|Bid||64.50 x 1800|
|Ask||64.62 x 800|
|Day's Range||61.34 - 64.45|
|52 Week Range||60.05 - 83.11|
|Beta (5Y Monthly)||1.77|
|PE Ratio (TTM)||7.90|
|Earnings Date||Apr 14, 2020|
|Forward Dividend & Yield||2.04 (3.17%)|
|Ex-Dividend Date||Jan 30, 2020|
|1y Target Est||92.08|
WASHINGTON/NEW YORK, Feb 28 (Reuters) - Big U.S. banks have been rolling out contingency plans to respond to the global coronavirus outbreak - requiring some staff to work from home, implementing travel restrictions, and talking to regulators about potential stresses. The preparations come amid growing fears that the fast-spreading virus which has infected around 83,000 people in more than 50 countries could lead to a global recession. On Friday, U.S. presidential candidate and Massachusetts Senator Elizabeth Warren sent a letter to the five largest U.S. banks asking how they are preparing to mitigate the risks of the outbreak.
(Bloomberg) -- The swiftest downdraft from record high into correction territory for U.S. stocks has put Cambiar Investors LLC in “buy” mode.The S&P 500 Index was at a record just last week, but six days later, it’s down 12%. To Brian Barish, the chief investment officer at Denver-based Cambiar, the ultra-quick decline has brought a number of stocks on the firm’s “wish list” close to or meeting its buy points.“To lose this much value this fast -- that smacks of forced deleveraging,” Barish wrote in an email late Thursday. “It may not be over, but we are getting there.”Cambiar, which manages about $14 billion, is looking at three main categories of stocks to buy:Industries with major dislocation from travel issues, including airlines, cruise ships and resorts. “Assuming this does indeed blow over -- you are taking a big flier on that, but being well compensated for most stocks that fit this description,” Barish said.Those with no obvious financial dislocation: utilities, telecoms, defense companies, social media, pharmaceuticals. “These seem like low-risk bets,” in cases where prices have dropped to Cambiar’s buying levels, he saidSectors with moderate dislocation or demand relocation. Some industrial, transport, technology and consumer-discretionary companies may see some short-term demand issues, but there’s a good chance of a bounce-back in the middle to latter part of the year, Barish said.The fund manager added it’s probably best to strike a balance between those three categories rather than dive into just one. He also noted that with stocks like airlines and hotels, they might be worth buying, but investors should expect data such as second-quarter estimates to be “rubbish.”Read more: Citigroup, Goldman, JPMorgan Slash Profit Outlook for Stocks“Assuming this is mostly deleveraging and a little emotion, you have to understand that there is no chance you can time the bottom, so have to keep plucking away, maybe a stock or two per day, and not try to be heroic,” Barish said. With the market back to where it was just four months ago, “this is not really all that severe, at least not yet,” he said.(Adds link to story before last paragraph.)To contact the reporter on this story: Joanna Ossinger in Singapore at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Cecile Vannucci, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Citigroup Inc. now expects zero growth in global earnings for 2020 as the coronavirus throttles economic growth. And it warns even the new forecast may prove too optimistic.The bank’s call on earnings per share follows moves Thursday by Wall Street peers Goldman Sachs Group Inc. and JPMorgan Chase & Co. to cut profit estimates on U.S. companies. Goldman expects no earnings gain for American firms this year.“Given obvious further risks to global GDP, it seems prudent to forecast flat global EPS in 2020,” Citigroup analysts including chief global equity strategist Robert Buckland wrote in a research report dated Feb. 27. The bank expected 4% growth at the start of the year.“Maybe even flat EPS is too optimistic,” the team wrote. “If the virus slows global economic growth to 2.0% in 2020, our models suggest global EPS could contract around 10%.”Global equities have sold off precipitously, with MSCI’s all-country stock index dropping more than 10% over its seven consecutive days of decline. It was last down 0.5% at 2:15 p.m. Hong Kong time. The S&P 500 is down 11% so far this week, in the fastest correction from a record high in history.Investors have been scrambling to evaluate the epidemic’s impact on the global economy as it spreads to more countries, throws supply chains into chaos and restricts movement of people and goods.Citigroup lowered its target on the local-currency MSCI All Country World Index to 660 by the end of the year, down from a previous target of 690. That would still mark a gain of about 7.5% from current levels.“We would prefer it to be closer to panic before going all-in. It is not there yet,” the analysts said. “Our global bear-market checklist still says buy this dip, although our U.S. panic-euphoria indicator says not yet.”Goldman Sachs also lowered its earnings forecasts for Asia ex-Japan stocks as the coronavirus outbreak looks more severe than it did originally, prompting the firm to reduce GDP growth predictions for China and the region.Consensus expectations of 13% profit growth “are likely to fall,” analysts including Timothy Moe wrote in a research report, citing earnings sensitivity to China’s economy and supply chain linkages.(Updates market values in fifth paragraph and Goldman on Asia EPS starting in 10th.)To contact the reporter on this story: Gregor Stuart Hunter in Hong Kong at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Morgan Stanley said on Thursday it hired Raja Akram to be its next deputy chief financial officer from rival bank Citigroup Inc, according to regulatory filings. Akram, 47, will replace Paul Wirth, who plans to retire in May after more than a decade in the deputy CFO role, the bank said on Wednesday. Akram will take over the job of deputy CFO, as well as chief accounting officer and controller upon Wirth's departure.
