|Bid||30.14 x 1100|
|Ask||30.12 x 45100|
|Day's range||29.87 - 30.32|
|52-week range||22.66 - 31.37|
|Beta (3Y monthly)||1.64|
|PE ratio (TTM)||10.74|
|Earnings date||16 Oct 2019|
|Forward dividend & yield||0.72 (2.43%)|
|1y target est||33.10|
(Bloomberg) -- The next generation of telecommunications technology could be the key to ending years of stagnation in the industry. But it’s also set to create a difficult dilemma for European phone companies.Carriers shelled out $80 billion to power the world’s antennas last year, according to Nokia Oyj. The prospect of having to raise spending on electricity – energy demand could triple with the introduction of 5G equipment, according to industry body GSMA – won’t sit well with phone companies that are already struggling to pay their dividends. At the same time, firms such as BT Group Plc and Vodafone Group Plc have pledged to slash emissions, and that will require a rapid shift to renewable energy.Just as carriers are about to roll out vast quantities of power-hungry gear, they’re also promising to save the planet. And funds are tight. Accomplishing everything at the same time could be a tall order.“If they have set up ambitious targets for overall power consumption and CO2 emissions, those could potentially be in conflict when they start to roll out 5G,” said Jerker Berglund, industry consultant at JB Sustainable Approach AB. “Reducing total power consumption is going to be a challenge.”5G could unleash a 1,000-fold jump in data demand for connecting factories and cars and supercharging mobile devices, according to the GSMA. That’s an irresistible sales prospect for a telecom industry whose revenues have yet to recover from a slump that started in 2015.Next-generation antennas and masts can be 10 times more energy efficient than 4G’s. However, these power savings could get swamped by the surge in demand for new applications. 5G will link up billions of things that have never been connected before. To accommodate all these new connections, masts might have as many as 128 antennas, versus just four or eight on a typical 4G mast. Bouncing signals through cities may require thousands of transmitters and receivers to be bolted onto rooftops and street furniture. This looks like it will all require a lot more bandwidth, and a lot more power.What’s more, carriers can’t afford the cost of swapping out all their equipment at once, Berglund said. The rollout will have to happen gradually, so many masts will still carry less efficient 4G, 3G and 2G antennas alongside 5G ones. This situation could last for years – some 3G kit is still in place 18 years after that technology was introduced.This article is part of Covering Climate Now, a global collaboration of more than 250 news outlets to highlight the climate change story.Electricity already makes up about a third of carriers’ average operational costs, according to Nokia, and raising this will pressure balance sheets when the industry isn’t in a good place to cope. Vodafone has cut its dividend to conserve cash to pay for spectrum and capital investment. Bank of America Merrill Lynch analysts said Monday they expect BT to slash its dividend by as much as 40% to fund capital expenditure and price cuts.“As we consume more, power’s going up, and the industry is trying to bring that down as much as possible,” said Henry Calvert, head of future networks at the GSMA, the mobile industry trade body. “There’s a lot of activity in the industry about making the power we use more efficient.”But whatever fixes carriers make to lower energy bills – sharing networks, getting masts to autonomously power down at times of low data demand, introducing “beam-forming’’ so smart antennas can pinpoint devices instead of pumping out data indiscriminately – the surge in power usage creates a challenge for meeting emissions goals.Deutsche Telekom AG, for example, pledged a 90% reduction in carbon emissions between 2017 and 2030. In total, European carriers will have to reduce carbon dioxide emissions by 6 million metric tons within 11 years to achieve their carbon targets, BloombergNEF analyst Kyle Harrison said in a research note.One solution is for the telecom companies to shift their power supply to renewables, but this can’t be done at the flick of a switch. Clean-energy contracts are complicated and can take years to negotiate.Carriers will be under pressure to sign new ones quickly to cope with 5G’s power demands, Harrison said. They’ll be vulnerable to striking bad deals, and price fluctuations in energy markets can turn some arrangements that initially look good into losers in the longer term. “The switch to 5G is going to put more pressure on telecoms to purchase clean energy and reduce their emissions,” he said. “Many clean energy deals can result in losses for corporations. Telecoms will need to put extra consideration into this as their power demand goes up, especially if losses will impact their investments into 5G.”To contact the author of this story: Thomas Seal in London at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rising long-term treasury yields are likely to support banks' financials to some extent. But lower interest rates and other concerns are expected to be headwinds.
