DIRS.INFO The most relevant business & tech news

LONDON, July 27 (Reuters) - Barclays (BARC.L) warned on Thursday of growing pressure on its UK business and missed forecasts for its investment bank as a global corporate dealmaking slump persists, sending its shares down despite announcing a bigger share buyback. The British bank reported first-half pretax profit of 4.6 billion pounds ($6 billion), in line with the average analyst forecast of 4.5 billion pounds, and higher than the 3.7 billion pounds in the same period a year ago. The bank set aside 896 million pounds in the six-month period for potentially soured loans, more than double the 341 million pound charge the previous year. European rivals are also struggling, with Deutsche Bank reporting on Wednesday investment bank revenues would fall this year instead of staying flat. Several investors told Reuters this month they wanted the bank to prioritise returning more capital to shareholders instead of investing it, after the lender completed a 500 million pound buyback in April.

Persons: Jefferies, Goldman Sachs, Jeremy Barnum, Lawrence White, Iain Withers, Sinead Cruise, Mark Potter Organizations: Barclays, Banking, JPMorgan, United, Citigroup, Deutsche Bank, Thomson Locations: Britain, United States

NEW YORK, July 27 (Reuters) - Bank of America CEO Brian Moynihan said U.S. authorities need to be careful when implementing new capital requirements of the Basel III accord to avoid reducing the ability of U.S. banks to compete globally. ... We're talking about a $30 or $40 billion bank, or a $100 billion bank, not being able to compete for a middle market loan because a bank or a supplier in Europe ... is getting a lower cost of capital", Moynihan added. U.S. banking regulators are expected to unveil on Thursday a sweeping proposal for stricter bank capital requirements. While the precise details aren't yet known, regulators have said the rules will apply to banks with $100 billion in assets or more. Bank of America expects a "slight" recession in the first part of next year and predicts the first interest rate cut will happen by mid-2024.

Persons: Brian Moynihan, Moynihan, JPMorgan, Jonathan Stempel, Tatiana Bautzer, David Goodman, Chizu Organizations: YORK, Bank of America, Basel III, Fox Business, Pacwest Bancorp, JPMorgan Chase, Thomson Locations: Basel, U.S, Europe, Banc, California

[1/3] FILE PHOTO: A sign is displayed on the Morgan Stanley building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File PhotoNEW YORK, July 25 (Reuters) - U.S. banking giants may take up to four years to set aside profits to meet new capital rules, according to a report by Morgan Stanley. U.S. banking regulators will on Thursday unveil a sweeping proposal for stricter bank capital requirements known as the "Basel III endgame" aimed at ensuring the stability of big banks under international rules rolled out after the 2008 financial crisis. Holding more RWA will require banks to set aside more capital under the new standards. Most of the need to raise capital would come from assessments of the bank's operational risks and their trading books.

Persons: Morgan Stanley, Lucas Jackson, Betsy Graseck, Goldman Sachs, JPMorgan Chase, Morgan, Michael Barr, Tatiana Bautzer, Pete Schroeder, Lananh Nguyen, Chris Reese Organizations: New York U.S, REUTERS, Citigroup, JPMorgan, Bank of America, Federal, Federal Reserve, Federal Deposit Insurance Corporation, Thomson Locations: New York, Basel, Washington

The figures underscore broader trends in global banking, with investment banks struggling as deals are paused, while higher interest rates are a boon to other divisions. Analysts expect the retail unit will also overtake the investment bank as the main revenue driver for the full year, overturning the investment bank's pole position over the previous three years. Investment banking revenue dropped 11% during the quarter, better than an expected 16% drop. Deutsche Bank set out in 2019 to reduce dependence on its volatile investment bank and rely instead on more stable businesses that serve companies and retail customers as a way to restore profitability. Chief Financial Officer James von Moltke said the shift to the retail bank as the largest breadwinner was "significant" because the perception of the lender had been dominated over years by the investment bank, and Deutsche was becoming more balanced.