Citibank, N.A. is announcing the redemption, in whole, constituting $1,000,000,000 in aggregate principal amount, of its Floating Rate Notes due March 2021 (the "notes") (ISIN: US17325FAW86).
Citigroup is further consolidating its European investment bank and trading leadership in Frankfurt as the post-Brexit financial services divergence between the UK and EU becomes clearer. The US lender has appointed Kristine Braden the new regional chief — with the job title “head of the Europe cluster” — and is moving her to Germany from New York to oversee markets operations. The 22-year bank veteran succeeds Zdenek Turek, who will become chief risk officer for Europe, the Middle East and Africa (Emea) based in London, according to a memo sent on Thursday seen by the Financial Times.
(Bloomberg) -- The global credit machine is grinding to a halt.The $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus spreads fear through company boardrooms.In the U.S., Wall Street banks recorded their third straight day without any high-grade bond offerings, a rarity outside of holiday and seasonal slowdowns. European debt bankers had their first day of 2020 without a deal on Wednesday. And bond issuance in Asia, where the virus first emerged, has slowed to a trickle.It has been a remarkable turn of events for a market where investors had been snapping up almost anything on offer amid a global dash for yield. Europe had been enjoying its strongest ever start to a year for issuance, and sales of U.S. junk bonds have been on the busiest pace in at least a decade. With so many borrowers having postponed their issuance plans, a calming in global markets could kickstart debt sales again.An informal survey of U.S. high-grade bond dealers on Wednesday indicated that strong companies with good name recognition among investors may try to sell debt Thursday if conditions improve. Buyers have been there all along and will be ready to digest the new supply if companies proceed, dealers said.Credit investors have been rattled by the potential impact on company earnings from disruption caused by the virus, which has seen huge parts of global supply chains shutting down. While markets have yet to see any panic selling, a derivatives index that gauges credit market fear in the U.S. had its biggest jump in more than three years on Monday as investors rushed to hedge against a wider selloff.“It’s a coin toss as to what tomorrow will look like, or even the rest of today,” said Tony Rodriguez, head of fixed income strategy at Nuveen. “You have to respect the fact that when you don’t have an information advantage to not make any significant moves.”Honeywell International Inc., Virgin Money UK Plc and Transport for London were among the European borrowers readying deals before financial markets turned hostile. Before the slowdown, Europe had seen 239 billion euros ($260 billion) of bonds sold in January alone.The U.S. investment-grade market was expecting around $25 billion of sales this week before virus fears froze the market on Monday. Excluding the December holiday season and typical two-week summer hiatus in late August, there hasn’t been that long of a break to start the week since July 2018.Offerings also came to a halt in the U.S. junk-bond market, where $67 billion of sales had been running at the fastest pace since at least 2009, data compiled by Bloomberg show. Mining company Cleveland-Cliffs Inc. sought to break the issuance freeze late Wednesday, testing investor demand for a $950 million offering of secured and unsecured notes to refinance an acquisition target’s debt. And the Canadian market remained open for business as utility company Hydro One Ltd. raised C$1.1 billion ($827 million) in the largest Canadian dollar bond from a non-financial company this year.It’s a sharp turnaround for primary corporate bond markets around the world, where demand has triggered supply against the backdrop of $14 trillion of negative-yielding debt globally. In the U.S. investment-grade market, $220 billion had priced this year through last week, running about 19% ahead of last year’s pace. Until this week, European issuers had brought at least 30 billion euros worth of sales for the past six weeks in a row.While a dearth of supply is usually a positive technical for the market, all else equal, spreads have widened as demand has fallen off as well. Borrowing premiums on euro-denominated debt jumped to 95 basis points more than government bonds this week, the highest in 2020, according