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The Federal Reserve may raise interest rates from their historic lows of 0.25% toward their historical average of 5%.
The Charles Schwab Corporation
TD Ameritrade Holding Corporation
Fifth Third Bancorp
Regions Financial Corporation
SVB Financial Group
E*TRADE Financial Corporation
Zions Bancorporation, National Association
Prosperity Bancshares, Inc.
East West Bancorp, Inc.
BOK Financial Corporation
First Financial Bankshares, Inc.
Glacier Bancorp, Inc.
International Bancshares Corporation
Independent Bank Group, Inc.
Hanmi Financial Corporation
(Bloomberg) -- Charles Schwab Corp.’s free trading offer is turning out to be a hit, drawing in new customers at a fast clip.Clients opened 142,000 new trading accounts in October, a 31% jump over September’s pace , according to a report Thursday before markets opened. Total brokerage accounts climbed to 12.2 million and firmwide assets grew to a record $3.85 trillion.Schwab escalated the brokerage industry’s price war on Oct. 1 when it eliminated commissions on U.S. stocks, mutual funds, exchange-traded funds and some options. The move is likely to hit revenue but is aimed at wooing new assets to the San Francisco-based firm, which has been generating most of its income from interest earned on client cash holdings.Average interest-earning assets were $266 billion in October, little changed from September and up about 1% from a year earlier. The gain in brokerage accounts is just 7% more than October 2018.Other brokerages that cut commissions have reported divergent trends in October client activity:E*Trade Financial Corp., which announced zero commission trades shortly after Schwab, posted 9% month-over-month and year-over-year jumps in daily average revenue trades, or DARTs, a key measure of customer activity.TD Ameritrade Holding Corp.said DARTs were 11% higher in October than September but down 8% from a year earlier.Interactive Brokerage Group Inc., which announced commission-free stock and ETF trading in September, said DARTs dropped 5% month-over-month and 19% year-over-year.A more detailed picture of the bottom-line impact of the fee change will be available in January, when Schwab reports fourth-quarter results.(Adds interest earning assetsd in fourth paragraph.)To contact the reporter on this story: John Gittelsohn in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Josh Friedman, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Particularly weak economic data weighed on the risk appetite early on, with a busy day of stats likely to test the markets further in the day.
It has been a very quiet Wednesday session. The Canadian dollar and British pound are flat, and EUR/GBP is also trading sideways. Stronger inflation numbers in the U.S. failed to cause any reaction in the curency markets.
(Bloomberg) -- A key measure of U.S. consumer prices unexpectedly cooled in October despite fresh tariffs on Chinese goods, a sign price gains may be slow to reach the Federal Reserve’s target even after interest-rate cuts this year.The core consumer price index, which excludes volatile food and energy costs, rose 2.3% from a year earlier, a Labor Department report showed Wednesday. That missed economist estimates, while the broader CPI climbed 0.4% and 1.8% annually, with both readings topping forecasts. The core measure was up 0.2% on the month, matching projections.“Inflation pressures remain fairly muted, and it’s certainly not going to be on the top of the Fed’s radar screen any time soon,” said Richard Moody, chief economist at Regions Financial Corp. “The broader story hasn’t changed.”The subdued annual core reading, driven by a deceleration in rents and falling apparel prices, follows a third-straight Fed rate cut last month and signals that policy makers face a longer wait to see whether easing since July is spurring faster price gains. Low unemployment and tariffs on Chinese goods may support inflation, though Chinese and American negotiators are moving toward a deal to roll back levies.President Donald Trump on Sept. 1 added tariffs on $112 billion of Chinese goods, on top of other levies already in effect. He said Tuesday that a deal is close, but the U.S. will “substantially” increase tariffs on China if the first step of a broader agreement isn’t reached.The Labor Department’s CPI tends to run higher than the Commerce Department’s personal consumption expenditures price index, which the Fed officially targets. The core PCE index that policy makers watch for a better read on underlying price trends has shown signs of firming in recent months, though September’s annual gain of 1.7% was below the 2% objective.Fed Chairman Jerome Powell said in congressional testimony Wednesday that inflation returning to near the central bank’s 2% objective is likely, though he added that persistently low readings could lead to an “unwelcome” slide in the public’s longer-run expectations for price gains. Gauges of investors’ and consumers’ inflation expectations remain near historical lows.Read more: Powell Says Policy Appropriate Amid Noteworthy Risks to OutlookThe measure for rent of primary residence rose 0.1% from a month earlier, the smallest gain since April 2011, Labor figures showed. The broader measure of shelter costs, which make up about a third of total CPI, also climbed 0.1% as prices for hotels and motels, which can be volatile, dropped by a record 4.4%.Elsewhere, apparel prices fell 1.8% on the month, the most since March. New vehicle prices fell for a fourth month, while used-car prices rose 1.3% after a 1.6% decline in the prior month.Energy prices climbed 2.7% from the prior month, the most since April. Food costs rose 0.2%, the most since May, while expenses for medical care climbed 1% for the steepest increase in three years.A separate Labor Department report Wednesday showed average hourly earnings, adjusted for price changes, fell 0.2% in October from a year earlier after no change in September. Higher inflation tends to erode wage gains.(Updates with economist comment in third paragraph, Powell testimony in seventh paragraph.)\--With assistance from Chris Middleton, Sophie Caronello and Reade Pickert.To contact the reporter on this story: Jeff Kearns in Washington at firstname.lastname@example.orgTo contact the editor responsible for this story: Scott Lanman at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The RBNZ held rates steady, leading to a surge in the Kiwi, while the Greenback was under early pressure following Trump’s Tuesday speech…
(Bloomberg) -- Charles Schwab, founder of the giant discount brokerage firm, is joining other finance billionaires in opposing the wealth tax backed by presidential candidate Elizabeth Warren.“It’s sort of wrong-directed in many ways,” Schwab said Tuesday for a future episode of “The David Rubenstein Show: Peer-to-Peer Conversations” on Bloomberg TV. “I came from really nothing and had plenty of incentive to create what we’ve created.”Schwab echoed comments by hedge fund billionaire Leon Cooperman in arguing that tax-the-rich proponents underplay the charitable contributions the wealthy already make to society through philanthropy.Schwab, 82, who founded San Francisco-based Charles Schwab Corp. in the 1970s, said he and his wife have backed causes including the arts and Alzheimer’s research for decades.In other comments:Schwab said his company’s recent move to make online trading in stocks, exchange-traded funds and options free will only cost about 4% of revenue, as it’s more focused on broader services such as financial advice.Schwab didn’t have any stock tips for Rubenstein, the co-founder of Carlyle Group LP. “I know Carlyle a lot and you’ve done a fantastic job. How about an index fund?”To contact the reporter on this story: Josh Friedman in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It has been a sleepy Tuesday session. The Canadian dollar, British pound and EUR/GBP are all trading sideways and traders can expect a quiet North American session.
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