Persons: James von Moltke, Deutsche, Jeffrey Epstein, Tom Sims, Matthias Inverardi, Friederike Heine, Jamie Freed Organizations: Deutsche Bank, Reuters Graphics, Reuters, Deutsche, Reuters Graphics Deutsche, U.S . Federal Reserve, U.S, Thomson Locations: FRANKFURT

☆ Wells Fargo approves new $30 billion share buyback program
▼ + stars: | 2023-07-25 | by ( ) www.reuters.com time to read: 1 min

July 25 (Reuters) - Wells Fargo (WFC.N) said on Tuesday its board had authorized a new share buyback program of up to $30 billion. The bank's shares rose 1% in extended trading after earlier jumping almost 4% after the announcement. Wells Fargo announced the buybacks days after it reported a 57% jump in profit in the second quarter, which was lifted by customer interest payments. The lender and rival U.S. banking giants raised their third-quarter dividends after sailing through the Federal Reserve's annual health check, which showed they have enough capital to weather a severe economic downturn. Reporting by Noor Zainab Hussain in Bengaluru and Lananh Nguyen in New York; Editing by Arun Koyyur and Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

Persons: Wells, Wells Fargo, Noor Zainab Hussain, Lananh Nguyen, Arun Koyyur, Chris Reese Organizations: Federal, Thomson Locations: Bengaluru, Lananh, New York

The U.S. Treasury started rebuilding its account through T-bills after the government's debt ceiling was suspended last month. Since early June, the Treasury General Account at the Fed has increased by about $460 billion. "The risk of reserve scarcity in the near-term has receded as more cash has left the RRP facility," said Gennadiy Goldberg, Head of US Rates Strategy at TD Securities USA. "However, money market funds shifted their allocation out of the RRP facility into outright purchases of T-bills and private repo markets," they said. Reporting by Davide Barbuscia; Editing by Dan Burns and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Persons: Gennadiy Goldberg, Davide Barbuscia, Dan Burns, Andrea Ricci Organizations: YORK, Treasury, U.S . Treasury, Fed, Federal, Securities USA, Citi, repo, ON, Thomson Locations: U.S

☆ US banks' second quarter earnings: the results in charts
▼ + stars: | 2023-07-21 | by ( Manya Saini | Thomson Reuters | Manya Saini Reports On Prominent Publicly Listed U.S. Financial Firms Including Wall Street S Biggest Banks | ) www.reuters.com time to read: +3 min

The results follow a tumultuous first quarter in which Silicon Valley Bank and two other lenders failed. Signs of a revival in the investment banking sector, as higher rates and economic uncertainty have hampered deals and trading, also drove share gains. The upbeat results sparked a rally in bank stocks with the S&P 500 Banks Index (.SPXBK) gaining 9.3% and the KBW Regional Banking Index (.KRX) rising 13.7% month-to-date. Here are three charts on mid-sized banks' second-quarter results:DEPOSIT LEVELSReuters GraphicsWhile regional bank earnings in recent days have reassured investors that the crisis has subsided, regional banks are being squeezed as they pay customers more to retain their deposits. The KBW Regional Banking Index (.KRX) has rallied 13.7% month-to-date but remains down 13.6% so far this year.

Persons: Banks, Manya Saini, Michelle Price, Barbara Lewis, Nick Zieminski Organizations: Bank, Banks, Federal, Reuters Graphics, Bank of America, Graphics, Graphics Bank, Thomson Locations: Silicon, KBW, Bengaluru

When you use your debit card abroad, you'll probably have to pay a foreign transaction fee. But know that you will pay foreign transaction fees on non-360 accounts. RobinhoodThe Robinhood Cash Management Account doesn't charge foreign transaction fees or out-of-network ATM fees. Debit card foreign transaction fees at other banksForeign transaction fee FAQsWhat is a normal foreign transaction fee? Betterment, Capital One 360, Charles Schwab, Chime, Discover, Robinhood, and Varo do not charge foreign transaction fees.