to a Bloomberg Barclays index. The U.S. index climbed to 107 basis points, the most since November.U.S. high-yield bonds haven’t been this cheap on a spread basis since October, but they’re still not an attractive buy given caution on earnings calls, according to Citigroup strategists led by Michael Anderson. The market now trades at 417 basis points over Treasuries, more than a full percentage point wider since Jan. 13, according to Bloomberg Barclays indexes.Overall borrowing costs remain very low, however. A rally in U.S. Treasuries has sent all-in yields on U.S. investment-grade debt to record lows. U.S. investment-grade funds have reaped near-record inflows each week this year, as investors seek high-quality income assets. High-yield and leveraged loan funds, however, have seen more outflows.Read more: Company Profit Warnings Signal Virus Already a Global CrisisThe number of coronavirus cases continues to climb, with the global death toll nearing 3,000. U.S. health officials have warned citizens to prepare for an outbreak, while South Korea has also emerged as a hot spot, with more than 1,000 reported cases there.The worsening crisis is already taking a toll on companies’ balance sheets, with drinks maker Diageo Plc set to book as much as a 325 million-pound ($422 million) hit to organic net sales. In the U.S., United Airlines Holdings Inc. withdrew its 2020 profit forecast Tuesday as it can’t guarantee its earlier earnings goal.Some investors are already planning to put money to work once the market reopens, as any sign that the epidemic is stabilizing may prove a fillip for sales, according to Luke Hickmore, investment director at Aberdeen Standard Investments in Edinburgh. And many issuers had planned to tap the market before next week’s Super Tuesday, in which several American states will host presidential primary elections and caucuses, so there still is the potential for new deals, said Carl Pappo, chief investment officer of U.S. fixed income at Allianz Global Investors.“This will likely present some nice opportunities to put cash to work as the market will demand concessions in this environment,” Pappo said.(Updates with Cleveland-Cliffs offering 10th paragraph)\--With assistance from Paul Cohen, Priscila Azevedo Rocha, Rebecca Choong Wilkins and Michael Gambale.To contact the reporters on this story: Hannah Benjamin in London at email@example.com;Tasos Vossos in London at firstname.lastname@example.org;Molly Smith in New York at email@example.comTo contact the editors responsible for this story: Shannon D. Harrington at firstname.lastname@example.org, ;Vivianne Rodrigues at email@example.com, Chris VellacottFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- German Finance Minister Olaf Scholz is considering a move that could open an avenue for limited fiscal stimulus in Europe’s largest economy.Scholz wants to temporarily suspend the constitutional mechanism that restricts the country’s debt levels in order to provide relief for indebted regions, according to an official familiar with the plans.The initiative, which is likely to face strong political opposition, would shift borrowings from municipalities to the federal government, giving them more budget space to invest locally. Lawmakers informally assessed the cost of the measure at about 20 billion euros ($21.8 billion).“We would expect heated discussions about the level and distribution of support, as well as moral hazard problems,” said Christian Schulz, an economist at Citigroup Inc. “There is no guarantee that the plan comes to fruition.”The news was immediately welcomed by European Central Bank President Christine Lagarde, who wants Germany to loosen purse strings at a time when a recession in manufacturing has brought its economy to the brink of contraction and the coronavirus threatens growth too. Suspending the rule could potentially clear the way for the government to boost its own spending, beyond a trickle of incremental measures currently planned.Pandemic Scenario May Mean Revisiting ECB’s Maxed-Out Tools Meanwhile, a senior lawmaker from Angela Merkel’s party promptly rebuffed the move, hinting at the opposition Scholz might face. The chancellor’s CDU group has traditionally opposed such plans, and a change in the debt brake, which is enshrined in the constitution, would require a two thirds majority in parliament -- a difficult threshold.The suspension is likely to be more popular with Scholz’s SPD party, which wants to ease deficit rules in order to