Bank of America Corp. has named Geoff Iles and Lukas Poensgen as co-heads of mergers and acquisitions in Europe, the Middle East and Africa https://t.co/ctEOvugI2J ...

Core Insights - The State Administration of Foreign Exchange reported that in August 2025, banks settled 15,103 billion RMB and sold 14,058 billion RMB [1] - From January to August 2025, banks cumulatively settled 113,938 billion RMB and sold 113,078 billion RMB [1] - In USD terms, banks settled 2,118 billion USD and sold 1,971 billion USD in August 2025 [1] - Cumulatively from January to August 2025, banks settled 15,886 billion USD and sold 15,765 billion USD [1] Foreign Exchange Income and Payments - In August 2025, banks recorded foreign-related income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [1] - Cumulatively from January to August 2025, banks had foreign-related income of 372,219 billion RMB and foreign payments of 363,400 billion RMB [1] - In USD terms, banks recorded foreign-related income of 6,383 billion USD and foreign payments of 6,350 billion USD in August 2025 [1] - Cumulatively from January to August 2025, banks had foreign-related income of 51,893 billion USD and foreign payments of 50,665 billion USD [1]

Accessible version Emerging Insight Foreign bond outflow was the main driver of portfolio outflows in July -500 -400 -300 -200 -100 0 100 200 300 400 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 SB Stock Connect NB Stock Connect* Foreign bond flows Others** Net receipts (receipts - payments) RMB bn Source: SAFE, Wind, CEIC, BofA Global Research. Note: NB stock Connect data discontinued since Aug '24; 'Others' refer to the residuals. BofA GLOBAL RESEARCH China in Focus ...

A brightening growth outlook. The global economic outlook continues to build on momentum seen in prior months, as attested to by panelists in the Fund Manager Survey (FMS) as well as our proprietary growth indicators. See It's official: Regime indicator in "Recovery" and Style Cycle: Strengthening 'Recovery'. The FMS view on the Asia Pacific ex-Japan economy improved in tandem, to a 7-month high, and net 39% expecting the Japan economy to strengthen in the next 12 months. Despite higher growth prospects, in ...

Core Viewpoint - The Federal Reserve announced a reduction in the federal funds rate target range from 4.25%-4.5% to 4.0%-4.25%, marking a 25 basis point cut, which aligns with market expectations. This is the first rate cut since the Fed began its current easing cycle in September of last year, following three consecutive cuts in late 2022 and a pause from January to July of this year [1]. Group 1: Impact on Global Asset Allocation - The Fed's rate cut is expected to influence global capital flows, as changes in U.S. interest rates and the dollar's value will affect global liquidity [5][11]. - The resumption of rate cuts is likely to boost U.S. stock markets from both interest rate and economic fundamentals perspectives, although high valuations remain a concern. Non-U.S. markets may present more attractive valuations, leading to a continued trend of rebalancing between U.S. and non-U.S. assets [5][15]. - Historical trends indicate that during periods of dollar depreciation, emerging markets typically outperform developed markets, suggesting a potential for significant relative returns [5][15]. Group 2: Performance of Chinese Assets - Hong Kong stocks are expected to benefit from a shift in global liquidity and a turning point in mainland earnings. A-shares still exhibit a valuation discount, with potential for valuation recovery driven by global asset reallocation demands, particularly in technology stocks that are sensitive to liquidity [5][15]. - The Fed's rate cut is anticipated to lower real interest rates, which could increase gold futures positions and support gold prices. Additionally, rising credit risks associated with the dollar may further drive the rebalancing of global central bank reserve assets [5][16]. Group 3: Changes in Global Reserve Assets - Since 2022, global central bank gold purchases have surged, exceeding 1,000 tons annually for three consecutive years, indicating a significant shift in the demand landscape for gold as a reserve asset [9]. - The share of gold in global central bank reserves has surpassed U.S. Treasury securities for the first time since 1996, reflecting a growing preference for gold amid concerns over U.S. economic policies [9][17]. Group 4: Market Reactions and Future Outlook - Following the Fed's announcement, U.S. Treasury yields and the dollar index experienced a rebound, indicating market reactions to the perceived implications of the rate cut [12][13]. - The Fed's independence is under scrutiny due to political pressures, which could impact future monetary policy and the dollar's international credibility. A loss of independence may lead to a long-term decline in the dollar's value [13][14]. - The current economic policy environment in the U.S. is drawing comparisons to historical events that led to significant shifts in the dollar's strength, suggesting potential for ongoing volatility in the currency's value [14].

