|Bid||235.16 x 800|
|Ask||235.04 x 1800|
|Day's Range||231.84 - 236.86|
|52 Week Range||129.26 - 236.86|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||34.45|
|Earnings Date||Feb 13, 2020 - Feb 17, 2020|
|Forward Dividend & Yield||2.00 (0.85%)|
|1y Target Est||227.36|
(Bloomberg) -- Oil settled above $60 a barrel for the first time since missile strikes on Saudi Arabia sparked a record price surge three months ago.Futures closed 1.5% higher in New York on Friday, buoyed by a partial truce in the U.S.-China trade war that has imperiled demand all year. Chinese officials said the countries agreed to hold off on a new round of tariffs set to go into effect in a matter of days. The bullish momentum was undermined when U.S. President Donald Trump tweeted that existing levies will remain in effect.“The market has just priced in this outcome to a certain extent already,” Daniel Ghali, a TD Securities commodity strategist, said by phone. “The hope is that a trade deal will translate into more demand.”Until Friday’s session, crude was poised to end the week little changed after surging more than 7% last week on the strength of a surprise OPEC supply cut. Money managers boosted bullish bets on crude by the most in more than three years in the days before the trade deal was struck.See also: Commodities Enjoy Best Week in 5 Months as Trade Deal Struck“Risk appetite among financial investors is now likely to remain high thanks to the deal between the U.S. and China,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. Yet “the oil market risks facing a massive oversupply and a pronounced inventory build, at least in the first half of the year.”West Texas Intermediate for January delivery rose 89 cents to settle at $60.07 a barrel on the New York Mercantile Exchange. Brent for February settlement advanced $1.02 to $65.22 on the London-based ICE Futures Europe Exchange. The global benchmark settled at a $5.24 premium to WTI for the same month.(An earlier version corrected the day in second paragraph)\--With assistance from Catherine Ngai.To contact the reporter on this story: Robert Tuttle in Calgary at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody’s Analytics has won the Data Provider of the Year category at the 2019 Regulation Asia Awards for Excellence.
(Bloomberg) -- Argentina is willing but unable to pay its debts under current conditions and needs the economy to grow again before meeting its obligations, President Alberto Fernandez said in his first speech after being sworn in.The government will seek “constructive and cooperative” dialogue with the International Monetary Fund and bondholders to address the debt load, Fernandez said, without giving additional details. The outgoing administration of Mauricio Macri left Argentina in “virtual default,” he said.Fernandez, 60, read off a list of challenging economic indicators that he’s inheriting including the biggest debt load as a percentage of gross domestic product since 2004, when the country was in default and he was cabinet chief. Investors are awaiting details from incoming Economy Minister Martin Guzman on his plans to confront the debt crisis which may include proposals to extend maturities.“The country is indebted, cloaked by an instability that discards the possibility of development and leaves it hostage to foreign financial markets,” he said. “Argentina should grow with a project of its own and implemented by Argentines, not dictated by foreigners with old recipes that always fail.”Fernandez’s speech was “constructive,” said Shamaila Khan, the New York-based director of emerging-market debt at AllianceBernstein. “They obviously didn’t have much policy details. But I don’t think we were expecting that from an inauguration speech.”IMF Managing Director Kristalina Georgieva congratulated Fernandez on his inauguration and said they have the same goals.“We fully share your objectives of pursuing policies that reduce poverty and foster sustainable growth,” Georgieva said in a tweet Tuesday afternoon. “The IMF remains committed to assisting your government in this endeavor.”Debt ChallengeMacri, who reinserted Argentina into global bond markets after taking office in 2015 but later failed to control inflation and kick start growth, signed a record $56 billion IMF credit line last year. The implied probability of non-payment over five years with credit-default trading stands at about 95%.Macri, who was forced to reimpose capital controls in September after markets sank due to a primary election that showed Fernandez set to win the presidency, had also announced plans to “reprofile” a total of $101 billion in debt between payments due to private creditors and the IMF.Moody’s Investors Service Inc. said restructuring Argentina’s medium- and long-term debt will be a challenge for Fernandez’s administration, and that the future of the nation’s credit ratings will depend on “losses imposed on bondholders as well as the long-term sustainability of the government’s yet-to-be-defined economic program.”Fernandez said that the 2020 budget can only be drawn up once the debt negotiation has been completed, as well as some economic and social measures haven been implemented to compensate the impact of the crisis in the economy.