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...inequality increasing savings and lower productivity and growth rates reducing the desire for investment....
...Here he makes the case that the stock prices in the failure of the bank’s recently announced strategic revamp: Investors value banks on price-to-book value ratios with reference to the return on equity...
...The flipside to higher interest rates is people also want more for their savings....
...High-priced dealmaking failed to yield compensatory sales growth, cost savings or serious disruption to incumbent banks or payment networks....
...But banks are finally having to pass on higher savings rates to depositors, according to JPMorgan and Wells Fargo, which also reported earnings....
...You see the same thing when you look at savings — the amount of money people have in checking and savings accounts across the income distribution. Look at people who make less than $25,000 a year....
...Banks are unlikely to offer the same high yield on their savings accounts due to costs of intermediation. Direct debt sales to retail investors will therefore suck out funds from bank accounts....
...From the bank: When can we expect sagging S&L tax revenues to moderate consumption and gross investment growth?...
...“The concentration of the UK market is pretty high,” says Fidelity International investment director Tom Stevenson....
...The US Federal Reserve’s preferred measure of inflation is expected to show no progress was made in reducing price growth in February, underscoring how much work the central bank still has to reach its 2...
...Growth and employment remain strong — so strong, in fact, that expectations for Federal Reserve interest rate cuts are being pushed further into the future....
...For example, a bank will go to a third-party brokerage like Fidelity and ask it to find customers for a large block of high-yielding certificates of deposit....
...It is increasingly infiltrating the likes of the Federal Reserve Board, the European Central Bank and the Bank of England. And it is one of the few acronyms for which economists deserve forgiveness....
...And money market funds, which use the same structure as investment mutual funds but compete with banks for cash savings, currently hold an additional $6tn in assets, an all-time high....
...England, European Central Bank and the Federal Reserve....
...Even today, with short-term rates currently above 5 per cent, the average US savings account rate is just 0.45 per cent according to the Federal Deposit Insurance Corporation....
...“In the US, your phone already makes it easy to go from app to app — say Chase for banking and Fidelity for savings and maybe Robinhood just for trading and Venmo for money transfer.”...
...banks....
...Last year the SNB was forced to play a key role in saving Credit Suisse, Switzerland’s second-largest bank, and orchestrating its emergency takeover by rival UBS....
...On reaching a savings milestone, your first thought might be to preserve the real value of your capital....
...Banks that failed to keep up have been left exposed. Between spring 2022 and 2023, the US federal funds effective rate soared from almost zero to more than 5 per cent....
...Japan’s currency has run up its biggest monthly gain against the dollar this year, reflecting growing expectations that the Bank of Japan will be forced to tighten monetary policy just as the US Federal...
...First, the rise of fixed-rate loans — and pandemic savings — have stunted the impact of rate rises....
...The central bank has held rates steady since July....
...On Wednesday the Federal Open Market Committee issues minutes from its December 12 2023 meeting....
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