The sudden passing of 35-year-old Bank of America associate Leo Lukenas III, a former Green Beret and a member of the bank’s Financial Institutions Group, has sent shockwaves through Wall Street. According to the New York Post, Lukenas passed away on May 2 from “acute coronary artery thrombus” after reportedly working approximately 100 hours weekly over several consecutive weeks. His death occurred just days after the completion of a $2 billion merger he had been working on.
According to Bank of America analyst Christopher Nardone, footwear giant Crocs continues to perform exceptionally well, making it an attractive investment opportunity ahead of next week’s earnings release. The company’s strong international sales, particularly in Asia, are expected to drive significant growth in the coming quarters. Additionally, the recent appointment of Terence Reilly as president of the Heydude brand is seen as a positive step towards improving the brand’s performance.
Bank of America (BoA) has issued a warning that the USD/JPY currency pair could rapidly climb to 160, citing the Bank of Japan’s (BoJ) limited ability to curb the yen’s rapid descent through communication alone. Despite the BoJ’s previous acknowledgment of the potential impact of a weakened yen on monetary policy and inflation, BoA believes that such statements are unlikely to provide sufficient support for the Japanese currency.
Shareholders of Goldman Sachs and Bank of America voted against proposals to divide the CEO and chairman roles at their respective banks. Proxy advisors and the Norwegian sovereign wealth fund had urged shareholders to support the moves, arguing for stronger corporate governance. Despite receiving increased support from last year, the proposals failed to gain a majority, with 33% of Goldman shareholders and 31% of BofA shareholders voting in favor. Goldman’s governance committee maintains that the current structure, including a strong lead independent director alongside the chairman-CEO role, is most effective. BofA shareholders also approved all management proposals, including on executive compensation, while rejecting all shareholder proposals.
Texas Instruments’ (TXN) first-quarter results and guidance suggest an impending recovery in the semiconductor industry. Despite revenue declines, the company’s management expects some industrial end markets to reach the end of inventory corrections. TXN shares surged premarket, while rivals Analog Devices (ADI), NXP Semiconductors (NXPI), and ON Semiconductor (ON) also gained.
The Commodities Futures Trading Commission (CFTC) is investigating banks for potentially discouraging whistleblowing. The CFTC is asking for non-disclosure agreements, employment records, and customer agreements from banks like JPMorgan Chase, Bank of America, and Citigroup. This probe follows similar actions by the US Securities and Exchange Commission (SEC), which has fined companies for violating whistleblower protection rules and launched a program to encourage reporting of illegal activity. JPMorgan recently settled with the SEC for $18 million for whistleblower protection violations.
Colleen Curran recently attempted to deposit over $2,000 in cash at a Bank of America ATM, but the machine malfunctioned and her money disappeared. Bank of America has since recovered the cash and refunded Curran, but the incident highlights the potential risk involved in making large cash deposits at ATMs. To avoid similar issues, it’s advisable to make large deposits inside the bank during business hours.
Bank of America (BofA) has forecasted a rise in the USD/CNY exchange rate, projecting a peak of 7.45 by the third quarter of 2024. This outlook is attributed to persistent rate differentials and unbalanced policy measures. BofA has also revised its stance on various Asian currencies. The bank has turned bearish on the Korean won (KRW), neutral on the Indian rupee (INR), and remained neutral on several other Asian currencies, including the Hong Kong dollar (HKD), Indonesian rupiah (IDR), and Singapore dollar (SGD). This cautious approach reflects the strength of the US dollar and its potential impact on exchange rates and regional economic dynamics.
Major banks such as JPMorgan, Goldman Sachs, Morgan Stanley, and Bank of America are offering competitive yields on brokered certificates of deposit (CDs). Brokered CDs purchased through brokerage firms like Fidelity provide a wider range of issuer options and potential for higher yields. However, key differences exist, including callable features, which allow banks to redeem the CD early, and secondary market trading requirements, which carry potential penalties and transaction fees. Investors should carefully consider their time frame and risk tolerance before choosing between brokered and traditional CDs.
Bank of America predicts the Bank of Japan (BoJ) will maintain its current interest rate target range at 0-0.1% at its upcoming monetary policy meeting on April 26, 2024. The BoJ recently exited its negative interest rate policy and overhauled its monetary framework, and is now assessing the impact of these changes. Governor Ueda has indicated that the bank’s focus is on evaluating the effects of the recent policy modifications on the economy and inflation. The quarterly Outlook Report, Governor Ueda’s post-meeting press conference, and the Summary of Opinions are expected to provide clues about future rate hikes and adjustments to JGB purchases.