Persons: you'll, Charles Schwab, Robinhood, Chase Organizations: Visa, Mastercard, Banking, The Bancorp Bank, Stride Bank, N.A, FDIC, Visa . Capital, Schwab, Chase Sapphire ℠ Banking, HSBC

The proposal, which will kick off an ambitious agenda for Barr, plans to fully implement the globally agreed Basel bank capital agreement. BANKING OPPOSITIONThe banking industry is not waiting for details before trying to disrupt the effort, arguing it could hinder economic activity, curb lending, and kill lines of business. The criticism is also emerging among some Republican bank regulators, who appear likely to oppose the plans. Regulators will have to digest numerous and voluminous comments from the banking industry dissecting their plans. And in the meantime, banks are expected to continue hammering that higher capital requirements means a smaller economic role for banks and are not needed.

Persons: Michael Barr, Barr, Michael Barr's, Isaac Boltansky, Spokespeople, Kevin Fromer, Jerome Powell, Powell, Republican Andy Barr, Bill Foster, Tim Scott, Michelle Bowman, Barr's, Morgan Stanley, James Gorman, Pete Schroeder, Megan Davies, Andrea Ricci Organizations: Banking, Fed, Federal Deposit Insurance Corporation, Office, FDIC, Financial Services, Financial Services Committee, Republican, Senate, Committee, Regulators, White, Thomson Locations: Basel

So far the signs of revival has not translated into strong investment banking revenue, but markets see a better outlook. Goldman took $1.4 billion in writedowns in the second quarter tied to its consumer businesses and real estate investments. In discussing their earnings, Wall Street executives cited a flurry of initial public offerings as an encouraging sign that activity in capital markets will pick up after months in the doldrums. The lender was buoyed by a slight pickup in equity capital markets and a focus on its middle-market business. At Citigroup (C.N), CEO Jane Fraser warned on Friday that "the long-awaited rebound in investment banking has yet to materialize."

Persons: Morgan Stanley, Brendan McDermid, dealmaking, Goldman Sachs, Morgan, ”, Rick Meckler, Goldman, Meckler, Mike Loewengart, David Solomon, Sharon Yeshaya, Alastair Borthwick, Jane Fraser, Mark Mason, Jeremy Barnum, Tatiana Bautzer, Sinead Carew, Saeed Azhar, Noor Zainab Hussain, Lananh Nguyen, Nick Zieminski Organizations: New York Stock Exchange, REUTERS, Cherry Lane Investments, Wall Street, Morgan, Reuters, Bank of America's, Citigroup, JPMorgan, Thomson Locations: New York City, U.S, New Vernon , New Jersey, writedowns, New York, Bengaluru

☆ M&T Bank beats profit estimates as higher rates boost interest income
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +1 min

July 19 (Reuters) - M&T Bank Corporation (MTB.N) beat Wall Street estimates for second-quarter profit on Wednesday, as the U.S. Federal Reserve's rapid rate hikes to tame inflation boosted the lender's interest income. Most consumer-facing lenders have tapped higher rates to charge more interest on their loans and credit card debt, with M&T's upbeat results echoing larger rivals JPMorgan Chase (JPM.N), Wells Fargo (WFC.N) and Bank of America (BAC.N). M&T's net interest income surged 27% to $1.81 billion, helping the bank report an adjusted profit of $4.11 per share, above analysts' average estimates of $4.04 per share, according to Refinitiv IBES data. Still, banks have been slow to pass on high interest rates to their deposit holders, driving a shift to higher-yielding assets such as money market funds. Net income available to common shareholders in the quarter was $841 million, or $5.05 per share, compared with $192 million, or $1.08 per share, a year earlier.

Persons: Manya Saini, Devika Organizations: T Bank Corporation, U.S, U.S . Federal, JPMorgan Chase, Bank of America, Thomson Locations: U.S ., Wells Fargo, U.S, Bengaluru

At JPMorgan, the nation's largest bank, average deposits fell 6% in the second quarter to $2.4 trillion from a year earlier. The central bank reported total bank deposits fell 1.2% to $17.26 trillion through the week ended June 28 versus $17.47 trillion at the end of March. For large banks, deposits fell 1.3% to $10.80 trillion from $10.95 trillion during same period, the Fed data showed. And for small banks, deposits fell 0.9% to $5.18 trillion from $5.23 trillion. The declines were notably smaller than the first-quarter drops of 2.4% for large banks and 3.3% for small banks.

