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Big Banks Expected To Be In The Green As Spotlight Shines On Q2 Earnings From JP Morgan, Citi, And Wells Fargo

A lethal combination of ultra-low interest rates, credit worries, a steep economic slowdown, and tough government regulations ganged up on big banks this year. Despite that, expectations for the group’s Q3 earnings performance are on the rise.

Granted, the numbers don’t look like something to throw a party over, with research firm FactSet predicting cumulative Financial earnings to fall 19.4% from a year ago. The good news is that those expectations look a lot sunnier than where analysts were back in June, when they predicted a Financials Q3 earnings cratering of 34.4%. 

Why the improvement? For one thing, many banks benefit from the energetic capital markets and the trading revenue they provide. Second, low rates have their good side, encouraging more loan activity.

Some of the big banks leading the upward earnings expectations meter include JP Morgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co (NYSE: WFC), FactSet reported. It appears likely they both could have relatively positive Q3 results despite all the headwinds they’ve faced and continue to face in this rough 2020. 

The same goes for Citigroup Inc (NYSE: C), which, like JPM, is expected to report Q3 earnings early tomorrow. Those will be followed Wednesday morning by WFC.

Before zeroing in on individual banks, let’s scroll back for a broader view. Big banks haven’t performed well in the market this year, but they’ve generally done a great job setting aside money for possible credit losses and cutting costs. This could position most of them pretty nicely for any economic rebound once the pandemic passes. 

That said, the credit loss provisions compressed earnings earlier this year, and it wouldn’t be surprising if we see additional money put aside for that this quarter.

If there’s positive news on a vaccine or treatment in coming months, the banks could get an outsize benefit, analysts say. That’s partly because their businesses are so exposed to the broader economy, and also because their shares generally remain more beaten down than many other sectors. The S&P 500 Financial sector was recently off more than 19% year-to-date, the worst performance of any sector in 2020 aside from Energy.

One possible worry is any changes in Washington following the election. Banks have generally enjoyed a rollback of regulations recently, but November’s voting could potentially mean a more active Treasury Department in coming years. It’s possible bank executives might be asked on their earnings calls to speculate about the election and its potential impact on their companies and the economy.

Bank stocks also remain bogged down by the Fed’s restrictions on dividends. The Fed put capital restrictions in place in June after it released the results of its annual stress tests. Many banks had already halted share repurchases in March, and buybacks historically accounted for roughly 70% of the banks’ capital return to shareholders, Barron’s noted. The restrictions on dividends might have weighed on investor interest in the sector. 

The Fed also announced in June that the banks would have to undergo a second stress test this year due to economic uncertainty and that the results would be released before the year ends.

Below we’ll preview JPM, C, and WFC. Stay tuned for a look at Bank of America Corp (NYSE: BAC), Goldman Sachs Group Inc (NYSE: GS), and Morgan Stanley (NYSE: MS).

Kicking Off Earnings Season With JP Morgan Tomorrow

JPM gets the ball rolling early tomorrow. As always, investors will likely listen closely to any words from the company’s CEO, Jamie Dimon. Like few other Wall Street leaders, Dimon’s thoughts can help set the tone for earnings season, and if he likes the economic and industry trends he sees, that could potentially give banking stocks and the entire market a psychological boost.

Things to listen for from Dimon include his take on the relatively improved economic data seen lately (other than the disappointing payrolls number for September), and when and whether JPM might be able to cut back on the credit loss provisions it’s …

Full story available on Benzinga.com

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Toaster Market Size to Reach USD 4.72 Billion by 2027; Rising Consumer Demand for Kitchen Appliances to Contribute Growth, states Fortune Business Insights™

Pune, Oct. 12, 2020 (GLOBE NEWSWIRE) — The global toaster market size is expected to reach USD 4.72 billion by 2027, exhibiting a CAGR of 4.2% during the forecast period. The growing consumer demand for luxurious kitchen appliances items such as refrigerators, mixer grinders, toasters & ovens can have a stupendous effect on the market, states Fortune Business Insights, in a report, titled Toaster Market Size, Share & COVID-19 Impact Analysis, By Product (Pop-up, Oven, and Conveyor), Application (Residential and Commercial), Distribution Channel (Online and Offline), and Regional Forecast, 2020-2027.The market size stood at USD 3.83 billion in 2019.