“Solving the problem of the unsustainable debt that Argentina has today is not a matter of winning a dispute. The country has the will to pay, but it lacks ability to do it,” Fernandez said.Argentina’s bonds traded lower Tuesday, with notes due in 2028 falling 0.5 cent to 40 cents on the dollar.(Updates with IMF response in sixth, seventh paragraphs)\--With assistance from Jorgelina do Rosario, Andres Guerra Luz, Scott Squires and Sydney Maki.To contact the reporter on this story: Patrick Gillespie in Buenos Aires at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Cancel at email@example.com, Walter BrandimarteFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Texas Capital's (TCBI) high exposure to commercial real estate loans and low capitalization compared to its peers keep Moody's apprehensive about its future performance.
For the last 15 years Mateusz has lived, studied and worked in the UK, one of the many Poles who left their country in the early 2000s in search of opportunities abroad. Mateusz, who studied in Sheffield before landing a job as a public sector economist, was part of a huge wave of largely young Poles who took advantage of the freedom to work and live around Europe after Poland joined the EU in 2004. In 2018 that number fell for the first time in eight years — by 85,000, according to Poland’s statistics agency.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterSouth Africa’s state power company intensified rolling blackouts to a record, signaling a deepening crisis at the debt-ridden utility and raising the risk of a second recession in as many years.Eskom Holdings SOC Ltd. said on Monday it will move to Stage 6 load-shedding from 6 p.m. local time, meaning it will cut 6,000 megawatts from the national grid, after a technical problem at the giant new Medupi Power Station curbed supply. That’s the biggest cut yet. The utility downgraded the status to Stage 4 as of 10 p.m.The utility is curbing power for a fifth straight day as it struggles with breakdowns at plants and heavy rains that have soaked coal used as fuel. The blackouts have a debilitating effect on the economy by curtailing mining and factory output and causing crippling traffic delays.“It does mean that the economy is heading for a recession,” Iraj Abedian, chief executive officer of Pan-African Investments and Research Services, said by phone from Johannesburg. “There’s no way that hot on the heels of the previous quarter’s negative growth in GDP with this type of humongous and material disruption to the continuity of business that the economy can register positive growth.”South Africa’s statistics office announced last week that gross domestic product shrank an annualized 0.6% in the three months through September. Power cuts also dented the economy in the first quarter, when it contracted the most in a decade, led by a drop in manufacturing, mining and agriculture outputEskom’s announcement marked the end of a torrid day on Twitter for South African President Cyril Ramaphosa. His weekly letter to the nation highlighting how Medupi is a fitting symbol of the importance of state-owned companies was derided on the social-media site.At 10 p.m. local time he issued a statement commiserating with his countrymen.“The ongoing load-shedding is devastating for the country. It is causing our economy great harm and disrupting the lives of citizens,” he said. “The anger and frustration that this load-shedding has caused is understandable.”Municipalities were also caught off guard, with Johannesburg electricity distributor City Power saying it has no load-shedding schedule for Stage 6.The one thing that could prevent GDP from dipping as deep as it did in the first quarter is the fact that many businesses are winding down as the Christmas holidays approach.Growth would have to rebound about 0.8% in the fourth quarter to reach the government’s forecast of a 0.5% expansion in the three-month period, said Gina Schoeman, an economist at Citigroup South Africa. The economy is