|Bid||90.83 x 1800|
|Ask||91.05 x 800|
|Day's Range||90.55 - 94.84|
|52 Week Range||76.91 - 141.10|
|Beta (5Y Monthly)||1.18|
|PE Ratio (TTM)||8.50|
|Earnings Date||Apr 13, 2020|
|Forward Dividend & Yield||3.60 (3.67%)|
|Ex-Dividend Date||Apr 02, 2020|
|1y Target Est||128.27|
(Bloomberg) -- In a deal that’s currently at risk of falling apart, a handful of investors would be the main beneficiaries of SoftBank Group Corp.’s plan to buy $3 billion of WeWork stock, according to a person familiar with the matter.As part of the agreement, scheduled to be completed next week, $2.1 billion in proceeds from stock purchases is slated go to five investors, according to the person, who asked not to be identified discussing private information. Benchmark, the venture capital firm that backed WeWork from its earliest days, is seeking to sell up to $600 million worth of shares, said the person, who asked not to be identified discussing private information. That figure puts Benchmark behind only Adam Neumann, WeWork’s co-founder and former chief executive officer, who has the right to sell as much as $970 million in the deal.Representatives for Benchmark and Neumann didn’t immediately respond to requests for comment. WeWork declined to comment.SoftBank, the biggest investor of WeWork parent We Co., has threatened to withdraw from the deal, the proceeds of which would not go to WeWork itself, but rather to its institutional investors and other shareholders. Still, if the transaction falls apart, it will have negative repercussions for the company, which would not receive $1.1 billion in debt from SoftBank.Besides Neumann and Benchmark, other top sellers in the deal include WeWork investor T. Rowe Price Group Inc., former WeWork Chief Financial Officer Ariel Tiger, who served in the Israeli military with Neumann and another venture capital firm, the person said. A spokesman for T. Rowe Price declined to comment. Tiger did not immediately respond to a request for comment.“SoftBank remains fully committed to WeWork’s success as its largest shareholder and is proud of the tremendous progress the company has made over the past six months,” a spokesman for SoftBank said in a statement.SoftBank’s stock buyback was scheduled to close April 1, but the Japanese conglomerate has said that it is not obligated to go through with the purchase. SoftBank has said under the terms of its original agreement, it could withdraw from the offer if certain conditions weren’t met, and that unresolved government investigations into WeWork qualify. Two board members disputed that assertion.SoftBank agreed to the rescue package for WeWork in October, shortly after the company’s plans for an initial public offering dramatically unraveled. SoftBank said it has provided $13.4 billion to WeWork, including $5 billion in working capital since October, and is honoring its obligations as laid out in the agreement.A special committee of WeWork board members has said that it is weighing options including legal action if SoftBank does not follow through with the purchase. That committee has two members: Benchmark’s Bruce Dunlevie and independent director Lew Frankfort. A representative for the committee declined to comment. Other investors slated to sell a large amount of WeWork stock to SoftBank in the deal include JPMorgan Chase & Co., Goldman Sachs Group Inc., Jefferies and Fidelity Investments, according to two people with knowledge of the matter. Spokespeople for JPMorgan and Fidelity declined to comment. Representatives for the other investors did not immediately respond to requests for comment. Less than 10% of the proceeds from the stock buyback would go to WeWork employees, SoftBank has said. Many employees repriced their stock options and thus aren’t part of this stage of the tender offer.For 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.
JPMorgan Chase may be known for its fortress balance sheet, but some on Wall Street don’t see the bank recovering as quickly as peers following an expected recession.
DOW UPDATE The Dow Jones Industrial Average is slumping Friday afternoon with shares of Boeing and Chevron delivering the stiffest headwinds for the blue-chip average. The Dow (DJIA) was most recently trading 473 points (2.
DOW UPDATE Shares of Boeing and Chevron are trading lower Friday afternoon, leading the Dow Jones Industrial Average slump. Shares of Boeing (BA) and Chevron (CVX) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 469 points lower (-2.