allow more spending.EU WarningA German finance ministry spokesman declined to comment on the news beyond acknowledging that Scholz is working on plans to be presented in the first part of this year.Even if the initiative were to succeed politically, it’s unclear how much, if any, stimulus would follow -- not least since actual spending increases would be at the discretion of local officials at municipalities, of which Germany has some 10,000. Uwe Zimmermann, deputy chairman of the DStGB federation that represents them, says about a quarter are burdened by residual debt they are struggling to service.JPMorgan economist Greg Fuzesi said that the impact on Germany’s overall fiscal stance could ultimately be “limited or even zero.”Calls for more investment spending by Germany have picked up in frequency and urgency amid mounting data showing the economy has yet to tackle its bleak growth outlook, while risks stemming from trade tensions and the coronavirus outbreak loom large.Germany stands out as the only Group of Seven member with a budget surplus, and a relatively low debt burden. It has long been the target of ECB calls for governments with fiscal space to ramp up spending, and for European Union officials seeking a common budget tool.“The economy could do with a stimulus,” said Aline Schuiling, an economist at ABN Amro in Amsterdam. “There’s a lot of pressure on Germany to do this.”Earlier Wednesday the European Commission warned Germany that subdued public investment is putting the country’s growth at risk and could weigh on the euro area. The EU’s executive arm urged Berlin to do more to address a mismatch between how much it saves and invests.Germany Scolded by EU Officials for Frugal Stance Amid ThreatsFresh risks could make for greater urgency for a shift in gears in Berlin. The coronavirus outbreak moving to Europe has cast fresh clouds over its economy, and officials concede the region will face an impact on growth even if it yet isn’t possible to gauge the severity.With interest rates deep below zero and the latest batch of asset purchases still ongoing, room for additional monetary support by the ECB is limited even as money markets now see a cut in borrowing costs later this year. For policy makers in Frankfurt, that makes their case for governments to deliver the next big push for economic growth all the more persuasive.“Any fiscal measures intended to support the economy are certainly very welcome, particularly under present circumstances,” Lagarde said on Scholz’s plan while at an event in Wiesbaden, near Frankfurt. “So if that has the characteristic of fiscal support and the encouragement to the economy, that’s welcome.”The swift reaction of Eckhardt Rehberg, the lead budget lawmaker of the CDU/CSU alliance led by Merkel, also suggests how deep-seated feelings are on the matter in some parts of Germany, where fiscal rectitude has long been seen as a symbol of political virility.“This is a bankruptcy declaration of the finance minister,” he said. “It’s not possible to exempt the constitution as you like it, just as it is not possible to change the basic rights of the people. The CDU/CSU will by no means support this.”German newspaper Zeit first reported Scholz’s plan earlier on Wednesday.(Updates with economist comment in fourth paragraph)\--With assistance from Catherine Bosley, Brian Parkin and Zoe Schneeweiss.To contact the reporters on this story: Birgit Jennen in Berlin at firstname.lastname@example.org;Viktoria Dendrinou in Brussels at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Craig Stirling, Jana RandowFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- When Bob Chapek was growing up in Indiana, the highlight of the year was the family trip to Disney World in Orlando, Florida.The 60-year-old executive went on to oversee that very park as head of Disney’s resorts business, and now he’s taking charge of the entire $70 billion-a-year empire as the new CEO. It’s a daunting moment for someone whose eyes still light up when he talks about walking through Disney World’s Main Street U.S.A.“At the core of everything, the center of our brand, is creative storytelling,” Chapek said in an interview on Bloomberg Television. “If the creative storytelling is right, then everything else is right.”Chapek’s elevation to chief executive officer, taking over for longtime Disney steward Bob Iger, surprised investors and analysts with its suddenness on Tuesday. But Chapek was long seen as a key contender for the job. Over his 27 years at Disney, he helped orchestrate the company’s home-video strategy and then overhauled how its parks operate.