Bloomberg Intelligence Podcast Summary

Episode: JPMorgan Investment-Banking Fees Drop on Underwriting Miss
Air Date: January 13, 2026
Hosts: Scarlet Fu & Alex Semenova
Guests: Herman Chan (Senior Banks Analyst), Anurag Rana (Technology Analyst), Travis Hessey (Commerce CEO), George Ferguson (Aerospace Analyst)

Episode Overview

This episode dives deep into analyst reactions to JP Morgan's latest earnings, focusing on drops in investment-banking fees and the broader implications of a proposed U.S. cap on credit card interest rates. The hosts also unpack major tech and retail shifts, including Apple's partnership with Google's Gemini AI, the transformation of shopping through AI-driven solutions, and Delta's latest earnings with an eye toward industry consolidation and future fleet strategy.

JP Morgan's Earnings and Credit Card Rate Cap

Segment: [01:56] – [08:17]
Guest: Herman Chan, Bloomberg Intelligence Senior Banks Analyst

Key Points & Insights

• Strong Overall Performance With Soft Investment Banking:

  • JP Morgan delivered strong trading and lending revenue; loan growth was robust.
  • Investment banking revenues disappointed, down 5% year-over-year, attributed largely to seasonal delays in dealmaking ([02:34], [06:38]).

• Expense Outlook Raised:

  • JP Morgan reiterated its surprise $9B increase in 2026 expenses, driven by growth, inflation, and healthcare costs ([02:34], [04:37]).

• Potential Impact of Proposed Credit Card Rate Cap:

  • President Trump has advocated for a 10% credit card rate cap.
  • JP Morgan is especially vulnerable due to its status as a leading credit card issuer and its acquisition of Apple’s card business from Goldman Sachs.
  • Herman Chan:

    "This would have drastic repercussions for JP Morgan, the banking industry, consumers and overall GDP growth... A large swath of [customers would] just not have credit card usage going forward under a 10% rate cap." ([03:18])

  • The cap could reduce credit availability, particularly hurting less advantaged consumers – the very group it's intended to help ([04:37]).

• Political and Regulatory Realities:

  • The President can't cap rates by executive order; it requires congressional action.
  • Herman Chan:

    "A lot of it seems to be posturing at this point...pushing himself to address broader affordability issues heading into the midterm elections." ([05:43])

  • Banks are waiting for concrete legislation before reacting.

Notable Quotes

• Herman Chan on credit card cap's reach:

  "This is not just the JP Morgan and banks issue. This is going to [have] big repercussions for economic activity in the United States..." ([04:37])

The Tech Battle: Apple Partners with Google’s Gemini AI

Segment: [10:02] – [14:41]
Guest: Anurag Rana, Bloomberg Intelligence Technology Analyst

Key Points & Insights

• Apple–Google AI Partnership:

  • Apple and Google are collaborating to bring Google’s Gemini AI model into the iPhone ecosystem, marking a major move in the "AI battleground."
  • Apple, lacking a competitive in-house foundational model, leverages Google’s tech to close that gap ([11:35]).
  • The integration is likely to be highlighted in Apple's next major Siri upgrade, anticipated for March/April.

• Regulatory Risks and Privacy:

  • Elon Musk publicly raised concerns about concentration of power with Google.
  • Anurag Rana:

    "He won't have a point if his model was being used at that point. ... Apple... won’t do it to an outside vendor where they don’t control the data... They'll use the foundational models from Google, but...run a lot of that either on the device or their own private cloud data centers." ([12:57])

  • Apple is committed to privacy-first integration.

• AI Talent and Strategy:

  • Following some exodus of AI talent from Apple, the Google deal allows Apple to focus on product integration rather than foundational AI research.
  • Anurag Rana:

    "I'm not in the business of model development. If I can use the best model out there in my product and pay some money—rumored $1 billion a year—which is nothing compared to what these companies spend developing their own." ([14:06])

The Future of Shopping: Google’s Universal Commerce Protocol & Generative AI

Segment: [17:23] – [23:29]
Guest: Travis Hessey, CEO of Commerce (NASDAQ:CMRC)

Key Points & Insights

• Universal Commerce Protocol:

  • Google's standard enables seamless e-commerce across its surfaces, contextualizing product recommendations in answer engines and AI chat services ([18:00]).
  • Shopping becomes more conversational and data-driven, with user behavior and brand context feeding real-time personalization.

