America's banks are large. China's massive
The four best banks in the world come from China, according to the latest annual rankings from S & P Global Market Intelligence.
Despite trade war and currency problems, China's "Big Four" banks increased their total assets by 1% in 2018 to $ 13.8 trillion, says S & P.
The list is led by the Industrial & Commercial Bank of China, who retained the title as the world's largest bank. ICBC is the only lender that has accumulated over $ 4 trillion in assets – or about the size of Citigroup ( C ) and Wells Fargo WFC ]] combined.
The next three largest Chinese banks are each north of $ 3 trillion: China Construction Bank, Agricultural Bank of China and Bank of China. All four banks are state-owned.
American banks have only grown larger since the financial crisis, but they still have something growing to do to get their peers in China.
Only two US banks ̵
1; JPMorgan Chase
JPM ) and Bank of America ( BAC ) – crack top 10 in S & P's rankings of the world's largest banks. JPMorgan, which sports $ 2.6 trillion in assets, cemented its role as the King of American Banks Friday by adding record profits and revenues.
Wells Fargo continues to fight for two and a half years of scandal. Citigroup ( C ) has surpassed Wells Fargo to become No. 3 bank in the United States of assets.
Large banks come back in the light this week as the earnings season continues.
GS ) and Morgan Stanley and Morgan Stanley ( MS ) are under pressure to demonstrate Their trading weapons resisted the tranquility of the global financial markets that began in 2019. While overvolatility such as the storms that struck Wall Street at the end of 2018 may penalize investment banks, a lack of turbulence can also be detrimental. Stock trading often dries up when volatility disappears, sapping Wall Street firms with lucrative trading fees.
Consumer banks, on the other hand, navigate two other forces.
The big positive is the health of American households. JPMorgan CEO Jamie Dimon credited "robust" spending with running the bank's record quarter. Loans and deposits grew at JPMorgan, and Dimon encouraged increasing employment and wages.
Consumer spending should throw out the results of Citi, Bank of America, US Bancorp ( USB ) ]
) ] and M & T Bank ( MTB ) all set to report earnings this week.
But investors will listen nervously for signs that banks are being harmed by interest rates.
Wells Fargo joked Wall Street on Friday by notifying a decline in net interest income – how much banks make from lending minus what they pay on interest. The most important profitability falls when the yield curve falls flat.
The yield curve, the gap between long and short-term interest rates, evaporated in recent months due to global growth barriers and efforts by the Federal Reserve to cut interest rates.
2. Boeings 737 Max Crisis: United Continental Holdings ( UAL ) reports income Tuesday. Investors can see if the airline has anything to say about how problems with Boeings ( BA ) 737 Max have affected United's business. United has no Max 8s – type of aircraft involved in two deadly crashes since October. But it has more than a dozen Max 9s, which is a larger version of Max 8.
Delta ( DAL ) the only major US airline that doesn't fly anyone 737 Max jets, reported solid income last week. But managers said the factor had little impact on the airline's market share. Boeing, meanwhile, recently released data showing airlines keeping track of 737 Max orders.
3. Netflix has a new competition: Wall Street loved Disney's new streaming service, which debuts in November and costs about half as much as a regular Netflix subscription. This week, Netflix ( NFLX ) will have a chance to respond when it reports revenue Tuesday. Last quarter, the company announced that it would increase its monthly fees.
4. The new CEO of PepsiCo hits his step: When PepsiCo ( PEP ) reports the results for the first quarter Wednesday, investors will have the opportunity to see how CEO Ramon Laguarta performs his vision for the company.
Laguarta entered the role in October and was able to share good news during the company's fourth quarter earnings call: "We met or exceeded each of the financial goals we outlined at the beginning of the year." Laguarta also said he had spent his first four months as CEO managing ways to improve business. His plan? To increase revenue growth by strengthening and expanding PepsiCo's portfolio and packaging. Investors seem to be happy so far. Shares in the company have doubled more than 10% so far in 2019.
5. US Retail Sales: The Census Bureau reports retail sales for March on Thursday. Wall Street will look at the data to see how consumers feel about the economy and which dealers are benefiting.
6. Coming this week:
Monday — Aphria ( APHA ) Citigroup, Goldman Sachs, M & T Bank earnings; US Tax Day
Tuesday – Bank of America, BlackRock ( BLK ) Johnson & Johnson (] JNJ ]] Netflix, United Continental Holdings Earnings
Wednesday – PepsiCo, Morgan Stanley Earnings; Bold Beige Book
) earnings; US retail
Friday – US markets are closed
– CNN Business & # 39; Jill Disis, Nathaniel Meyersohn and Danielle Wiener Bronner contributed to this report.