|Bid||130.80 x 1300|
|Ask||130.81 x 900|
|Day's Range||130.16 - 131.22|
|52 Week Range||91.11 - 131.29|
|Beta (3Y Monthly)||1.20|
|PE Ratio (TTM)||12.93|
|Forward Dividend & Yield||3.60 (2.77%)|
|1y Target Est||N/A|
DOW UPDATE Shares of Dow Inc. and Goldman Sachs are trading higher Friday morning, lifting the Dow Jones Industrial Average into positive territory. Shares of Dow Inc. (DOW) and Goldman Sachs (GS) have contributed to the index's intraday rally, as the Dow (DJIA) is trading 71 points (0.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.European Central Bank President Christine Lagarde called for a new policy mix, saying public investment should be stepped up to ease the burden on monetary stimulus and ensure the region can thrive in an uncertain world.In her first major speech, three weeks into the job, the new ECB chief said her institution will continue to support the euro-zone economy. But she also said fiscal policy is a key element for overcoming the challenges of changing global trade and declining domestic growth. Minutes after she finished, fresh data showed the current slowdown worsening.“Twin external and domestic challenges call on us to consider -- as Europeans -- how we should respond to the new environment,” Lagarde said at a banking conference in Frankfurt. “The answer lies in converting the world’s second-largest economy into one that is open to the world but confident in itself -- an economy that makes full use of Europe’s potential to unleash higher rates of domestic demand and long-term growth.”The size of the challenge was highlighted by purchasing managers indexes published Friday, which showed the economy unexpectedly weakened this month, with a downturn in services activity. That suggests a slump in manufacturing, especially in Germany, is starting to spread to other sectors.That kind of data, which drove the euro lower, is something Lagarde will need to address at her first policy meeting on Dec. 12.Read more: Weak European Services Output Casts Shadow Over Economic Outlook“It is remarkable that she spoke only about responding to ‘future risks,’ even though in our view there is a problem with low inflation and below-potential growth right now,” said Greg Fuzesi, an economist at JPMorgan. “Clearly, the wait for more clarity about the ECB’s thinking goes on.”Lagarde is picking up where her predecessor Mario Draghi left off. In his final speech, he called for euro-zone fiscal support so that monetary policy isn’t “the only game in town” -- a phrase that the new president also used.With her remarks, the Frenchwoman is building on an idea she expressed in Berlin earlier this month, when she urged Europe to overcome its self-doubt and show strength and resolve instead.“We have a unique possibility to respond to a changing and challenging world by investing in our future,” she said. “All of this would be a game changer, not just for our own stability and prosperity, but for that of the global economy, too.”Lagarde also said she’ll announce a strategy review of the central bank “in the near future.” That’s a step that may help to heal the divisions that opened up among policy makers after Draghi drove through another stimulus package in his final weeks. She already started building bridges earlier this month by taking the 25-member Governing Council on a retreat to a luxury hotel to discuss their decision-making processes and communication.Bundesbank President Jens Weidmann, one of the most vocal opponents of the recent package and a longtime critic of the ECB’s bond-buying program, said at the same conference that he supports such a review. He said it must consider the side effects of loose policy.After years of unprecedented stimulus -- negative interest rates, large-scale asset purchases, and long-term loans to banks -- fears are growing over consequences such as rising real-estate prices and excessive risk-taking by investors in search of higher yields.The ECB noted its own concerns in its Financial Stability Review this week, and the account of Draghi’s final policy meeting included a plea to allow current stimulus to show its potency. Lagarde said the ECB will “continuously monitor the side effects” of its policies.Above all though, her speech, peppered with quotes from T.S. Eliot and Saint Francis of Assisi, was a call for European leaders to think bigger. She said they’ve been slow to capitalize on the digital age, with the result that productivity growth has slowed, and have been hindered from completing the economic and monetary union because of too much attention to risk reduction.“Completing EMU is about finding the right trade-off: enough protection against moral hazard to discourage under-saving, but enough mutual insurance to prevent over-saving,” she said. “In this way, we could tap into new sources of growth that would otherwise be suppressed. And, in the spirit of this conference, that would truly represent a ‘new approach’ for Europe.”(Updates with comments from Weidmann in 11th paragraph)To contact the reporters on this story: Piotr Skolimowski in Frankfurt at firstname.lastname@example.org;Jana Randow in Frankfurt at email@example.com;Yuko Takeo in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Gordon at email@example.com, Craig StirlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
DEEP DIVE U.S. brokers that rely on the discount-trading business model are in play, following Charles Schwab’s recent disruptive move to do away with most commissions for online stock trades. It might be helpful for investors to see which investment banks and broker-dealers have been the best financial performers in recent years.