unlikely to grow that much, she said.Weak economic growth could lead to a further deterioration in public finances and heighten the risk of South Africa losing its last investment-grade credit rating with Moody’s Investors Service. The company cut the outlook of the nation’s Baa3 assessments to negative last month.Load-shedding at Stage 6 is “no cause for alarm as the system is being effectively controlled,” Eskom said in a statement. “Eskom’s emergency response command centre and technical teams will be working through the night to restore units as soon as possible.”Mining companies say they are probably bearing the full brunt of load-shedding because they are among the heaviest users of electricity. Sibanye Gold Ltd., the country’s biggest private employer, has to reduce power use by 20% during load-shedding, said spokesman James Wellsted.“It’s concerning and if it continues for a long time it will impact on production and the entire industry, not to mention the economy,” he said before Stage 6 load-shedding was announced.(Updates with latest from Eskom in second paragraph)\--With assistance from Felix Njini, Antony Sguazzin and Paul Vecchiatto.To contact the reporters on this story: Prinesha Naidoo in Johannesburg at firstname.lastname@example.org;Rene Vollgraaff in Johannesburg at email@example.comTo contact the editors responsible for this story: Rene Vollgraaff at firstname.lastname@example.org, Paul Richardson, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Rand Paul should have seen this coming.The Republican senator from Kentucky last week unveiled the Higher Education Loan Repayment and Enhanced Retirement Act, or “Helper.” Most notably, it would allow individuals to withdraw up to $5,250 a year from their 401(k) plans or IRAs — tax- and penalty-free — to cover college costs or pay off student-loan debt. The thought process, I gather, is that it would create a stronger incentive to plow as much money as possible into 401(k) accounts, with their tax advantages and typical company-match policies. That, in turn, would serve to chip away at both the U.S. retirement crisis and burdensome student loans in one fell swoop. A win-win.Of course, the reaction to the plan was precisely the opposite. The immediate outcry (his tweet has the dreaded “ratio” of significantly more comments than likes) was that his bill actually presented a lose-lose situation, doing little more than “rob Peter to pay Paul.” Many young people weighed down with student loans may not have extra money sloshing around in retirement funds, meaning the proposal would largely benefit the highest-earning college graduates or parents.“We think it’s important for Republicans to have a solution to the problem,” Paul said, according to the Associated Press. “Democrats have come forward with something that we think is well-intended but fiscally irresponsible.”The Helper Act is not a broad “solution,” by any stretch of the word. It’s simply too narrowly focused to truly tackle the $1.5 trillion of student-loan debt outstanding, and its knock-on effects on everything from home ownership to birth rates. It also does nothing to address the underlying problem — namely, that college tuition and fees have increased by four times the pace of overall U.S. inflation over the past three decades.But it also doesn’t necessarily make these problems worse, either. Ultimately, it’s just small potatoes.To judge Paul’s proposal, it’s worth stepping back and looking at the Millennial balance sheet. Federal Reserve data show that more than 42% of the cohort has retirement accounts, which is the second-largest share of the past 30 years for Americans under age 35. The mean value rose to $32,500 as of 2016, which is nearly the most-funded on record. A 2019 Fidelity Investments study found millennial participation in 401(k)-type plans increased by 82% in the past 10 years. So it’s not quite accurate to say that young people as a whole aren’t saving for retirement.Of course, the flip side is that about 45% of Americans under 35 had education debt as of 2016, with a mean value of $33,000. Both of those are record highs. Those liability figures are nearly identical to the statistics on retirement assets.The question, then, is how much overlap exists between those who have retirement accounts and those who have student loans? A reasonable hypothesis would be that those with college debt are putting their extra income toward paying it down. The current fixed interest rates on federal loans are 4.53% for undergraduates and 6.08% for those attending graduate school, according to the Education Department. It usually makes financial