A (3:36)

How are these banks approaching getting new business in 2026 and how is that changing?

B (3:41)

So everyone is pretty cutthroat right now, right? They see all these fees out there and they're all trying to get them. We are seeing a lot of banks talk about we're ready to spend, we're ready to grow, we want to grow faster. Which is kind of a different tone than we've heard for the last few years where it's sort of been like, we're doing okay, don't worry about us. I think the big sign from this conference was JP Morgan announced they're going to spend $105 billion in expenses next year, which is up like 10 billion from this year and up 30 something billion from just a few years ago. This is money on AI, this is money on talent. This is money on just like putting it to more customer use. So this is pretty big stuff. We're ready to see a big year for banking in 2026 again, depends on, you know, what happens in geopolitics and the rest of the world. But that's how they're feeling going into 2026. On the back of this big year.

A (4:32)

That was WSJ Wall street editor David Benoit. Thanks, David.

B (4:35)

Thanks for having me.

A (4:40)

In an Oval Office interview with the Wall Street Journal today, President Trump said he was leaning toward choosing either former Fed governor KE or National Economic Council Director Kevin Hassett to lead the Federal Reserve next year. Trump said that, quote, I think the two Kevins are great. Hassett has been viewed as the front runner after Trump said in recent weeks that he had already made up his mind about who should lead the central bank. He restated that today, but suggested he hasn't made a final decision. Trump also said that he thought the next Fed chair should consult with him on where to set interest rates and pushed for more rate cuts. Coming up, why a former Michigan football coach was arrested and what's flying off the shelves at Costco. That's after the break.

C (5:27)

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A (5:54)

In international news, Iranian Nobel Peace Prize laureate Narges Mohamedi was arrested at a public event today. Her brother said she was violently detained in northeastern Iran while attending a memorial service. Mohammadi, who was awarded the prize in 2023, gained global attention for speaking out against the Iranian government's oppression of women and torture of dissidents. Iran's mission to the United nations declined to comment on her arrest. And we're exclusively reporting that Chinese authorities last month arrested dozens of Tibetans in a rare act of defiance. They were protesting a gold mining project that threatened their livelihoods in a Tibetan autonomous area in western China. That's according to Tibetan activists and Tibet's government in exile. As of yesterday, 11 of the protesters initially detained were still held. Chinese authorities didn't respond to a request for comment. One of the richest, most powerful institutions in college sports was upended this week when the head coach of the Michigan football team was fired and then charged with a felony count of home invasion and two misdemeanors, including stalking. The university had fired Sharon Moore, the former coach, on Wednesday after an investigation found that he had had a sexual relationship with a female member of Michigan's football staff. Moore's lawyer said today that he was set to be released on a $25,000 bond. Whatever happened to the climate crisis? Over the past few years, high profile names like Bill Gates and BlackRock CEO Larry Fink have sounded the alarm about the dangers of climate change. But more recently, politicians and CEOs seem to have muted those alarms and softened their warnings. So what's changed? WSJ chief economics commentator Greg IP joins me now. Greg, the underlying facts around climate change, of course, have not changed. Carbon emissions are still rising. The climate's getting warmer. NASA said that 2024 was the hottest year on record. So why are we talking about climate change differently now?

D (7:55)

Well, if you go back four or five years ago, when I think climate concerns were kind of at their peak, there was a different political and cultural milie look at the term of President Biden. I mean, he comes in, you know, he's completely invested in the climate agenda, talks about the urgency of acting right away, he passes a couple of really big spending bills to try and do a number of things, including promoting green investment. But then right around that time, inflation takes off, partly because of all the spending and the Biden packages and Russia's invasion of Ukraine. And what you've seen since then is people's priorities have basically changed. Climate change is not something they're inclined to worry about when they're more worried about their pocketbooks or, or their security, the security of their energy supply. And with the election of President Trump, I think a lot of folks, including CEOs like BlackRock, Larry Fink, have sort of sensed there's been a shift in the political wind and they're talking about it differently and they're trying to downplay a lot of the things that they used to emphasize just a few years ago.

A (8:50)

So what does that mean for the prospect of combating climate change?

D (8:54)

Well, obviously a lot of policies that would have been helpful in terms of accelerating the move to net zero emissions, like a carbon tax, become even harder to enact now. Although, you know, as somebody who has been pushing for a carbon tax for decades, I have to admit that that cause was lost ages ago.

A (9:09)

Then what do you see as more likely to happen against climate change?

D (9:13)

First of all, given the technological progress that we've made on low emissions technology, and I'm talking about wind, I'm talking about solar, I'm talking about battery storage, I'm talking about promising developments in advanced nuclear emissions are likely to head downwards globally before long, and they've been heading downwards for the United States for some time. And that's likely to continue almost irrespective of the policy landscape. The second thing is, I think that as this sort of climate catastrophism which sort of consumed us a few years ago, retreats, it gets replaced by a more kind of subtle, sober climate realism, where rather than focusing on the catastrophic outcomes and the need to change everything all at once right now, people focus instead on what's politically supportable and doable and what has a proven track record, which means things like incentivizing innovation and commercialization of low emissions technology.

A (10:06)

That was WSJ chief economics commentator Greg ip. Thank you, Greg.

D (10:10)

Thanks for having me.

A (10:14)

Lots of companies are trying to mitigate the effects of tariffs for the holiday season. Costco's approach is to drop some items affected by tariffs and source more items from the US that means it's selling a smaller assortment of products. One thing, it's selling a lot of food like pizza and pies, as Costco Chief Financial Officer Gary millerchip said on its latest earnings call, lots and lots of pies.

E (10:37)

US bakeries also set a record in the three days leading up to Thanksgiving selling 4.5 million pies. That's over 7,000 pies per warehouse over a three day period.

A (10:48)

Costco's revenue topped forecasts in its latest quarter, but shares were nearly unchanged today. Some analysts say investors may be hungry for a special dividend. And that's what's news for this week. Tomorrow, you can look out for our weekly markets wrap up what's news in markets Then on Sunday, WSJ chief China correspondent Ling Ling Wei answers questions about the technology race between the US And China. That's in what's New Sunday. And we'll be back with our regular show on Monday morning. Today's show is produced by Pierre Biennime with supervising producer Tali Arbel. Michael Lavall wrote our theme music. Jessica Fenton is our technical manager, Aisha El Musleam is our development producer, Chris Zinsley is our deputy editor. And Falana Patterson is the Wall Street Journal's head of news Audio. Alex I'm Alex Osola. Thanks for listening.

F (11:48)

Exchanges, the Goldman Sachs podcast featuring exchanges on navigating macro uncertainty exchanges on the forces shaping global markets. For the sharpest analysis on finance, business and the economy, count on exchanges between leading minds at Goldman Sachs. New episodes every week. Listen now.