January 13, 2023
United States:
BofA Reaps Benefits of Volatility as Lending Income Misses
Bank of America Corp. traders beat analysts’ estimates as they reaped the benefits of dramatic market swings, and lending income rose along with interest rates while falling short of expectations.
Net interest income, the revenue collected from loan payments minus what depositors are paid, rose 29% to $14.7 billion in the fourth quarter on higher rates and loan growth, though the increase was smaller than forecast. Trading revenue soared 27% from a year earlier, with the best results in fixed income, more than the 13% gain analysts had expected.
Europe:
German Recession Fears Ease on Surprise Year-End Stagnation
Germany’s economy probably stagnated in the final quarter of 2022, defying analyst expectations for a contraction and easing fears of a recession triggered by the war in Ukraine and soaring inflation.
For the year as a whole, output increased 1.9% — down from 2.6% in 2021 and just ahead of the 1.8% estimate in a Bloomberg survey, the statistics office said Friday.
Asia:
China’s Exports Slump Further as Global Demand Drops Off
China’s exports fell further in December as global demand continued to drop off, adding to pressure on the economy as it charts a hasty, uncertain path out of Covid Zero.
Exports in US dollar terms fell 9.9% in December from a year earlier, the General Administration of Customs said Friday. That beat economists’ estimate for a 11.1% drop, and compared with a decrease of 8.7% in the previous month. For the full year, exports rose 7% to a record $3.6 trillion.
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