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£1.9 billion net loss in 2017 vs £1.6 billion in profit for 2016

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Barclays posted a significant loss on its full-year 2017 profits, hit in part by the U.S. tax overhaul and a weaker dollar.

The U.K. bank’s net loss was £1.92 billion ($2.67 billion), part of which was a one-off £900 million charge on U.S. deferred tax assets. The group’s pre-tax profit, however, rose by 10 percent to £3.54 billion in 2017, and customer deposits increased 2 percent to £193.4 billion.

Barclays also announced a restoration of its dividend to 6.5 pence per share for 2018, more than double the last year’s full-year dividend of 3 pence.

“2018 will be the first year in five years that this bank begins with a clean operating model,” Barclays CEO Jes Staley told CNBC. The bank has been struggling to shake off issues with its reputation after several years of scandal, the most recent of which centered on allegations of unlawful whistleblower mistreatment in early 2017.

Staley took charge of the bank in 2015 on a pledge to rebuild the bank’s image, and is its fifth CEO in seven years.

“We still have some legacy issues, but we are very comfortable with the position of the bank,” he said.

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Investing in Chinese stocks amid regulatory risks

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Stock futures modestly higher as Wall Street awaits clarity from Washington

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U.S. stock index futures were modestly higher in overnight trading on Tuesday, after a session that saw stocks alternate between gains and losses.

Futures contracts tied to the Dow Jones Industrial Average advanced 28 points, indicating a 43-point advance at the open. S&P 500 futures and Nasdaq 100 futures advanced 0.1%.

Stocks closed little changed on Tuesday as traders digested higher rates, possible additional stimulus measures and political turmoil.

The Dow Jones Industrial Average rose 60 points, or 0.2%, to 31,068.69. The Nasdaq Composite ended the day up 0.3% and the S&P 500 rose slightly to 3,801.19. Meanwhile, the yield on the benchmark 10-year Treasury briefly traded at 1.18%, its highest level since March.

Given the rise, Credit Suisse recommended that investors favor pro-cyclical sectors, including financials and energy. Rising rates could hurt growth stocks, however, and a number of tech heavyweights including Facebook and Apple declined during Tuesday’s session.

Expectations for additional fiscal stimulus is one of the reasons behind the steady move higher in yields. President-elect Joe Biden is expected to release details on his economic plan on Thursday.

“At a minimum, even a USD 500bn fiscal package consisting of additional stimulus checks, extended unemployment benefits, and funding for healthcare and vaccine disbursement will be another boost to economic growth in 2021,” noted Jason Draho, UBS Global Wealth Management head of Americas asset allocation.

Following Tuesday’s muted session, the major averages remain lower for the week after Monday’s slide. The Nasdaq Composite is the relative underperformer, down roughly 1% over the last two sessions. Small caps are, however, a bright spot, and the Russell 2000 is up 1.7% so far this week.

The moves come as turmoil in Washington continues. The Democratic-held House will vote Tuesday night on a resolution calling on Vice President Mike Pence and the Cabinet to invoke the 25th Amendment to push Trump out of the White House.

Covid cases also continue to increase in the U.S. and abroad. The U.S. is recording at least 248,650 new Covid-19 cases and at least 3,223 virus-related deaths each day, based on a seven-day average calculated by CNBC using Johns Hopkins University data.

Still, many say the U.S. is poised to return to growth later this year.

“In 2021, the U.S. economy should experience strong tailwinds from additional fiscal and monetary stimulus coupled with an end to the pandemic’s impact on the economy,” said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management. “Pent-up demand in industries impacted by COVID-19 … and a needed inventory rebuild should further spur job growth,” he added.

Taken together, Schutte said this sets the stage for above-average economic growth, and he sees stocks climbing to new highs.

– CNBC’s Jacob Pramuk contributed reporting.

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Liz Cheney, John Katko will vote to impeach

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Rep. Liz Cheney, the third-ranking House Republican, said Tuesday she will vote to impeach President Donald Trump, as at least three GOP lawmakers will move to charge the president from their own party with high crimes and misdemeanors.

She is the highest-ranking Republican to call for the president’s impeachment in the wake of Wednesday’s deadly Capitol Hill riot, which Trump helped incite with lies and incendiary rhetoric.

Rep. John Katko, R-N.Y., earlier said he would support impeachment after the president stirred up a mob that attacked the Capitol last week while Congress counted President-elect Joe Biden’s presidential win. Rep. Adam Kinzinger, R-Ill., later joined Cheney and Katko. The riot left five people, including a Capitol police officer, dead.

In a statement, Cheney said Trump “summoned this mob, assembled the mob and lit the flame of this attack.”

“Everything that followed was his doing. None of this would have happened without the President,” the Republican conference chair said. “The President could have immediately and forcefully intervened to stop the violence. He did not. There has never been a greater betrayal by a President of the United States of his office and his oath to the Constitution.”

House Republican Conference Chair Liz Cheney speaks at a news conference on Capitol Hill in Washington, May 8, 2019.

Aaron P. Bernstein | Reuters

The House plans to vote Wednesday on whether to charge Trump with high crimes and misdemeanors. Democrats have said they have enough votes to impeach the president for an unprecedented second time.

Once the House impeaches Trump, the Senate will decide whether to convict him. The chamber may not have time to vote to remove him from office before Biden takes office a week from Wednesday.

Even so, conviction in the Senate would prevent Trump from becoming president again.

The House Republicans revealed their stances as the New York Times reported that Senate Majority Leader Mitch McConnell, R-Ky., has told associates he thinks Trump committed impeachable acts. The newspaper did not detail whether McConnell would vote to convict the president if the House sends articles of impeachment to the Senate, or whether he would urge Republicans to vote the same way.

More Republicans could join Cheney, Katko and Kinzinger in backing the effort. No House Republicans voted to impeach Trump in 2019 for abuse of power and obstruction of Congress.

Cheney, a Wyoming Republican, breaks from House Minority Leader Kevin McCarthy. The California Republican has opposed impeaching Trump. He and Minority Whip Steve Scalise, R-La., both objected to counting Biden’s certified election victories in Arizona and Pennsylvania after the attack on the Capitol.

Cheney is the daughter of former vice president and Defense Secretary Dick Cheney. He joined the nine other living Pentagon chiefs earlier this month in warning against involving the military in disputes over election results. The Washington Post op-ed came three days before the Capitol attack.

Trump earlier said Democrats’ push to impeach him was dangerous and could spark more violence. Some of his Republican allies have argued the effort would hinder attempts to reduce tensions in the country.

Impeachment supporters have said Congress should not move on until they hold Trump accountable for his supporters’ attempt to disrupt the peaceful transfer of power.

The impeachment article Democratic leaders have appeared to back, titled “Incitement of Insurrection,” accuses Trump of committing high crimes and misdemeanors by encouraging an attack on a coequal branch of government. It says the president, by lying to his supporters about the election results for two months and then encouraging them to fight the outcome shortly before the invasion of the Capitol, helped to spur the riot.

This story is developing. Please check back for updates.

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