DOW UPDATE The Dow Jones Industrial Average is slumping Friday afternoon with shares of Boeing and JPMorgan Chase seeing the biggest drops for the blue-chip average. Shares of Boeing (BA) and JPMorgan Chase (JPM) are contributing to the index's intraday decline, as the Dow (DJIA) was most recently trading 530 points, or 2.
DOW UPDATE Behind declines for shares of Boeing and JPMorgan Chase, the Dow Jones Industrial Average is slumping Friday afternoon. The Dow (DJIA) was most recently trading 550 points, or 2.4%, lower, as shares of Boeing (BA) and JPMorgan Chase (JPM) are contributing to the blue-chip gauge's intraday decline.
DOW UPDATE Shares of Boeing and JPMorgan Chase are seeing declines Friday afternoon, leading the Dow Jones Industrial Average slump. Shares of Boeing (BA) and JPMorgan Chase (JPM) have contributed to the index's intraday decline, as the Dow (DJIA) was most recently trading 731 points, or 3.
DOW UPDATE Shares of Boeing and Dow Inc. are retreating Friday morning, leading the Dow Jones Industrial Average slump. Shares of Boeing (BA) and Dow Inc. (DOW) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 795 points (3.
DOW UPDATE Shares of Boeing and Walt Disney are trading lower Friday morning, sending the Dow Jones Industrial Average into a slump. Shares of Boeing (BA) and Walt Disney (DIS) are contributing to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 867 points, or 3.
While JPMorgan Chase & Co's (NYSE: JPM) revenue power is likely to remain best-in-class, the company is rate-sensitive and the Federal Reserve's rate cuts will hurt performance even if the balance sheet continues to grow, according to BofA Securities.The JPMorgan Analyst Erika Najarian downgraded JPMorgan from Buy to Neutral, while reducing the price target from $147 to $100.The JPMorgan Thesis Even in a recession, JPMorgan could generate fee growth of 1% in 2020 and 5% in 2021, Najarian said in the downgrade note. The Corporate & Investment Bank unit seems poised to continue gaining market share, while the company's trading revenue may grow due to market volatility and wider spreads.The analyst said, however, that the 150 basis points reduction in the fed funs rate will hurt JPMorgan. She lowered the earnings estimates for 2020 and 2021 by 24% to $8.08 per share and 34% to $7.55 per share, respectively, saying that the reduction reflects a possible U.S. recession.Credit performance in the banking industry is likely to be the most challenged for unsecured consumer loans and the commercial & industrial segment. When the economy recovers, peers may see their stocks bounce back more than JPMorgan Chase, given its already premium valuation, Najarian mentioned.JPM Price Action Shares of JPMorgan declined 5.5% to $92.43 at time of publication Friday.Related Links:United Airlines CEO: 'Time Is Running Out' For Federal AidCompanies Suspend Dividends, Buybacks As Pandemic Weakens MarketPhoto credit: Joe Mabel, WikimediaLatest Ratings for JPM DateFirmActionFromTo Mar 2020Morgan StanleyMaintainsOverweight Mar 2020CitigroupMaintainsNeutral Mar 2020DZ BankUpgradesHoldBuy View More Analyst Ratings for JPM View the Latest Analyst Ratings See more from Benzinga * Comcast Analyst Sees Macro Headwinds, But Says Broadband Business A Plus * BofA Upgrades Micron Technology On Rising Datacenter Chip Demand * Analyst Says Grocery Outlet Holding Is A Beneficiary Amid Coronavirus Outbreak(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The firm offers customized wealth management strategies across five areas: investing, spending, borrowing, managing taxes and costs, and protecting legacies. Keating says she’s most proud of helping produce “better financial outcomes” for clients ranging from pensions to family offices to individuals.
The speculation about who will succeed (JPM)Chase CEO Jamie Dimon heated up recently after he underwent emergency heart surgery. A 20-year veteran of JPMorgan, Lake made her mark as the bank’s chief financial officer from 2013 to 2019. Lake took on a new role in September as CEO of consumer lending, overseeing the bank’s big credit-card business as well as home lending and auto finance.
