The Fed new rules will minimize capital risks
Federal Reserve Governor Michelle Bowman expressed concerns about the proposed plan to increase bank capital requirements, stating that while the plan has flaws, she is hopeful that legislators will reach an agreement on a final rule. Bowman also expressed her disapproval of the “Basel endgame” proposal, which she voted against due to its onerous nature…
Quantum Minerals has lost over 40% market cap
First Quantum Minerals, a Canadian miner, has announced a restructuring plan, including job losses, debt refinancing, a $450 million savings target by 2024, and a suspension of dividends. The company is considering selling smaller mines and partnering with strategic equity partners for larger ones. The company experienced a 40% market capitalization decline after the closure…
The Fed target on slowdown rate
Big banks predict global growth will stall this year, but believe the Federal Reserve’s dovish approach has improved riskier asset outlook and bolstered U.S. economy hopes. Europe’s expectations are less clear due to the European Central Bank and Bank of England’s higher-for-longer rates approach. U.S. consumer prices increased 3.4% in December, dampening hopes for a…
Uncertainty loan margin make US banks profit slip
Big American banks, including JPMorgan, Wells Fargo, Bank of America, and Citigroup, reported reduced profits after a turbulent fourth quarter. The Federal Reserve increased rates last year to contain inflation, but concerns remain over whether the economy can avoid a recession and how quickly interest rates will be lowered this year. JPMorgan Chase CEO Jamie…
US corporate bonds issuance are slowing down due to economic bad data
U.S. corporate bond market issuance is expected to decline next week due to conflicting economic statistics. High-grade bond issuance in the first week of 2024 totaled around $59 billion, above estimates of $50 billion to $55 billion. Best-rated corporations led the rush, hoping to benefit from reduced borrowing costs due to tightening credit spreads, premium…
The Fed may cut rates on first quarter.
The Federal Reserve is not concerned about the US job market’s performance in December, as it is already monitoring for a potential fissure. The US job market has been robust, with payrolls report looming large over New Year markets, pointing to the first weekly loss in global stocks since October. Last week saw a two-month…
ETFs bond could go to $6 trillion by 2030, BlackRock said
Bond exchange-traded funds (ETFs) managed $300 billion in assets in 2023, according to BlackRock. The largest asset manager expects ETFs to be managed for $6 trillion by 2030, up from $2 trillion at the moment. The market took 17 years to raise $1 trillion, but doubled to $2 trillion in just three years. ETFs offer…
China’s property sector are worsening, Large banks take actions
China’s leading banks have increased their assessments of smaller lenders to reduce credit risk amid the country’s growing property debt crisis. Two of China’s largest state-owned banks and a prominent joint-stock bank have lowered interbank lending limitations and shorten maturity periods for high-risk smaller competitors. This move is in response to concerns about the viability…