sense to chip away at the principal amount rather than bank on market returns, though the calculus partly depends on the employer’s 401(k) match. Paul seems to be targeting parents of college students just as much with his plan; in that context, it makes more sense. Saving for a child’s education is a big deal for many families, and there are already tax-advantaged options like 529 plans. Helper would just layer on top of that the ability to use pre-tax money (529s are funded with after-tax contributions) that has been growing for decades thanks to a combination of market gains and employer matching.And yet, the press release announcing the bill used a somewhat strange example: “The plan would enable two parents and a child, for example, to put over $15,000 in pre-tax funds in one year toward tuition or loan repayment if each set aside the maximum. Currently, Americans can only pay for their student loans with after-tax money, placing an unnecessary constraint on their budget.”Maybe some families would do this. But it’s difficult to envision a scenario in which a large number of current college students are plucking $5,250 from their 401(k) plans or IRAs each year. I suppose it’s less of a reach to consider parents dipping into their pre-tax retirement accounts to help their adult child pay down loans, but that still feels like an awkward arrangement. It all feels like a piece of legislation trying to do too much. Around this time last year, I drew the same conclusion about a bill that would tie much-needed infrastructure spending to funding pension plans. Both are noble causes, but it’s just too cumbersome to fix interest rates on 40-year bonds, market them only to pension managers, and then mandate that they hold the debt for 10 years. Tackle one crisis at a time.The same goes for Paul’s student-loan plan. Why must the funds be funneled through a retirement account? Wouldn’t it be easier to make it so graduates can select a percentage of their pre-tax income to put toward student-loan payments, as they do now with 401(k) plans? Paul touts that many employers match 401(k) contributions, but they’re already starting to do the same with student loans, too.(1)And why stop at $5,250? Paul is all for lower taxes, and Moody’s Investors Service has said canceling student-loan debt, as Democratic presidential contenders Bernie Sanders and Elizabeth Warren have proposed, would “yield a tax-cut-like stimulus to economic activity.” Paying off student loans entirely with pre-tax dollars would also wind up putting more money in Americans’ pockets. To be sure, even these tweaks would benefit high earners the most. Mark Zandi, chief economist at Moody's Analytics, said he doesn’t expect Paul’s legislation to provide “any meaningful relief to distressed student loan borrowers.” And those ranks are growing: Defaulted student loans make up 35% of the $250 billion of debt the New York Fed considers “severely derogatory,” a larger share than mortgages, credit cards or auto loans. Something must be done to reverse this trend. Paul, to his credit, recognizes that, and this plan seems to be his attempt to steer the student-loan conversation away from “forgiveness or bust.”Unfortunately, the proposed legislation falls short in several ways. Most notably by doing nothing about digging into the root cause of the student-debt boom: college affordability. Paul’s plan would merely chop down a few branches.(1) Also part of Paul's plan: Employer-sponsored student loan and tuition plans would be tax-free, up to the same $5,250 limit annually.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
As a recent strike worsened its finances it sought more state support but finally met the limits of the government’s ability to protect it. The airline, once Africa’s biggest, said on Thursday that it plans to apply for business rescue, a local bankruptcy alternative to avert liquidation, “at the earliest opportunity”. Pravin Gordhan, the minister overseeing state companies, said the workout process was “the optimal mechanism to restore confidence in SAA”.
Bureau van Dijk, a Moody’s Analytics company, has won Best Solution in KYC Risk Assessment at the Regulation Asia Awards for Excellence.
Debt and deposit ratings of Credit Suisse (CS) and subsidiaries maintained by Moody's Corporation (MCO). However, the rating agency's outlook for the bank has been revised to "positive" from "stable".
On Tuesday, December 10, 2019 at 9:50 a.m. Eastern time, Mark Kaye, Senior Vice President and Chief Financial Officer of Moody’s Corporation , will speak at the Goldman Sachs Financial Services Conference in New York City.
