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Major banks reflect the country’s biased economic recovery: LiveUpdate

All of the country’s largest banks have released financial results for the past year, and the data reflect the strange economic situation facing the Biden administration. The outlook remains uncertain, with some parts of the economy booming and others stagnant.

On the one hand, Wall Street’s core business is thriving:

  • Goldman Sachs Trading Operations reported the highest annual returns in 10 years. This has helped banks more than double their fourth-quarter profits.

  • JPMorgan Chase and Morgan Stanley also issued bonds, went public, M. After spending a big year at & A, he reported a significant increase in investment banks and trading units. Deals.

But other banks with large consumer finance sectors have failed as well. Bank of America, Citigroup and Wells Fargo have fallen behind in terms of profit growth. The low interest rates that prompted companies to raise debt have hit banks’ net interest income on consumer loans. This has decreased year-on-year for most lenders, with the latest results.

Few bank bosses think Wall Street-focused businesses will work the same way this year, but concerns about Main Street units don’t seem to be as serious as last year.

In the fourth quarter, JPMorgan Chase released $ 3 billion worth of reserves to prevent loan defaults, while Bank of America, Citigroup and Wells Fargo released a total of $ 2 billion over the same period.

These four banks added approximately $ 50 billion to their allowance for credit losses throughout the year. This shows that we are still vigilant against potential default waves. Meanwhile, loan demand is low and deposits are piled up.

What is the bank going to do with all that cash? Jamie Dimon of JP Morgan told investors, “We have so much capital that we can’t use it.” Bank cash piles have doubled over the past year to over $ 500 billion.

Morgan Stanley CEO James Gorman said the same was true at other banks, saying he would “aggressively buy back” as regulators allowed him to resume share buybacks. It was.

Analysts surveyed by FactSet predict that the six largest banks will buy back nearly $ 70 billion in shares this year from $ 18 billion last year.

credit…Mladen Antonov / Agence France-Presse — Getty Images

You know it’s bad that James Bond can’t get out of the house yet.

Bond franchise’s 25th movie, No Time to Die, was delayed three times at the end of Thursday. This is the surest sign that Hollywood does not yet believe that the public is ready to return to the cinema soon. According to Metro-Goldwyn-Mayer, a $ 250 million movie will arrive at the theater on October 8.

It was scheduled to debut in April last year. The plan was abandoned for its November debut as the coronavirus continued to proliferate. Most recently, the expected blockbuster was set to land on April 2.

The studio was worried about vaccination efforts in the United States and had already postponed a major movie (again). For example, Universal Entertainment and Amblin Entertainment pushed “Bios” starring Tom Hanks on the post-apocalyptic Earth from April 16th to August 13th.

However, the withdrawal of “007 / No Time to Die” may encourage the fall of additional dominoes. This was the first negative film planned for the post-vaccination era. The honor follows Marvel’s prequel “Black Widow” (May 7th), followed by Universal’s latest “Wild Speed” (May 28th). Problem: No one is particularly keen on testing the market by going first, especially after it happened to Christopher Nolan’s “Tenet”.

Warner Bros. will start watching movies in September with the release of Tenet, even though many theaters are still closed and other theaters are running on limited capacity. It was made. The film has raised $ 363 million worldwide. It was a very good total under this circumstance, but it still disappointed Hollywood. (Nolan’s films usually collect more than twice that amount.)

Recently, Wonder Woman 1984 has $ 143 million in anemia worldwide and is readily available online in the United States, declining ticket sales for fear of a virus resurgence. ..

Immediately after MGM announced the new date for “No Time to Die,” Sony Pictures changed its schedule from June 11th to November 11th with “Ghostbusters: Afterlife,” and as Marvel’s pseudo-vampire. “Mobius,” starring Jared Leto, would have competed with certain British superspies from January 21, 2022, October 8.

Fannie Mae and Freddie Mac reported mortgage defaults after the Hurricane Harvey in Texas in 2017. This shows that extreme weather is a problem for the housing market.
credit…Eric Sayer of The New York Times

On the eve of President Biden’s inauguration, the Federal Housing Finance Agency made a quiet announcement that talked a lot about the changes coming to financial regulation. The agency that oversees Fannie Mae and Freddie Mac has sought comment on climate change risk management, noting the “growth of research” on the threat of extreme weather to the economy.

