Bank of America, Citigroup, and Wells Fargo are due to quarterly earnings on Wednesday, one day after JPMorgan Chase posted results that sent its shares tumbling. Bank executives gave investors some financial guidance last month. Bank of America CEO Brian Moynihan said at Goldman Sachs's annual financial industry conference in December that full-year revenue in the markets business should be up 10% from 2024, while investment banking fees—as well as firmwide expenses in 2025—would both increase about 4% fro ...

Market Performance - The three major indices closed with slight gains, with the Dow Jones up 0.17%, the Nasdaq up 0.26%, and the S&P 500 up 0.16% [1] - Bank stocks collectively retreated, while technology stocks showed mixed performance, and Chinese concept stocks surged [1] Banking Sector - Citigroup experienced a significant drop of 2.98%, while other banks like Bank of America, JPMorgan, Zions Bank, US Bancorp, and Union Bank saw declines of over 1% [3] - Goldman Sachs was an exception, rising by 1.13% [3] Technology Sector - The technology sector displayed mixed results, with Advanced Micro Devices (AMD) rising by 2.22%, Google increasing by 1%, and companies like Tesla, Nvidia, and Apple showing slight gains [3] - Qualcomm faced a notable decline of 4.79%, Intel dropped by 3.27%, and META fell by 1.7% [3] Chinese Concept Stocks - Chinese concept stocks opened strong and maintained high levels throughout the day, with China Golden Dragon rising by 4.26% [3] - Alibaba surged by 10.17%, Bilibili increased by 8.95%, Xpeng Motors rose by 8.44%, and JD.com was up by 4.73%, while Pinduoduo saw a decline of 1.51% [3] Gold Market - COMEX gold prices opened strong and reached a new high, closing up 2% at $4608.8 per ounce, with a trading range between a low of $4520.8 and a high of $4640.5 [3]

Core Viewpoint - Citigroup is planning to lay off approximately 1,000 employees this week as part of CEO Jane Fraser's cost-control measures, leading to a 1.7% drop in the company's stock price [1][1]. Group 1: Layoff Announcement - The company will continue to reduce its workforce until 2026 as part of its strategic adjustments [1]. - The layoffs aim to align staffing, office locations, and professional skills with current business needs, enhanced by efficiency gains from technology [1]. Group 2: Transformation and Efficiency - The adjustments reflect the progress of Citigroup's transformation efforts, indicating that the company is nearing its target state [1].

Core Viewpoint - Citigroup Inc. is cutting approximately 1,000 jobs as part of a broader strategy to reduce costs and enhance returns under CEO Jane Fraser's leadership [1][4]. Group 1: Job Cuts and Workforce Reduction - The company had 227,000 employees at the end of September and is implementing job cuts as part of a plan to eliminate 20,000 jobs by the end of 2026 [2][5]. - Citigroup aims to reduce its workforce to about 180,000 employees by the end of 2026, which includes a reduction of 40,000 staff when it lists its retail banking businesses in Mexico [5]. Group 2: Strategic Goals and Restructuring - Streamlining operations and cutting waste have been key objectives for Citigroup, which has historically underperformed compared to other major U.S. banks [3]. - Under Fraser's leadership since 2021, the bank has restructured its core operations and exited much of its international retail business [3]. Group 3: Future Plans and Leadership Changes - Citigroup plans to continue reducing headcount through 2026, aligning staffing levels with current business needs and efficiencies gained through technology [4]. - In October, Fraser became the first Citigroup CEO since 2007 to also lead the board of directors, indicating confidence in her leadership [6].

Core Insights - Citigroup Inc. is set to cut approximately 1,000 jobs this week as part of a larger restructuring plan that aims to reduce nearly 20,000 jobs, or about 8% of its global workforce, by 2026 [1][10] Group 1: Restructuring and Workforce Reduction - Since CEO Jane Fraser took over in 2021, Citigroup has been simplifying its governance structure by eliminating management layers and has already reduced its headcount by over 10,000 employees [2][10] - The latest job cuts are part of a deliberate shift towards a leaner, technology-driven operating model aimed at enhancing efficiency and long-term profitability [4][10] Group 2: Financial Performance and Projections - Citigroup expects its transformation initiatives to generate annualized savings of $2 to $2.5 billion by 2026, with anticipated revenue growth at a compound annual rate of 4% to 5% through 2026 [4][10] - Citigroup's shares have increased by 33.6% over the past six months, outperforming the industry's growth of 17.5% [8] Group 3: Valuation Metrics - Citigroup currently trades at a forward price-to-earnings (P/E) ratio of 11.56, which is below the industry average of 15.26 [12] - The Zacks Consensus Estimate for Citigroup's earnings in 2025 and 2026 implies year-over-year increases of 30.3% and 30.5%, respectively, with recent revisions showing a downward adjustment for 2025 and an upward revision for 2026 [14]

Core Viewpoint - The relationship between Wall Street and the Trump administration has deteriorated due to proposed policies that threaten the financial industry's profitability and the independence of the Federal Reserve [1][2]. Group 1: Impact of Proposed Policies - President Trump has proposed a one-year, 10% cap on credit card interest rates, which could significantly affect financial institutions that rely on this lucrative business [2][5]. - The average credit card interest rate currently ranges from 19.65% to 21.5%, indicating that a 10% cap would lead to substantial revenue losses for banks, estimated at around $100 billion annually [6]. Group 2: Concerns from Financial Executives - Bank CEOs have expressed concerns that Trump's actions could harm the American economy rather than help it, emphasizing the importance of the Federal Reserve's independence [2][4]. - BNY Chief Executive Officer Robin Vince highlighted that undermining the Fed's independence could shake the foundation of the bond market and potentially lead to higher interest rates due to a lack of confidence [3]. Group 3: Market Reactions - Shares of major credit card companies, including American Express, JPMorgan, Citigroup, and Capital One, experienced significant declines as investors reacted to the potential negative impact on profits from the proposed interest rate cap [6].

