News 

Here comes Citi …

“Analysts are expecting the bank to report adjusted earnings per share of $1.61, a nearly 20% increase from last year” writes Alex Morrell for businessinsider.com. In addition to global growth across major economies and the return of volatility, the banks will start to reap benefits from higher interest rates and the corporate tax overhaul.The fourth-quarter of 2017, by comparison, was noisy and uneven thanks in part to the new tax law, which caused many banks to book one-time losses on repatriated cash and deferred tax assets that declined in value.…

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Markets News Stocks 

If gold gets to this level, it’s going to be really bad for stocks: Piper Jaffray

“It would be a pretty negative meaning for a lot of investors if we break above that $1,365 level.”” writes Keris Lahiff for cnbc.com. Gold typically outperforms equities when there is excess fear in the market or investors anticipate slower economic growth.Johnson spoke on a day investors fled equities in favor of safe-haven assets like gold. Source: cnbc.com Share This:

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Markets News Stocks 

Guggenheim investment chief sees recession, 40% plunge in stocks ahead

“Guggenheim’s head of investing sees a tough road ahead for the market and economy, with a sharp recession and a 40 percent decline in stocks looming” writes Jeff Cox for cnbc.com. One the main problems is that Congress and President Donald Trump have pushed through aggressive fiscal policies at a time when the Fed is looking to control growth with higher interest rates and less accommodative monetary policy.Along with the decline in equities likely will come a rise in corporate bond defaults that will come as the Federal Reserve raises…

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Markets News Regulators Stocks 

Forget trade — here’s the real risk to the stock market

“Over the longer term, however, the real policy risk facing Wall Street may not come from the White House or Congress, but from the Federal Reserve” writes Markets Reporter for marketwatch.com. The U.S. central bank has been gradually shifting its monetary policy in two significant ways: raising interest rates and reducing the size of its balance sheet.The Fed’s bond-buying program, which ballooned the central bank’s balance sheet to nearly $4.5 trillion, helped push down interest rates and made stocks look further more attractive than fixed income.See also: Do stocks or…

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Markets News Regulators Stocks 

Forget about trade for a moment: Here’s the real risk to the stock market

“Over the longer term, however, the real policy risk facing Wall Street may not come from the White House or Congress, but from the Federal Reserve” writes Markets Reporter for marketwatch.com. The U.S. central bank has been gradually shifting its monetary policy in two significant ways: raising interest rates and reducing the size of its balance sheet.The Fed’s bond-buying program, which ballooned the central bank’s balance sheet to nearly $4.5 trillion, helped push down interest rates and made stocks look further more attractive than fixed income.See also: Do stocks or…

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News 

JPMorgan’s top bank analyst just slammed Deutsche Bank’s Wall Street business

“As such, Abouhossein suggests Deutsche Bank cut its equities business and its investment banking business” writes Matt Turner for businessinsider.com. It’s worth noting here that Deutsche Bank has made changes to its US equities business, with Peter Selman joining Deutsche Bank last fall as the firm’s global head of equities.JPMorgan’s top banks analyst said Deutsche Bank needs to slash its US operation.For reference, most bank analysts assume a cost of equity of somewhere around 8% to 10%, meaning that Deutsche Bank’s US business is destroying shareholder value.The bank has been…

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Markets News Oil 

U.S. oil falls by the most in about 7 weeks as crude follows equities south

“As for U.S. supply, on Thursday Baker Hughes reported the first fall in U.S. rigs drilling for oil in three weeks” writes Rachel Koning Beals for marketwatch.com. Meanwhile, Bahrain says it has discovered its largest oil field since the country’s first oil well began operation nearly 90 years ago, according to reports.On the New York Mercantile Exchange, May West Texas Intermediate crude CLK8, -0.13% lost $1.93, or about 3%, to $63.01 a barrel. Source: marketwatch.com Share This:

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