp in most of 2027 comfortably outweighing a marginally higher median for 4Q25.
  • This comes after IFO published on Friday a material downside growth revision - to 0.8% Y/Y for 2026 (from 1.3%). 0.8% is exactly where their 2026 view stood right before IFO started incorporating the government's fiscal easing announcement from last March, suggesting this has been crowded out to a large extent by underlying weakness in the private sector. "The German government's measures will help in the short term but are insufficient to expand the production capacities of the German economy in the long term", IFO commented.
  • The government also shared their view this morning, concluding that "the German economy continues to face conflicting pressures: on the one hand, external factors are weighing on the economy in the form of weak foreign demand, declining competitiveness, and isolated bottlenecks for certain intermediate goods; on the other hand, there are signs of a gradual stabilization of the domestic economy, supported in part by the increasingly noticeable fiscal stimulus measures implemented recently".
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US 10YR FUTURE TECHS: (H6) Bear Threat

Dec-15 2025 11:25
  • RES 4: 113-09   76.4% retracement of the Nov 25 - Dec 10 bear leg
  • RES 3: 113-00+ 61.8% retracement of the Nov 25 - Dec 10 bear leg
  • RES 2: 112-27+ High Dec 5 
  • RES 1: 112-21/23 20-day EMA / High Dec 11 
  • PRICE:‌‌ 112-11 @ 11:10 GMT Dec 15
  • SUP 1: 111-29   Low Dec 10 and the bear trigger
  • SUP 2: 111-19   1.236 proj of the Oct 17 - Nov 5 - 25 price swing
  • SUP 3: 111-11   1.382 proj of the Oct 17 - Nov 5 - 25 price swing 
  • SUP 4: 111-00   Round number support 

A bearish theme in Treasuries remains intact and short-term gains appear corrective. The rally last Thursday topped out at 112-23, meaning resistance at  the 20-day EMA, currently at 112-21, remains intact. A continuation lower would refocus attention on key short-term support at 111-29, the Dec 10 low. Clearance of this level would confirm a resumption of the bear leg and signal scope for an extension towards 111-19, a Fibonacci projection.