President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
President Donald Trump is considering breaking up the nation's biggest banks, a vow he had made during the presidential campaign then seemed to put on the back burner.
In an interview Monday with Bloomberg News, Trump said he is "looking at that right now."
Major averages slipped as the news broke, then rebounded, while government bond yields hit their highs of the day.
Bank stocks rallied, with investors taking a win-win view: Breaking up the big banks would open business opportunities for smaller institutions, while the large Wall Street firms would be worth more as separate entities than they are combined.
"The theory has always been the sum of the parts is worth considerably more than the whole," said analyst Dick Bove, vice president for equity research at Rafferty Capital Markets. "You might find a lot of investors who say that (if) they're going to break up these banks, they're more [valuable] in pieces than they are together, I'm going to buy them."
The SPDR S&P Bank exchange-traded fund was up 1.2 percent, also a high for the session.
Banking expert Christopher Whalen agrees with the sum-of-the-parts theory.
"You'd have more competition in the industry," said the head of Whalen Global Advisors. "If investors could buy a pure-play JPM and not have to own Chase, that's a much better stock. That's a stock that trades at 1.5 to 2 times book value instead of 1."
Whalen said spinning off Merrill Lynch from Bank of America also could prove beneficial. BofA bought Merrill during the financial crisis.
The industry breakup would come with the revival of a Glass-Steagall-type law, which separated commercial and investment banks but was repealed in 1999.
Trump's sentiments came the same day he met with leaders of the Independent Community Bankers of America, an advocacy group for small- and mid-market institutions.
Industry analyst Dick Bove believes that may not be a coincidence.
"He probably made a statement to them that they wanted to hear," Bove said. "In the last few weeks he has been heavily campaigning again, and I think this is just part of his campaign."
Whether anything will come of it legislatively is unclear.
"I just think he had a need to communicate, to connect again with community banks and say, 'Hey guys, we're on your side. We believe in you and maybe we should break up the big Wall Street banks,'" Bove added. "But I don't expect anything to come of it."
Bank stocks had been one of the biggest winners of the Trump trade, rallying strongly after his victory in the November presidential election. The sector rallied more than 25 percent in the immediate aftermath, but the bank ETF is down about 1.3 percent in 2017.
The Glass-Steagall repeal is sometimes blamed for the financial crisis that peaked in 2008. However, many of the big institutions at the center of the crisis were not banking behemoths but rather investment banks or, in the case of American International Group, an insurer.
Still, the Republican platform last year carried language calling for a reinstatement of the law.
Watch: Don't adjust portfolio based on Trump's bank comments
Correction: Trump met with leaders of the Independent Community Bankers of America. An earlier version misstated the group's name.