Britain’s largest lenders — Barclays, HSBC, Lloyds Banking Group
and the Royal Bank of Scotland — are all expected to update investors on their fourth-quarter and full-year 2016 results this week.
When Tesla, the electric car company, reports fourth-quarter earnings on Wednesday, investors will focus less on the previous quarter’s performance
and more on any updates the company’s chief executive, Elon Musk, gives about the forthcoming Model 3.
And the Royal Bank of Scotland said last month that it would set aside an additional $3.8 billion in the fourth quarter for investigations
and litigation in the United States related to mortgages.
Officials in recent weeks have said they are ready to move more quickly if necessary,
but investors are still betting the Fed will not raise rates again before June.
They appear unlikely to reach a deal after a bailout review,
but analysts and officials are hopeful of a “political agreement” that could be followed later by technical details.
Results have been mixed for European banks this earnings season as several lenders
have reported quarterly losses after taking large charges to resolve legal issues.
The Justice Department sued Barclays in December after the two sides failed to reach a settlement
over the bank’s sales of residential mortgage-backed securities despite months of talks.
Production is expected to start this year, and the small car is key to Tesla’s stated goal of producing 500,000 vehicles in 2018.