“Bob Chapek not only knows the company very well -- having run a few of our important businesses -- he is also someone that we know,” Iger, 69, told Bloomberg Television.The question now is how well Chapek manages businesses he hasn’t run yet, including one of the company’s biggest source of revenue and profit: television. Disney is embracing streaming as a core part of its operations, and Chapek will have to learn as he goes.The succession follows a huge run-up for Disney’s stock, largely due to the successful launch of its new Disney+ video streaming service last year. But the company faces headwinds, including a coronavirus outbreak that has shuttered theme parks and delayed movie releases in China.Disney shares were down 0.5% to $127.61 at 10:14 a.m. Wednesday in volatile New York trading, off their worst levels of the premarket session as investors digested the news.Chapek also will have to fill the Tom Ford loafers of Iger when it comes to making bold bets. Iger transformed Disney with the takeovers of Pixar, Lucasfilm and Marvel, and, more recently, the $71 billion acquisition of Fox’s entertainment operations.“We suspect investors will have a difficult time believing any successor will be able to match Mr. Iger’s results,” Citigroup Inc. analyst Jason Bazinet said in a note Tuesday.But Chapek’s track record shows he’s willing to adapt -- and wring maximum profit out the businesses he’s running. He was one of the architects of the company’s “vault” strategy, where Disney released classic movies like “Dumbo” on DVD every few years, creating a frenzy among parents and collectors.Named to lead Disney’s consumer products, Chapek went about reorganizing the division. He let go dozens of staffers in favor of an approach that focused on the company’s film franchises, rather than on categories of merchandise. He caught lightning in a bottle when the 2013 animated film “Frozen” caused a surge in demand for blue Princess Elsa dresses and Olaf the snowman backpacks.When he took over the theme parks, Chapek began implementing a strategy of tiered pricing at the resorts. Guests who wanted to visit on peak days paid as much as $209 a day for a ticket that allows them to hop between parks. Annual pass prices exceed $1,000. Nighttime events were created to charge extra for folks who wanted to attend.Chapek justified the increases through massive investments in new attractions. Under his watch, Disney opened the $5.5 billion Shanghai theme park. A new Avatar-themed attraction at Disney’s Animal Kingdom in Orlando brought new life to that resort. And two Star Wars-themed lands opened last year at a cost of about $1 billion each.Still, Chapek’s appointment came as a surprise to many. Senior executives were told only that morning. Some speculate that Iger wanted to avoid the prolonged succession struggle fought by his predecessor, Michael Eisner. The company’s directors also may have gotten inspiration from the quick transition achieved by Mark Parker, a fellow Disney board member, who stepped down from the CEO position at Nike Inc. in January.The move will likely be a disappointment for Kevin Mayer, Disney’s streaming chief, and other CEO hopefuls at Disney. That could include TV chief Peter Rice, who came over with the Fox acquisition.Instead the board picked a longtime Disney insider, steeped in the company’s unique culture. Disney has typically hired leaders from within, and Chapek will only be the seventh CEO in its nearly 100-year history.“It made perfect sense,” said Iger, who plans to stick around as chairman through 2021 while also overseeing the creative side of the business. “It also creates a really smooth transition.”(Updates with shares in eighth paragraph.)\--With assistance from Keith Gerstein.To contact the reporter on this story: Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Dave McCombsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Salesforce.com Inc. delivered a bag of surprises with its year-end earnings, including a $1.3 billion acquisition of Vlocity Inc. and most notably the exit of co-chief executive officer Keith Block, which prompted some concern on Wall Street.Evercore said Block leaves Salesforce in a sound position competitively and operationally, but his exit begs “the question of who will step into his shoes from a sales leadership and operational standpoint.” Meanwhile, Wedbush highlighted that it’s “not sure what to make of this change.”Shares in the company declined 1.7% during Wednesday’s pre-market trading.Generally, Wall Street remains confident in Salesforce’s positioning going forward. “We’re still in good hands,” Brian Peterson, an analyst at Raymond James, wrote in a note touting the tenure of Marc Benioff, who once again becomes the sole CEO.Here’s what analysts are saying:Roth Capital Partners (Richard Baldry)Neutral, price target $165 from $139“While F21 revenue and PF EPS was guided modestly higher, recent price appreciation and the co-CEO departure also announced yesterday leaves us sidelined with a neutral rating.”