Daily Archive: August 5, 2020

Britain’s banks brace for $22 billion loan losses as outlook darkens By Reuters

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© Reuters. FILE PHOTO: HSBC and Barclay’s buildings are lit up at dusk in the Canary Wharf financial district of London

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By Iain Withers and Lawrence White

LONDON (Reuters) – Britain’s banks took a gloomier view than almost all their European peers in their second quarter earnings, as coronavirus fears, Brexit and low interest rates caused them to bake tougher “worst-case” scenarios into their risk models.   

Investors had expected a torrid set of half-year results, but Barclays (L:), Standard Chartered (L:), Lloyds (L:), NatWest Group (L:) and HSBC (L:) fell short of these low expectations.

Provisions for potential loan losses across the five banks topped $22 billion, blowing past analyst forecasts and increasing selling pressure on shares already hammered by the pandemic this year.

By contrast, France’s BNP Paribas (PA:) and Credit Suisse (S:) beat analyst forecasts, benefiting from bumper trading volumes as well as relatively modest provisions.

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Sell U.S. equities, buy gold

Richardson GMP portfolio manager Chris Kerlow speaks with Financial Post’s Larysa Harapyn about the company’s outlook on gold, equities, and other sectors, as the market starts its recovery.

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Congress still ‘a long ways away’ from deal on bill that would include more stimulus checks

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An overwhelming majority of Americans want Congress to put political divides aside and send out a second round of stimulus checks.

A Fortune-SurveyMonkey poll* of 2,802 U.S. adults between July 17 and 21 finds 80% of U.S. adults support the federal government issuing a second round of stimulus checks. That’s up from 54% of U.S. adults who supported a second of stimulus checks back when Fortune-SurveyMonkey polled U.S. adults between May 20 and 26.

Both Democratic and Republican leaders support sending another round of $1,200 stimulus checks to Americans, however, any such proposal would be passed as part of a more expansion stimulus package. And the other items of such a bill, like state funding and expired enhanced unemployment benefits, are what the … Read More