MEXICO CITY – Mexico has seized 380,000 boxes of Corn Flakes, Special K and other Kellogg’s cereals, claiming the boxes contained cartoons in violation of recently enacted laws aimed at improving children’s nutrition.
While Corn Flakes or Rice Krispies are clearly not the worst thing Mexican children eat, laws prohibit food companies from using marketing tactics that might appeal to children, such as cartoons or mascots.
Mexico’s consumer protection agency also said on Friday that cereal boxes did not clearly indicate nutritional values such as calories, fat, salt or sugar, or did not have the appropriate warning signs for levels of these ingredients considered excessive.
Officers raided 75 outlets and seized pallets of Kellogg’s products, but the vast majority of seizures were made at a warehouse north of Mexico City.
Kellogg’s did not immediately respond to requests for comment.
Wells Fargo exceeds its revenue estimate for the quarter
SILVER SPRING, MD. – Wells Fargo easily beat Wall Street’s expectations for the fourth quarter with interest rates starting to take off, likely another boost for the nation’s largest mortgage lender going forward.
The San Francisco bank earned $5.8 billion, or $1.38 per share, well ahead of the $1.11 expected by industry analysts, according to a survey by data firm FactSet.
Wells had $20.86 billion in sales during the quarter, also beating Wall Street’s forecast of $18.8 billion. The bank posted revenue of $18.49 billion in the same quarter last year.
For the full year, Wells collected $21.5 billion in earnings, or $4.95 per share. Sales for 2021 were $78.49 billion, a 5% increase from 2020, when the bank reported revenue of $74.26 billion.
Wells said his position improved over the past year in part due to his ability to cut spending while deposits grew as the economy rebounded from the 2020 coronavirus downturn.
Wells reported net interest income of $9.26 billion in the period, down slightly from a year ago but expected to rebound this year with rates on long-term loans looking set to to increase rapidly.
The Federal Reserve announced last month that it would start scaling back its monthly bond purchases – which are aimed at lowering long-term rates – to slow the acceleration of inflation.
Even with the three or four rate hikes expected in 2022, the Fed’s benchmark rate would still be historically low at around 1%.
Average long-term mortgage rates in the United States jumped again last week to 3.45%, their highest level since March 2020, just as the coronavirus pandemic broke out in the United States. Economists expect them to rise further as the Fed tightens credit, which means more profits for banks. , especially Wells, which is heavily dependent on mortgages.
The company said it reduced the amount of money it held for credit losses by $875 million.
Banks set aside tens of billions of dollars to hedge against customer defaults early in the pandemic; some of those billions are now being returned to the positive side of their balance sheets.
JPMorgan Chase profits fall 14% from 2021
NEW YORK – JPMorgan Chase says fourth-quarter profits fell 14% from a year earlier, due to weaker performance at its trading desk and higher employee compensation spending.
Even with the weakest quarter, JPMorgan made a record annual profit of nearly $50 billion. The total is significantly higher than what the bank brought in in 2019, before the pandemic.
The bank, like others in the financial sector, also continues to face the impact of near-zero interest rates. Low rates have kept JPMorgan’s revenue virtually flat over the past year.
The New York-based financial giant on Friday reported earnings of $10.4 billion, or $3.33 per share, for the last three months of 2021.
That’s down from earnings of $12.14 billion, or $3.79 per share, in the same period a year ago.
While JPMorgan’s earnings fell, results were still better than analysts had expected, with average earnings per share on FactSet coming in at $3.01.
In recent quarters, JPMorgan has offset stagnant interest rates by delivering strong performance from its investment bank and unlocking billions of dollars from its supposedly loan loss reserves.
From thread reports