Banking

Bloomberg The deregulation winds blowing through Washington could add $27 billion of gross profit at the six largest US banks, lifting their annual pretax income by about 20 percent. JPMorgan Chase & Co. and Morgan Stanley would benefit most from changes to post-crisis banking rules proposed by Donald Trump’s administration, with pretax profit jumping 22 percent, according to estimates by ...

Reuters As India’s foreign-exchange reserves march towards the unprecedented $400 billion mark, its central bank faces a costly conundrum. To keep the rupee stable and exports competitive, it is having to mop up inflows that’s adding cash to the local banking system. Problem is, banks are flush with money following Prime Minister Narendra Modi’s demonetisation programme last year, leaving them ...

Bloomberg Mario Draghi said that while central-bank actions over the last decade have strengthened the global economy, it is important to be open-minded in readying for future developments. In a speech that gave no specific signals on the European Central Bank’s current policy deliberations, the institution’s president stressed that officials must be “unencumbered by the defense of previously held paradigms ...

Bloomberg Indonesia’s central bank surprised most economists by lowering interest rates, reflecting its relative comfort with the currency and inflation outlook. The benchmark rate was cut by a quarter point to 4.5 percent, with all but six of the 28 economists surveyed by Bloomberg predicting it would stay on hold. Bank Indonesia reduced borrowing costs six times last year, making ...

Bloomberg Bank of America Corp.’s investment bank executives are divided over where their European Union trading hub should be after Brexit, according to people with knowledge of the matter. Equities head Fabrizio Gallo has pushed for Frankfurt as the base for traders working with EU clients, while his fixed-income colleagues Sanaz Zaimi and Bernard Mensah have favoured Paris, the people ...

Bloomberg While central bankers from the US to Europe see inflation undershooting their targets as a headache for monetary policy, it may be a boon for the Bank of Russia. A surprise deceleration in consumer prices below 4 percent in July is set to cool off inflation expectations, which Russia’s central bank calls a “pillar” of its rate decisions, according ...

Bloomberg Saudi Arabia’s largest lender has become a favourite among equity analysts and investors as its business improves and the potentially lucrative inclusion in an emerging-markets benchmark index approaches next month. Al Rajhi Bank was upgraded to buy by Goldman Sachs Group Inc. on Aug. 8. An analyst at Bank of America Merrill Lynch followed suit eight days later, citing ...

Bloomberg The pound declined the most in a week against the dollar amid lingering uncertainties about how long it will take for the UK to forge post-Brexit trade agreements with the European Union. Sterling, which depreciated against most Group-of-10 peers, also reached a 10-month low versus the euro. Prime Minister Theresa May’s government is releasing a third paper Tuesday on ...

Bloomberg RHB Bank Bhd., Malaysia’s fourth-largest lender by assets, and AMMB Holdings Bhd. are planning to scrap their proposed merger, according to people with knowledge of the matter. RHB and AMMB had difficulty reaching agreement on terms, one of the people said, asking not to be identified because the information is private. The companies could announce as soon as Tuesday ...

Reuters Bahrain may need to raise its market interest rates to protect its currency and must refrain from having its central bank lend money to cover the government’s budget deficit, the International Monetary Fund said. In a statement released after annual consultations with the Bahraini government, the IMF repeated earlier warnings that more steps by Bahrain to cut its deficit ...