Persons: Morgan Chase, Mike Segar, Wells, Mike Santomassimo, Jeremy Barnum, Jamie Dimon, Kenneth Leon, Saeed Azhar, Dan Burns, Nupur Anand, Tatiana Bautzer, Lananh Nguyen, Mark Potter Organizations: Co, New York City, REUTERS, JPMorgan, First Republic Bank, Federal Reserve, Thomson Locations: New York, Wells Fargo

☆ Stocks making the biggest premarket moves: JetBlue, Zillow, JPMorgan Chase, 3M and more
▼ + stars: | 2023-07-11 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

JPMorgan Chase — The Wall Street heavyweight added 1.2% in premarket trading after an upgrade from Jefferies to buy from hold on Tuesday. U.S. Bancorp — Shares of the Minnesota-based bank gained 2.2% following an upgrade to buy from neutral by Bank of America. 3M — Shares rose nearly 2% in premarket trading following an upgrade to neutral from underperform by Bank of America. Shares of Zions fell 1.5% in premarket trading, while Truist's were down 1%. The biotech company on Monday said the pricing of its underwritten public offering, of 20 million shares of common stock, would be at $7.50 per share.

Persons: New York John F, Piper Sandler, Thomas Champion, JPMorgan Chase, Ebrahim Poonawala, Wells Fargo, Jefferies, Truist's, Iovance Biotherapeutics, —, Jesse Pound, Alex Harring, Samantha Subin, Brian Evans, Sarah Min, Michael Bloom Organizations: JetBlue Airways Airbus, New York, Kennedy International Airport, JetBlue Airways — JetBlue Airways, JPMorgan, Wall, Jefferies, U.S . Bancorp, Bank of America, Bancorp, Amazon Web Services, Prime, Zions Bancorp Locations: New, USA, U.S, Minnesota, underperform

REUTERS/Kevin Lamarque/File PhotoNEW YORK, July 11 (Reuters) - Wall Street banks are expected to report higher profits for the second quarter as rising interest payments offset a downturn in dealmaking. Results for investment banking behemoths will also weaken, with EPS forecast to drop almost 59% at Goldman Sachs (GS.N). That offsets the doldrums in investment banking, where revenues have been depressed by rising interest rates and economic uncertainty. Reuters GraphicsBanking executives have also lowered expectations for the second quarter after mergers, acquisitions and debt offerings plunged in recent months. "We see higher credit risk ahead for lower to middle class families with higher credit card debt that cannot keep pace with higher living costs," Leon added.

Persons: Kevin Lamarque, Goldman Sachs, Morgan Stanley's, David Konrad, Keefe, Goldman, Stephen Biggar, Wells, Morgan Stanley, Betsy Graseck, Kenneth Leon, Leon, Konrad, Nupur Anand, Saeed Azhar, Niket, Lananh Nguyen, Marguerita Choy, Andrea Ricci Organizations: Bank of America, REUTERS, JPMorgan, . Bank of America's, Citigroup, Universal, Argus Research, JPMorgan Chase, Reuters Graphics Banking, Federal Reserve, CFRA Research, Investors, Thomson Locations: Washington, Wells, Refinitiv, Wells Fargo, U.S, New York, Bengaluru

☆ Factbox: Five things to watch out for in US bank earnings
▼ + stars: | 2023-07-11 | by ( ) www.reuters.com time to read: +3 min

An S&P index of U.S. bank stocks has fallen more than 9% this year as investors fret about the effect of high interest rates and a looming downturn. Here are five trends to watch this season:COMMERCIAL REAL ESTATE (CRE)Investors will scrutinize disclosures on banks' CRE exposure, particularly on office loans. CRE has come under pressure from rising interest rates and the proliferation of remote working that emptied out many office buildings. Big U.S. banks' CRE portfolios put in a surprisingly good performance during the Federal Reserve's annual health checks, with losses declining slightly versus last year, the central bank said last month. To lure customers, banks will face pressure to pay higher rates on deposits, which would erode their profits, analysts have said.

