Cetoex News – BRICS currency has been a topic of hot debate over the past few months, with many arguing whether its de-dollarization mission will succeed or fail. The BRICS alliance plans on establishing a new currency for its nations to use, which will replace and hopefully overshadow the US Dollar.

However, Bank of America remains adamant that this will be a tough task–de-dollarization– for BRICS. Bank of America Securities says that the global dominance of the US dollar is not in any way under threat, due to there being “no other currency alternatives” available.

The “USD” is “not about to lose its exorbitant privilege” as “no single alternative has appeared,” BofA said in the note authored by Athanasios Vamvakidis, a foreign exchange strategist, and other analysts.

The BRICS Alliance has a summit scheduled for this August, where new members and the new currency will be a trending topic. Multiple nations are already united in the idea of ditching USD. With talks rising though, and multiple other nations opting for new currencies over the US dollar, such as Argentina for the Chinese Yuan, BRICS is truly becoming a threat to the US currency. The August summit will be a massive checkpoint in this debate moving forward.

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Cetoex News – According to a strategist at Bank of America, Bitcoin’s 2023 rally could have room to run. Specifically, the banks stated the possibility that the asset’s movement between both cryptocurrency exchanges and personal wallets is a guiding factor.

In the week of April 4, a net of $368 million Bitcoin was sent to personal wallets. Moreover, the development was noted as the second-largest Bitcoin outflow from crypto exchanges, according to strategists Alkesh Shah and Andrew Moss, in a note obtained by Bloomberg.

BofA Talks Bitcoin 2023 Rally

According to strategists at Bank of America, Bitcoin’s rather impressive 2023 rally could have room to run. Moreover, in a note released by Bloomberg, two strategists note the tremendous outflow from crypto exchanges to personal custody wallets as a potential attributing factor.

“Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold them (or HODL), indicating a potential decrease in sell pressure,” Shah and Moss stated. Additionally, the continuous regulatory pressure on the industry as a whole may have been the determining factor to widespread holding.

Conversely, Bitcoin’s year-to-date growth has surpassed some major asset alternatives. Subsequently, this encourages discourse on how the digital asset has rebounded from an exceptionally abysmal 2022. Some have argued for a potential halt in Federal Reserve interest rate hikes as an encouragement for risky investment action.

“Bitcoin is becoming a very clear safe haven for a lot of issues we’re having right now,” the President of Crypto exchange OKX, Hong Fang, told Bloomberg. Still, the crypto has already risen above $30,000 for the first tie since June of 2022. Furthermore, it is up more than 80% since the turn of the year.

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Cetoex News – One of the most well-known financial institutions in the country has added yet another grim outlook on the nation’s financial state. Specifically, Bank of America warns that the US economy is at risk of shrinking in Q2. Moreover, the development comes after JP Morgan CEO, Jamie Dimon, spoke of similar concerns over the US economic outlook.

Conversely, Bank of America had recently identified various activities that could forecast a recession. Business Insider reported the bank’s statements that, “investors are too optimistic on rate cuts and not pessimistic enough on recession,” within a recent report.

Bank of America’s Worrying Forecast

The last few months for the American economy have certainly left a concerning outlook for the financial sector. Specifically, inflation continues forcing the hand of the Federal Reserve, as worries surrounding the international prominence of the US dollar fade quickly.

Now, one of the largest financial institutions in the country has added its rather unsettling perspective. Specifically, Bank of America warns that the US economy is at risk of shinking in Q2. Moreover, they have warned of a potential recession, similar to a warning from JP Morgan CEO, Jamie Dimon.

Alternatively, these statements arrive alongside their forecasting of a full-blown recession for the economy. Specifically, Reuters reported a client note from the Bank of America Global Research that shared the risk.

“This week’s data flow is consistent with our view that the U.S. economy slowed steadily over the course of 1Q 2023,” Bank of America said in the note. Additionally, it read, “As a result the hand-off to 2Q looks weak, we see meaningful risks of a contraction in GDP in 2Q.”

Moreover, the Bank of America also referenced data from April 3, showing a slow in US manufacturing activity. Furthermore, the data observed March had the lowest levels in nearly three years, coinciding with a plummet.

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Cetoex News – Some of the largest banks in the country have come together in order to aid another struggling financial institution. Specifically, First Republic Bank is set to get up to $30 billion in deposits from JP Morgan, Bank of America, Wells Fargo, Citi, and more.

Bloomberg reported the developing plan supported by the United States Government. Moreover, the deal will stabilize the lender and combat the growing concern in the banking sector following the collapse of Silicon Valley Bank and Signature bank last week.

First Republic to Stabilize With New Plan

The fall of SVB Financial represented the largest bank failure since the 2008 financial crisis. More so, it represented a new cause of panic to those in the financial sector. Now, as the industry is reeling, another struggling financial institution is set to benefit from an industry salvation plan in the works currently.

First Republic Bank is set to receive as much as $30 billion in deposits from JP Morgan, Bank of America, Wells Fargo, and more. Additionally involved in the rescue effort are: Morgan Stanley, US Bancorp, Truist Financial Group, and PNC Financial Services.

Rumors of the potential plan to rescue the bank had started swirling earlier today. Subsequently, Fortune noted that the plan would see the banks involved deposit $5 billion each, “with smaller banks kicking in smaller amounts,” sources note.

The development has followed First Republic’s stock falling 36% Thursday, with a 10% surge following before trading was paused due to volatility. Additionally, reports have stated the bank’s exploration of potential solutions, including a possible sale, to protect it from the fate met by Silicon Valley Bank.

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Cetoex News – Bank of America CEO Brian Moynihan has predicted a “slight,” recession this year, warning interest rates won’t fall until 2024. Specifically, Yahoo reported Moynihan’s prediction that interest rates could cease falling until the second quarter of next year.

Moynihan was speaking at the Financial Review’s Business Summit in Australia, discussing the country’s current economic outlook. Moreover, the CEO noted “the labor market is still very tight,” with businesses having “access to capital, albeit at higher costs.”

Bank of America CEO Talks Recession and Interest Rates

Speaking yesterday, Federal Reserve Chair Jerome Powell gave the country a grim prognosis. Stating his expectation that interest rates could be on an upward trajectory. Despite a year-long hike in interest rates to battle inflation, and a potential recession, for the country in the coming year.

Now, Bank of America CEO Brian Moynihan predicted a “slight” recession this year. Moreover, the executive warned that interest rates are not likely to fall until sometime in 2024. Conversely, interest rates are currently sitting at 4.75%, the highest since 2007. Coinciding with Powell’s statements yesterday, it seems they may get even higher.

“They’re going to have to hold it there for a long time because frankly, the labor market is still very tight,” Moynihan stated. Adding, “Despite what you hear about layoffs, and financial conditions are strong, so companies have access to capital, albeit at higher costs.”

Additionally, Moynihan noted that consumer activity was unaffected by the Federal Reserve interest rate hikes. Noting that they actively “have money in their accounts,” which could force the Fed’s actions even more.

“Our base projection is or a recession to occur in the U.S. economy beginning in the third quarter of 2023, occur through the fourth quarter of 2023, and into the first quarter of 2024,” Moynihan remarked. Ultimately, stating that an economist contraction between 0.5% and 1% every quarter will result in “a very slight recession in the scheme of things.”

Conclusively, Moynihan predicted an economic slowdown so tame “a lot of people aren’t going to see that much of it,” in his opinion. Describing it as a “technical recession as opposed to a ‘deep drop.’”

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