US banks have been jacking up what they charge for loans far more quickly than they’ve been increasing interest rates for savers, boosting their net interest incomes last quarter. But their shareholders are questioning how long this gravy train might last, with banks under increasing pressure to pass on higher interest rates to depositors – especially when savers can earn yields of around 5% via money market funds.
Netflix added almost six million subscribers last quarter – more than double what analysts were expecting – suggesting that its crackdown on password sharing is helping it drive new users. However, the firm’s revenue last quarter and its forecast for the current quarter both came in below expectations. Netflix’s push toward lower-priced, ad-backed services and price reductions in over 100 countries earlier this year both played a role.
Tesla reported record deliveries and revenue for the second quarter, but the gross margin at its auto division sank to a four-year low after months of price reductions. Investors, already on edge, sent the firm’s shares lower after Elon Musk warned of more price cuts to come. That sent ripples through the industry, with stocks of other EV makers falling last Thursday too.
Consumer prices in Britain were 7.9% higher in June compared to the same time last year – the lowest reading since March 2022 and a sharp drop from the 8.7% registered in May. The figure was also lower than the 8.2% forecast by economists, marking the first time in five months that inflation came in lower than expected. Following the release, the market now sees interest rates in the UK peaking below 6%, down from as high as 6.5% priced in earlier this month.
China’s economy expanded by 6.3% last quarter from a year ago. But economists were expecting a perkier 7.3% lift, considering dozens of Chinese cities were in lockdown during much of 2022. And the Chinese economy grew by just 0.8% from the quarter before – a far slower pace than the 2.2% registered in the first three months of the year.
