WSJ What’s News: Why Wall Street Is Firing on All Cylinders

Date: October 14, 2025
Host: Sabrina Siddiqui (for The Wall Street Journal)

Episode Overview

This episode dissects the robust performance of Wall Street’s biggest banks and explores the strong resurgence of New York City’s office market. It also covers global political shake-ups, developments in the U.S. labor market, major foreign policy moves, and shifting trends in electric vehicle manufacturing. The focus remains on why Wall Street continues to outperform expectations amid global uncertainty, and what’s fueling Manhattan’s office space boom.

Key Discussion Points & Insights

1. Wall Street Banks Beat Expectations

• Earnings Season Highlights
  • Major banks including Goldman Sachs, JP Morgan, Citigroup, and Wells Fargo have surpassed profit and revenue forecasts in Q3 2025 ([01:05]).
  • Goldman Sachs: Poised for its best-ever year in investment banking and markets.
  • JP Morgan: On track to top $50 billion in annual profit for the second year.
  • BlackRock: Managing a record $13.5 trillion in assets.
  • Despite these strong numbers, Goldman Sachs and JP Morgan shares fell post-earnings due to exceedingly high investor expectations ([02:38]).

Notable Quote

“They may have gone in expecting two ice cream scoops and came away with one.”
– Alexander Saiedi (WSJ Banking & Finance Reporter) ([02:43])

• Market Sentiment & Risks
  • Alexander Saiedi explains the discrepancy between impressive results and share price stumbles: Banks have high valuations, and even modest results can disappoint markets ([02:43]).
  • Outlook: Mixed signals from bank leaders about geopolitical and economic risks, with some warning signs:
    • JP Morgan CEO Jamie Dimon: "Asset prices are elevated...a complex range of risks are emerging, especially in geopolitics" ([03:29]).
    • The lower-income consumer segment is more stretched compared to last year, and inflation is a persistent threat.

Notable Quote

“You think about this moment as a moment of high uncertainty... there are risks.”
– Jeremy Barnum, JP Morgan CFO ([03:15])

2. Global Economic & Market Context

• IMF Economic Outlook ([00:46])

  • Global growth forecast: 2.6% in 2025 (down from 3.6% in 2024).
  • US expected to grow at 1.9% (down from previous years).
  • Cited pressures: tariffs, inflation, protectionist trade policy, and a weakening labor market.

• Federal Reserve Signals ([04:17])

  • Fed Chair Jerome Powell signals labor market weakness, reinforcing expectations for more rate cuts.
  • Hopes for rate cuts buoy the stock market; Dow ends up modestly, S&P and NASDAQ down slightly.
  • Gold hits an all-time high.

3. Political Upheaval and International Highlights

• Madagascar’s Government Toppled by Protests ([05:52])

  • Gen Z-led mass protests over corruption and living conditions lead to military takeover.
  • The youth movement draws inspiration from global protests; symbols like the anime pirate flag appear across cities.

• US-Argentina & Venezuela Developments ([07:11])

  • President Trump conditions a $20bn rescue for Argentina on election outcomes.
  • U.S. military strikes off Venezuela target narco-trafficking, stirring debate in Congress about legal authority.

4. Corporate & Industry News

• General Motors Scales Back EV Ambitions ([08:24])
  • GM to cut EV manufacturing, taking a $1.6bn charge due to the expiration of subsidies and waning consumer demand.
  • The end of a $7,500 tax credit sees Q3 EV sales peak, but automakers brace for a downturn.

5. New York City’s Office Market Booms

A Tale of Two Markets: Manhattan vs. the Rest of the US

• Record Growth in Leasing Activity ([09:22])
  • Manhattan added 23.2 million sq. ft. of office space in nine months—the largest stretch in 19 years.
  • Leasing surpasses pre-pandemic levels; contrasting with a national office market that remains 11% below pre-pandemic averages.

Notable Quote

“Employers are getting their workers back to offices, and as a result, they need more space.”
– Peter Grant, WSJ Real Estate Reporter ([00:12]/[09:22])

• What’s Driving NYC’s Resurgence?
  • Industry diversity (tech, financial services, large recent Amazon leases).
  • Highest return-to-office rates in the US.
  • Unique city factors: easier commutes, small apartments making work-from-home less appealing ([10:04]).
  • Upgraded office amenities set new standards (e.g., meditation rooms, gardens at JP Morgan HQ).

Notable Quote

“Working from home isn't as much fun if you have to deal with roommates and your roommates’ animals... The new JP Morgan headquarters has set a new standard in terms of amenities... Jamie Dimon was communicating...you better be in the office. I'm going to make the office nice, but you better be there.”
– Peter Grant ([10:04])

• Persistent Challenges
  • Vacancy rates remain elevated; many obsolete or distressed buildings ([11:08]).
  • Boom is uneven—record high deals coexist with office buildings unable to find tenants.

Timestamps for Important Segments

• Big Bank Earnings & Market Context: [00:46] – [04:12]
• Fed & Market Reactions: [04:17] – [05:02]
• Global Politics – Madagascar, Argentina, Venezuela: [05:52] – [08:24]
• GM EV News: [08:24] – [09:13]
• NYC Office Market Deep Dive: [09:13] – [11:41]

Memorable Quotes & Moments

• Alexander Saiedi on investor expectations ([02:43]):
  "They may have gone in expecting two ice cream scoops and came away with one."

• JP Morgan CFO Jeremy Barnum on uncertainty ([03:15]):
  "You think about this moment as a moment of high uncertainty... there are risks."

• Peter Grant on why NYC is thriving ([10:04]):
  "Working from home isn't as much fun if you have to deal with roommates and your roommates' animals..."

Conclusion

Wall Street’s banks are defying economic headwinds, posting record profits amid a clouded global outlook. Simultaneously, New York City’s office market is outpacing the rest of the country thanks to industry diversity and a strong return to in-person work. Yet, signals of caution persist—from a more fragile labor market to persistent office vacancies and global political turbulence. This episode delivers a sweeping, insightful snapshot of a world where resilience and risk are tightly interwoven.