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A wave of cash flooding bank balance sheets during Covid-19 prompted some of America’s largest lenders to take the unusual step of advising corporate clients to withdraw money from deposits.
Banks such as JPMorgan Chase and Citigroup have discussed with large corporate clients the possibility of placing liquidity in money market funds rather than deposits, according to people familiar with the discussions.
The talks followed a decision by the Federal Reserve in March to end the looser capital rules for banks that were put in place at the start of the pandemic. The easing of regulations had helped lenders cope with a surge in deposits resulting from the US fiscal stimulus and the central bank’s quantitative easing policies.
Usually, deposit growth is a welcome indicator of a healthy economy and allows banks to lend more. But in the absence of comparable credit demand, additional deposits can be costly for banks, forcing them to hold more capital.
Dr Anthony Fauci, chief medical adviser to Joe Biden, told the Financial Times he would oppose a plan to tear up international trade rules in the hope of improving vaccine supplies to developing countries.
new York, New Jersey and Connecticut will lift most restrictions on businesses by mid-May. Capacity restrictions on offices, theaters, museums, and businesses, including retailers, bars and gyms, will be removed in all tri-states starting May 19.
The United States is preparing to allow the BioNTech / Pfizer vaccine for 12-15 year olds in the coming days. Denmark became the first country to drop the Johnson & Johnson vaccine due to blood clot issues.
Scientists in Brazil hope that a handful of local vaccines can be an essential weapon against the pandemic.
Boris Johnson Monday indicated that the British would be able to resume “some” international travel from May 17th. A coalition of airlines is pushing for a YOU’RE USELESS trip ahead of G7 meeting in June.
From India The number of confirmed coronavirus cases has crossed the 20m mark, making it the second country in the world after the United States to reach the milestone. US business leaders have stepped in to pressure the Biden administration to act on the Covid-19 crisis in India. (FT, Bloomberg)
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In the news
Mexico City’s railway bridge collapses More than 20 people have died and 65 have been hospitalized when an elevated section of the Mexico City metro collapsed on a road below late Monday. The accident occurred on line 12, the last metro line, in the south of the capital.
Saudi Aramco Results Saudi Aramco reported a 30% increase in first-quarter profits as higher oil prices, higher refining and chemicals margins offset lower production. Saudi Aramco, like other publicly traded oil majors, has benefited greatly from the rise in oil prices with the recovery in demand.
Chinese banks accused of financing deforestation Chinese banks are the second largest financial backers of raw materials involved in deforestation of tropical rainforests, according to a study that casts doubt on Beijing’s ambitions to be a world leader in the fight against climate change.
Senior Fed official in line to lead main US banking regulator Michael Hsu, a senior Federal Reserve official responsible for overseeing America’s largest banks, is set to become the next interim currency controller, ending weeks of uncertainty over the leadership of the U.S. financial regulator.
US plans to crack down on greenhouse gases used in refrigerators The U.S. Environmental Protection Agency has announced a drastic reduction in hydrofluorocarbons, or HFCs, a group of potent greenhouse gases used in air conditioners and refrigerators, as the regulator advances renewed emissions targets under the ‘Biden administration.
Bill and Melinda Gates divorce Microsoft co-founder Bill Gates and his wife Melinda have announced they are ending their marriage after 27 years. The couple said the move would not affect the work of the Bill & Melinda Gates Foundation, the world’s largest private charity, which has sought to improve healthcare and reduce poverty.
The coming days
G7 in London G7 foreign ministers continue their first face-to-face meeting in two years on Tuesday, where they will discuss tackling the influence of China and Russia.
Economic data The US trade deficit is expected to increase in March after hitting a record $ 71.1 billion in February. A Commerce Department report will likely show new orders for products made in the United States rose 1.3% in March.
AGM General Electric boss Larry Culp faces a shareholder revolt at today’s annual meeting after the company eased its performance targets following a drop in GE shares linked to a pandemic.
Income overview Report by Pfizer, ConocoPhillips, T-Mobile US, KKR, Hello Fresh, Thomson Reuters, RingCentral, Lyft and Warner Music Group.
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What else do we read
Will regulators deflate the Spac boom? Special purpose acquisition companies, once seen as a fluffy side spectacle of finance, have over the past year become the driving force of financial markets and transactions. But Spacs, which raise money from investors to complete a merger and get a company listed, have suddenly lost their luster – especially in the eyes of regulators.
Wall St rallies behind one of its own in New York Ray McGuire’s campaign for mayor of New York City was boosted by donations from the city’s tight-knit corporate bargaining community. A mergers and acquisitions banker for nearly 40 years, McGuire has raised $ 7.4 million in private funds for his campaign.
Poor demographics won’t stop China’s rise to power A declining and aging population may not have the same grim consequences in the 21st century as before, writes Gideon Rachman. If technological prowess, rather than young men, is the key to future power, China is well placed.
Not all blue collar workers will find green collar jobs Today’s blue collars are tomorrow’s “green collars” – at least politicians would have us believe. The truth is, the road to net zero will destroy jobs in some carbon-intensive industries, as it will create new ones elsewhere. And some activities won’t need as many workers as they used to, writes Sarah O’Connor.
Workers can use their voice if they get together The gift 2020 gave us was a space and a chance to figure out what’s good and bad in our lives and reinvent it to be more sustainable. Everywhere you sit in the ‘at home or five days at the office’ debate, it’s clear that flexible working is a battle for equality.
Commentary of the day
In response to “ the legend of Napoleon is alive and as divisive as ever ”:
“Napoleon was both a tyrant and a reformer. He was also a military leader of rare genius who demanded absolute loyalty from his soldiers. He fell victim to his own success in that all other European powers united against the threat he posed. He who lives by the sword also dies. – Mill reef