Shares of all 30 Dow Jones Industrial Average components are trading lower Friday, as the Dow is in danger of snapping a historic three-day rally in which it rose 3,960 points, or 21.3%. Dow futures sank 573 points, or 2.6%, ahead of the open. The biggest Dow loser Friday was J.P. Morgan Chase & Co.'s stock , which shed 4.3% after running up 24.2% the past three days. Among the most-active components, shares of Boeing Co. dropped 2.2%, after rocketing 90% over the past four days, and Apple Inc.'s stock shed 2.0% after climbing 15.2% the past three days.
This current bear market is similar to 1987 in terms of the speed of the decline. When it bottoms has yet to be determined, but one thing is for certain, it will find a bottom. In fact, that is exactly what the market is doing, discovering price and searching for a bottom, asserts Kelley Wright, income investing expert and editor of Investment Quality Trends.
(Bloomberg) -- Tightening credit for leveraged buyouts is beginning to impact even one of Europe’s most hotly contested auction processes.The sale of Air Liquide SA’s German disinfectants unit Schuelke was dealt with a blow when JPMorgan Chase & Co., the main bank offering financing to bidders, reduced the amount of leverage it is willing to provide, people familiar with the matter said.The change prompted at least one private-equity suitor to drop out of the bidding before the latest round of offers due this week, according to the people, who asked not to be identified because the information is private. The lower amount of debt funding -- combined with rising price expectations -- meant an investment would be less profitable, the people said.Shares of Air Liquide fell as much as 2.6% in early Friday trading. They were down 1.6% at 9:20 a.m. in Paris, giving the company a market value of about 51 billion euros ($57 billion), while the benchmark CAC 40 Index dropped 2.1%.European buyout firms Ardian, EQT AB and PAI Partners submitted non-binding offers this week and have been invited to join the next round, the people said. While Air Liquide has been seeking a valuation of as much as 1 billion euros, Schuelke could fetch more than initially expected after demand for its products was boosted by the coronavirus epidemic, according to the people.Representatives for Air Liquide, JPMorgan and the bidders declined to comment.Schuelke supplies industrials disinfectants used in cleaning products, as well as as antibacterial hand gels and additives for the cosmetic and food industries. JPMorgan is advising Air Liquide on the sale and offering so-called staple financing to bidders, the people said.Lenders are becoming increasingly wary of extending credit for acquisitions as market volatility surges. Already, banks exposed to the multibillion-dollar financing for the buyout of Thyssenkrupp AG’s elevator unit risk facing losses on their exposure to the deal.In recent weeks, Bank of America Corp. pulled out of financing a private-equity purchase of Huntsworth Plc, which is the biggest take-private of a U.K. company this year, Bloomberg News has reported.(Updates with share movement in fourth paragraph)For 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) -- WeDoctor, one of China’s biggest online health-care startups, has selected JPMorgan Chase & Co., Credit Suisse Group AG and CMB International to lead a Hong Kong initial public offering, people familiar with the deal said.The startup could become one of the largest technology companies to brave volatile public markets in 2020. WeDoctor envisions raising at least $500 million and as much as $1 billion, one of the people said, asking to remain anonymous discussing a private deal. The details could change given that deliberations are ongoing, the people said. More banks may be invited to join the deal in future, one person said.WeDoctor, backed by Tencent Holdings Ltd., joins a growing contingent of tech giants hoping to revolutionize a traditional health-care industry after the coronavirus pandemic underscored its shortcomings. The company is on the prowl for expansion capital and last month laid the foundation for a public debut by hiring finance overseer John Cai, formerly chief executive for AIA Group Ltd.’s operations in markets including China, Malaysia and Vietnam.The startup, whose business spans insurance policies and medical supplies to online appointment-booking and clinics, was last valued at around $5.5 billion. It’s said to be targeting a float in late 2020 or 2021.WeDoctor, JPMorgan and Credit Suisse representatives declined to comment. A CMB representative didn’t immediately respond to a request for comment. IFR first reported on the selection.Read more: Coronavirus Shows