Growth or Recession: What Lies ahead for Trump?
The S&P 500 and Dow Jones rose more than 1% on November 9 and have recorded average growth of 3.1% and 4.6% since November 8.
In 3Q16, JPMorgan Chase had a loan portfolio worth $888 billion. Bank of America (BAC) had a loan portfolio of $900 billion.
The US dollar is weaker on December 8 as the market awaits the ECB’s interest rate decision. It expects the ECB to extend the quantitative easing program.
Similar to other European indices, France’s CAC is lower in the early hours. France’s manufacturing PMI for November rose to 51.7 from 51.5 in October.
OPEC’s agreement to curb output pushed energy stocks higher and supported the Shanghai Composite Index. It rose 0.72% on December 1.
Bank of America’s earnings are extremely sensitive to interest rate changes.
J.P. Morgan’s interest rate exposure A 100 basis points parallel increase in short-term and long-term interest rates is expected to boost J.P. Morgan’s (JPM) pre-tax net interest income by $2.8…
Wells Fargo has the largest loan portfolio among US banks (XLF). As of 3Q16, it has a loan portfolio of $957 billion.
As December 14 approaches, investors in financial markets are getting anxious about whether the Federal Reserve will raise rates.
Bank of America (BAC) is the most sensitive, of the banks in this series, to interest rate changes.
President-elect Donald Trump is a strong proponent of relaxing regulatory burdens in the financial sector. Large banks with outstanding litigations would benefit from relaxed regulations.
In its last 10-Q filing, Wells Fargo measured its interest rate risk by simulating earnings under various interest rate scenarios.
Bank of America (BAC) CEO Brian Moynihan expressed his optimism about the consumer banking business in a CNBC interview in September 2016.
The consumer banking segments of JPMorgan Chase and Citigroup are similar to any standard commercial bank. Traditionally, consumer banking has been their strongest performing business.
Interest rates have been at record lows since the financial crisis of 2008. Low interest rates lead to lower net interest incomes for banks.
Bank of America (BAC) CEO Brian Moynihan expressed his optimism about the consumer banking business in a CNBC interview last week.
JPMorgan Chase’s (JPM) 2Q16 revenue growth was fueled by loan growth and higher bank deposits.
Bank of America and Citigroup’s consumer banking businesses are similar in size in terms of capital invested.
Citigroup’s interest rate sensitivity is the lowest among its peers. A parallel 100-basis-point increase in interest rates would add $1,984 million to Citi’s revenues.
Amazon (AMZN) is looking to enter what has become a billion-dollar student loan industry in the United States.