April 18, 2023
BofA Tops Estimates as Fixed-Income Traders Fuel Profits
Bank of America Corp. first-quarter profit beat estimates after its fixed-income traders delivered a windfall large enough to cover the rising cost of the bank’s souring loans.
Revenue from fixed-income, currencies and commodities trading unexpectedly rose almost 30% to $3.4 billion in the first quarter, the highest in a decade. That was driven by improved performance in mortgage, credit and municipal products, and increased secured-financing activity for clients, the bank said in its statement Tuesday.
UK’s Unexpected Jump in Wage Growth Fuels Inflation Concerns
UK wage growth accelerated unexpectedly, adding to inflationary pressures that are concerning the Bank of England.
Average earnings excluding bonuses rose 6.6% in the three months through February compared with a year ago, the Office for National Statistics said Tuesday. That was quicker than the 6.2% pace economists had expected. The previous month’s reading was also revised up, dashing hopes for a slowdown.
China’s Consumer-Driven Growth Gives Boost to Global Economy
China’s economy grew at the fastest pace in a year in the first quarter, putting Beijing on track to meet its growth goal for the year without adding major stimulus, while also helping to cushion the global economy against a downturn.
Gross domestic product expanded 4.5% last quarter from a year earlier, official data showed Tuesday, beating economists’ expectations. In March, retail sales soared 10.6% from a year earlier, the biggest monthly gain since June 2021.
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