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👋 Hi Sarah. Here’s what you need to know for the week ahead and what you might've missed last week.
</p>
<h3 style="font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; font-weight: 700; line-height: 1.25; margin-bottom: 16px; margin-top: 24px; color: #171E27; color: rgba(23, 30, 39, 1); font-size: 24px; font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif;">
Making… Bank
</h3>
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It’s time to take a look into the vaults and see whether the largest US banks have continued to bring in the big bucks.
</p>
<h4 style="font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; font-weight: 700; line-height: 1.25; margin-top: 24px; color: #171E27; color: rgba(23, 30, 39, 1); margin-bottom: 0; font-size: 20px; font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif;">
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🔍 The focus this week: Banks, bonds, and a BLS blackout
</p>
<p data-block-key="6az05" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
📆
</b>
Normally
<b>
,
</b>
you’d expect investors to zero in on the monthly US inflation data, due Wednesday, to see whether the trend might derail the Federal Reserve’s (Fed’s) plans to cut interest rates. But these aren’t normal times: the US government shutdown has forced the Bureau of Labor Statistics (BLS) to suspend the release of all economic reports. So, the market’ll have to make do with what’s available in the week ahead – earnings updates from Wall Street’s biggest banks.
</p>
<p data-block-key="ank72" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
🏦 Goldman Sachs, Citigroup, JPMorgan, Wells Fargo, Bank of America, and Morgan Stanley are set to open their books this week
</b>
. And there are some pretty high hopes for the group: analysts expect the financials sector to post annual profit growth of 11.5% in the third quarter, according to FactSet, which would rank it among the best-performing sectors in the S&P 500.
</p>
<p data-block-key="fc0s1" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
They’ve got two major reasons for that optimism.
</p>
<p data-block-key="b5rgf" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
🐝
<b>
First, busy days.
</b>
Huge rallies in tech stocks, a pickup in initial public offerings (IPOs), and heavy bond trading around the Fed’s rate cut last month probably kept Wall Street’s trading desks hopping last quarter.
</p>
<p data-block-key="1snks" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
💰 Second, borrowing.
</b>
US banks likely saw higher income from lending – yes, even after that rate cut. See, banks borrow at short-term rates (in the form of customer deposits and overnight central bank loans) and lend at long-term rates (think mortgages and business loans). Their profit comes from the difference between the two. So when the yield curve steepens – as it did last quarter versus the same period a year ago – the gap widens, boosting banks’ net interest margins.
</p>
<p data-block-key="1i7d9" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
<b>
🔎 But investors will also keep a close eye on “loan loss provisions”.
</b>
That’s the money that banks set aside to cover potential defaults by borrowers. If the banks and American Express (which reports earnings on Friday) have been boosting those holdings, it could be an early sign that higher rates, stubborn inflation, or a cooling economy are starting to squeeze folks’ finances.
</p>
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🇬🇧 Win a free trip to London
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You read that right: you can win two return flights to London, a three-night stay at a hotel in the capital, and in-person tickets to our
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So not only can you skip the bill, but you can leave the planning to the pros, too.
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All you need to do is
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… and decide who you’d share that room with, of course.
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📅 On the calendar
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<b>
Monday:
</b>
China trade balance (October).
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<b>
Tuesday:
</b>
UK employment (August), eurozone economic sentiment (October).
<b>
Earnings:
</b>
Goldman Sachs, Citigroup, JPMorgan, Wells Fargo, BlackRock, Johnson & Johnson.
</li>
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<b>
Wednesday:
</b>
China inflation (September), Japan industrial production (August), eurozone industrial production (August), US inflation (September).
<b>
Earnings:
</b>
Bank of America, Morgan Stanley, Abbott Laboratories.
</li>
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<b>
Thursday:
</b>
UK economic growth (August), UK trade balance (August), eurozone trade balance (August), US retail sales (September).
<b>
Earnings:
</b>
TSMC.
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<b>
Friday:
</b>
US industrial production (September).
<b>
Earnings:
</b>
American Express.
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👀 What you might’ve missed last week
</p>
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🌐
<b>
Global
</b>
</p>
<p data-block-key="4lp1h" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
<p data-block-key="4p467" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Gold and bitcoin
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
hit
</a>
record highs, as investors sought shelter from a storm of financial fears, from ballooning government debt and political turmoil to the steady erosion of traditional currencies. Gold rose above $4,000 an ounce, up over 50% this year, and bitcoin crossed $125,000 – both buoyed by the age-old instinct to own what can’t be printed. It’s not just those worries that are fueling the fire, though:
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
global liquidity
</a>
– the flow of cash, credit, and collateral that courses through the financial system – has been surging as governments borrow more and central banks make lending conditions easier. That’s creating a momentum-rich playground, where trend followers thrive while stock pickers lag.
</p>
<p data-block-key="avvo" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
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🌎
<b>
US
</b>
</p>
<p data-block-key="666l8" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
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AMD shares
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
soared
</a>
24% after the chipmaker announced a deal to supply OpenAI with tens of billions of dollars’ worth of chips, positioning itself as a real challenger to Nvidia. The agreement gives OpenAI the right to snap up a near-10% stake in AMD, further cementing the alliance. It was the latest in a wave of mega-deals powering the trillion-dollar AI buildout, with tech firms shelling out eye-popping sums on data centers and infrastructure. Still, with a select few tech firms just passing huge sums between themselves, there are growing investor concerns that the cash is simply moving in circles.
</p>
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</p>
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<b>
🌏 Japan
</b>
</p>
<p data-block-key="ft1jd" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
<p data-block-key="8d3h2" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Japan’s Nikkei stock average jumped nearly 5% in a single day, after the country’s ruling party
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
elected
</a>
a new leader who promised more spending and lower taxes – a combo that could juice economic growth and corporate profits. The plan requires more government borrowing, though, which pushed 10-year bond yields to their highest since 2008. Traders are now betting that the Bank of Japan will keep interest rates low for longer, weakening the yen and boosting exporters’ share prices. Defense stocks joined in on the rally, too, with the new government expected to spend more on military equipment.
</p>
<p data-block-key="cc3e6" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
<p data-block-key="7qknh" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
SoftBank doubled down on its AI ambitions,
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
snapping up
</a>
ABB’s industrial robotics unit for $5.4 billion to gain a foothold in the fast-growing $75 billion robotics market. The deal gives SoftBank access to the hardware and software powering factory and warehouse automation – a move that broadens its AI play beyond chips and data centers. Switzerland-based ABB has scrapped its plans for a public listing, opting to take SoftBank’s offer instead – and use that cash to fund its growth.
</p>
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10 months, 3 weeks ago - hello@finimize.com
Here’s what to watch this earnings season | 👋 Hi Sarah. Here’s what you need to know for the week...