FT News Briefing US banks ride ‘soft landing’ high
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Oct 14, 2024 In this discussion, Josh Franklin, the FT’s U.S. banking editor, reveals how U.S. banks are experiencing a resurgence post-Silicon Valley Bank's collapse, bolstered by better-than-expected earnings. Meanwhile, Michael Stott, FT’s Latin America editor, dives into Argentina's new president Javier Milei's economic policies and the tough choices concerning currency controls that could affect foreign investment. They also touch on global inflation concerns and the ripple effects in both U.S. and Eurozone economies.
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Bank Stock Surge
- US bank stocks hit their highest level since before Silicon Valley Bank's collapse.
- Better-than-expected quarterly earnings fueled this surge, suggesting a potential "soft landing" for the economy.
Interest Rate Impact
- Falling interest rates raise concerns for bank investors about net interest income.
- Banks have profited from higher loan charges and lower depositor rates.
Mixed Bank Outlooks
- JPMorgan Chase raised its 2024 net interest income guidance, while Wells Fargo cut its Q4 outlook but raised its 2025 guidance.
- Jamie Dimon, JPMorgan's CEO, humorously expressed frustration over the lack of a 2025 net interest income number during the earnings call.