Deutsche Bank (DB) agrees to pay settlement charges despite not admitting the allegations. Also, it agrees to share information with the regulators that can help prove other banks guilty.
Challenging operating backdrop and muted loan growth are likely to continue to adversely impact Morgan Stanley's (MS) prospects in the second half of 2019.
Zacks Market Edge Highlights: UnitedHealth, Centene, MasTec, Bank of America and Bristol-Myers Squibb
Bank of America Corporation today announced the Board of Directors has authorized regular cash dividends on the outstanding shares or depositary shares of the following series of p
(Bloomberg) -- Saudi Aramco is considering a structure for its initial public offering that would prevent it from marketing the deal directly to fund managers in the U.S., people with knowledge of the matter said.The state-owned oil giant wants to avoid litigation risks that could result from selling the deal to U.S.-based institutions, according to the people, who asked not to be identified because the information is private. Aramco is consulting with its bankers on the pros and cons of different deal structures, and it hasn’t made any final decision, the people said.Many foreign IPOs rely on the “Rule 144A” structure, which allows overseas companies to market offerings to institutional investors in the U.S. The method being considered by Aramco is a so-called “Regulation S only” transaction, which would limit it to selling stock to foreign buyers and overseas units of U.S. fund houses, the people said.While that means that Aramco could still market the IPO to big investors like BlackRock Inc. and Fidelity Investments via their foreign affiliates, U.S. institutions without overseas subsidiaries would be left out. That would limit the pool of potential buyers for an offering that’s slated to be one of the biggest equity offerings in history.Saudi Crown Prince Mohammed Bin Salman, the architect of the IPO plan, has previously said he expects Aramco to be valued at over $2 trillion.Given those lofty expectations, Aramco will need all the help it can get to sell the deal. It has selected firms including Bank of America Corp., Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley for top roles on the transaction, people with knowledge of the matter said earlier this week.Aramco is choosing as many as nine joint global coordinators including some Middle Eastern banks, according to the people. Saudi officials have also held discussions with some of the kingdom’s wealthiest families about becoming anchor investors in the offering, Bloomberg News has reported.Aramco is planning to sell shares on the Saudi stock exchange as soon as November and plans plans to hold a kick-off meeting with underwriters as soon as this week, people with knowledge of the matter have said. The company, formally known as Saudi Arabian Oil Co., didn’t immediately respond to a request for comment.Other Saudi companies have started taking steps to rope in U.S. investors after the country began allowing foreign fund managers direct access to one of the world’s most restricted major stock exchanges. Earlier this year, mall operator Arabian Centres Co. conducted the first IPO by a Saudi company under Rule 144A, raising $659 million, data compiled by Bloomberg show. (Updates with details of bank hires in sixth paragraph.)\--With assistance from Abbas Al Lawati and Archana Narayanan.To contact the reporters on this story: Dinesh Nair in London at email@example.com;Matthew Martin in Dubai at firstname.lastname@example.org;Myriam Balezou in London at email@example.comTo contact the editors responsible for this story: Ben Scent at firstname.lastname@example.org, ;Shaji Mathew at email@example.com, ;Stefania Bianchi at firstname.lastname@example.org, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Snap Inc. should continue to see growth in the critical metric of daily active users, according to analysts who analyzed the latest data on downloads for the social-media company’s Snapchat app. The data helps to support the thesis that a recent uptrend in user engagement could be lasting.Guggenheim wrote that SimilarWeb’s August data showed “relatively stronger DAU growth” for Snapchat compared with other social-media sites. Snapchat’s quarter-to-date growth of 3.2% among Android users outpaced Pinterest’s 2% growth, as well as the 0.5% increase seen at both Facebook and Instagram, according to the Wall Street firm, which has a neutral rating on Snap. Both Facebook and Instagram -- which is also owned by Facebook Inc. -- have much larger user bases than Snapchat.Snap had 203 million daily active users in its second quarter, up from 190 million in the first quarter, and 188 million in the second quarter of 2018. Daily active users are expected to grow to 205.8 million in the third quarter, according to Bloomberg MODL estimates.Citi analyst Hao Yan wrote that while the correlation of downloads to daily active user growth “is yet to be perfect,” there are “strong upward trends” in download activities thus far this year. This “corresponds to the positive SNAP DAU recovery in recent quarters.” The firm has a neutral rating and $18 price target on Snap.While the SimilarWeb data is limited to Android phones, Citi said that if July and August’s activity trends continue in September, “the downside risk on 3Q DAU outlook could be more limited vs what was suggested by the recent market reaction.”Earlier this week, Bank of America estimated that app downloads thus far in the third quarter were up 23% on a year-over-year basis, a reflection of the recent viral success of Snapchat’s “face swap” photo filters. However, they were down 18% from the second quarter, underlining fears that the jump in popularity was temporary, and that stock gains were overdone.Those comments from BofA contributed to a two-day drop of nearly 10% in Snap’s shares. Snap rose 1.2% as of 12:03 p.m. Wednesday in New York. The stock has tripled from a December low.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jeremy R. Cooke, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
FDIC-insured commercial banks and savings institutions' stellar Q2 earnings benefit from higher net operating revenues and loan growth, partly muted by higher provisions and expenses.
