Good morning. So Malcolm tells the banks to “get their act together”, but the question is, will they listen? Weakening credit growth, flat earnings and a huge exposure to the mining services and energy sectors, won’t help the bad and doubtful debt cycle… but is this a turning point? Should investors be buying the banks right now? Not just yet….
U.S. stocks rose the most in almost a month (Dow +113), while the dollar fell with Treasuries as Federal Reserve meeting minutes affirmed that policy makers aren’t in a hurry to raise interest rates amid persistent concerns about slowing growth abroad. The Standard & Poor’s 500 Index rebounded from a two-day selloff, with health-care shares rallying after Pfizer Inc.’s scuppered deal with Allergan Plc rekindled merger speculation in the industry.
Oil.. oil… oil…..
Energy producers surged as crude jumped more than 5 percent in New York.
The Bloomberg Dollar Spot Index halted a two-day advance as the rate debate detailed in the minutes confirmed the Fed’s dovish stance.
In Oz, were really “struggling” to find any momentum as consumer and business confidence weigh and retail spending earlier in the week, disappointed…
More on the banks, Malcolm told them to “get their act together”, in a speech last night….
The issue with the banks is that NIM (Net interest margins) has fallen, credit growth has slowed and they are extremely “exposed” to the mining services and energy sectors…
Just look at ARI, which owes the big four banks over $1 Billion…. This is a worry….
So… What's on today?
Overseas data: China foreign exchange reserves (March), UK Halifax house prices (March), Swiss foreign-currency reserves (March), US jobless claims (weekly), US consumer credit (Feb.)
Overseas earnings: ConAgra Foods, Rite Aid, Cargill, Fast Retailing Co., Seven & I Holdings, Chr. Hansen Holding A/S.
And the 2016 Masters golf tournament begins. Jordan Spieth is the returning champion.
The SPI is up 22 points this morning.