These three things are going to have a significant impact on the wider world.
US banks reveal their 2016 performance
US banks have witnessed rocketing share prices since Donald Trump was elected in early November. Economic optimism is widespread among investors; hopeful about the president-elect’s prospective policies to boost growth, lower taxes and improve infrastructure.
Timeline for banks
- October 17, 2017
- October 11, 2017
JPMorgan Chase, the largest US bank, will release its fourth-quarter results results today. Earnings are expected to rise to $1.44 a share, higher than the $1.32 a share the company earned in the same period a year ago. Revenue of $23.95bn is forecast, compared with $23.7bn last year.
Bank of America, the second largest US bank headquartered in Charlotte, North Carolina, has seen shares rise by a third since the presidential election. The banking giant is expected to report earnings per share of 38 cents, compared with 27 cents a year ago.
Wells Fargo, which recently hit the headlines for engaging in corrupt sales practices, is expected to see a fall in earnings dropping to $1 a share from $1.03 per share last year. However, revenue is forecast to jump up to $22.5bn, from $21.6bn last year.
Meanwhile, the world’s largest asset management firm BlackRock will report its full year earnings before the US market open. Wall Street is expecting the company to deliver year-over-year increases in both revenue and profits though BlackRock has yet to participate in the broad financial rally since Trump won the US election.
UK requests details on Fiat emissions
Britain will urgently seek information relating to Fiat Chrysler vehicles in the UK, after the world’s seventh-largest car manufacturer, was yesterday accused of failing to inform authorities about software regulating emissions in thousands of its diesel vehicles.
The company now faces fines of up to $4.6bn.
“We are urgently seeking further information from the US Environmental Protection Agency… and will also be seeking information from the manufacturer regarding vehicles in the UK market,” a spokesman at the Department for Transport (DfT) said today.
The US Environmental Protection Agency (EPA) said that the hidden software allowing excess diesel emissions to go undetected affects an estimated 104,000 cars. About 600,000 similar engines had been installed in its European vehicles, according to Fiat.
“We have done nothing that is illegal,” insisted Sergio Marchionne, chief executive of Fiat Chrysler, denying the allegations of misconduct.
Italy’s sovereign debt rating
Canadian credit rating agency DBRS must make a decision today on whether to deprive it of its only remaining single-A rating or not.
3 Things That Will Change the World Today
Such a downgrade could raise the cost of borrowing central bank funds for the country’s struggling lenders and Italian banks are particularly vulnerable to any sovereign ratings moves right now.
The decision is due after the European market close so we’ll feel the full effects on Monday morning.