Toronto-Dominion Bank was added to the Financial Stability Board's list of global systemically important banks, taking the total number to 30 worldwide. These banks are subject to higher capital buffers, are required to meet total loss-absorbing capacity standards and need to have group-wide resolution planning and resolvability assessments. JPMorgan Chase is in the highest bucket, and Citigroup and HSBC are in the next-highest level.
Seattle's biotech community has a reputation for developing companies that are eventually acquired and that has restricted its growth. But a few companies are well-positioned to change that narrative.
If (SCHW) and (AMTD) manage to pull off a merger, the combined company would tower over the rest of the brokerage industry. But while investors appear to love the idea of a deal— CNBC and Fox Business reported on Thursday that the companies are in talks—it may not come off without a hitch: The combined company would have immense industry leverage and a merger could face legal and regulatory roadblocks. Schwab (ticker: SCHW) and TD Ameritrade (AMTD) have not announced plans to merge, and they did not immediately respond to a request from Barron’s seeking comment.
News that Charles Schwab and TD Ameritrade may merge leaves E*Trade Financial standing alone. One analyst says this means E*Trade will be under greater pressure to find a partner.
(Bloomberg) -- A former JPMorgan Chase & Co. banker was convicted of conspiring with traders at other banks to rig bids and fix prices in currency markets -- a victory for prosecutors in their campaign against collusion in foreign exchange.A federal jury in New York on Wednesday took less than four hours to find Akshay Aiyer guilty of a single count of conspiracy to violate antitrust laws, following a trial that lasted more than two weeks.He’s the second person to be convicted in a crackdown on dubious practices used by currency traders and faces as long as a decade in prison and a $1 million fine when he is sentenced on April 3.Prosecutors had relied on testimony from two alleged conspirators, former Citigroup trader Christopher Cummins and ex-Barclays banker Jason Katz, who pleaded guilty and agreed to cooperate with prosecutors. Cummins and Katz testified that the traders plotted in chat rooms, on the phone and at social gatherings to rig trades while leading customers to believe that they were actually competing with each other.Conviction a Reminder“This conviction serves as a reminder of our commitment to hold individuals responsible for their involvement in complex financial schemes which violate the integrity of the global financial markets,” Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division said in a statement. Aiyer and his lawyers declined to comment after the verdict.The conviction shows that antitrust prosecutors can successfully pursue currency-market cases despite previous acquittals, said Philip A. Giordano, a partner with Hughes Hubbard & Reed LLP and a former prosecutor in the Justice Department’s Antitrust Division.The verdict also underscores the importance of the role that victims play in these types of trials, as the government called representatives of asset management firms who testified that they were harmed by the traders’ collusion, he said.“That helps to put the other evidence, the evidence from the co-conspirators, in perspective,” Giordano said. “It shows that the alleged conduct did not occur in a vacuum. The conduct is less susceptible to interpretation when it is connected to a negative impact on a customer. It makes it easier for the jurors to accept the prosecutors’ assessment of the facts.”Read more on judge throwing out a related caseDefense lawyers argued that all three of the traders made their decisions independently. They argued that Cummins and Katz had been colluding with other foreign-exchange traders for years before they even met Aiyer and were simply trying to save themselves by implicating him to avoid prison.Aiyer is a native of India who came to the U.S. in 2002 to attend college. He joined JPMorgan in 2006 and worked there until 2015, first as a foreign-exchange analyst and later as a trader.The first person charged in the crackdown, Mark Johnson, a former global head of foreign exchange at HSBC Holdings Plc, was found guilty in 2017 of front-running a $3.5 billion client order. But a U.K. court refused to extradite Johnson’s underling, Stuart Scott, and three British traders accused of similar conduct were acquitted by a jury in New York last year. U.K. investigators dropped a criminal probe into individual traders, finding there wasn’t enough evidence to prosecute.Banks around the world have paid more than $10 billion in penalties for misconduct in the currency markets since the crackdown began. Citigroup Inc., Barclays Plc, Royal Bank of Scotland Group Plc and JPMorgan Chase pleaded guilty in 2015 to rigging currency rates and agreed to pay about $2.5 billion to the Justice Department as part of an overall $5.8 billion settlement with multiple regulators.The case is U.S. v. Aiyer, 18-cr-333, U.S. District Court, Southern District of New York (Manhattan).(Updates with sentencing date in third paragraph)To contact the reporter on this story: Chris Dolmetsch in Federal Court in Manhattan at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Joe Schneider, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The changing of the guard continues at Wells Fargo under the new leadership of CEO Charlie Scharf. The San Francisco bank said Wednesday that Avid Modjtabai will retire March 31, 2020. Modjtabai, based in San Francisco, is senior executive vice president and head of the bank’s payments, virtual solutions and innovation group.