Core Viewpoint - The Federal Reserve's decision to restart interest rate cuts is expected to catalyze a global asset reallocation, impacting both U.S. and non-U.S. markets, with emerging markets likely to outperform developed markets during this period [4][5][15]. Group 1: Federal Reserve and Interest Rates - The Federal Reserve lowered the federal funds rate target range from 4.25%-4.5% to 4.0%-4.25%, marking the first rate cut since the current cycle began in September of the previous year [4][11]. - The rate cut is anticipated to boost U.S. stock markets, although high valuations present a challenge for investors [15]. - Historical trends indicate that during periods of dollar depreciation, emerging markets typically perform better than developed markets, suggesting a potential for significant relative returns [4][15]. Group 2: Global Asset Reallocation - The trend of reallocating global assets has accelerated, with non-U.S. assets showing particularly strong performance; the MSCI Global (excluding the U.S.) index has risen by 22.7% this year, compared to a 12.5% increase in the MSCI U.S. index [7][15]. - Chinese assets, particularly Hong Kong stocks, are expected to benefit from global liquidity shifts and a potential turning point in mainland earnings [4][15]. - The A-share market is seen as having a valuation recovery potential, especially in technology stocks, which are sensitive to liquidity and attractive to global capital seeking high returns [4][15]. Group 3: Gold and Currency Dynamics - The restart of rate cuts is likely to lead to a decline in real interest rates, which may increase gold futures holdings and support gold prices [4][16]. - Central banks have significantly increased gold purchases, with global central bank gold buying exceeding 1,000 tons annually since 2022, indicating a shift in reserve asset preferences [9][16]. - The dollar's dominance is under scrutiny, with a potential long-term decline in its value as political pressures on the Federal Reserve increase, impacting its international credibility [13][14]. Group 4: Market Sentiment and Risks - Investor sentiment is shifting, with a notable increase in concerns about inflation risks, which could destabilize market expectations regarding the Federal Reserve's monetary policy [19][20]. - The current economic policies and pressures on the Federal Reserve may lead to a loss of independence, further exacerbating the dollar's decline and affecting global capital flows [12][13]. - The potential for external shocks and geopolitical uncertainties remains a concern, necessitating a strategic approach to asset allocation amidst these dynamics [20].

Core Viewpoint - The Federal Reserve has initiated interest rate cuts, with potential for further reductions, impacting various sectors of the economy and specific companies [1][2]. Group 1: Interest Rate Impact - The Federal Reserve raised interest rates to combat inflation, reaching a peak of 5.5% in 2022, and recently cut rates to a target of 4% to 4.25% [1][2]. - Lower interest rates make borrowing cheaper, which can stimulate business expansion and consumer spending, affecting many businesses [3]. Group 2: Realty Income - Realty Income is a real estate investment trust (REIT) that manages income-producing properties and distributes profits as dividends [5]. - It is the sixth-largest REIT globally, with properties valued at approximately $61 billion across nine countries [6]. - Anticipated interest rate cuts will lower Realty Income's cost of capital, enhancing its ability to acquire new properties and refinance existing loans, supporting growth and dividend stability [7]. - The attractiveness of Realty Income's dividend may increase relative to bonds, potentially attracting more investors [9]. Group 3: Bank of America - Bank of America is a major global bank with a primary income source from net interest income (NII) [10]. - A decrease in interest rates may lead to a reduction in NII, as loan yields typically decline faster than deposit costs [12]. - In the second quarter, Bank of America's NII grew 7% year over year to $14.7 billion, representing 55% of total revenue [12]. Group 4: Visa - Visa operates the world's largest payment network, processing transactions worth trillions of dollars [13]. - Interest rate cuts will have an indirect effect on Visa, as lower borrowing costs may boost consumer and business spending, leading to increased transaction volume [14]. - In its fiscal third quarter, Visa's total payment volume rose 8% year over year, with processed transactions increasing by 10% year over year, indicating strong growth potential as interest rates influence spending [16].

Group 1: HELOC Interest Rates - The current average APR for a 10-year draw HELOC is 8.72%, with an introductory rate of 6.49% for the first six months [2] - The prime rate is currently 7.50%, which influences HELOC rates, as they are typically based on an index rate plus a margin [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score and other factors [5] Group 2: Home Equity and Market Context - Homeowners in the U.S. have over $34 trillion in home equity, marking the third-largest amount on record [2] - With mortgage rates above 6%, many homeowners are reluctant to sell their homes, making HELOCs an attractive alternative to access home equity [3] Group 3: HELOC Functionality and Usage - A HELOC allows homeowners to access their home equity without refinancing their primary mortgage, providing flexibility in borrowing [6] - Borrowers can draw from their HELOC as needed, only paying interest on the amount borrowed [9] - HELOCs can be used for various purposes, including home improvements and personal expenses, but caution is advised regarding long-term debt [12] Group 4: Payment Structure and Considerations - A typical monthly payment for a $50,000 HELOC could be around $395, with a variable interest rate starting at 8.75% [13] - Borrowers should be aware of potential rate adjustments after introductory periods and compare different lenders for the best terms [8]

Market Performance - The three major U.S. stock indices reached historical highs, with the Dow Jones up 0.37%, Nasdaq up 0.72%, and S&P 500 up 0.49% [1] - Bank stocks showed mixed performance, with major banks like Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase experiencing slight gains, while others like Zions Bank and United Bank saw small declines [3] - Technology stocks also displayed a mixed trend, with Apple rising 3.2%, Tesla up 2.21%, and Microsoft up 1.86%, while Intel fell 3.24% [3] Chinese Concept Stocks - Chinese concept stocks experienced narrow fluctuations throughout the day, closing down 0.25%, with Pinduoduo dropping 2.62% and several others like Li Auto and iQIYI also declining over 1% [3] - However, Xpeng Motors rose 1.74%, and Alibaba, Bilibili, and Baidu saw slight increases [3] Gold Market - COMEX gold prices opened higher, closing up 1.12% at $3719.4 per ounce, with intraday fluctuations between a low of $3664.4 and a high of $3719.6 [3] - The gold market is currently facing contradictions, balancing fears of high prices against prevailing trends [3]

Financial Performance - Bank of America is poised to earn $130 million for its role in the Union Pacific and Norfolk Southern railroad megadeal [1]