U.S. Banks Brace for Impact, China Warns Allies, and Vatican Prepares for Transition: The Week of April 21st
While U.S. manufacturing may lag, American banks continue to dominate on the global stage, boasting a $130 billion financial services trade surplus. Meanwhile, the Vatican prepares for a sacred shuffle after the passing of Pope Francis, as centuries-old rituals kick into gear. Over in China, officials are side-eyeing anyone cozying up to the U.S. in the trade war, warning that playing both sides wonât earn respect.
Klaus Schwab is stepping down from his Davos throne, ending an era of snow-covered capitalism. And crypto? Itâs dusting itself off from the FTX fallout and making a not-so-quiet comeback into banking, with Trump cheering it on from the sidelines. Buckle up – it’s a busy one.
Check out all of the details:
How long will big U.S. banks continue to lead the world:Â While the U.S. may import more manufactured goods than it exports, it runs a large trade surplus in one notable business: financial services. The overall U.S. trade surplus for financial services in 2024 was about $130 billion, according to data from the U.S. Bureau of Economic Analysis. So when it comes to a global trade war, U.S. megabanks could become collateral damage.
What’s next after Pope Francis’ death: With the death of Pope Francis, announced by the Vatican on Monday, the Roman Catholic Church will begin elaborate rituals steeped in tradition that mark the end of one papacy and lead to the start of the next. Most are governed by a constitution known as Universi Dominici Gregis (Of the Lord’s Whole Flock) approved by Pope John Paul II in 1996 and revised by Pope Benedict XVI in 2007 and 2013.
Beijing warns countries against colluding with the US to restrict trade with China: Beijing has warned its trading partners against succumbing to US pressure to isolate China in President Trumpâs tariff war, as part of its carrot-and-stick approach to win over countries caught between the worldâs two largest economies. Commenting on recent media reports about the Trump administrationâs plans to pressure countries into restricting trade with China in exchange for exemptions from US tariffs, a spokesperson for Chinaâs Commerce Ministry said on Monday: âAppeasement does not bring peace, and compromise does not earn respect.â
Davos gathering founder Klaus Schwab quits as World Economic Forum chair: Klaus Schwab, founder of the World Economic Forum, whose annual gathering of business and political leaders in the Swiss mountain resort of Davos became a symbol of globalisation, has resigned as chair of its trustees. The Geneva-based WEF made the announcement on Monday after revealing earlier this month that the 87-year-old Schwab, who for decades has been the face of the Davos get-together, would be stepping down, without giving a firm timeline.
Crypto knocks on the door of a banking world that shut it out: Crypto is pushing deeper into the banking system. A regulatory crackdown on crypto in the wake of the meltdown of FTX and two crypto-friendly banks prompted some in traditional finance to break up with the industry two years ago. Now President Trumpâs pledge to make America a âbitcoin superpowerâ has set the stage for crypto to become more intertwined with the banking system. A host of crypto firms including Circle and BitGo plan to apply for bank charters or licenses, according to people familiar with the matter.
We hope you have a productive week! Check out more insights from the Vested team here.