The timing seems suspicious, but it’s a coincidence, the agency representative told DealBook. It may look like a face from an institution run by Libertarian economist Mark Calabria, appointed by the president who dismissed climate science. But they argued that the move was not intended to please the new Green administration. Extreme weather is a clear problem for the housing market as Fannie Mae and Freddie May discovered a mortgage default in Texas following Hurricane Harvey in 2017. Calabria has been building research and data teams for a long time, and they said they will soon include environmental economists. ..

The White House changes have the potential to bring strong new partners. Treasury Secretary Janet Yellen said he would appoint “someone at a very high level” to create a Treasury Secretary’s hub focused on climate change and the risks of the financial system. Many of Biden’s other candidates are environmentally friendly and form “the largest team of climate change experts in the White House.”

“This move is in line with a major shift in the way financial regulators think about risk.” Moody’s Chief Economist Mark Zandi said. The Commodity Futures Trading Commission and the Federal Reserve are addressing climate risk in a recent report. Given the new administration’s priorities, agencies can now respond quickly to climate initiatives.

“We have one of those rare moments of hope,” said climate risk going mainstream from the fringe concept for over 30 years working on sustainability in governments and companies like Apple and Apple. Tim Mohin of carbon accounting starter Persefoni, who saw the transition, said Intel. “There is no reason to be late.”

The UK service industry, including tourism, shrank sharply in January, according to the latest IHS Markit Purchasing Manager Index Report.
credit…Via Will Oliver / EPA, Shutterstock
  • Wall Street broke the record as stock prices fell on Friday and data showed that pandemic restrictions were weakening the European economy.

  • The S & P 500 fell about 0.5% in early trading. In Europe, the benchmark Stocks Europe 600 fell 1%, the UK FTSE 100 fell 0.6%, while it fell for the second straight week. Most Asian indices have also fallen.

  • New data show a sustained slowdown in the European economy. The UK service industry suffered a sharp contraction in January, and the German manufacturing and French service industries also shrank more than economists expected, according to IHS Markit buyers’ indicators.

  • Cineworld, the parent company of Regal Cinemas, the second largest movie theater chain in the United States, has been stake in London after the release date of James Bond’s 25th movie, No Time to Die, was delayed. I fell in a deal. Third time late Thursday. Shares in AMC Entertainment, the largest theater chain in the United States, fell by more than 3% in US transactions.

  • Intel has fallen more than 4% after next CEO Patrick Gelsinger said Thursday that he would continue to manufacture chips in-house. He also said he hopes the company will regain its position as a “no doubt leader in process technology.” Some analysts have suggested that Intel should spin off manufacturing as competition intensifies. The share of competitor AMD has increased by more than 3%.

  • IBM saw a decline of nearly 10% after the company said revenue declined in all business units, including cloud software.

  • Germany’s leading manufacturing and engineering company, Siemens, rose more than 5% after the company reported higher-than-expected earnings, supported by China’s economic recovery.

Loon balloon over New Zealand in 2013. The goal of the project was to provide wireless cellular signals to regions of the world that are underserved.
credit…Via John Shenk, European Pressphoto Agency

Loon, a prominent subsidiary of Google’s parent company Alphabet, is closed with the goal of using hot air balloons to provide cellular connectivity to remote parts of the world.

Approximately 10 years after the project began, Alphabet said Thursday that it had unplugged Loon because it couldn’t find a way to cut costs to build a sustainable business, reports Daisuke Wakabayashi of the New York Times. I will. Loon was one of the most hyped “Moonshot” technology projects born of Alphabet’s Lab X.

The idea behind Loon was to bring cellular connectivity to remote parts of the world where traditional mobile networks are too difficult and too costly to build. Alphabet has touted this technology as a potentially promising way to provide Internet connectivity to the “last billion” as well as the “next billion” consumers.

Google started developing Loon in 2011 and started public testing in 2013. Loon became an independent subsidiary in 2018, a few years after Google became a holding company called Alphabet. In April 2019, we received a $ 125 million investment from a SoftBank unit called HAPS Mobile to facilitate the use of “high altitude vehicles” to provide internet connectivity.

Last year, it announced the first commercial deployment of technology with Telkom Kenya to provide 4G LTE network connectivity to an area of ​​approximately 31,000 square miles in central and western Kenya, including the capital Nairobi. Prior to that, balloons were used only in emergencies, such as after Hurricane Maria knocked out Puerto Rico’s mobile network.

However, according to The Information’s November report, Loon was starting to run out of money and relied on Alphabet to maintain a business solution while looking for another investor in the project.

Major banks reflect the country’s biased economic recovery: LiveUpdate

Source link Major banks reflect the country’s biased economic recovery: LiveUpdate

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