FirstFT: US banks enter reporting season expecting loan growth



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U.S. banks will face serious questions about prospects for their lending operations this week as they report second-quarter earnings flattering smaller-than-expected credit losses during the pandemic.

FactSet predicts average quarterly earnings per share at the six largest US banks to grow 116% year over year.

However, much of the improvement reflects the expected release of billions of dollars in reserves that lenders have set aside to cover potential loan losses. Revenue is expected to fall 5%, according to FactSet, on the back of slower capital markets activity and sluggish demand for loans.

JPMorgan and Goldman kick off their earnings season on Tuesday, followed by BofA, Citi and Wells on Wednesday and Morgan Stanley on Thursday.

  • From other banking news: Goldman Sachs Executives fighting the issue on whether they need to raise junior investment bankers’ salaries to catch up with their Wall Street competitors after young employees complained that they burned out

Five more stories on the news

1. Brussels intends to postpone the introduction of digital collection EU is postpone plans for a controversial digital levy until the fall in an attempt to boost prospects for global corporate tax reform. This step was taken after the G20 finance ministers met over the weekend in Venice to approve a landmark tax deal reached by the G7 countries last month to set a global minimum rate and overhaul tax rights.

  • Other G20 news: G20 finance ministers also approved carbon prices for the first time, describing a once controversial idea as one of a “broad toolbox” for tackling climate change. The United States, in particular, has historically been opposed.

2. Richard Branson in space Founder Virgin touched the edge of space yesterday morning, realizing long-standing ambitions and winning the bragging rights to rival Jeff Bezos in the race to open up suborbital space for commercial tourism. Here’s a look at how Branson and Bezos rocket ships compare

3. The second Vision Fund SoftBank is accelerating. The fund spilled about $ 13 billion in more than 50 companies In the second quarter, according to two informed, there was a sharp increase in the rate of its investments. In the first three months of the year, he invested less than $ 2 billion in fewer than two dozen companies.

4. The widow of the President of Haiti claims that the opponents planned the assassination Martina Moise, widow of the assassinated President of Haiti, Jovenel Moise, domestic accused opponents organizing the murder of her husband, as the prosecutor’s office summoned leading business and political figures for questioning.

  • Read more: Haiti “Descent to Hell” After the death of the president, getting closer and closer: “Whether you loved Moise or hated him, it’s the same reaction: a state of deep shock,” said one resident of Port-au-Prince.

five. Crowned Italy Champions of Euro 2020 Gareth Southgate’s England lost to the Italian team despite taking the lead. Azzurri is greater than the sum of its parts by Simon Cooperand this triumph crowned their exciting reinvention as an attacking cross-country team led by manager Roberto Mancini.

Coronavirus digest

  • Fast Delta variant spread worries economists that Europe improved economic prospects could be undermined.

  • Boris Johnson is expected to announce later today that most of the restrictions on Covid-19 quarantine in England will be eased on July 19, despite concerns about an increase in the number of new cases. Governments Scotland, Wales as well as Northern Ireland on the other hand take more cautious approaches

  • Thousands of protesters took to the streets in Cuba yesterday to express his anger over food and drug shortages and to call for an end to restrictions on coronavirus.

Follow the latest news on our coronavirus live blog as well as register for our Coronavirus news newsletter for more news on Covid-19.

Day ahead

Musk signifies acquisition of SolarCity Tesla CEO Elon Musk will be the first and most anticipated witness in a 2016 trial over Tesla’s acquisition of the once highly developed solar power startup SolarCity.

Yellen meets with Eurozone finance ministers Brussels digital collection will be the main topic of discussion when US Treasury Secretary Janet Yellen meets with European Commission President Ursula von der Leyen and her European counterparts.

What else do we read

Melinda French Gates’ Political Awakening French Gates has gone from being a very private behind-the-scenes figure to being a leader comfortably in the spotlight and increasingly obsessed with a single goal. She also joined an extraordinary club: former spouses of tech billionaires who are free and free chart your own charity course

© FT installation / Getty

Decline in bond yields is no longer good news for stocks Investors have too much good – that is, interest rates artificially lowered for too long? The wide sell-off in stocks last week is forcing investors to ask this question, says Mohamed El-Erian

  • Go deeper: It’s been a humiliating week for bond bears by Markets Editor Katie Martinafter a sharp rethink by investors of what she calls the “Great Bond Swing of 2021.”

Florida condominium politics in the spotlight Disputes about how to pay for major repairs can often lead to strife among the inhabitants of the house… There are parallels between the delayed renovation of a collapsed apartment in Surfside, Florida, and the horrific bills some London apartment owners are forced to pay for refurbishment by homeowners in response to the deadly Grenfell Tower fire four years ago.

Private equity raid on corporate Britain The proposed buyout of supermarket chain Wm Morrison is the latest example of a sharp shift that accelerated during the pandemic. For most of a century, the UK economy has been dominated by publicly traded companies. Now part of the economy transition to private Hands.

The handshake came back, sort of, and it is causing chaos in etiquette. Uneven vaccinations, as well as wildly divergent views on what safe behavior looks like, have divided us into an awkward mix of shakers, bumpers and cams. by Pilita Clark… Meanwhile, Ravi Mattu argues that the line between personal and professional life has blurred during the pandemic. empowering staff make higher demands on managers.

Life and art

Conservationist Isabella Three and her husband Charlie Burrell have developed Knepp castle-manor into one of the most daring and controversial rewilding projects. Over Lunch with FTThe Tree has tackled the return of biodiversity, the issue of veganism, and why cloning mammoths is a bad idea.

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