The emergence of coronavirus has caused the world’s economy to tumble down. We understand that this health emergency has negatively impacted various sectors across the globe. Rising support from governments and several companies can help in the fight against this highly infectious virus. There are some industries that are struggling and some are thriving. More or less, nearly every sector is estimated to be impacted by this pandemic.

We are perpetually working on our reports to help uplift businesses in this crucial time. Our expertise and experience can offer enormous benefits to help regain during this global pandemic.

The report on the toaster market reveals:

  • Eminent insights into the industry
  • Important data with in-depth research
  • Factors exhibiting market growth
  • Comprehensive study about main regions
  • COVID-19 impact on the market

Get Sample PDF Brochure with Impact of COVID19:

https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/toaster-market-103851


Market Driver:

Surging Hospitality Industry to Propel Market

The inauguration of new cafés, restaurants, hotels, schools, and others will spur opportunities for the market during the forecast period. The increasing consumption of fast food will simultaneously improve the prospects of the market. According to the report ‘Hospitality, Tourism and Leisure in the UAE’, published by the US-UAE Business Council, as of 2018, Dubai had 703 hotels and apartment properties combined with a total number of 111,864 rooms, an increase of 6% over to that of 2017. The increasing inclination towards food recipes through on-demand videos & posts will foster healthy growth …

Full story available on Benzinga.com

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Economist Perspective: When Will The Economy Fully Recover?

By Bluford Putnam 

Will the U.S. economy snap back or will there be a setback? Market participants are divided …

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Interest Rates Gaps For The US Dollar

By Erik Norland

Interest rate differentials between currencies can be crucial in foreign exchange markets for pricing purposes such as in the carry trade, and they have taken on added significance with the advent of negative rates in Europe and Japan over the past few years. So, how big are the interest rate differentials between currency pairs? On the face of it, it seems like a simple enough question. But the variety of ways used to measure the differential makes for a complicated answer. Differences in rates between central banks can be used as a guide but may be of limited value to everyday currency traders as only major financial institutions deal directly with central banks.

In financial theory, market participants would typically look at interbank rates, such as ICE LIBOR, as a guide. Unlike the official central bank rate, interbank rates offer a look at private sector lending rates. However, these rates may not reflect the rate differentials that currency traders are actually getting in the market. Also, the rates have been discontinued for several currencies.

Overnight index swap rates (OIS) such as EONIA can also be used to gauge the level of interest differentials among currencies. OIS rates, however, stick closely to central bank rates and may also not fully reflect the interest rate gaps currency investors are getting in the market.

Another avenue for calculating interest rate differentials is the currency market itself, where implied interest rate differentials can be calculated from the difference in the value of a currency in the spot and futures markets. For example, CME’s FX Swap Rate Monitor calculates the implied interest rate differential between CME FX futures and CME FX Link’s central limit order book (Figure 1).

Figure 1: FX markets shows larger interest rate differentials than other measures

Figure 1: FX markets shows larger interest rate differentials than other measures

What’s curious is that when these ways of measuring interest rate differentials are compared, the currency market measure consistently showed a larger interest rate gap between the US rate and the foreign currency rate than did central bank rates or the OIS. In other words, US interest rates appeared higher relative to other countries when observed …

Full story available on Benzinga.com

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Monday’s Market Minute: 5 Things To Watch

First, the focus continues to be on the potential for another stimulus bill. Over the weekend, President Trump said he wanted to help businesses and that he is ready to go, Nancy Pelosi said the 1.8 trillion dollar deal Democrats are being offered is grossly inadequate, and Neel Kashkari was clear we need more stimulus; he attributed the strong recovery we saw this spring to efforts on behalf of Congress to provide stimulus.

