Global Macro Perspectives
After sleeping it off and giving a little tough on Barack Obama’s proposal of new financial regulation I still think this is HUGE. Because it is so HUGE, I have some doubts how the final version would look like. Similar as with health care reform, a strong opposition backed by almost unlimited (lobbying) funds will […]
Intel (INTC): Q4 EPS of $0.40 vs. consensus of $0.10. Revenue of $10.6B (+28%) vs. $10.2B. Gross margin of 65%. JPMorgan (JPM): Q4 EPS of $0.74 vs. consensus of $0.87. Revenue of $23.16B vs. $26.8B. Adds $1.9B to consumer loan loss reserves, resulting in firm wide credit reserves of $32.5B and loan loss coverage ratio […]
EPS of $0.82 vs. $0.51 consensus. Main contribution came from fixed income revenues; half of the net income coming from investment banking; retail services & credit card divisions suffering. Earnings presentation.
Solid performance; excellent capital ratios.
This week could definitively determine the route U.S. equities are going to take. Tuesday: Procter & Gamble and Intel; Wednesday: JP Morgan, Thursday: Goldman Sachs and Citigroup; Friday: Bank of America and General Electric. I suspect banks will report something similar to previous quarter; but the market impact would not be so profound. I still believe that the banking crisis will have round two, but not at this moment, probably in few quarters. Interesting Bloomberg article today on bank earnings composition. Bloomberg story: Writedowns on Mortgage Servicing Make Even JPMorgan Vulnerable . We will see when the reality catches up with accounting.