• Trust, Brand Security & Data:

  • Brands are focused on maintaining control over brand presentation and customer data, especially when transactions move off-brand owned channels ([18:52]).
  • Personalization relies on the consumer’s willingness to share/login; otherwise they receive generic results.

• AI in Retail—Trends from the National Retail Federation Conference:

  • AI dominates retail innovation discussions, but large organizations seek pragmatic, secure, and frictionless solutions rather than hype ([21:27]).
  • Travis Hessey:

    "For larger organizations... trust, brand ethos and security are top of mind. So for them it's less about the sizzle, it's more about the steak and the foundational elements." ([21:27])

• What AI Won’t Change:

  • The basics of consumer behavior and concerns about trust and data sharing ([22:54]).

Memorable Moment

• Travis Hessey on AI’s NRF buzz:

  "AI has sucked all the, all the oxygen out of the room at Javits and it's a big room." ([22:49])

Delta Airlines Earnings and Industry Outlook

Segment: [25:46] – [32:56]
Guest: George Ferguson, Senior Aerospace/Defense/Airlines Analyst

Key Points & Insights

• Earnings Snapshot:

  • Delta shares fell 2.8% after issuing a full-year forecast below expectations.
  • Premium and loyalty revenues are strong; main cabin revenues fell by 7% in the quarter ([26:38]).
  • Robust competition in premium seating as other carriers pivot toward similar offerings.

• Risks & Consolidation:

  • CEO Ed Bastian flagged geopolitical and domestic risks, including the proposed credit card rate cap—which could threaten lucrative co-branded card loyalty programs ([28:26]).
  • Industry is seeing consolidation among smaller low-cost carriers, with Allegiant and Sun Country merging; Frontier may buy Spirit ([29:47]).
  • Large carrier consolidation is not anticipated.

• Fleet Renewal & Boeing-Endorsement:

  • Delta’s order of 30 Boeing 787 Dreamliners, to replace aging 767s, is an endorsement of Boeing’s platform and will drive efficiency when delivered starting 2030 ([31:05]).
  • Traditionally an Airbus customer, Delta's move helps keep manufacturers competitive.

Notable Quotes

• George Ferguson on fleet decisions:

  "Interesting to see them come in for the 787. That’s really, I think, been a category leader in that small, narrow body world. Boeing has over a thousand orders for that airplane." ([31:05])

• On risk:

  "I think there’s probably some concern in the marketplace that maybe premium gets crowded and pushes closer to that main cabin kind of fare rather than main cabin coming up." ([26:38])

Notable Quotes—At a Glance

• Herman Chan: "This is going to [have] big repercussions for economic activity in the United States and really will hurt some of the, you know, less advantaged consumers that I think really this, this rate cap would intend to help.” ([04:37])
• Anurag Rana: "If Google has the best search, I will outsource that technology into my products from them." ([14:06])
• Travis Hessey: "AI has sucked all the oxygen out of the room at Javits and it's a big room." ([22:49])
• George Ferguson: "The Boeing widebodies... interesting to see them come in for the 787. That's really, I think, been a category leader..." ([31:05])

Timestamps for Key Segments

• [01:56] JP Morgan earnings (Herman Chan)
• [03:18] Credit card rate cap impact
• [06:38] Investment banking revenues, deal pipeline
• [10:02] Apple–Google Gemini AI partnership (Anurag Rana)
• [12:57] Big tech AI strategy and privacy
• [14:41] Talent and rationale behind Apple’s partnership
• [18:00] Google’s Universal Commerce Protocol/AI shopping (Travis Hessey)
• [21:27] AI in retail—trends and challenges
• [25:46] Delta Airlines earnings and outlook (George Ferguson)
• [28:26] Geopolitical, domestic, and regulatory risks
• [29:47] Airline industry consolidation
• [31:05] Delta’s Boeing 787 order and its significance

Tone: The episode maintained an analytical, data-driven, conversational style, with hosts and analysts breaking down complex issues for a business audience.

For those who missed this episode:
This summary covers all major themes, from the regulatory crosswinds buffeting banks, to rapid shifts in the AI and tech landscape, the transformation of shopping by generative AI, and changing fortunes in aviation. Use the timestamps to dive deeper into segments of interest.