US banks are big. China is massive



The four largest banks in the world come from China, according to the latest annual ranking of S & P Global Market Intelligence.

Despite the trade war and currency problems, the "big four" Chinese banks increased their total assets by 1% in 2018, to reach $ 13.8 trillion, said S & P.
The list is led by the Industrial and Commercial Bank of China, which has retained its title as the world's largest bank. ICBC is the only lender to have accumulated more than $ 4 trillion in assets, about the size of Citigroup (C) and Wells Fargo (WFC) combined.

The next three major Chinese banks are each worth $ 3 trillion to the north: the China Construction Bank, the Agricultural Bank of China and the Bank of China. The four banks belong to the state.

US banks are only getting bigger since the financial crisis, but they still have a lot of work to do to catch up with their peers in China.

Just two American banks – JPMorgan Chase (JPM) and Bank of America (LAC) – to be in the top 10 of S & P's ranking among the world's largest banks. JPMorgan, which has $ 2.6 trillion in assets, strengthened its role as king of US banks on Friday by posting record earnings and earnings.
Wells Fargo, on the other hand, continues to struggle to overcome the scandal that lasted two and a half years. Citigroup (C) surpassed Wells Fargo to become the 3rd largest US asset bank.
A building in Liuzhou City, China, will house a branch of China Construction Bank, the second largest bank in the world. CWB has assets of $ 3.4 trillion, nearly $ 1 trillion more than the largest US bank, JPMorgan Chase.

The big banks will be back in the spotlight this week as the earnings season continues.

Goldman Sachs (GS) and Morgan Stanley (MRS) are under pressure to show that their commercial weapons are resisting the tranquility of global financial markets that began in 2019.
If excessive volatility, such as the storms that hit Wall Street in late 2018, can punish investment banks, the lack of turbulence can also hurt. Stock trades often dry up when volatility disappears, reducing the lucrative trading costs of Wall Street companies.
No one on Wall Street seems to be afraid. Here's why it's scary

Consumer banks, on the other hand, navigate between two other forces.

The big plus is the health of US households. JPMorgan CEO Jamie Dimon said "robust" consumer spending contributed to his bank's record quarter. Loans and deposits rose at JPMorgan and Dimon welcomed the rise in employment and wages.
Consumer spending should complement the results of Citi, Bank of America, US Bancorp (USB), BB & T (BBT) and M & T Bank (ATV)who are all ready to report their earnings this week.

But investors will listen with concern for signs that interest rates are plaguing banks.

Wells Fargo frightened Wall Street on Friday by announcing a decline in net interest income – the amount of loans that banks earn less what they pay in interest. This essential source of profitability decreases when the yield curve flattens out.

The yield curve, the gap between short-term and long-term rates, has evaporated in recent months because of worries about global growth and the wagers the Federal Reserve will have to make.
2. The 737 Max Boeing Crisis: United Continental Holdings (UAL) reports gains on Tuesday. Investors may be looking to find out if the airline has anything to say about how the problems with Boeing (BA) 737 Max have affected United's business. United has no Max 8 – the type of plane involved in two fatal crashes since October. But he has more than a dozen Max 9s, which are a larger version of the Max 8.
Delta (DAL), the only major American company not to fly 737 Max jet planes, announced solid results last week. But executives said this factor had little impact on the airline's market share. Meanwhile, Boeing recently released data showing that airlines were delaying orders for the 737 Max.
3. Netflix has a new competition: Wall Street loved Disney's new streaming service, which will begin in November and cost about half the price of a standard Netflix subscription. This week, Netflix (NFLX) will have a chance to answer when he publishes his results on Tuesday. Last quarter, the company announced that it would increase its monthly fees.
4. The new CEO of PepsiCo has the wind in his sails: When PepsiCo (DYNAMISM) announces its first quarter results on Wednesday, investors will have the opportunity to see how the CEO, Ramon Laguarta, concretizes his vision of the company.

Laguarta took office in October and was able to share some good news when calling the company's fourth quarter results: "We met or exceeded each of the financial goals we had set at the beginning of the year. l & # 39; year. " Laguarta also said that he had spent the first four months as a general manager finding ways to improve his business. His plan? Accelerate revenue growth by strengthening and expanding PepsiCo's portfolio and packaging. Investors seem to be satisfied so far. Shares of the company have jumped more than 10% so far in 2019.

5. Retail sales in the United States: The Census Bureau reports retail sales for March on Thursday. Wall Street will examine the data to find out what consumers think about the economy and which retailers will benefit.

6. Coming this week:

On Monday Aphria (APHA), Citigroup, Goldman Sachs, profit from M & T Bank; American tax day
Tuesday – Bank of America, Black rock (BLK), Johnson & Johnson (JNJ), Netflix, United Continental Holdings profit

Wednesday – PepsiCo, Morgan Stanley profit; Fed Beige Book

ThursdayAmerican Express (AXP), Skechers (SKX) earnings; US retail sales

Friday – US markets are closed

– Jill Disis, Nathaniel Meyersohn and Danielle Wiener-Bronner of CNN Business contributed to this report.


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