Persons: Morgan Stanley, Mike Segar, CRE, Goldman Sachs, Niket, Lananh Nguyen Organizations: REUTERS, Federal, Thomson Locations: Manhattan, New York City, Big U.S, Bengaluru

All eyes will be on U.S. inflation data this week that will feed into the Federal Reserve's interest rate decision later in the month. A Reuters poll of economists showed they suspect that growth in consumer prices likely slowed in June. Most megacap technology and growth stocks, valuations in which come under pressure when borrowing costs rise, eased in premarket trading, with Apple (AAPL.O) and Alphabet (GOOGL.O) down 0.7% each. Overall, earnings for the S&P 500 constituents are expected to fall 5.7% in the second quarter, Refintiv data showed. ET, Dow e-minis were up 19 points, or 0.06%, S&P 500 e-minis were down 4.5 points, or 0.1%, and Nasdaq 100 e-minis were down 41.25 points, or 0.27%.

Persons: Carl Icahn, Wall, JPMorgan Chase, Ipek Ozkardeskaya, Li Auto, Johann M Cherian, Saumyadeb Chakrabarty Organizations: Citigroup, Dow, Nasdaq, Traders, Apple, JPMorgan, Swissquote Bank, Dow e, China Association of Auto Manufacturers, Ichan Enterprises, Thomson Locations: China, U.S, Bengaluru

☆ Earnings season is upon us. What to look out for when major banks report Friday
▼ + stars: | 2023-07-10 | by ( Morgan Chittum | ) www.cnbc.com time to read: +8 min

Wells Fargo (WFC) and Morgan Stanley (MS), our two financial holdings, will report quarterly numbers Friday and a week from Tuesday, respectively. All 23 institutions tested, including Wells Fargo and Morgan Stanley, passed the exercise that simulates a hypothetical severe global recession. Wells Fargo and Morgan Stanley announced increases in their capital returns to shareholders after clearing that regulatory hurdle. WFC YTD mountain Wells Fargo YTD performance Wells Fargo has a unique story among the major U.S. banks because of its multiyear restructuring plan. MS YTD mountain Morgan Stanley YTD performance When Morgan Stanley reports, net assets in its wealth management (WM) business will be a key metric.

Persons: Wells Fargo, Morgan Stanley, Christopher Whalen, Whalen, Banks, Wells, ROTCE, there's, Jim Cramer's, Jim Cramer, Jim, JPMorgan, Goldman Sachs Organizations: Federal, Silicon Valley Bank, Street, Street Journal, CNBC, Barclays, Investment, Citibank, JPMorgan Chase, Bank of America, Reuters Locations: U.S, Silicon, SVB, Wells, Wells Fargo

☆ Two financial experts discuss the Fed's next steps and the future of the U.S. banking system
▼ + stars: | 2023-07-10 | by ( Hugh Son | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTwo financial experts discuss the Fed's next steps and the future of the U.S. banking systemFormer Federal Reserve Board Vice Chair Roger Ferguson and CNBC's Hugh Son discuss the current banking landscape and the path forward for the Fed.

Persons: Roger Ferguson, CNBC's Hugh Son Organizations: Federal Reserve, Fed

☆ Banks’ Newest Fed Headache: Nonstop Instant Payments
▼ + stars: | 2023-07-09 | by ( Eric Wallerstein | ) www.wsj.com time to read: 1 min

The Federal Reserve expects to launch a new system this month aiming to make payments in the U.S. banking system available immediately, around the clock. Although it is a boon to consumers and many businesses, some analysts warn that FedNow could destabilize banks’ reliance on customer cash, fanning the flames of deposit flight that became the bane of several regional banks this spring.

Organizations: Federal Locations: U.S

☆ US banks lose favor with European hedge funds, Goldman says
▼ + stars: | 2023-07-06 | by ( Carolina Mandl | ) www.reuters.com time to read: +3 min

Overall, shares in European banks are outperforming U.S. peers as they did not face the deposit flight experienced in the United States. "In Europe, hedge funds have rotated out of banks and insurance into financial services in the past couple of months, but still positioning in European banks remains stronger than in U.S. banks," Goldman Sachs said in the report obtained by Reuters. The data shows European investors are more bullish about banks on their own continent, while they have a more neutral approach to U.S. banks. The gap between European hedge funds' positioning in European and U.S. banks has widened mainly after a crisis this year in which U.S.-based bank Silicon Valley Bank and two other lenders failed. Short interest as a share of free float in U.S. banks grew to 2.3% in June from 1.8% in January, while staying stable for European banks, at 0.6%.

