JPMorgan Chase’s (JPM) at Morgan Stanley Financials Conference

Gordon Smith – Chief Executive Officer of Consumer & Community Banking

Growth in credit across the ranges

“…everything that we read in the numbers we feel comfortable that we will get paid for taking that extra risk. We are going to sub-prime lending, but we are seeing growth actually across all segments and I think it is actually quite encouraging when we look at the economy…I think the economy actually looks very good and we’re seeing that growth as I say across all the credit range. ”

Reserves are being rebuilt in credit cards

“…we are now in a cycle where reserves are being rebuilt, they are not being released in credit card, I guess across most players – across most players in the industry, but going back, we have guided that we’ve typically have underwritten the newer vintages towards plus or minus 4.5. It will take us a while to get there, but we will see, we and the industry will see a rise in losses and the reserve builds to go with rise in losses and with rising loan growth…people still seem to be surprised that we are at the end of that cycle that we have never seen in the 50 years of lending money on credit cards, I was not there the whole 50 years, but we have never seen losses this low, and then I will begin to migrate back up to more the historical averages over time and it will take a while to get there.”

They are harnessing the power of big data

“we have an organization called Intelligent Solutions, which just brings the enormous power of all the data that we have to help target who are the right customers for the products that we have. That has significant financial returns because we are able to invest their marketing dollars in the right way. So the power of big data is really clear for us.”

Bloomberg Invest New York summit June 6-7 2017

Bill Gross Manager Janus Henderson Global Unconstrained Bond Fund

Stocks are overpriced

“Instead of buying low and selling high, you’re buying high and crossing your fingers….If there’s a common factor it’s the expansion of credit. And the credit that’s being generated by central banks. Money is being pumped out into the system and money that is yielding less than nothing seeks a haven not only in bonds that are under-yielding but in stocks that are overpriced.””

The World has changed

“..you basically tell your investors that it’s a changed world, that returns are going to be lower and that if you want to sleep at night, to accept the market as it is. Low volatility requires low returns.”

 

Dan Ivascyn, PIMCO Global Chief investment officer

On tax cuts and infrastructure

“You’ll probably get some tax reform and it will more likely resemble a tax cut as opposed to broad-based reform…There may be something done symbolically, but it’s going to be a lot smaller than the $1 trillion that’s been mentioned.”

 

Jon Winkelried, TPG Co-CEO (Private Equity)

Very high level of complacency

“The level of complacency about where markets are today is pretty scary. People are just sort of assuming it’s OK, that it is what it is, and I have to say that I’m a little bit concerned about it.”

Wal-Mart Stores’ (WMT) at Robert W Baird Conference

Targeting different audiences

“the way I think about it is really there is two main sites in Jet and Walmart, both mass sites going after different audiences, but sharing the same back end. So we get leverage on the retail teams, on the logistics. But from a consumer standpoint, we get access to more customers. We are sort of able to now push Jet more premium, going after the higher income urban customer, which is not the typical Walmart.com shopper and Walmart.com with everyone else.”

More  focused on organic growth

“We are really focused on organic growth. We have got store number eight, where we are incubating start-ups that are ring-fenced with the store organization. We are building that from scratch. We will be partnering with folks, but primarily organic.”

Conversational commerce is the future

“I think in order to think about the future, you have to kind of look to the past a little bit and make sure you are looking through the right lens….I think two big areas. One is conversational commerce with the advances in artificial intelligence, machine learning.  It won’t be long before you are able to have a much richer experience and talk in a very conversational way, where you have the – you are talking to as much an expert in a particular product category like you would if you walked into a specialty retailer and talk to the expert on the floor. ”

Laser focused on offering unique value

“it’s really just about getting more customers to shop with you and have them come back more often and buy more when they do. And that’s what we saw in Q1. We saw a lot more new customers come in. We saw existing customers shop more frequently and buy more. So at the end of the day, comes down to the value proposition that you offer customers….that’s where we are maniacally focused right now.”

ConocoPhillips’ (COP) at Bernstein Strategic Decision Conference

Ryan Lance – CEO

Their strategy

“…in a range of $50 to $60 a barrel, we will maintain a strong balance sheet and we’ll allocate cash between per share and absolute growth. At higher prices and at lower prices, we’ll exercise flexibility and take the highest value actions for our shareholders.”

Do expect some volatility

“…we see there is probably going to be a lot of volatility. There is a reasonable case that says the lack of investment over the last 5 years, 6 years might lead to higher prices coming over the next couple.”

They are not worried about inflation

“…when I look across our whole portfolio today and I compare 80% of our capital is going internationally into areas that are deflating. So, I don’t worry in our portfolio about the inflationary pressures but I am certainly worried about the activity that we are doing in certain basins and in certain categories of spend.”

But they will evaluate the impact of persistent inflation

“…we will look at our plans later this year. But if we see persistent inflation that starts to erode the margins, we will allocate capital, the lowest cost to supply highest margin opportunities in the portfolio.”

Oil at $50 is not going away any time soon

“…back about 4 years, 5 years ago I was invited to the Vienna meeting. I was on the stage like this in front of all the big OPEC crowd with at the time, Ali Naimi, who is the Minister of Saudi Arabia, the Venezuelan oil minister, the Iranian and I got up and I told them that U.S. would surpass Saudi Arabia in production in 5 years. And I got laughed off the stage. And 3 years later, Naimi invited me back. He said, I will be damned, you are right. And we need to understand this a little bit more. And the message to him at the time was this isn’t going away in 3, 4, 5 years. So to put it in perspective, our industry has found over 400 billion barrels of resource in the last 10 years, 400 billion. That’s 10 crude oil days in the last 10 years in this business. And so I think the recognition that’s now coming is one that it’s real, that it is competitive at a $50 barrel price deck and it ain’t going away.”

Bob Brackett – Bernstein

Too much cash, too few projects

“And then in a world of extremely low interest rates, we have changed I always joke, if you fly to California and you go talk to Google or you go talk to Apple and say I have got capital for you to commit to technology and new ideas. They will say no thanks, we got more cash than we know what to do with. If you stop instead halfway in West Texas and ask people, hey, do you have anything you can use with all this capital, they will say yes, I can stick it in the ground.”