Moody’s Analytics has won Solvency II Product of the Year at the Risk Markets Technology Awards 2020. We’ve earned all three wins on the strength of the Moody’s Analytics Solvency II solution, which helps insurers meet the calculation, data, and reporting requirements of Solvency II. Our comprehensive solution offers both standard-formula and internal-model approaches, allowing customers to automate previously manual calculation and reporting processes. “We’re honored to again be recognized in the Markets Technology Awards,” said Alexandre Merigay, Senior Director, Moody’s Analytics.
Gross domestic product fell at an annualised rate of 0.6 per cent in the three months to the end of September, the country’s official statistics authority said on Tuesday. Economists had forecast a rise of 0.1 per cent. The disappointing data weighed on the rand, which fell nearly 1 per cent against the US dollar. Under Mr Ramaphosa, South Africa, the continent’s second-biggest economy, has battled to exit a long period of sluggish growth that set in under Jacob Zuma, his predecessor.
(Bloomberg) -- Two Chinese companies failed to repay bonds worth a combined half a billion dollars on Monday, underscoring rising debt risks in the highly leveraged nation as the economy slows.Peking University Founder Group was unable to secure sufficient funding to repay a 270-day, 2 billion yuan ($285 million) bond, according to a company filing to the National Interbank Funding Center. Tunghsu Optoelectronic Technology Co. failed to deliver repayment on both interest and principal on a 1.7 billion yuan bond, according to Shanghai Clearing House.The quickening speed of bond defaults in China, especially among ailing private firms, highlights the growing financial strain triggered by the country’s worst economic slowdown in three decades and unabated trade tensions with the U.S. Last week, industrial firm Xiwang Group failed to pay a 1 billion yuan bond, missing a fresh repayment deadline on an already defaulted bond.“It’s getting harder for companies to get funding help when facing a debt crisis, unless they’re centrally-controlled companies and local SOEs that have great importance to the local economy,” said Yang Hao, fixed income analyst from Nanjing Securities Co. Founder’s missed payment on the bond, which has a 15 business-day grace period, is set to escalate concerns about the weak finances of debt-laden business arms of Chinese universities. The company and Tsinghua Unigroup Co., a top chipmaker run by arch-rival Tsinghua University, have been under the spotlight in recent months following a tumble in their dollar bonds.Founder Group’s debt-asset ratio rose to 82.74% as of the end of June from 81.94% at the end of last year, with net losses widening to 1.05 billion yuan from 867 million yuan in the same period.Tunghsu’s five-year paper was originally due December 2021 but investors recently opted to exercise a put option on it. The electronic display panel maker has now missed three onshore bond payments in the past month.Tunghsu failed early repayment on 1.97 billion yuan of principal and interest on a note on which bondholders similarly exercised a put option. It also was unable to make good on an interest payment on another local bond.Tunghsu Group’s financial woes are indicative of China’s sluggish manufacturing sector, which saw spending only barely above the record low level hit in September.It also highlights the payment struggles faced by the nation’s private firms, which are being hit harder by the economic slowdown. Their access to the banking sector remains limited as lenders focus more on politically influential state-owned companies.Private sector firms accounted for more than 80% of total defaults this year, according to Bloomberg-compiled data. Moody’s Investors Service said it expects 40 to 50 new, first-time defaulters in 2020, compared with 35 so far this year.The drama is far from ending. Shandong-based Xiwang is slated to repay interest Tuesday on a 1 billion yuan, 7-year bond due 2022. The corn oil and steel processor is among a cluster of private firms from the province where they are well known for vouching for each other’s debt.