Scale of Task to Fix China’s Flawed HealthcareThe Covid-19 pandemic has brought inadequacies in the country’s medical care system into stark relief, exposing an over-reliance on big hospitals in major cities and flaws in how the state responds to emergencies, even with a mechanism built after the SARS outbreak in 2003. The startup has said it launched an online platform dedicated to treating coronavirus cases on Jan. 23 and has helped facilitate 1.4 million consultations with doctors in the month since it began.Longer term, startups like WeDoctor could play a pivotal role in a nationwide effort to wrench its ailing healthcare sector into the modern age. Beijing envisions a 16 trillion yuan ($2.3 trillion) healthcare industry by 2030 and, in a blueprint laid out in 2016 called “Healthy China 2030,” vowed to improve public health emergency preparedness and response capabilities to match those of developed countries.Read more: A $6 Billion China Startup Wants to Be the Amazon of Health CareFounded by artificial intelligence maven Jerry Liao Jieyuan in 2010, WeDoctor aims to compete with both fellow startups and major corporations such as Alibaba Group Holding Ltd. in the burgeoning field of online healthcare.It needs capital to expand. It has yet to decide whether to include its cloud business -- where sensitive patient information and government data reside -- in the envisioned Hong Kong public offering, people familiar with the matter have said.WeDoctor counts China Development Bank Capital, Shanghai Fosun Pharmaceutical Group Co. and AIA as backers. The company said in a statement it connects 360,000 doctors with some 210 million registered users.For 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.
The Covid-19 crisis is making it possible to print get-out-of-jail-free cards for Wall Streeters who have been facing the collapse of huge leveraged finance contraptions. Without them, we would have had a hard time keeping the forex and repo markets functioning during this stressful time.
(Bloomberg) -- Some of the biggest fund managers see the start of a crushing wave of credit downgrades and defaults that threatens to overwhelm heroic measures by the Federal Reserve.JPMorgan Asset Management has pared back exposure to high-yield in its Global Bond Opportunities fund to the lowest levels since its inception some seven years ago. BlueBay Asset Management says the biggest risk premiums in a decade built into the market may still not be enough while the global downturn takes hold.“The reality is it’s probably pricing in the sort of defaults you’d expect in a recession but spreads can go wider and overshoot like we saw in the financial crisis,” Iain Stealey, JPMorgan Asset’s international CIO of fixed income, said in an interview. The fund, which had $5.7 billion at the end of February, is managed by Stealey and Bob Michele.The assumption is junk-rated issuers will struggle to honor debts and that a growing number of high-grade companies will soon join their ranks.Ford Motor Co. Wednesday became the largest fallen angel to date when it lost its investment-grade status from S&P Global Ratings. Marks & Spencer Plc, a retailer ubiquitous on British high streets, was similarly relegated on Thursday.Read more: Ford Becomes Largest Fallen Angel After S&P’s Cut to JunkThe Fed’s life-buoy to keep companies afloat during the spreading pandemic -- the most far-reaching quantitative program it’s ever embarked upon -- doesn’t directly reach high-yield issuers. That’s allowed some of the widest gulfs between the haves and have-nots in corporate credit in a decade to persist.World of DistressJPMorgan turned bearish on junk bonds in June of last year, citing a fragile economic cycle and yields that didn’t pay enough for the risk of default.Michele said in an interview with Bloomberg TV at the time he was ready to sell when spreads hit 370 basis points.Now, the average spread in that index is above 1,000 basis points, plunging America’s junk bond universe into distressed territory, according to a common rule of thumb.And risk premiums may rise even more as the coronavirus spurs an unprecedented collapse in consumer demand and investment.“In my view, spreads at these distressed levels reflect the huge uncertainty around the depth and duration of the recession and consequent rise in high yield defaults as well as a meaningful liquidity premium,” said David Riley, chief investment strategist at BlueBay Asset Management in London. “Until investors are more confident in sizing the quantum of the jump in credit risk from the crisis, cheap assets can get cheaper.”(Adds context on JPMorgan’s bearish call.)For 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.
