|Bid||54.26 x 2200|
|Ask||54.54 x 1400|
|Day's Range||54.10 - 55.61|
|52 Week Range||38.76 - 57.57|
|Beta (5Y Monthly)||1.38|
|PE Ratio (TTM)||10.51|
|Earnings Date||Apr 14, 2020 - Apr 19, 2020|
|Forward Dividend & Yield||1.40 (2.52%)|
|Ex-Dividend Date||Jan 29, 2020|
|1y Target Est||61.50|
(Bloomberg Opinion) -- It’s easy to be cynical about the good intentions of a company caught up in one of the biggest frauds in history: the 1MDB scandal in Malaysia. Yet Goldman Sachs Group Inc.’s new stance on boardroom diversity shows how even the most profit-oriented of finance titans can — when pushed — further the virtues of stakeholder capitalism.Speaking at the World Economic Forum in Davos, where global leaders vowed to save humanity from climate change, Goldman’s chief executive officer, David Solomon, set forth a vision for his bank’s role in imposing better governance on its clients. From July it won’t manage the initial public offerings of American and European companies unless they have at least one non-white or non-straight male board candidate, Solomon said (the focus will be on women). In 2021, he’s going to “move toward… requesting two.”The move carries weight. Goldman is one of the top three IPO underwriters of the past decade, alongside Morgan Stanley and JPMorgan Chase & Co. It has an authority that wannabe public companies won’t be able to ignore.Going public is one of the critical junctures in a company’s history. It’s the moment when a century-old, family-owned widget maker, an upstart venture capital-backed tech unicorn, or a state-controlled behemoth, sets out on a course that will define its role in society for years to come. Getting the composition of its leaders right at the start sets the standard for what a company expects of itself just as it embarks on what’s often a period of rapid growth.Tech startups especially have been criticized for fostering a “bro’” culture that can be a hostile place for women, exemplified by Uber Technologies Inc. under the previous leadership of Travis Kalanick. But it’s not just about staff and society; shareholders will also benefit, according to Solomon. Companies with more diverse boards score better on measures of sustainability — an issue that’s increasingly important for asset managers. Broader representation has also been associated with higher profits and performance, although the empirical data is mixed.Goldman’s reputation could also use a little sprucing up, not only from the probes into its role raising money for the Malaysian investment fund 1MDB, but also around the subject of IPOs. It’s no coincidence that Solomon’s declaration follows two listing flops of epic proportions. Last year, his bank was one of the IPO underwriters for WeWork, which only added a female director after its first prospectus was pilloried. The deal was pulled eventually in part because of lingering governance concerns.International investors also spurned the biggest IPO of all time, Saudi Aramco, in part over concerns about controls and governance. Riyadh punished Goldman and its ilk by relegating them to the second-tier behind local banks, paying them considerably less after scrapping roadshows outside the Middle East.The two deals were embarrassments that Goldman will be keen to move on from by putting a more positive gloss on this part of the empire. What’s more, it’s unlikely to lose out on any big IPO business given the relatively modest ambition of its pledge. Of the listings managed by Goldman in the past two years in the U.S. and Europe, fewer than 10% had a board lacking a diverse candidate (many countries already enforce quotas). Half of the bank’s top-10 IPOs in 2018 and 2019 took place in Asia and the Middle East, regions not covered by Solomon’s promise. By flagging the more ambitious two-person target for 2021 now, Goldman is giving clients time to prepare. It’s also shrewdly reading where the “environmental, social and governance” trend is headed. Its first mover advantage may win it admirers among more enlightened startup companies and executives who have been weighing direct listings as alternatives to costly IPOs.It will take time for the “vampire squid” to shed its image as a pure opportunist, especially with 1MDB rumbling on. But whatever the motivation, pushing for greater diversity ups the collective pressure on other financiers to use their power for good. Over to you Morgan Stanley and JPMorgan.To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Amazon (AMZN) has faced scrutiny from politicians and labor leaders, who accuse the company of exploiting its dominant position unfairly. Investing in GE stock comes with considerable risks—especially the costs of the company’s pension plan and its long-term care insurance business.
Morgan Stanley today announced the launch of CashPlus, a new brokerage account that offers clients a modern alternative to banking. The CashPlus Account replaces the Premier Cash Management program. CashPlus, the next generation of cash management at Morgan Stanley, puts a client’s cash activities front and center, while offering a wide range of benefits and a seamless digital experience.