The Zacks Analyst Blog Highlights: JPMorgan Chase, Altria, ConocoPhillips, The Travelers Companies and Twitter
(Bloomberg) -- Alibaba Group Holding Ltd. has raised about HK$88 billion ($11.2 billion) in its Hong Kong share sale, marking the biggest equity offering in the financial hub since 2010.The company confirmed that it has priced 500 million new shares at HK$176 each in a statement on Wednesday. The price represents a 2.9% discount to the last close of Alibaba’s American depository shares in New York, with each equal to eight ordinary shares of the internet company. This Hong Kong share sale is also one of the largest globally this year.The mega share sale comes as Hong Kong’s economy has been hurt by months of increasingly violent protests and growing anti-China sentiment. Alibaba’s return will please Chinese officials who’ve watched many of the country’s largest private firms flock overseas for capital. With a Hong Kong listing in sight, Alibaba will challenge Tencent Holdings Ltd. for the title of the largest listed corporation in the city.Why Now, and Why Hong Kong, for Alibaba’s Share Sale?: QuickTakeAlibaba has allocated more shares for individual investors, raising the ratio to 10% from 2.5% of the total offering, people familiar with the matter said, who asked not to be identified as the details are private. The company has an over-allotment option to sell an additional 75 million shares.The firm is planning to have its shares start trading Nov. 26 on the Hong Kong exchange under the ticker 9988. Eight is an auspicious number in Chinese culture.Hong Kong is no stranger to Alibaba as the tech giant once listed its business-to-business platform in the city in 2007. Shares of Alibaba.com tripled at debut on overwhelmingly strong investor demand for technology companies. The enthusiasm didn’t last and the stock plunged later. Alibaba took the platform private in 2012 at HK$13.5 each, which was the IPO offer price five years earlier.In 2014, Alibaba listed its shares in New York in the biggest ever initial public offering. After losing some of China’s brightest technology stars, Hong Kong started looking into allowing dual-class shares. Last year, the city’s bourse introduced new rules to accommodate the structure. The efforts to lure Alibaba went all the way to the top of Hong Kong’s government, with Chief Executive Carrie Lam exhorting billionaire Jack Ma to consider a share sale in the financial hub.A listing in Hong Kong brings Alibaba closer to its home market as well as Chinese investors. The company could become eligible for trading via the two links with China, which allows investors on the other side of the border to buy and sell shares listed in the former British colony.Read: Alibaba Won’t Join Hong Kong’s Stock Benchmark Any Time SoonAlibaba is “hopeful to be eligible in the future,” its head of investor relations Rob Lin said on an investor call last week.“The key element as to why this listing here in Hong Kong could be an advantage is the stock connect,” Ken Wong, a Hong Kong-based Asian equity portfolio specialist at Eastspring Investments Hong Kong Ltd., said on Bloomberg Television. “Once Alibaba’s in the stock connect, you have a lot of mainland Chinese investors who can finally start to invest in Alibaba.”Credit Suisse Group AG and China International Capital Corp. are the joint sponsors of the share sale. Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley are also arranging the deal.\--With assistance from Julia Fioretti.To contact the reporters on this story: Carol Zhong in Hong Kong at firstname.lastname@example.org;Lulu Yilun Chen in Hong Kong at email@example.com;Crystal Tse in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- DoorDash Inc., the unprofitable food delivery company, is weighing a direct stock listing for its planned entry into the public markets as soon as next year, rather than holding an initial public offering, according to two people familiar with the matter.By listing directly, DoorDash would be able to go public without the scrutiny that comes with an investor roadshow but wouldn’t raise