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What does Trump’s second term for Washington, Business and the world mean
Citragroup is ready to increase the provisions of hundreds of million dollars of poor loans for the second quarter in indication of growing financial stress between American consumers and businesses.
“Looking at the macro environment [and] The cost of credit compared to the previous quarter, we expect a few hundred million dollars to rise, ”the head of City Banking Vij Raghavan told investors at the Morgan Stanley Conference on Tuesday.
There is an increase amid concerns Donald Trump’s tariff The US will slow down the economic growth or even the recession will cause. Levi can also increase the prices of some products – especially on goods imported from China, killing consumers.
The consumer spirit in the US has become dark because the increasing number of Americans concerns about their financial good. However, it has become stable as the world’s two largest economies, America and China, to resolve its trade war.
A conference of consumer confidence in May was a board measure of 98, above 85.7 in April, although it was below 110 readings when Trump won in November. presidential election,
Raghavan said that he was convinced of the fact that its credit card loan book was towards customers with high credit scores. City is one of the largest retail lenders in the US and took a provision of $ 2.7 billion for credit deficit in the last quarter.
Former JP Morgan Banker said that he was also “incredibly assured” from the credit quality of the bank’s corporate customers, its 80 percent exposure for high-grade issuers.
Officials from other banks have said that American consumer activity is surprisingly holding well despite the uncertainty created by Trump’s threat to put high tariffs on imports from several countries.
Charlie Sharf, Chief Executive Officer of Wales Fargo, told the Bernstein Conference in New York two weeks ago, “It is very possible that there will be some kind of recession, but we hope it is not very meaningful.”
“Both business and consumer are relatively strong in that period. So it is very, very strange time. It is very difficult to see any kind of trend.”
At the end of the final quarter, the rate of industry-wide, loans, the ratio of credit card charge-off is considered unattainable, rising above the first level. Kovid-19 outbreak,