“Revenue guidance upside appears mostly driven by acquisition impacts,” Baldry wrote in a note. “Excluding acquisitions, revenues grew a more modest 22%.”Compass Point (Marshall Senk)Buy, price target $202“The surprise in the quarter was the announced departure of co-CEO Keith Block, who has been a linchpin in quadrupling revenues over the past seven years.”Senk said “the stock may show some weakness on this news.”“Given the depth of the management bench, the $30 billion of RPO and the company’s consistent execution track record, we are confident that the team will execute through Block’s departure from day to day operations.”Raymond James (Brian Peterson)Strong buy, price target $230 from $200Positively, Salesforce’s “strong results and above consensus outlook suggests that fundamentals remain impressive, while the Vlocity acquisition gives them a broader presence in a number of key verticals.”“That said, co-CEO Keith Block’s decision to step down may also raise questions on big deal momentum, though we remind investors that Mr. Benioff has built one of the most successful software companies of all time (i.e. - we’re still in good hands).”“We understand the inclination to trim on high profile management changes, but see little to disrupt CRM’s growth trajectory in the next several years.”Wedbush (Steve Koenig)Outperform, price target $217“Acquisitions put a dent in FY21 operating cash flow guidance, and the departure of Keith Block from his co-CEO role was a surprise.”“We’re not sure what to make of this change, but perhaps it’s related to media reports that have suggested Chairman and CEO Marc Benioff is preparing for a transition to next-generation leadership.”Piper Sandler (Brent Bracelin)Overweight, price target $205“The unexpected departure of co-CEO Keith Block may overshadow these solid results,” Bracelin wrote in a note, citing the potential for rising execution risks.“After a 26-year career at Oracle and just shy of seven years at Salesforce, Keith Block was a well respected leader internally and externally who helped scale” the company from a $3.8 billion run-rate when he joined to a $19 billion-plus run-rate today.Citigroup (Walter Pritchard)“The exit of Block is surprising, given ascension to the post from COO was just 18 months ago.”“We believe CRM’s deep bench will enable operational continuity, although acknowledge the change happened abruptly and without obvious explanation.”To contact the reporter on this story: Kamaron Leach in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Kristine OwramFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DUBAI/LONDON, Feb 26 (Reuters) - Royal Dutch Shell's onshore Egyptian oil and gas assets have drawn interest from American, Egyptian, Asian and Middle East bidders, two sources familiar with the matter told Reuters. Shell launched a process at the end of November to sell its onshore upstream assets in the Western Desert to focus on expanding its Egyptian offshore gas exploration. The oil major's Western Desert portfolio includes stakes in 19 oil and gas leases of which Shell's working interest included output of around 100,000 barrels of oil equivalent per day last year, Reuters reported at the time.
Citigroup Inc. is redeeming, in whole, all $1.5 billion aggregate liquidation preference of Depositary Shares representing interests in its 5.875% Fixed Rate/Floating Rate Noncumulative Preferred Stock, Series O (the "Preferred Stock").
LONDON/MILAN (Reuters) - Goldman Sachs, JPMorgan, Citigroup Inc, Credit Suisse and other banks have curbed trips to Italy amid fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, sources said. Lazard, BNP Paribas and Deutsche Bank also rushed to warn staff against all "non-essential travel" to northern Italy, four sources told Reuters, speaking on condition of anonymity as banking policies are confidential.