money by issuing new shares. The move is still desirable because it lets existing shareholders—some of whom have been sitting on equity for years—sell their stock.DoorDash has yet to file with U.S. regulators for its listing and remains undecided on the path to take, said the people, who asked not to be identified discussing private information. The direct listing option is appealing to DoorDash executives because they think the company can get money through other means, one of the people said.Just last week, DoorDash got $100 million from investment accounts advised by T. Rowe Price Group Inc. The company has also talked with banks about arranging a credit facility of about $400 million. JPMorgan Chase & Co. is leading that potential financing and is also advising DoorDash on the public stock sale, people with knowledge of the matter have said. Spokeswomen for those companies declined to comment.DoorDash has been in talks with Goldman Sachs Group Inc. about working with the bank on a direct listing, according to two people familiar with the matter. Goldman Sachs declined to comment.Direct listings are rare but have become a popular topic of conversation among tech companies in the last year. They’re a byproduct of an abundance in capital available in the private markets, creating less of a need to raise money through an IPO. Spotify Technology SA was the first high-profile company to go through the process last year, and Slack Technologies Inc. followed this year. Airbnb Inc. is also leaning toward a direct listing and would be the largest tech company to take the unconventional approach.Meanwhile, the IPO process has been particularly unforgiving this year to deeply unprofitable companies, like Lyft Inc. and Uber Technologies Inc. WeWork was forced to abandon its IPO and take a bailout from its largest investor, SoftBank Group Corp., when Wall Street rejected the company’s pitch on the roadshow.DoorDash has raised about $2 billion from investors, including SoftBank and Sequoia Capital, most recently at a valuation of $12.7 billion. It uses gig-economy labor and faces similar risks as Lyft and Uber. DoorDash was embroiled in a controversy over drivers’ tips this year, which it addressed partially by increasing pay to workers. However, the issue lingers. The attorney general in Washington, D.C., sued DoorDash on Tuesday, alleging the company pocketed customers’ tips to reduce labor costs.Critics have also said DoorDash fortified a lead in the U.S. by spending cash at an unsustainable pace. Tony Xu, DoorDash’s chief executive officer, told Bloomberg this month that the business is designed to eventually be profitable. “We have a lot of money in the bank,” Xu said. “We are in no rush to spend it all.”Venture capitalists in Silicon Valley organized a summit last month to tout the benefits of direct listings. At the closed-door event, Benchmark’s Bill Gurley, Sequoia Capital’s Michael Moritz and other VCs argued against IPOs. Xu was among the executives in attendance.(Updates with details in the fifth paragraph. )\--With assistance from Crystal Tse, Michelle Davis and Michael Hytha.To contact the author of this story: Candy Cheng in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Anne VanderMey at email@example.com, Mark MilianFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
High-dividend stocks can be misleading. Here's a smart way to find stable stocks with high dividends. Watch these 14 dividend payers on IBD's radar.
Locally based Globalscape Inc. has secured a huge source of credit, among multiple moves it's made following a recent positive quarterly earnings report that continued its streak of favorable results. Globalscape (AMEX: GSB), a publicly traded secure data transfer company, entered into a five-year, $55 million senior secured credit facility with a syndicate of banks led by JPMorgan, according to a news release. The new credit facility provides for a term loan facility in the principal amount of $50 million and revolving commitments in an aggregate principal amount of $5 million with JPMorgan (NYSE: JPM) and East West Bank.
