US consumers leave out recession worries
Top US lenders, including Bank of America and JPMorgan Chase, report strong consumer borrowing and strong assets. Bank of America’s CFO, Alastair Borthwick, cited high deposits and asset quality, while JPMorgan Chase’s CEO, Jamie Dimon, emphasized the strong financial condition of consumers. Bank of America reported 2.6% credit card charge-offs in the second quarter, below…
Interest income and deal excitement boost US bank shares, but the future is mixed.
Big US banks reported higher second-quarter profits due to rising interest rates, sending shares soaring. Morgan Stanley predicted an uptick in M&A deals, while Bank of America and Bank of New York Mellon profited from charging clients higher interest rates as the Federal Reserve raised borrowing costs. Bank of America’s net interest income climbed 14%…
Dollar Drop while Euro Flying high
After plummeting to its lowest level since April 2022, the US dollar index fell to 99.84 in Asia morning trading. The Federal Reserve is under less pressure to raise interest rates, but the markets are focused on the conclusion of the FOMC’s tightening cycle. The euro and the pound attained their highest levels in 17…
Impact on Interest rates for UK wealth
Over the past year, the increase in interest rates has reduced the wealth of British households by over 2 trillion pounds, primarily due to declining house prices and bond values, which has affected pensions. The Resolution Foundation think tank suggests that the partial reversal of the decades-long increase in household wealth could be advantageous for…
German Watchdog Demand Anti-Money laundering at N26
German financial regulator BaFin has extended anti-money laundering measures with online bank N26, citing deficient systems. Since 2021, restrictions include a special bank monitor and a monthly cap of 50,000 new customers. N26, with over 8 million customers, has made substantial investments in anti-money laundering measures and is committed to complying promptly. BaFin requires N26…
German economy Hope Inflation will be treated
Despite a slight uptick in the second quarter, the German economy may contract more than anticipated this year. Due to higher borrowing costs and increased spending on leisure, travel, and services following the pandemic, the country is witnessing a decline in global demand for its goods. The Bundesbank anticipates a modest expansion in the three…
Compensation has been asked for Credit Suisse takeover
Swiss investors’ association SASV plans to sue for compensation for former Credit Suisse shareholders following the bank’s emergency takeover by UBS. The aim is to obtain a cash compensation payment corresponding to the value between the merger agreement and court-determined share price. Credit Suisse stockholders received one UBS share for 22.48 shares, valuing the bank…
US Recession will fading away depend on Interest rate
Goldman Sachs Chief Economist Jan Hatzius has reduced the likelihood of a US recession from 25% to 20% in the next year. He believes that lowering inflation won’t cause a recession, as consumer and producer price inflation slowed in June. Hatzius predicts slower-than-average economic expansion due to slower real disposable income growth and reduced bank…