Cheaper oil seen a boon for US banks
Trading expected to jump, consumers will have more money to spend
New York
THE benefits of cheaper oil for the biggest US banks - a jump in trading and consumers with more money to spend - will outweigh the costs, according to executives and analysts.
The collapse of crude has drawn hedgers and speculators back into the market, boosting volumes and volatility, KBW Inc analysts wrote in a Dec 11 note. Retail banking also may benefit from more confident consumers as lower energy costs bring a US$900 average windfall for each US household, Citigroup Inc chief executive officer Michael Corbat said last week.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns