Harvard, Yale and other endowments yield huge returns

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LinkedIn is closing its social networking service in China. The Microsoft-owned site cited “a much tougher operating environment and greater compliance requirements” in make the trip. It was one of the last foreign social networking sites operating in the country – Twitter and Facebook were blocked for years, and Google left over a decade ago – and will instead offer users in China a new application focused only on job offers.

Netflix faces external criticism and internal turmoil. Comedian Dave Chappelle’s special, “The Closer,” has been called transphobic by several organizations, including GLAAD. He pushed Netflix into difficult cultural debatesthe genre usually focused on Facebook and Google, which unfold in heated internal discussions as employees accuse the streaming giant’s executives of facilitating the spread of hate speech.

The largest banks in the country this week declared exceptional income for the third quarter, drive the stock market up. Profits for Bank of America, Citigroup, JPMorgan Chase, Morgan Stanley and Wells Fargo rose more than 50% on average. (Goldman Sachs reports later in the day.) The rise in banks’ profits was driven by a flurry of fee-generating activity, but other parts of their business, such as trading and lending, were down. .

These six banks hold more than 40% of all assets in the sector, meaning their fortunes can provide a pretty good weathervane for the broader economy. Here are the predictions:

Partly sunny with unusually high temperatures: Deal closings were strong, with M.&A. fees are at record highs, a sign that executives are optimistic about the future. Consumers are also opening their wallets, with credit card spending up more than 20% in the third quarter, compared to a year ago, at Bank of America, Citi and JPMorgan. “If you look at the economy, it’s improving, people are spending more, and businesses are going to have to start investing,” Paul Donofrio, chief financial officer of Bank of America, said yesterday.

Possible late thunderstorms: Trading revenue fell at JPMorgan and Citigroup and rose slightly at Morgan Stanley, reflecting recent market turmoil. In addition, a good portion of the banks’ profits in the last quarter came from the operation of bad weather funds. Bank of America, Citi, JPMorgan and Wells Fargo withdrew $6 billion from collective accounts to cover future loan losses. And overall loan growth was again disappointing. While higher spending signals optimism for today, a lack of loans may be a sign that consumers and businesses still see clouds on the horizon.


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