Persons: Goldman Sachs, Wells, Goldman, Morgan Stanley, Carolina Mandl, David Holmes, Clarence Fernandez Organizations: YORK, Dow Jones, Banks, Reuters, Silicon Valley Bank, UBS, Credit Suisse, Bridgewater Associates, JPMorgan & Co, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, Thomson Locations: U.S, United States, Europe, Silicon, Swiss

☆ US banks out of favor with European hedge funds, Goldman tells clients
▼ + stars: | 2023-07-05 | by ( Carolina Mandl | ) www.reuters.com time to read: +2 min

NEW YORK, July 5 (Reuters) - European hedge funds have reduced their exposure to U.S. banks at a fast pace since the beginning of the year, while roughly keeping their positioning in European banks, Goldman Sachs (GS.N) said in a recent report sent to clients. Overall, shares in European banks are outperforming U.S. peers as they did not face a deposit flight as happened in the U.S. "In Europe, hedge funds have rotated out of banks and insurance into financial services in the past couple of months, but still positioning in European banks remains stronger than in U.S. banks," Goldman Sachs wrote in the report obtained by Reuters. The data show that European investors are more bullish about banks on their own continent, while they have a more neutral approach to U.S. banks. The gap between European hedge funds' positioning in European and U.S. banks has widened mainly after the banking crisis in which U.S.-based bank Silicon Valley Bank and two other lenders failed earlier this year.

Persons: Goldman Sachs, Wells, Goldman, Morgan Stanley, Carolina Mandl, David Holmes Organizations: YORK, U.S, Dow Jones, Banks, Reuters, Silicon Valley Bank, UBS, Credit Suisse, Bridgewater Associates, JPMorgan, Co, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, Thomson Locations: U.S, Europe, Silicon, Swiss

24/7 phone support Check mark icon A check mark. Perks such as roadside assistance, ID theft aid, cell phone protection, and more Check mark icon A check mark. Earn up to $30 per month in out-of-network ATM refunds, depending on tier level Check mark icon A check mark. No monthly fee for the first 12 months, with recurring monthly deposits of $25 Check mark icon A check mark. Mobile check deposit Check mark icon A check mark.

Persons: —, you've, Wells, Banks, Foster, Ally, you’ll, Charles Schwab, Chase, Wells Fargo Organizations: Service, Bank of America, Credit Union, Chevron, Alliant Credit Union, Express, American Express, FDIC, Reading Chevron, Axos, Axos Bank, Blue Federal, Blue Foundation, NOVA, Capital, Schwab, Savings, Chase Bank, Overdraft, Chase, locator.chase.com, Green, Banking, The Bancorp Bank, Stride Bank, N.A, CIT Bank, Bank, FDIC CIT Bank, CIT, Connect, Citi, Member FDIC Citi, BBB, Consumers Credit, Credit, Consumers Credit Union, Delta Community Credit, Community Credit, Utah Free, Discover, Discover Bank, FDIC Discover, Falcon International, International, Falcon International Bank, International Bank of Commerce, American, Laredo Federal Credit Union, Latino Community Development Center, North Carolina, Community Credit Union, Latino Community Credit, Navy Federal Free, Federal Free, NCUA Navy Federal Free, Navy Federal Credit Union, Department of Defense, Premier, LifeGreen, Regions Bank, City Federal Credit, River City Federal Credit, Federal Credit, City Federal Credit Union, Employees Credit, NCUA, State Employees Credit Union, Member, Service Credit Union, American Consumer, Security, Security Service, UT, Stripes, Security Service Credit Union, The Security, Synchrony Bank, . Bank, U.S, Bank's Locations: Chevron, Colorado and Wyoming, NY, LA, TX, VA, NJ, Washington, Alaska, Hawaii, Puerto Rico, CA, CT, FL, Chicago , Illinois, eDocuments, Metro Atlanta , Georgia, Kentucky , Texas, Georgia, Texas, AZ, Arizona , California, Colorado, Oklahoma, Laredo, North Carolina, Charlotte, Piedmont Triad, North, American, City, River City, River, San Antonio , Texas, Bexar County, Europe, New Hampshire, Massachusetts, Colorado , Texas, Utah

