Citigroup

Bank of America Profit Tumbles 19% As NIM Hits Record Low, EPS "Beat" On Surge In Cost-Cutting

Moments ago Bank of America joined the parade of "beating" banks despite declining earnings, when it reported adjusted Q2 EPS of $0.37 (excl. DVA), "higher" than a sharply reduced in recent weeks consensus estimate of $0.33, even as profits tumbled 19% from the $0.45 a year ago on sliding revenues of $20.6 billion ($20.4bn reported), vs consensus of $20.4 billion: the top line was $1.6 billion lower than a year ago if $0.9bn higher than Q1.

Global Stock Rally Halted In Aftermath Of Latest French Terror Attack

The tremendous rally of the past 4 days that has sent global stocks soaring in recent days has finally been capped and European shares, S&P futures are all modestly lower following a deadly terror attack in Nice, France. Meanwhile Asian stocks rose as Chinese economic data beat estimates, with Q2 GDP rising by 0.1% more than the estimated 6.6% on the back of stronger housing data.

JPM Revenue Rebounds On Stronger Fixed Income Trading, Jump In Lending

JPMorgan Chase & Co., the biggest U.S. bank by assets, said second-quarter profit fell 1.4 percent, beating analysts’ estimates as fixed-income trading revenue and loan growth jumped. Revenue climbed 2.8 percent to $25.2 billion, beating the $24.5 billion average estimate of seven analysts surveyed by Bloomberg. The company said average core loans increased 16 percent from a year earlier.

Maduro Puts Military In Charge Of Venezuela's Food, Calls It "Great Sovereign Supply Mission"

Every time we believe Venezuela has hit rock bottom, president Nicolas Maduro finds a way to surprise us. In the latest installment of Venezuela's social collapse, we find that the president of the socialist utopia has put the armed forces in charge of a new food supply system called the Great Sovereign Supply Mission."This is now a completely militarized government" said Luis Manuel Esculpi, former head of the armed forces commission in the congress.

Did Citi Just Confiscate $1 Billion In Venezuela Gold

Venezuela's President Nicolas Maduro said on Monday that Citibank planned to shut his government's foreign currency accounts within a month, denouncing the move by one of its main foreign financial intermediaries as part of a "blockade." What Maduro did not mention is that among the central bank accounts closed by Citi will be at least one, rather prominent, gold swap launched just over a year earlier, which saw some 1.4 million ounces in gold swapped over to Citi in exchange for cash... gold which now appears to be confiscated.

Frontrunning: July 11

  • Global stocks rise as markets anticipate stimulus (Reuters)
  • Global Stocks Buoyed by Rally in Japan (WSJ)
  • Andrea Leadsom Pulls Out of Conservative Party Leadership Race (WSJ)
  • More protesters arrested, police say Dallas sniper plotted bigger assault (Reuters)
  • Voters Add to Election Turmoil by Threatening to Jump Party Lines (WSJ)

S&P 500 To Open At All Time Highs After Japan Soars, Yen Plunges On JPY10 Trillion Stimulus

S&P 500 futures are set to open at new all time highs, with global stocks rallying as the yen weakened and the Nikkei soared on speculation Japan is about to unveil the first instance of "helicopter money"-lite, as well as due to a continuation of better-than-expected U.S. jobs data. Further speculation that Italy's (and Europe's) insolvent banks will be bailed out has further boosted sentiment.

Charting The Epic Collapse Of The World's Most Systemically Dangerous Bank

It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. But, if the deaths of Lehman Brothers and Bear Stearns were quick and painless, the coming demise of Deutsche Bank has been long, drawn out, and painful.

Why Citi Sees No Solution For The Italian Banking Crisis Any Time Soon

"Any state intervention will likely be small, in our view, confined to a very small number of lenders and broadly within EU rules. As such, it is unlikely to represent a decisive fix of Italy’s banking problems. Retail investors will probably be protected as fears of a severe market backlash and subsequent deposit outflows may prevail. Such a compromise may limit the negative political fallout for PM enzi, but increased concerns among households about their savings are likely to hit the already-dwindling popularity of the government in any case."

Three Former Barclays Traders Convicted Of LIBOR Manipulation

The first bank to admit that it engaged in massive manipulation of the LIBOR rate was Barclays back in 2012, and traders are still being scapegoated tried in court to this day. As Bloomberg reports, five traders learned their fate recently, nearly four years since the bank admitted to the charge. Three traders were convicted, while the jury was unable to reach a verdict on the final two.

Futures Stumble As Global Bond Yields Drop To All Time Lows, Precious Metals Spike

Whether it is due to the conclusion of quarter-end window dressing, or due to a more poor manufacturing data out of China overnight, but the new quarter is starting off poorly for risk with Europe flat and US equities lower, while the scramble for safety means that bond yields across the developed world just hit new all time lows as precious metals are surging once again on ongoing speculation central banks will do anything to keep markets propped up and buy up even more assets.