The country’s largest banks have released their financial results for the past year, and the data reflects the strange economic situation facing the Biden administration. Parts of the economy are booming, others are at a standstill, and the outlook is still uncertain.
On the one hand, Wall Street’s core business is thriving:
Goldman Sachs’ trading operation reported its highest annual revenue in a decade, a factor that helped the bank more than double its fourth-quarter profit.
JPMorgan Chase and Morgan Stanley also reported a big jump in their investment banking and trading units after a huge year. Bond issues, initial public offerings and M&A. The deal.
But other large consumer-lending banks did not fare as well as Bank of America, Citigroup and Wells Fargo in terms of profit growth. The low interest rate that prompted companies to raise debt hurt banks’ net interest income on consumer loans, which fell year-over-year for most lenders in its latest results.
Some bank owners think Wall Street-focused businesses will do well this year as well, but concerns about Main Street units are lower than they were last year.
In the fourth quarter, JPMorgan Chase released reserves of approximately $ 3 billion, which they created to protect against debt defaults, while Bank of America, Citigroup and Wells Fargo issued a combined $ 2 billion in the same period.
Throughout the year, those four banks still added nearly $ 50 billion to their provisions against credit losses, a sign that they guard against a potential wave of defaults. Meanwhile, demand for loans is low and deposits are accumulating.
What do banks plan to do with that cash? Jamie Dimon of JP Morgan told investors, “We have so much capital, we can’t use it.” The bank’s cash pile has more than doubled to over $ 500 billion in the last one year.
Morgan Stanley CEO James Gorman said, “Other banks have the same story and are now cleared by regulators to resume share buybacks.”
Analysts with FactSet expect the six largest banks to buy back about $ 70 billion in shares this year, up from $ 18 billion last year.
You know it’s bad when James Bond still can’t get out of the house.
The 25th film of the Bond franchise, “No Time to Die,” brought in a third time late Thursday, yet it is the biggest indication that Hollywood doesn’t believe the public will be ready to return to theaters as soon as possible. According to Metro-Goldwyn-Mayer, the $ 250 million film will now hit theaters on October 8.
It was scheduled to begin last April. As the coronovirus continued to grow, that plan was abandoned for early November. Recently, the expected blockbuster was scheduled for an April 2 landing.
Studios concerned about halting vaccination efforts in the United States were already postponing major films (again). Universal and Amblin Entertainment, for example, starred “Bios” starring Tom Hanks, a post-apocalyptic Earth on April 13 after 16 April.
But the return of “No Time to Die” may prompt additional dominoes to fall. It was the first mega-film scheduled for the post-vaccine era. The honor now goes to the Marvel prequel “Black Widow” (May 7), followed by Universal’s latest “Fast and Furious” installment (May 28). Problem: Nobody is particularly keen to go first and test the market – especially what didn’t happen after that. Christopher Nolan’s “Theory”.
Warner Bros. tried to start film-jumping by releasing “Tenit” in September, although many theaters were still closed and others were running at limited capacity. The film collected $ 363 million worldwide, a very respectable total under the circumstances, but one that still disappointed Hollywood. (Mr. Nolan’s films typically accumulate more than double that amount.
more recently, “Wonder Woman 1984“Anemic has taken in $ 143 million worldwide, with its immediate availability reducing ticket sales in the United States, as well as fears about the resurgence virus.
Shortly after MGM announced a new date for “No Time to Die”, Sony Pictures released “Ghostbusters: Afterlife” and “Morbius,” from June 11 to November 11, starring Jared Letter as a Marvel pseudo-vampire, Shifted from your schedule. January 21, 2022, from October 8, where it competed with a certain British superspecies.
On the eve of President Biden’s inauguration, the Federal Housing Finance Agency created A quiet announcement Which talks about the upcoming changes in financial regulation. The agency, which oversees Fannie Mae and Freddie Mac, requested input on climate-change risk management, which poses a threat to the economy, keeping in mind the “growing body of research” on extreme climates of danger .