☆ Wall St Week Ahead After first-half rally, stocks' July winning streak on the line
▼ + stars: | 2023-06-30 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The S&P 500 defied recession fears and a U.S. banking crisis to notch a 15.9% gain in the first half. The S&P 500 (.SPX) has posted a positive return in eight consecutive Julys, and the tech-heavy Nasdaq 100 index (.NDX) has climbed in July for 15 straight years. S&P 500 companies are expected to post an overall drop in earnings of 5.7% from the year-earlier period, according to Refinitiv IBES. The S&P 500 is trading at 19.1 times forward earnings estimates, well above its historic average P/E of 15.6 times, according to Refinitiv Datastream. "At some point, this move in interest rates has got to have some consequences for the markets," Matt Maley, chief market strategist at Miller Tabak, said in a note on Friday.

Persons: Brendan McDermid, ”, Mona Mahajan, Edward Jones, Omar Aguilar, Refinitiv IBES, “, John Lynch, Refinitiv, Matt Maley, Miller Tabak, Lewis Krauskopf, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Federal, Nasdaq, ” Reuters, American Association of, Fed, Schwab Asset Management, Apple, Microsoft, Nvidia, Comerica Wealth Management, Treasury, Deutsche Bank, UBS Global Wealth Management, UBS, Thomson Locations: New York City, U.S

NEW YORK, June 29 (Reuters) - A U.S. bankruptcy judge said Thursday that he would allow SVB Financial Group to sell its investment banking division, once the company has ensured that it is not releasing any liabilities related to the collapse of its Silicon Valley Bank unit. James Bromley, an attorney for SVB Financial, told Glenn that it would remove the liability releases from the deal by Friday. SVB Financial owned Silicon Valley Bank before it was seized by the U.S. Federal Deposit Insurance Corporation (FDIC) in March, and it is attempting to sell its remaining assets in bankruptcy. Glenn also criticized the FDIC during the court hearing, saying he would not allow the agency to block SVB Financial from getting information about its seizure of about $2 billion from SVB Financial' s bank accounts. Silicon Valley Bank's failure in March triggered the worst U.S. banking crisis in 15 years.

Persons: Martin Glenn, Jeff Leerink, Glenn, James Bromley, SVB, you'd, I'm, Erik Bond, Dietrich Knauth, Alexia Garamfalvi, Diane Craft Organizations: YORK, SVB, Bank, Bankruptcy, SVB Securities, Baupost, Silicon Valley Bank, U.S . Federal Deposit Insurance Corporation, FDIC, Citizens, Thomson Locations: Manhattan, Silicon, U.S, backstop

☆ US regulators ask lenders to work with stressed commercial real estate firms
▼ + stars: | 2023-06-29 | by ( ) www.reuters.com time to read: +1 min

June 29 (Reuters) - U.S. banking regulators are asking lenders to work with credit-worthy borrowers that are facing stress in the commercial real estate market. Office loans have posed concerns for some U.S. lenders as property values decline and more borrowers default on their loans. Federal Reserve Chair Jerome Powell earlier in the month said that U.S. commercial real estate lending remains under pressure but appears unlikely to threaten the broader financial system. Banks represent 54% of the overall $5.7 trillion commercial real estate market, with small lenders holding 70% of the loans in that market, according to Citigroup analysts. More than $1.4 trillion in U.S. commercial real estate loans will mature by 2027, with some $270 billion coming due this year, according to real estate data provider Trepp.

Persons: prudently, Jerome Powell, Banks, Jaiveer Singh, Maju Samuel Organizations: Governors, Federal Reserve System, Federal Deposit Insurance Corp, National Credit Union Administration, Federal, Citigroup, Thomson Locations: Bengaluru

Search resuls for: ". Banking"

25 mentions found