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U.S. Banks Get Ready For Shrinking Profits And Recession

NEW YORK, Jan 10 (Reuters) – U.S. banking giants are forecast to report lower fourth quarter profits this week as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking.

Four American banking giants — JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) — will report earnings on Friday.

Along with Morgan Stanley (MS.N) and Goldman Sachs (GS.N), they are the six largest lenders expected to amass a combined $5.7 billion in reserves to prepare for soured loans, according to average projections by Refinitiv. That is more than double the $2.37 billion set aside a year earlier.

Full coverage: REUTERS

Global Shares Ease After Fed Officials Dent Optimism

LONDON, Jan 10 (Reuters) – Global shares eased on Tuesday as investors took profit on the gains from the past two weeks after comments from two Federal Reserve officials injected a note of caution over the U.S. rate outlook, knocking equities, commodities and other risk assets.

The MSCI All-World index (.MIWD00000PUS) eased 0.1%, but remained in sight of Monday’s three-week high, while the dollar – a gauge of investor risk appetite – held steady against a basket of major currencies.

Full coverage: REUTERS

Oil Slips On Concerns Higher Interest Rates To Crimp Demand

Jan 10 (Reuters) – Oil edged lower on Tuesday on expectations that further interest rate hikes in the United States, the world’s biggest oil user, will slow economic growth and limit fuel demand.

Brent futures for March fell 33 cents to $79.32 a barrel, a 0.4% drop, by 0719 GMT. U.S. West Texas Intermediate crude dipped 29 cents, or 0.4%, to $74.34 per barrel.

Both benchmarks climbed 1% on Monday, after China, the world’s biggest oil importer and second-largest consumer, opened its borders over the weekend for the first time in three years.

Full coverage: REUTERS

Carlyle Group Buys Majority Stake In India’s VLCC

BENGALURU, Jan 10 (Reuters) – Private-equity firm Carlyle Group (CG.O) said on Tuesday it acquired a majority stake in Indian beauty care and wellness solutions provider VLCC.

The equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, Carlyle said in a statement, without disclosing any financial terms.

VLCC founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company, Carlyle said, without sharing further details.

Full coverage: REUTERS

Morning Bid: Paging Mr. Powell

A look at the day ahead in European and global markets from Anshuman Daga:

The strong start to equity markets this year has got bulls excited but markets know it’s better to be well behaved before Federal Reserve Chair Jerome Powell speaks.

Asian stocks edged lower on Tuesday after recent gains even as Asian tourism-focused businesses geared up for a return of Chinese tourists after the country’s borders reopened on Monday.

Full coverage: REUTERS

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Industry Dynamics

Nvidia’s Surge Boosts Nasdaq Amid Rising Bond Yields 

Nvidia's shares soared again on Tuesday, continuing their significant recent gains on an otherwise subdued day for the stock market. 

2024-5-29 | Industry Dynamics

Saudi Wealth Fund to Restructure Management Amid Budget Strain 

Saudi Arabia's USD 925 billion sovereign wealth fund, the Public Investment Fund (PIF), is planning a major management reorganization to address rising costs and enhance investment success. 

2024-5-28 | Industry Dynamics

Oil Prices Steady as Markets Await OPEC+ Meeting

Oil prices remained largely unchanged in early Asian trading on Monday as the market anticipated the upcoming OPEC+ meeting on June 2. Producers are expected to discuss maintaining voluntary output cuts for the rest of the year. 

2024-5-27 | Industry Dynamics