The timing looks suspicious, but fortunate, agency representatives told DealBook. This may be what is said about a face from an agency run by Mark Calabria, a liberal economist appointed by a president who rejects climate science. But the move was not intended to please the new, green administration. Extreme weather is an obvious problem for the housing market, as Fannie and Freddie found Mortgage default After Hurricane Harvey in Texas in 2017. Mr. Kalabria has been building a research and data team for a long time, soon to include an environmental economist, he said.
Change in the White House can bring powerful new partners. Treasury Secretary Nominee Janet Yellen said she would appoint “someone at a very senior level” to create a hub in the Treasury focused on climate change and financial system risks. Mr. Biden’s many other nominees Come with green credentials, “Largest team of climate change experts assembled in White House”.
The move is “consistent with changes in the way financial regulators think about risk” Mundi Chief Economist Mark Zandi said. Commodity Futures Trading Commission And federal Reserve Recent reports addressed climate risk. Given the priorities of the new administration, agencies can now increasingly act on climate initiatives.
“We’re one of those rare moments of hope,” said Tim Mohin of carbon accounting start-up Persophony, who has spent more than 30 years going from mainstream perception to mainstream and sustainability in companies like the government and Apple Have seen working on Intel. “There is no reason to go slow.”
The Wall Street is expected to be jammed when trading starts on Friday following a fall in global stocks, as data in Europe are weakening due to the epidemic.
Futures tracking the S&P 500 index predicted a 0.8 percent decline. In Europe, the benchmark Stoxx Europe 600 fell 1 percent, heading for the second consecutive weekly decline. The FTSE 100 dropped 0.6 percent in the UK and DAX 0.9 percent in Germany. Most indices also declined in Asia, with Kospi down 1.3 percent in South Korea.
The new figures showed a steady slowdown in Europe’s economies. According to the IHS Market Purchasing Managers’ Index, the British services industry suffered a strong contraction in January, while Germany’s manufacturing sector and France’s service industry also shrunk more than economists had forecast.
Shares in Cineworld, the parent company of Regal Cinema, the second-largest movie theater chain in the US, plunged 4.9 per cent in London business after the release date of the London Bond franchise’s 25th film “No Time to Die” on Friday. , Delayed for the third time late Thursday. Shares of AMC Entertainment, America’s largest theater chain, declined 2 percent.
Intel shares traded around 4 percent after the incoming chief executive. Patrick gelsinger, Said on Thursday that the company would continue to manufacture its chips internally. He also said that he wanted the company to regain its place as the “undisputed leader in process technology”. Some analysts have suggested that Intel should shut down its manufacturing business amid strong competition. Shares in AMD, a competitor, rose 1.3 percent.
Shares of IBM fell 7.5 percent in premarket trading after the company dropped revenues across all its business units, including cloud software.
The shares of Siemens, a large German manufacturing and engineering company, rose more than 5 percent as the company expected better earnings from the economic recovery in China.
Loon, a major subsidiary of Google’s parent company, Alphabet, which aims to use hot air balloons to bring cellular connectivity to remote parts of the world, is taking off.
Nearly a decade after starting the project, Alphabet said on Thursday that it pulled the plug on the loon because it did not see a way to reduce costs to build a sustainable business. Reports The New York Times’s Daisuke Wakabayashi. Elon was one of the most hypnotized “moonlight” technology projects to emerge from the alphabet’s research laboratory, X.
The idea behind Loon was to bring cellular connectivity to remote parts of the world where it would be very difficult and very expensive to build a traditional mobile network. Alphabet promoted Internet connectivity as the “next billion” consumers, not only “but the last billion” to promote internet connectivity.
Google began working on Loon in 2011 and in 2013 began a public trial. Loon became a stand-alone subsidiary in 2018, a few years later a company called Google’s Alphabet. In April 2019, it accepted a $ 125 million investment from a SoftBank unit called HAPSMobile to pursue the use of “high altitude vehicles” to provide Internet connectivity.
Last year, It announced the first commercial deployment Technology with Telkom Kenya to provide 4G LTE network connections in approximately 31,000 square-mile area in central and western Kenya, including the capital Nairobi. Earlier, balloons were used only in emergency situations, such as Hurricane Maria knocking down Puerto Rico’s cellular network.
However, the loan was running out of money and changed to alphabet to stop his business while he was looking for another investor in the project: A november report In the notification.