boost from higher interest rates. bank of america s second quarter profit beat wall street estimates as it earned more from customers loan payments. investment banking and trading also fared better than expected. the second largest us lender projected its net interest income would increase 8% this year after it rose 14% in the second quarter. its shares closed 4% higher on the news. and morgan stanley also performed better than expected in the second quarter. its profit beat estimates as growth in its wealth management business offset lower trading revenues. the wealth management unit s net revenue rose 16% to a record $6.7 billion. morgan stanley s surged more than 6% on the news. and that s it for this edition of asia business report. thanks for watching. bye for now. bbc news bringing you different stories from across the uk. this is vinnie from cardiff. a former drug dealer, he was hooked on heroin from the age of 1a. he also took pills, benzodiazepines, but not the real ones fr
in general, and that is why some are beginning to step back and say, all right, is this the beginning of a much needed correction? or something worse. we have not had a correction in these markets which some say would be a healthy development, for close to three years. some say we re due for this, but lawrence says this doesn t make it any less tough going down. hi, neil. let s start with what happened this morning. a pair of bank arranges, jpmorganchase, profits were down, far weaker than expected. the mortgage origination business down, trading revenues down, refis down, a bad story this morning, then wells fargo, the biggest lender in the u.s., one out of five mortgages. wells fargo is up but that does not mean it was a good earnings report. profits did rise, and bet expectations but their mortgage business is not doing well, and we mentioned mortgages because
when you re added to the dow, stocks don t do so well and for goldman sachs, a really terrible quarter. a lot of its trading revenues were down nearly 50%. both their own individual trading and their clients trading revenue. one of the canaries in the coal mine here that people are watching is ebay. earnings not so exciting but what s concerning is in the current quarter they ve seen a real pullback in terms of growth in spending and that s one of the things people are worried about, whether this has impacted americans, and come supers are worried and they re going to hold back to the holiday season. it create as ripple effect which is right around the corner. ber, that great to have you on there. still ahead, what the government is going to seize on. the botching of the health care rollout. some who have still not been able to sign up 17 days later. plus everything went wrong that
parade of horribles that moody s is taking into account in the coming downgrades. we re watching how it affects trading revenues at the banks. the bank stocks how they trade and also the lending rates consumers get at the banks, whether or not the banks will pass it along and cost for towns and cities as well. back to you, jon. jon: sounds like a mixed, mostly big bag of bad news i guess you would say. elizabeth, thank you. reporter: sure. jenna: liz said the parade of horribles. we have to work that into the show. jon: parade of horribles. jenna: not because we want horrible things to happen. jon: right across the set. jenna: the supreme court set to rule on the health care law any day now. it is june. that is when we re supposed to get the decision. if the high court strikes the law down many suggest it will spell trouble for the president but now there s talk it could cause even more problems potentially for governor romney. we ll debate this issue coming up next. a dramatic may