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Investment Bank

Investment Bank

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Fed commentary abounds

  • After yesterday’s comments from Williams and Brainard, Federal Reserve Chair Yellen will speak in San Francisco; any comments on her views on fiscal policy, and the likely Fed response, will be closely scrutinized. Our US economists’ expect two 25bp hikes this year, whose timing depends on the interaction of the contractionary impulse from higher tariffs with the boost from fiscal stimulus.

  • The Fed may be particularly vigilant since fiscal stimulus is likely to occur amidst improving data. US inflation and production numbers are released today. Positive energy base effects continue to boost headline inflation and improving labor markets and consumer demand are pushing up core CPI; Barclays forecast that it rose by 2.1% y/y in December. US Manufacturing production is expected to rebound from its soft reading in November, to 0.6% m/m in December.

  • Better data have supported a steeper yield curve and higher net interest margins, helping banks to report stronger-than-expected earnings. Higher NIMs helped JPM, BAC and PNC beat Q4 consensus EPS expectations last week and our equity analysts think this same factor could see Citigroup post a beat today.

 

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Barclays Live app for iPad and Android tablets

The Barclays Live app for tablets helps institutional clients to cut through the information deluge. Interactive tiles allow clients to view the content they want, store it for offline use, annotate it on the go, and more. It's Barclays Live, now tailored for you on iPad and Android tablets.

More about Barclays Live app
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