We also have earnings with big …

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Aatamanirbhar Skilled Employee Employer Mapping sees huge demand amid economic recovery

The Aatamanirbhar Skilled Employee Employer Mapping, a government directory of skilled workforce, has helped about 60,000 people get jobs in two months and lists around 500,000 verified vacancies for October-December
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Indian workforce are on the verge of burnout, faces most stressful time ever

Pressures to meet performance standards, handling routine and tedious tasks and blurred lines between work and life are some of the reasons for employees’ burnout.
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Fluoropolymer Coating Market to reach US $2.1 billion by 2028 – Global Insights on Size, Trends, Strategic Initiatives, COVID-19 Impact Analysis, Key Growth Drivers, Regulatory Landscape and Future Prospect: Adroit Market Research

Dallas, Texas, Oct. 09, 2020 (GLOBE NEWSWIRE) — The “Global Fluoropolymer Coating Market: Information by Resin (Polyvinyl Fluoride (PVF), Polytetrafluoroethylene (PTFE), Fluorinated Ethylene Propylene (FEP), Ethylene Tetrafluoroethylene (ETFE), Perfluoroalkoxy Alkanes (PFA), and Others), End-Use Industry (Building and Construction, Automotive, Aerospace, Electrical, Food Processing, and Others), and Region, Global Forecast, 2018 to 2028” study provides an elaborative view of historic, present and forecasted market estimates.

Request a pdf sample at https://www.adroitmarketresearch.com/contacts/request-sample/1665

The global fluoropolymer coating market is estimated to reach around USD 2.1 billion in terms of value by 2028, rising by more than 6.1% CAGR. Increased demand for fluoropolymers such as acrylic, which can lead to the growth of fluoropolymers coatings, contribute to the global growth for fluoropolymers. In terms of their chemical compositions and functions, coating coatings can differ greatly. The only common factors for the different additive groups are that they are primarily used in small quantities and are the purpose of incorporating them.

Fluoroplastics is being used by pharmaceutical industry to replace conventional stainless steel or glass with reaction tubes, stirrers and other parts. In certain cases, traditional chlorinated or hydrocarbon plastics have been substituted by inert, non-stick and non-corrosive PTFE, PFA, FEP and ETFE polymers to have a better outcome and purity. Films and laminates are almost exclusively used for PVF and the commonly used protective and decorative coating fluoropolymer. It can be laminated on wood, paper, plastic, rubber or metals and used as a release sheet for the mounting of bags for the pipe lining, duct liners, interior …

Full story available on Benzinga.com

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Post-Harvest Treatment Market to reach US $2.7 billion by 2028 – Global Insights on Size, Trends, Strategic Initiatives, Value Chain Analysis, Regulatory Landscape, and Growth Opportunities: Adroit Market Research

Dallas Texas, Oct. 09, 2020 (GLOBE NEWSWIRE) — The “Post-Harvest Treatment Market by Type (Coatings, Cleaners, Fungicides, Ethylene Blockers, Sanitizers, and Sprout Inhibitors), Crop Type (Fruits and Vegetables), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), Global Forecast, 2018 to 2028” study provides an elaborative view of historic, present and forecasted market estimates.

Request a pdf sample at https://www.adroitmarketresearch.com/contacts/request-sample/1674

The global post-harvest treatment market size is projected to reach nearly USD 2.7 billion by 2028. In addition, the market is forecasted to grow a CAGR of above 6.5% over the forecast period of 2020-2028. Increasing demand worldwide for exotic fruits & vegetables is driving the need in the market for different post-harvest treatments. Moreover, the growth of the worldwide fresh fruit & vegetable industry is also projected to have a significant influence on the post-harvest treatment market.

Additionally, increasing rates of post-harvest fruit & vegetable losses are expected to fuel the market for post-harvest treatments. A major influence on citrus farmers has been the use of phosphate salt treatments and post-harvest gene sequencing to track blue and green moulds. The content of calcium for cultivation of crops enhances the absorption capacity by the consumers without adapting to additives in the industry thereby providing a high demand for post harvest treatment market globally.

Browse the ful report with Table of Contents and List of Figures …

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Economic Data Scheduled For Friday

  • Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 9:00 a.m. ET.
  • Data on wholesale inventories for …

Full story available on Benzinga.com