The Zacks Analyst Blog Highlights: JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs
For a quarter of a century, China’s financial regulators have been fighting over whether to give global investment banks full access to their closely guarded markets. Then just days later, the central bank issued a seemingly contradictory statement that Chinese financial institutions were “completely capable of coping with foreign competition”. At least part of the argument should be settled in 2020, when some of the world’s top investment banks are expected to capitalise on a recent relaxation of the rules and take full ownership of their securities businesses in China.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Bob Prince, who helps oversee the world’s biggest hedge fund at Bridgewater Associates, says the boom-bust economic cycle is over.The tightening of central banks all around the world “wasn’t intended to cause the downturn, wasn’t intended to cause what it did,” Prince, the co-chief investment officer of Bridgewater, said in an interview with Bloomberg TV at the Swiss resort of Davos. “But I think lessons were learned from that and I think it was really a marker that we’ve probably seen the end of the boom-bust cycle.”The boom-bust cycle refers to economic expansion and contraction that repeats itself. However, central bank intervention since the financial crisis and monetary easing has disrupted that cycle and has helped fuel the longest-running bull market in stocks. That has led the hedge fund industry to struggle to match gains of passive funds tracking indexes.The Westport, Connecticut-based investment firm suffered its first annual loss since 2000 in its most prominent fund--Bridgewater Associates Pure Alpha II--last year. The fund lost 0.5%, only the fourth annual decline since starting in 1991. Many of its peers, by comparison, posted some of their best returns since 2008.Prince, who oversees Bridgewater’s $160 billion in assets with Ray Dalio and Greg Jensen, said that performance this year has been so far good for the firm. He was among at least 119 billionaires converging on Switzerland this week to join bankers, politicians and other grandees for their annual pilgrimage to the Alps for the World Economic Forum.Earlier this week, Dalio urged investors not to miss out an opportunity to benefit from strong markets. “Cash is trash,” he said in a CNBC interview in Davos on Tuesday. “There’s still a lot of money in cash.”Although Dalio said he believes the Federal Reserve can no longer stimulate the U.S. economy, he doesn’t think there will be a downturn this year.Morgan Stanley Chief Executive Officer James Gorman took issue with the suggestion that the patterns of booms and busts are done.“You’d have to kill fear and greed for that to be true,” Gorman said on Bloomberg TV in Davos. “There’s a reason we have cycles going back thousands of years and I don’t think that stops.”(Updates with Gorman comment in final paragraph.)\--With assistance from Jonathan Ferro and Tom Keene.To contact the reporter on this story: Nishant Kumar in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Shelley Robinson at email@example.com, Patrick HenryFor 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.
Veteran Morgan Stanley executive Rich Portogallo, who was key in building the bank's prime-brokerage business, is retiring, according to an internal memo seen by Reuters on Wednesday. Portogallo spent more than three decades at the Wall Street investment bank, and was well liked by colleagues for what one executive described as his tireless work ethic and calm, wise approach to stressful situations. "There is no name more synonymous with the prime brokerage business at Morgan Stanley than Rich Portogallo," Ted Pick, the bank's chief of trading and investment banking, said in the memo.
Most Wall Street banks announced their fourth quarter profits beat industry expectations last week. Many dealmakers, traders and even one big bank CEO are getting flat-to-down bonuses and total compensation for their performance in 2019 even though overall profits grew, the sources and experts said. Morgan Stanley reduced incentive compensation for staff and cut Chief Executive Officer James Gorman's total compensation by 7% for last year compared to 2018, as the bank worked to reduce expenses, which climbed in the fourth quarter.
Carbon neutrality will come at a steep price. Here's what Credit Suisse CEO Tidjane Thiam said on the topic at the 2020 World Economic Forum.
The culprit for the red in U.S. and China markets on Tuesday morning was the report of an outbreak of the deadly coronavirus virus in China just as the travel rush for the Chinese New Year begins. On many occasions, the initial news surge at the onset of such events is much worse than the situation turns out to be in the long run, case in point the Ebola virus in 2014. One issue discussed in relation to the outbreak was Lakeland Industries (NASDAQ: LAKE).
Former FDIC chair Sheila Bair said Elizabeth Warren is "absolutely the best candidate" on policies related to the banking industry.
The benchmark S&P 500 slipped on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF prompted investors to lock in recent gains. With the virus spreading just ahead of the Chinese New Year holidays, the S&P 1500 airlines index fell 2.4%. Hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped about 5%.
The shares (ticker: MS) soared 6.6% on Thursday after the investment bank announced aggressive two-year targets and reported better-than-expected results. “With the recent outperformance and limited upside to earnings, we do not see enough upside to justify a Buy rating on the stock,” Keith Horowitz, an analyst at Citigroup, wrote in a note Tuesday, downgrading the shares to Neutral. Morgan Stanley said last week that it expects to achieve a return on tangible equity in the range of 13% to 15% in the next two years, a projection Horowitz says is achievable.
Greenpeace is calling out one of the biggest names in banking, JPMorgan Chase CEO Jamie Dimon, and what it calls the bank’s lack of action in battling climate change.
U.S. stock indexes slipped on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF paused a record-setting rally on Wall Street. With the virus spreading just ahead of the Chinese New Year holidays, travel stocks including Delta Air Lines Inc, United Airlines Holdings Inc and American Airlines Group Inc fell between 1.5% and 2.6%.