With encouragement from the Federal Reserve, U.S. banks have turned to a long-shunned lending facility known as the discount window to borrow $50.8 billion, according to data the central bank released on Thursday. Borrowing at the discount window has long carried a stigma because of speculation about which banks were using it and whether they on verge of dumping assets at fire sale prices. The Fed changed its disclosure practices last week to help curb such speculation.
JPMorgan Chase & Co. (NYSE: JPM) is moving forward with its retail expansion plans here — at least for now. Banks are allowed to stay open, but many have opted to temporarily shutter some branches or trim hours of operation. New York-based JPMorgan Chase is in the middle of a national branch expansion — one that will bring 20 branches to the Charlotte area in the next two to three years.
Can you wash money that you think has been contaminated with coronavirus? Should you? How can you deposit or withdraw money right now?
(Bloomberg) -- Revenue is swelling in a key part of JPMorgan Chase & Co.’s trading division as its teams stay engaged through violent price swings that have prompted some market players to pull back.The bank’s equity derivatives traders have generated roughly $1.5 billion in revenue so far this year, according to a person with knowledge of the situation who asked not to be identified because the numbers are confidential. That’s almost what JPMorgan reported from all equity markets businesses in last year’s first quarter -- and at least twice what that derivatives desk usually earns, people familiar with the bank’s performance said.It’s a snapshot of the way the coronavirus crisis is shifting fortunes on Wall Street. It also shows the intensity of the pace for employees who keep reporting to offices to navigate the turmoil. Some members of the derivatives desk could still be seen sitting closely together inside the bank’s Manhattan offices late last week, despite pleas from public health officials and the bank’s own leaders to help stop the spread of the deadly virus by keeping distance.A bank spokesman declined to comment on the unit’s earnings. The company’s technicians have been working as fast as possible to move hardwired desks farther apart to ensure safety, a person with knowledge of the matter said.“We have taken many precautions over the past several weeks to spread traders out within floors and across buildings, and from what we’ve seen they are adhering to social distancing guidance,” the biggest U.S. bank said in a statement.The revenue boon from equity derivatives at JPMorgan and other Wall Street firms will help offset pain elsewhere. Bank stocks have plunged on expectations that low rates will crimp lending margins, plunging markets will weigh on some trading groups and wealth-management fees, and spiking unemployment will boost loan losses. JPMorgan’s shares jumped 5.2% at 10:05 a.m. in New York, but are still down 31% this year.JPMorgan controls the largest share of the market for equity derivatives, according to the most recent Coalition data from 2018. This year’s windfall isn’t just a result of the market’s elevated volume, according to people with knowledge of the matter.During normal times, high-frequency traders and hedge funds play a role in facilitating transactions, but record-setting price swings have strained the ability of algorithms to anticipate moves. That’s forced some of those firms to limit their transactions and leave market share for banks.By early March, JPMorgan and Citigroup Inc. had together generated about $500 million in additional revenue from equity derivatives, compared with the same period a year earlier, people familiar with the figures said at the time. In the days since, JPMorgan’s boost -- then estimated at about $300 million -- has soared further.Like rivals across Wall Street, JPMorgan has sent much of its global workforce home to help stem the spread of the coronavirus. But not all employees are able to work remotely, because they rely on tools and high-speed connections available only in offices. In early March, JPMorgan split its sales and trading staff into groups, leaving some at the bank’s Madison Avenue tower and assigning others to work remotely or from back-up trading floors in New Jersey and Brooklyn.Last week, New York Governor Andrew Cuomo ordered all workers in nonessential businesses to stay home. But he exempted some of the workers who keep Wall Street running and making money.(Adds stock performance in 6th paragraph.)For 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.
Despite the current economic slowdown, strong fundamentals of JPMorgan (JPM) and Citigroup (C) suggest that the companies are well-poised for the future.