(Bloomberg Opinion) -- Interest rates are not only low but, adjusted for inflation, the yield on the benchmark 10-year Treasury note is zero. This has been the case for some years now, and will likely continue in a world of chronic excess capacity and surplus savings that has been generated by globalization.Yet individual investors and financial institutions are far from recognizing and adapting to this reality. Instead, they’re taking bigger risks in their search for yield. The result may be severe financial problems, especially if the recession I believe the economy is nearing unfolds. Examples of extreme risk taking and high financial leverage are legion. The Federal Reserve agrees; in a twice-yearly report meant to flag stability threats on the central bank’s radar, it said that continuing low interest rates could dent U.S. bank profits and push bankers into riskier behavior that might threaten the nation’s financial stability.State pension funds have cut their expected returns, but their 7.25% average forecast is likely to be proven a fantasy. Funds with more than $1 billion in assets had a median return of 6.8% in the year ending June 30, the lowest since 2016. They’ll need to do better. Large public funds had $4.4 trillion in assets as of June 30, or $4.2 trillion less than they need to pay promised future benefits, according to the Federal Reserve. And the situation is deteriorating, with liabilities up 64% since 2007 but assets gaining only 30%, according to the Pew Charitable Trust.If investments fall short, public pension funds have three unsavory choices. The first is to ask state legislatures for more money, but most of them are looking to cut, not add, expenses. The second is to curtail retiree benefits, which is next to impossible politically. Besides, many pension benefits are set by law.Third, they can move out on the risk curve to achieve higher returns, and that’s what they’ve done for the most part. Pension funds in the U.S., U.K., Japan, Australia, Canada, Switzerland and the Netherlands allocated 26% of their assets in 2018 to alternative and riskier investments, up from 19% in 2008, according to Willis Towers. These include real estate, venture capital, private equity and even greenhouses and bonds rated barely above junk.As long as the Fed keeps short-term rates above zero, the difference between what banks pay on deposits and other sources of funding and what they earn on longer-term loans will remain compressed and could well be reduced further. This, of course, is just another manifestation of a flat yield curve.Net interest income at three large banks—JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. —fell 2% in the third quarter from the second, and the average net interest margin shrank from 2.66% to 2.54%. And they didn’t make it up on volume. Total loans were essentially flat, which is not that surprising as large banks are shifting to portfolio investments, namely Treasuries, which rose 5.1% in the third quarter compared with a 0.9% increase in loans outstanding.With the persistent constriction on interest rate margins, banks will no doubt also emphasize fee income in the years ahead. Ironically, security brokers and advisors are moving in exactly the opposite direction, potentially to their peril. And with the race to zero brokerage commissions, firms such as Charles Schwab Corp, Fidelity Investments, Vanguard Group Inc. and Robinhood Markets Inc. are shifting from brokerage to banking. Schwab’s commission revenue has declined to 7% of annual revenue from 14% in 2014, while it’s 11% for E*Trade Financial Corp. and 15% for TD Ameritrade Holding Corp.Those three firms held a total of $6 trillion in client money at the end of the third quarter, compared with $2.9 trillion at Bank of America Corp.’s wealth-management business, and they profit from spread lending—investing low-cost, often free client money at higher interest rates. They are betting their customers will remain insensitive to returns on their money and that free commissions will induce investors to leave these excess funds with them. Still, average money-market yields are much higher at 1.8% and in the first half of this year, and Schwab clients moved $58 billion into money-market accounts and other higher-yield alternatives. Also, Robinhood Markets just announced a 2% return for uninvested customer cash through partner banks.Savers are slowly but reluctantly adapting to zero real interest rates, and one of the arguments in favor of stocks is that they offer better total returns. The average dividend yield on the S&P 500 Index is 1.9%, just above the interest rate on the 10-year Treasury note. This has kept stocks very inflated with the cyclically-adjusted price-to-earnings ratio about 50% above its long-term average. In Europe, negative interest rates are inducing depositors to put currency in vaults and to save even more for retirement rather than spend. In Switzerland, individuals are fleeing to real estate, stoking fears of overbuilding.With robust demand, global sales of new government and private sector debt obligations are soaring, notably junk bonds. Some $4.6 trillion was issued through August, up 12% from a year earlier, according to S&P Global Ratings. Net corporate debt in relation to cash flow soared from 1.2 times in 2010 to 1.7 times at the end of 2018.Today’s risk-taking in search of high returns is not as eye-catching as was the subprime mortgage bonanza, but it’s much more widespread and, therefore, ominous. My advice to individual and institutional investors: reduce your leverage and risk and adapt to an era of chronic flat real interest rates.To contact the author of this story: Gary Shilling at firstname.lastname@example.orgTo contact the editor responsible for this story: Robert Burgess at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.A. Gary Shilling is president of A. Gary Shilling & Co., a New Jersey consultancy, a Registered Investment Advisor and author of “The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation.” Some portfolios he manages invest in currencies and commodities. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Needham Bank would be the third bank in two years to open a location in Roxbury. Prior to that, the neighborhood had gone more than two decades without a new bank branch.
Presidential candidates are promising to help ease the burden of student loan debt but David Klein, the CEO of CommonBond says refinancing student debt now may help millions struggling to get a break.
The dual tailwinds of renewed trade optimism and stronger-than-expected corporate earnings drove the rally. The bullishness was further fueled by rate cuts by the Federal Reserve.
In the JPMorgan funds stable, Intrepid Growth Fund outperforms by finding quality stocks that are underappreciated and attractively priced.
A look at how portfolio assets can be periodically rebalanced (from better-performing asset classes to underperformers, for example) and occasionally sold to supplement income for retirees.