|Bid||11.53 x 21500|
|Ask||11.54 x 36200|
|Day's Range||11.52 - 11.60|
|52 Week Range||11.32 - 16.68|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||10.79|
|Forward Dividend & Yield||0.69 (6.01%)|
|1y Target Est||17.14|
The decision by China Railway Construction Corp. marked the first known case of a corporate issuer distancing itself from UBS over last week’s comment by economist Paul Donovan. The stakes are high for UBS, which has had a presence in China longer than many of its peers and was the first foreign business to win approval for a majority shareholding in a local securities venture under relaxed ownership rules. Most wealth managers still serve China’s rich from offshore centers such as Hong Kong and Singapore, but the nation’s massive pool of onshore money, estimated at around $20 trillion, is a huge prize for the industry.
UBS has lost a lead role on a U.S. dollar bond deal for state-backed China Railway Construction Corp, just days after a Chinese outcry over a senior UBS economist's use of "pig" in connection with Chinese food price inflation. While UBS apologized for the remark on Thursday and put the analyst on leave on Friday, the furor led Haitong International Securities, a leading Chinese brokerage, to suspend all business with the Swiss group as some Chinese bankers and analysts criticized the bank for a lack of cultural awareness. On Monday, a spokesman at Chinese infrastructure giant CRCC confirmed it had dropped the Swiss banking giant from the deal, but did not give a reason.
One of China’s biggest state-owned companies has shut UBS out of advising on a large bond deal amid widening fallout from remarks about swine fever by one of the Swiss bank’s top economists. CRCC did not respond to a request for comment, and UBS declined to comment.
Mr Gordon’s headline, as critics soon pointed out, drew a crass comparison between a bank’s relations with its regulators and the resonant dying words of Eric Garner, an unarmed black man who was killed in a police chokehold a few months earlier. Leading regulator Benjamin Lawsky tweeted: “Terrible. Should be disavowed with apologies by Investec.” The bank duly did just that.
It’s that plain-spoken approach to economic analysis that’s unwittingly landed Donovan on leave from the world’s biggest wealth manager and in the center of a storm in one of its most important markets. In his regular audio commentary emailed just before 8 a.m. London time on Wednesday morning, Donovan sought to explain why an outbreak of swine flu in China shouldn’t concern investors eyeing the international inflation outlook. It matters if you like eating pork in China.
Shares of the world’s biggest wealth manager fell for a second day as Donovan’s comments reverberated through China, a key market in UBS’s plans to attract more money from rich Asians. Donovan, a frequent commentator in financial media, set off a furor during a discussion of Chinese consumer prices, which had risen because a pig virus drove up pork costs. It matters if you like eating pork in China.” Social media commentators quickly condemned the first remark, interpreting it as a derogatory reference to local people rather than to sick pigs.
BEIJING/SHANGHAI/ZURICH (Reuters) - UBS has put on leave a senior economist whose comments about pigs in China caused an outcry and prompted one Chinese firm to suspend all business with Switzerland's largest bank. UBS apologised on Thursday for any misunderstanding caused by Paul Donovan's comments, which it said were about inflation and a rise in Chinese consumer prices due to higher pork prices. Donovan's comments, perceived by some as a racist slur, had further ramifications when Haitong International Securities, the Hong Kong unit of Chinese brokerage Haitong Securities Co, said it has suspended all collaboration with UBS.
A top analyst at UBS took a leave of absence after his inclusion of the phrase “Chinese pigs” in research commentary this week.
BEIJING/SHANGHAI/ZURICH, June 14 (Reuters) - UBS has put on leave a senior economist whose comments about pigs in China caused an outcry and prompted one Chinese firm to suspend all business with Switzerland's largest bank. UBS apologised on Thursday for any misunderstanding caused by Paul Donovan's comments, which it said were about inflation and a rise in Chinese consumer prices due to higher pork prices. "We confirm that we have asked Paul to take a leave of absence as we review this matter, to evaluate whether further steps need to be taken," a UBS spokesman said on Friday.
UBS has placed one of its top economists on leave after a Chinese financial group suspended business with the Swiss bank because of his remarks about swine fever in China, which drew the ire of a nationalist tabloid and prompted calls by an industry group for his removal. On Friday, a spokesperson for Haitong International Securities said the company had cut ties between its Hong Kong unit and UBS across all business divisions based on “a collective decision made by the senior management”. Shortly after, a UBS spokesman told the Financial Times: “We confirm that we have asked Paul Donovan to take a leave of absence as we review this matter, to evaluate whether further steps need to be taken”.
Switzerland's biggest banks, UBS and Credit Suisse, have improved their capital positions but must strengthen their crisis planning, the Swiss National Bank said on Thursday, citing conclusions of financial watchdog FINMA. "The Swiss big banks Credit Suisse and UBS have slightly improved their capital situation overall, in spite of the moderate deterioration in economic and financial conditions", the central bank said in its 2019 financial stability report. UBS and Credit Suisse have until the end of 2019 to prepare so-called resolution plans that would prevent taxpayers from having to bail them out in the event of a crisis.
Saga has announced that chief executive Lance Batchelor is to leave, following a turbulent time for the provider of products for the over-fifties that has lost more than two-thirds of its market value in a year. On Wednesday Saga said Mr Batchelor, who is 55, would retire at the end of the current financial year in January 2020, after six years with the company.
It’s pitching an exotic derivative that pays out 10-to-1 if Treasury yields at epic lows rise by a modest clip -- and disrupt the equity rally in their wake. With fierce conviction in markets that the Fed will embark on an easing cycle this year, the bar for the next bond-driven tantrum in risk assets has been lowered, the thinking goes. All that’s spurring structuring desks on Wall Street to offer hedge funds and institutional investors fresh ways to speculate on the fraught relationship between the world’s largest bond and equity markets.
