Bloomberg Intelligence Podcast

Episode: Schwab’s Trading Volume Swells at End of Strong Year for Markets
Date: January 21, 2026
Hosts: Scarlet Fu & Paul Sweeney

Overview

This episode of Bloomberg Intelligence offers a deep dive into several topical issues shaping markets and the broader financial environment. The episode focuses first on Charles Schwab’s strong Q4 earnings, marked by robust trading activity and asset inflows. The conversation then pivots to global geopolitical developments, including President Trump’s provocative remarks at Davos and implications for U.S.-European relations. The show closes with an extended discussion on the Federal Reserve’s independence, centered around the Supreme Court case concerning Fed Governor Lisa Cook.

Segment 1: Charles Schwab’s Surging Trading Activity & Q4 Performance

[01:11–02:30]

Key Points:

• Schwab experienced exceptional retail engagement in Q4 2025, with “margin balances at a record,” benefiting from buoyant markets.
• The company continues to benefit from a “cyclical” trend: when the market is strong, clients deposit more assets and trading activity accelerates.

Guest: Neil Sipes (Bloomberg Intelligence, Financials Analyst)

• “We think about massive retail broker, 46 million touch points across the U.S … the mass affluent all the way up to smaller buckets in higher net worth individuals.” [01:34]
• Engagement sentiment remains high, fueling Schwab’s overall growth.
• Margin lending remains a “very lucrative opportunity”—Schwab’s business is closely tied to overall market exuberance.

Segment 2: Schwab’s Strategy – Crypto, Prediction Markets, and Digital Expansion

[02:30–03:42]

Speculative Fervor:

• Crypto: Schwab anticipates rolling out spot crypto trading in H1 2026, benefiting from a more “favorable outlook” on regulation.

  • “They've talked about how a lot of their customers are trading the Bitcoin ETFs ... So expanding into that business, that should provide yet another additive product.” —Neil Sipes [02:43]

• Prediction Markets: Schwab remains “slower and more measured” with no immediate plans to offer sports gambling or highly speculative prediction markets.

  • They may consider financial prediction contracts (tied to economic or stock outcomes) in the future, but nothing imminent.

Segment 3: Geopolitics at Davos – President Trump’s Greenland Comments

[05:05–08:37]

Guest: David Gura (Bloomberg News)

Main Discussion:

• President Trump’s address at Davos contained “tough words” for world leaders, focusing on U.S. achievements but controversially discussing Greenland.
  • Trump described Greenland as a “piece of ice cold and poorly located that can play a vital role in world peace and world protection.” [05:38]
• Trump expressed doubts about NATO’s commitment to defending the U.S., stating: “if the US were to be attacked and the US were to call NATO, he's not sure that those allies would come to the defense.” [06:08]

Insights & Implications:

• Gura notes the importance of the “substance in the middle” of Trump’s speech, while much of the rest was boilerplate.
• European leaders are working on a coordinated response; investors are watching for signals but so far are not rattled, as reflected in stable or improving equity markets.
  • “It didn't seem to alarm investors … for investors, it wasn't alarming to the point where anyone needs to do anything.” —Scarlet Fu [07:04]

Segment 4: Mark Carney and Canada’s Pivot in Global Alliances

[08:37–11:04]

Main Discussion:

• Canadian PM Mark Carney delivered a “forceful speech” describing the present as “a rupture, not a transition.”
• Carney is advocating for a stronger role for mid-sized countries and is recalibrating Canada’s economic and diplomatic relationships.
• Canada has reached new agreements with China, including openings for electric vehicles and auto investments.
  • “He said in that speech we actively take on the world as it is, not wait around for a world we wish to be.” —David Gura [10:29]
• Carney’s approach is noted as more pragmatic and globally engaged compared to predecessor Justin Trudeau.

Segment 5: Supreme Court, Lisa Cook, and Fed Independence

[11:25–18:16]

Guest: Nikki Lanier (CEO, Harper Slade; former St. Louis Fed Senior VP)

Key Issues:

• The Supreme Court will decide if President Trump can fire Fed Governor Lisa Cook over disputed mortgage fraud allegations—a move Cook denies.
• The case is viewed as pivotal for Federal Reserve independence.

Notable Quotes & Insights:

• “The significance of the implications on Fed independence should not be lost on anyone at this point … The Federal Reserve's independence … is the bedrock of American economic credibility.” —Nikki Lanier [12:03]
• Removing a sitting Fed governor for political reasons risks destabilizing global trust and politicizing monetary policy.
  • “There's just there, there's no upside to this. And the intentions of this president in unseating an extraordinarily beautifully qualified Federal Reserve governor is not only unprecedented, but reckless.” [12:38]
• Three conservative justices, including Amy Coney Barrett, expressed skepticism about the administration’s arguments, focusing on market risks if Cook is removed.
• Lanier underscores that if the Fed bends to political interests, “it’s game over” for American monetary credibility.
  • “That’s core to the Fed's independence is really relying on the data. These are stalwart and studied and highly pedigreed decision makers … I’ve seen it in these FOMC meetings … relying on that data.” [14:08]

Fed’s Current Challenges:

• The greatest challenge is the direct threat to the Fed’s independence: “If intimidation is able to prevail, then monetary policy leadership … is entirely upended.” [15:21]
• Fed Chair Jerome Powell attended the Supreme Court session in person, a major signal:
  • “Chair Powell's decision to personally attend … it underscores the gravity of the moment. Fed chairs don't usually appear in court casually. … This is far from just a … personnel decision.” [16:35]

Social and Labor Implications:

• Lanier expresses concern that the case is also about the ongoing challenges facing Black women in professional positions, noting the risk of “codifying continued attacks on professional black women.” [17:23]

Memorable Moments & Quotes:

• Neil Sipes (on Schwab):
  “Margin balances were at a record. So we're seeing that sort of exuberance in the markets. And all of that is positive to the fundamentals … you tend to add more assets into your account when markets are performing well, you tend to trade a little bit more.” [01:35]

• President Trump (quoted/paraphrased by David Gura):
  “You want me to talk about Greenland? … that's our territory … he needs it for strategic international security.” [05:36–05:41]

• Nikki Lanier (on Fed Independence):
  “The Federal Reserve's independence … is the bedrock of American economic credibility.” [12:06]

• David Gura:
  “He [Carney] said in that speech we actively take on the world as it is, not wait around for a world we wish to be.” [10:29]

Key Timestamps for Important Segments

• Schwab’s Q4 Results & Market Sentiment: [01:11–02:30]
• Schwab & Crypto, Platform Expansion: [02:30–03:42]
• Trump’s Davos/Greenland NATO comments: [05:05–08:37]
• Mark Carney & Canada’s pivot: [08:37–11:04]
• Supreme Court, Lisa Cook & Fed Independence: [11:25–18:16]

Tone:
The episode maintains Bloomberg’s typical analytical, data-driven tone—direct, modern, informed, and occasionally urgent, particularly when discussing the threats to institutional norms like Fed independence.

Useful for:

• Anyone interested in the intersection of market trends, regulatory strategy, international relations, and central bank independence.
• Listeners who want a comprehensive briefing on topical events affecting U.S. and global markets, as well as major shifts in central banking and international diplomacy.