Money Minute Tuesday 14 January: US bank results and inflation

In today's Money Minute, we preview results from banking giant sJP Morgan, Citigroup and Wells Fargo, plus the latest consumer price inflation.

Good morning and welcome to Money Minute, where we preview the day's biggest financial stories. In the US this afternoon, investment banking giant JP Morgan kicks off fourth-quarter earnings season for the sector. JP Morgan has consistently been a strong performer and analysts expect that to continue.  Fellow banks Citigroup and Wells Fargo also report their figures.

Meanwhile, on the economic front, we get consumer price inflation for December. Prices for US consumers are expected to have risen by around 2.3% on last year. That’s a little above the Federal Reserve’s target of 2%. However, the US central bank has made it clear that it is comfortable with tolerating a period   of above-target inflation. The Fed argues that because inflation has spent so long below target, they should be willing to allow the economy to run a little “hot” to make up for it. It’s basically just an excuse to keep interest rates low. So unless inflation comes in well above expectations, the market is unlikely to react badly.

Recommended

19 January 1978: production of the VW Beetle ends in Germany
Economy

19 January 1978: production of the VW Beetle ends in Germany

On this day in 1978, production of VW's iconic Beetle ended in Germany, though it would continue to be made in Mexico until 2003.
19 Jan 2021
A beginner’s guide to inflation – everything you need tko know
Inflation

A beginner’s guide to inflation – everything you need tko know

One of the most frequently mentioned topics in the news these days is inflation. But what exactly is inflation and how does it affect the economy and …
18 Jan 2021
Why the City should create a single financial market with the Swiss
Economy

Why the City should create a single financial market with the Swiss

A tie-up between London and Zurich, two global financial centres, could pay huge dividends for both, says Matthew Lynn.
17 Jan 2021
16 January 1991: Operation Desert Storm begins
This day in history

16 January 1991: Operation Desert Storm begins

Coalition forces led by the US launched an operation to liberate Kuwait from Iraqi forces on this day in 1991, sending the oil price soaring.
16 Jan 2021

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021