Barclays Plc, the only U.K. consumer bank not to have scrapped its profitability target amid Europe’s debt crisis, will struggle to reach the goal without cutting costs as revenue from investment banking falls, analysts said.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said the Fed will probably need to raise interest rates before mid-2013 and that policy makers should have waited to see how the economy performed before pledging to hold rates at record lows for two years.
The British government commission that convenes tomorrow is unlikely to propose breaking up the country’s biggest banks after three of the five biggest lenders threatened to leave the country rather than accept change.
Banks criticized Franco-German plans for a tax on financial transactions, saying they will jeopardize economic growth and distort markets, as the British, Dutch and Swedish governments distanced themselves from the proposals.
Standard Chartered Plc, the British bank that makes most of its earnings in Asia, may say net income rose in the first half of the year, as the lender controls costs to chase its eighth successive year of record profit.