(Bloomberg) -- Citigroup Inc. is shuffling the bankers overseeing two of its largest investment banking units as the firm seeks to boost revenue from advising and providing financing to corporations.The lender promoted Stefan Wintels, the head of its German unit, and Christian Anderson, who helps oversee the global asset manager group, to run its global financial institutions business. The firm also tapped Jack Paris and Philip ten Bosch to take over as co-heads of global power investment banking. The moves were announced in a trio of memos this week from Manolo Falco and Tyler Dickson, the co-heads of Citigroup’s global banking, capital markets and advisory division.“These appointments highlight the rich diversity of our talent pool,” Falco said in an emailed statement. “Our global network is not just about the pipes. It’s about the people.”Dickson and Falco have been moving around their unit’s leaders as they strive to increase investment banking revenue, and the pair also said they’re seeking to make selective external hires as part of the effort. The New York-based firm’s overall investment banking revenue climbed 4% to $5.22 billion in 2019.Wintels and Anderson replace Peter Babej, who was promoted in October to lead Citigroup’s Asia operations. Financial institutions contribute the largest component of client revenue to Citigroup’s investment banking arm and the firm has said it’s seeking to improve its standing within the financial sponsors industry.‘Steady Progress’“We are making steady progress but we are sure success won’t be a straight line,” Dickson said in a telephone interview. “We are doing the right thing, which is moving our best leaders across our businesses to our highest-priority areas.”Wintels for the last seven years has overseen Citigroup’s German subsidiary, which has grown as the U.S. bank is shifting assets and people to Frankfurt partly in reaction to the U.K.’s departure from the European Union. The unit acquired a broker-dealer license in 2018. Anderson was previously co-head of the global asset managers group, which focuses on private equity firms, pensions and sovereign wealth funds.Citi’s head of corporate banking for Germany and Austria, Stefan Hafke, is taking over as country head of Germany on an interim basis. The bank is also looking for someone to replace Wintels as head of investment banking Germany and Austria.Paris and ten Bosch led the power investment banking franchises in North America and Europe and Asia, respectively. The two will work closely with Sandip Sen, who continues in his current role as head of global power corporate banking and alternative energy, according to one memo.John Eydenberg, whom Citigroup hired last year from Deutsche Bank AG, will replace Anderson as co-head of the global asset managers group and will work alongside Anthony Diamandakis, who is relocating to New York.Citigroup also appointed Alvaro Revuelta and Jorge Ramos as co-heads of investment banking in the Iberia region of Spain, executives said in a separate memo, which noted the firm has nabbed the top ranking in the area for the last three years.(Adds Wintels’ succession at Germany unit in eight paragraph)To contact the reporters on this story: Steven Arons in Frankfurt at email@example.com;Jenny Surane in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Josh Friedman, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Wireless towers operator IHS Holding Ltd. has hired banks to oversee what may be the biggest initial public offering of an African company in the U.S., according to people with knowledge of the matter.IHS Holding has selected Citigroup Inc. and JPMorgan Chase & Co. as global coordinators for a listing that could value Africa’s largest operator of wireless towers at as much as $7 billion, said the people. The Mauritius-based company is leaning toward a New York IPO which could happen as soon as the first half of the year, they said.While Citigroup and JPMorgan have top spots on the IPO, other lenders will likely be added to the syndicate, said the people, who asked not to be identified because the information is private. No final decisions have been taken and the timeline could be pushed back, depending on market conditions.Representatives for IHS, Citigroup and JPMorgan declined to comment.The company would prefer a U.S. listing to London in part because some of the largest tower companies such as American Tower Corp. and Crown Holdings Inc. are based there and trade at higher valuation multiples, the people said. At a valuation of up to $7 billion, it would be the biggest listing of an African company in the U.S., according to data compiled by Bloomberg.IHS, whose owners include Goldman Sachs Group Inc and South African wireless carrier MTN Group Ltd., started reviving work on a share sale late last year after scrapping plans back in 2018 due to uncertainty around a presidential vote in Nigeria, its main market, Bloomberg News reported at the time.With operations in Nigeria and other African countries, IHS was seeking to raise about $1 billion in New York, people familiar with the matter said at the time. A Nigerian court last year upheld President Muhammadu Buhari’s election victory, dismissing a challenge by the main opposition candidate.The company expanding its network of about 24,000 towers as growing African populations demand cheaper and faster mobile connections. It tapped the debt market for $1.3 billion last year.The company plans to enter new markets in the Middle East and Southeast Asia to bulk up ahead of a potential attempt to sell shares in either New York or London, Chief Executive Officer Sam Darwish said in an interview in April last year.\--With assistance from Swetha Gopinath and Archana Narayanan.To contact the reporters on this story: Dinesh Nair in London at firstname.lastname@example.org;Myriam Balezou in London at email@example.com;Loni Prinsloo in Johannesburg at firstname.lastname@example.orgTo contact the editor responsible for this story: Dinesh Nair at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
LONDON/MILAN, Feb 25 (Reuters) - Investment banks including Citigroup Inc, Credit Suisse and Nomura Holdings Inc have curbed trips to Italy on fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, four sources told Reuters. Citi has told staff heading to Italy's financial capital Milan or other northern cities to postpone their trips or seek approval from top management if they are working on sensitive deals, the sources said, speaking on condition of anonymity as banking policies are confidential. Credit Suisse has also informed bankers looking to travel to and from Northern Italy including airports in Milan and Bologna that they will require extra permissions, two of the sources said.