ZURICH/MILAN (Reuters) - UBS looks set to agree a 100 million euro ($113 million) settlement of a money laundering and tax case in Italy within the next few weeks, according to people familiar with the matter, in contrast to a similar case in France. Switzerland's biggest bank is battling a number of court cases in Europe over claims it enabled cross-border tax cheats to hide assets in Switzerland. In France it opted to challenge a charge of tax evasion, with a resulting penalty of 4.5 billion euros awarded against the bank in February.
UBS Group's (UBS) joint venture with Sumitomo Mitsui Trust Holdings will enable the former to deepen ties in Japan and gain access to SMTH's affluent client base.
Swiss COMCO fines big global banks around 90 million Swiss francs ($91 million) for rigging prices in the foreign exchange market.
UBS and Sumitomo Mitsui Trust Bank have agreed a strategic partnership in the latest in a wave of tie-ups between western and Japanese banks. Under the alliance SMTB will start selling UBS’s wealth and asset management products to clients in Japan, with the potential for other types of co-operation in the future, according to people with knowledge of the deal. UBS will be the majority owner of the proposed joint venture, which will be launched at the end of the year.
US government bond yields dropped and market expectations for a series of Federal Reserve rate cuts this year sharpened after a report showed hiring in America’s private sector tumbled last month to the lowest rate since 2010. The grim data from payroll processor ADP have added to the growing sense of concern on Wall Street that the US economy is facing stronger headwinds just as a trade war between America and China has hotted up. “The slowdown seen in many non labour economic statistics finally showed up in a slower rate of hiring,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
I recently came across a stat from April in the Globe and Mail that caught my attention. Specifically, UBS (NYSE:UBS) listed the ten most overweighted and underweighted stocks in the MSCI AC World Index. The number one overweighted stock was Visa (NYSE:V) with Mastercard (NYSE:MA) also making the list in the sixth spot. Being on this list certainly isn't bad news for Visa stock.Source: Kārlis Dambrāns via FlickrWhy is the UBS list important?Merrill Lynch research shows that stocks overweighted by portfolio managers underperform stocks underweighted by those same managers over the long haul. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact that both Visa stock and Mastercard made the top ten overweighted stocks should at least have shareholders of the respective companies revisiting why they own the stocks. Currently, both stocks are trading at 17 times sales. Is either of them worth owning? Why don't we have a look? * 7 Bank Stocks to Leave in the Vault The Big Reason to Own Visa StockVisa CEO Al Kelly recently spoke to Barron's about the opportunities that exist for the $353 billion financial services company. Naturally, Visa continues to benefit from the secular trend to electronic payments away from cash and checks. Of course, so too does Mastercard. However, it is business-to-business payments that's got Kelly excited."We're already the biggest player in the world in (B2B)," Kelly told Barron's contributor Tae Kim. "Yet I think there is enormous upside. If I use the baseball analogy, we're probably no more than in the second inning as it relates to the B2B opportunity around the world."A new product for Visa in the B2B space that's sure to drive revenue growth is B2B Connect, the company's cross-border supplier payments platform to simplify international B2B transactions. While Visa Direct helps small- and medium-sized businesses process payments across borders, B2B Connect will allow large businesses to process big-ticket transactions efficiently and securely on a global basis."Visa B2B Connect is a distributed ledger based, non-card platform. Its unique distributed-ledger based architecture enables significantly shorter transaction times, from weeks to one-to-two days," The Financial reported in mid-May. Using blockchain architecture, Visa is ready to offer global banks a new alternative for processing high-value transactions. "B2B Connect's digital identity greatly reduces the opportunity for fraud that might otherwise exist with checks, ACH and wire transfers today, while also helping companies remain compliant as part of the regulated financial ecosystem," Kevin Phalen, global head of Visa Business Solutions at Visa, stated last October while discussing B2B Connect's product details. Seven months later, it's close to launching B2B Connect, providing investors with another reason to like Visa stock. The Big Reason to Own MastercardBigger isn't necessarily better.While Mastercard's market cap is 28% less than Visa and its operating margins are slightly lower -- 56% compared to 60% -- the fact that's it smaller makes it nimbler than its bigger rival allowing it to move more quickly when it spots an opportunity. "It's smaller in size than its rival Visa but its relative size makes it more nimble, winning the new Apple Card business for example. The global market for electronic payments will continue to grow and MasterCard will continue to grow with it, particularly internationally where a majority of the growth is expected to be generated," Marketocracy founder Ken Kam wrote in May as part of an interview with analyst John Archer. Archer, whose Tabernacle Fund's largest holding is Mastercard at 14% of the portfolio, believes the stock's current intrinsic value is $230. However, Archer isn't selling because only 10% of the $22 trillion global market for payments is card-based, providing Mastercard with a long runway for growth. Mastercard might be smaller than Visa, but that doesn't make it equally attractive over the long haul. The Verdict Although I've written more about Visa in this article, there's little difference between the two stocks. The only metric besides having higher operating margins that might tilt the decision in Visa's favor is its debt-to-equity ratio of 0.6, about half that of Mastercard. As the largest (Visa) and second-largest payment processors in the world, if you don't mind paying 17 times sales, they're both excellent long-term holds. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post Visa Stock Got an Overweight Rating for Some Very Good Reasons appeared first on InvestorPlace.
Robo-advisers will quickly be taking over Wall Street, according to a new study. Yahoo Finance's Zack Guzman & Melody Hahm discuss with Aite Group Research Director Alois Pirker and Aite Group Research Associate Eric Sandrib.