(Updates with Xiwang Group’s upcoming bond repayment obligations. Earlier version was corrected to show Founder missed payment, not defaulted)\--With assistance from Ina Zhou.To contact the reporters on this story: Shen Hong in Singapore at email@example.com;Tongjian Dong in Shanghai at firstname.lastname@example.org;Yuling Yang in Beijing at email@example.comTo contact the editor responsible for this story: Richard Frost at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.The bad news is getting worse for India’s economy and Prime Minister Narendra Modi is exhausting all options to stem the fallout.Data on Friday will likely show the economy had its weakest performance last quarter in more than six years, with the growth rate dropping below the symbolically important 5% mark. It’s a culmination of several months of downbeat figures, from plunging car sales to shrinking factory output and an export slump.Having left much of the stimulus burden to the central bank early this year, Modi is now taking bolder steps to reverse the decline. In recent months, the government has slashed corporate taxes, set up a special real-estate fund, merged banks and announced the biggest privatization drive in more than a decade. While authorities are committed to doing more, the policy room may be narrowing.Why in India, 6% Economic Growth Is Cause for Alarm: QuickTake“Domestic demand is displaying chronic weakness, with an apparent credit crunch afflicting wide swaths of the economy,” said Taimur Baig, chief economist at DBS Group Holdings Ltd. in Singapore. “Production and sales are under pressure, and public spending is running out of room due to poor tax collection.”Friday’s eagerly awaited data will probably show gross domestic product grew 4.5% in the July-September period from a year ago, according to the median estimate of 41 economists surveyed by Bloomberg. That would be the slowest pace since the March quarter of 2013.Shadow BanksIndia was the world’s fastest-growing economy until last year, posting quarterly growth rates of as high of 9.4% in 2016. A crisis among shadow banks -- a key source of funding for small businesses and consumers -- weak rural spending and a global slowdown have since conspired to bring down growth steadily.“The nature of the slowdown is broad-based, with consumption as well as investment oriented sectors feeling the pain,” said Indranil Pan, chief economist at IDFC First Bank Ltd. in Mumbai. “Continuing poor domestic sentiment along with the lack of any demand uptake globally would ensure that any recovery process would only be gradual.”The Reserve Bank of India has already cut interest rates by 135 basis points this year to the lowest since 2009, with more easing to come. The central bank is expected to look through the recent breach of its 4% medium-term inflation target and deliver another rate cut on Dec. 5.India’s Central Banker Das Faces a Tough Balancing Act (1)“The onus is on the government to do the heavy lifting,” said Devendra Pant, chief economist of India Ratings and Research, a local unit of Fitch Ratings Ltd.. He expects the government will miss this year’s fiscal deficit target of 3.3% of GDP as it boosts spending while tax revenue falters.The weak growth outlook and interest-rate cuts are weighing on the rupee, the worst performing currency in emerging Asia this quarter. Moody’s Investors Service cut India’s credit rating outlook to negative earlier in November, signaling it may downgrade the nation’s Baa2 score.What Bloomberg’s Economists SayWe expect GDP growth to pick up in the current quarter due to a low base last year, and anticipate a genuine turnaround in early 2020. There are already early signs of a recovery in the rural economy.Click here to read the full report.Abhishek Gupta, India economistFinance Minister Nirmala Sitharaman said this week she’s not closing the door on additional steps to support the economy. She posted several times about the economy on Twitter on Thursday, saying macroeconomic fundamentals are strong.There is growing clamor for more tax cuts, this time for individuals and on equities. Indian stocks touched a record high this week as investors pumped in money on speculation of more stimulus measures.“It’s a deep cyclical slowdown that the economy has gone into,” Chetan Ahya, chief economist at Morgan Stanley, said in an interview with Bloomberg Television. The economy has been hit by several shocks in recent years -- from the taper tantrum in 2013 to demonetization in 2016 and this year’s trade war -- making a strong rebound difficult, he said.“As the global recovery comes through, India’s economy will be on the map finally,” he said.(Updates with Moody’s rating outlook)\--With assistance from Tomoko Sato.To contact the reporter on this story: Vrishti Beniwal in New Delhi at email@example.comTo contact the editors responsible for this story: Nasreen Seria at firstname.lastname@example.org, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
We at Insider Monkey have gone over 752 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of September 30th. In this article, we look at what those funds think of Moody's Corporation (NYSE:MCO) based on that data. […]