January 12, 2024
United States:
BofA’s Bond Traders Post a Surprise Drop as Profit Slumps
Bank of America Corp.’s earnings fell short of expectations as the bank’s numerous charges in the fourth quarter cut into profit and the firm’s fixed-income traders posted a surprise drop in revenue.
Net income fell 56% to $3.14 billion, the company said, double the 28% drop that analysts had predicted. The decline in profit was due, in part, to a $2.1 billion special assessment from the Federal Deposit Insurance Corp. and a $1.6 billion charge tied to the finance industry’s shift away from the London Interbank Offered Rate benchmark. Expenses also rose as a result.
Europe:
Lagarde Says ECB to Cut Rates When Sure Inflation Set for 2%
The European Central Bank will start lowering interest rates once it’s convinced that inflation is headed back to its 2% goal, according to President Christine Lagarde.
“I cannot give you a date” for cuts, Lagarde told France 2 TV in an interview Thursday. “But I can say that if we win this battle, if we get to 2% as we estimate in 2025, and if it’s confirmed by the data we will have” in the coming months, “I’m very confident, then rates will start to decline as soon as we have this certainty.”
Asia:
China Pledges to Boost Developer Lending to Tackle Home Sales Slump
China asked local governments to better support developers’ financing needs, including drafting a list of projects eligible for funding, as the country seeks to arrest the prolonged downturn in its housing market.
In a joint notice sent by the Ministry of Housing and Urban-Rural Development and National Administration of Financial Regulation on Friday, regulators asked local governments to co-ordinate and offer more targeted support for the reasonable financing needs of developers.
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