Market Overview - U.S. stock markets are experiencing a mixed session with major indexes showing slight pullbacks as investors assess inflation data and fourth-quarter earnings reports [1][2] - The S&P 500 Index is down less than 0.1%, the Nasdaq Composite Index has slipped 0.2%, and the Dow Jones Industrial Average has fallen 0.6% [2] Economic Indicators - The December Consumer Price Index (CPI) data shows a 2.7% year-over-year rise in headline inflation, matching expectations, while core inflation is at 2.6%, slightly below the projected 2.8% [4] - The 10-year Treasury yield has decreased to below 4.18% from 4.20% following the CPI data release, indicating potential room for Federal Reserve interest rate cuts [4] Earnings Reports - JPMorgan Chase (JPM) reported adjusted profits exceeding expectations but with slightly lower revenue, leading to a 2.5% decline in shares [7] - Delta Air Lines (DAL) shares fell nearly 6% pre-bell and 1.5% in recent trading after forecasting lower-than-expected profit growth for fiscal 2026, despite reporting operating revenue of $16.00 billion [7] - L3Harris Technologies (LHX) shares surged 3% to an all-time high following plans to spin off its Missile Solutions business, supported by a $1 billion government investment [8] Sector Movements - A sector rotation trend has been observed since late December 2025, with the Dow Jones and small-cap Russell 2000 outperforming AI-heavy mega-cap technology stocks [3] Corporate Developments - Sun Country Airlines Holdings Inc. (SNCY) shares jumped 10.6% after announcing an acquisition agreement with Allegiant Travel (ALGT) valued at $18.89 per share [10] - Posco Holdings Inc. (PKX) shares rose 12% after raising $700 million in global bond markets and providing a positive earnings outlook for 2026 [11] Political Impact - President Trump's proposal to cap credit card interest rates at 10% has negatively impacted financial stocks, with Visa (V) and Mastercard (MA) down 5%, and American Express Company (AXP) down 4.3% [9]

Group 1 - The latest inflation report indicates that the core CPI in the U.S. rose by 2.6% year-on-year, which is lower than expected, failing to change market expectations regarding the Federal Reserve's pause on interest rate cuts [1][2][3] - The three major U.S. stock indices remained flat, with the S&P 500 hovering around 6,980 points, reflecting a temporary easing of price pressures that calmed investor sentiment [1][2] - The Federal Reserve has cut rates three times since September of the previous year, and the market predicts the next rate cut will not occur until mid-2026, with no cuts expected at the end of this month [1][2] Group 2 - Analysts from Principal Asset Management and eToro suggest that the lower-than-expected core CPI data is unlikely to alter the decision-making logic for the Federal Reserve's January meeting, given the low unemployment rate and higher-than-trend economic growth [3] - The inflation report, released after the government shutdown, provided much-needed macroeconomic information to the market, although its impact on stock investors is expected to be limited as attention shifts to the upcoming earnings season [3] - The earnings season for the banking sector has commenced, with major banks such as Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley set to report their earnings on Wednesday and Thursday [2][3]

Group 1 - The core viewpoint of the article is that the trend of issuing short-term bonds may pressure politicians to advocate for lower interest rates, potentially threatening the independence of central banks in Europe in the coming years [1] - The article highlights that U.S. monetary policy has been under pressure due to repeated calls for interest rate cuts from the Trump administration [1] - It also mentions that the U.S. Department of Justice has recently threatened to bring criminal charges against the Federal Reserve [1]

每经记者|李玉雯 每经编辑|黄博文 1月13日，有消息称，花旗集团本周将裁员1000人左右，这是首席执行官范洁恩（Jane Fraser）为控制 成本而采取的举措之一。 每经记者|李玉雯 每经编辑|黄博文 1月13日，有消息称，花旗集团本周将裁员1000人左右，这是首席执行官范洁恩（Jane Fraser）为控制 成本而采取的举措之一。 花旗方面回应《每日经济新闻》记者求证时称："我们将在2026年继续缩减人力规模。此番调整，既为 确保人员配置、办公选址及专业技能与当前业务需求精准适配，也得益于技术赋能带来的效率提升，并 且印证了我们转型工作的阶段性成果，目前已临近目标状态。" 2024年1月，花旗集团就公开表示预计将裁员至少2万人，约占其员工总数的10%。彼时，花旗集团表 示，裁员可能造成高达18亿美元的成本，但到2026年裁员完成后，每年有望节省25亿美元。 2025年6月，花旗宣布精简其位于中国上海和大连的全球技术解决中心，减少约3500名技术人员。这是 花旗集团推进全球简化工作的一部分，面向的是集团在华建立的全资子公司——花旗金融信息服务（中 国）有限公司。而集团在中国注册成立的本地法人银行——花旗中 ...