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.) * Futures drop: Dow 2.59%, S&P 2.47%, Nasdaq 2.77% By Medha Singh Feb 24 (Reuters) - U.S. stock index futures tumbled on Monday as investors scurried to perceived safe-haven assets after a surge in coronavirus cases outside China stoked fears of a bigger impact to global economic growth. Gold rose to a seven-year high and the inversion between the 3-month and 10-year Treasury yields deepened as a rise in cases in Iran, Italy and South Korea over the weekend added to fears of a pandemic. An inversion of the curve is a classic recession sign. Shares of interest rate-sensitive Bank of America Corp , Citigroup Inc, JPMorgan Chase & Co, Goldman Sachs, Wells Fargo & Co and Morgan Stanley lost between 2.1% and 3.7% in premarket trading.
(Bloomberg) -- Investors are rushing to the safety of gold amid a selloff in U.S. stocks on mounting concerns the coronavirus outbreak will derail global growth.Gold jumped as much as 2%, extending its climb to a seven-year high, as the S&P 500 Index headed for its first weekly loss since January. In a sign that the virus is starting to dent the world’s largest economy, business activity in the U.S. shrank in February for the first time since 2013 with the pandemic disrupting supply chains.“The persistent, cold-blooded and measured shift in gold higher, despite the U.S. dollar, is telling,” Nicky Shiels, a metals strategist at Bank of Nova Scotia, said in emailed message. “The breakout is warranted and has legs.”Gold futures for April delivery rose 1.7% to settle at $1,648.80 an ounce at 1:30 p.m. on the Comex in New York, the highest closing price for a most-active contract since mid-February 2013. The metal notched a 3.9% gain this week, the biggest increase since June. The rush to haven assets also sent Treasury yields tumbling.“Gold is in the midst of its perfect storm,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S.Prices of bullion in euros and Australian and Canadian dollars climbed to records. Holdings in gold-backed exchange traded funds climbed for 22 straight sessions through Thursday, the longest ever run, according to data compiled by Bloomberg. And the amount of call options traded in a single day spiked to the highest ever in records dating to 1996, according to preliminary data.This stretch of inflows “certainly gives an indication about concerns around the global economy,” Andrew Jamieson, global head of ETF product at Citigroup Inc. in London, said in an interview with Bloomberg TV.The outbreak has worsened outside of China, with cases in South Korea climbing past 200, while tallies for Singapore and Japan topped 85. A jump in coronavirus cases in Iran is also raising concern. Chinese authorities adjusted the number of cases for the third time this month, raising more questions over the reliability of the data.In more than half of the world’s 20 biggest economies, analysts now expect looser budgets this year — in other words, bigger deficits or smaller surpluses — than they did six months ago, according to a Bloomberg survey of economist forecasts.The Commonwealth Bank of Australia expects the Federal Reserve to ease twice in the second half of the year as the virus threatens the global economy.Still, lower U.S. yields and weaker equities could push gold prices further toward $1,750 an ounce even if the coronavirus is contained during the first quarter, according to Goldman Sachs Group Inc.If the outbreak stretches beyond that, “we see substantially more upside from here -- toward $1,850 an ounce, depending on the magnitude of the global monetary policy response,” the bank said in a note Friday.Silver futures also climbed on the Comex. On the New York Mercantile Exchange, palladium futures rose while platinum futures declined.\--With assistance from Yvonne Yue Li, Elena Mazneva and Ranjeetha Pakiam.To contact the reporters on this story: Luzi Ann Javier in New York at firstname.lastname@example.org;Justina Vasquez in New York at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Luzi Ann Javier, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.