Though the latest steepening of the yield curve benefited bank ETFs on Sep 9, chances of volatility in the longer-term period may keep gains in bank ETFs at check.
Investing.com – Wall Street fell on Tuesday as weak numbers from China added to concerns about a global recession, while increased regulatory tensions caused tech stocks to tumble.
(Bloomberg) -- Citigroup Inc. trading revenue is set to drop this quarter amid volatility that gripped markets for most of August, while a top Bank of America Corp. executive said his traders are “doing OK” in the period.Investment-banking revenue at Citigroup is also likely to decline from a year earlier, Chief Financial Officer Mark Mason said at an investor conference Monday. At rival Bank of America, dealmaking fees will probably rise by a low-single-digit percentage, Chief Operating Officer Tom Montag said at the same conference.Trade tensions between the U.S. and China, Argentine politics and the U.K.’s planned exit from the European Union propelled market volatility during the quarter. Bank of America’s fixed-income trading revenue is down “a little bit,” while equities trading has done well this quarter, Montag said, adding that September remains an important month. Mason was less optimistic.“I’d say that things have improved since the first half, but as I look at fixed-income and equity trading revenues, we’re likely to be slightly down versus last year given some of the volatility that we’ve seen in the market,” Mason said at the conference, hosted by Barclays Plc.Citigroup’s stock advanced Monday, with most of the gains coming before Mason began speaking, as the sector benefited from rising Treasury yields. The company’s shares rose 4.3% to $69.79, compared with the 3.6% advance of the 24-company KBW Bank Index. Bank of America shares climbed 3.3%.Citigroup now expects net interest revenue to increase between 3% and 4% this year, compared with an earlier expectation of 4%, as more interest-rate cuts from the Federal Reserve loom. Mason said the bank still believes it can achieve a 12% return on tangible common equity for the year, but he said there “certainly is some risk” to that target.“If we don’t hit the 12%, I think we’ll get pretty darn close,” Mason said. “But that does remain the target.”(Updates with BofA comments starting in first paragraph.)To contact the reporters on this story: Jenny Surane in New York at email@example.com;Lananh Nguyen in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Morgan Stanley has hired Umi Mehta, an investment banker focused on internet companies, from Bank of America Corp. in Silicon Valley, according to people familiar with the matter.Mehta has started work as a managing director of global internet at Morgan Stanley’s office in Menlo Park, California, working alongside Kate Claassen as co-head of the group, said the people, who asked to not be identified because the hiring isn’t public.Representatives for Bank of America and Morgan Stanley declined to comment.Mehta joined Bank of America in 2010 and was most recently a managing director and head of U.S. internet investment banking, according to his LinkedIn page. Mehta previously worked at Royal Bank of Canada and Bank of Montreal.He has advised clients including Uber Technologies Inc., AppLovin Corp., Carvana Co., Angie’s List Inc., Chegg Inc., Rent the Runway Inc., Wix.com Ltd. and Zynga Inc., the people said.Morgan Stanley has advised on some of this year’s biggest internet-related IPOs, including ride-hailing giant Uber, which raised $8.1 billion in May.More listings are on the way from companies including home fitness start up Peloton Interactive Inc., which filed for an IPO last month.Online fashion marketplace Poshmark Inc. has delayed its IPO until next year to focus on improving sales, people familiar with the matter said last week.To contact the reporter on this story: Liana Baker in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Daniel Hauck at email@example.com, Matthew Monks, Nabila AhmedFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The August job-growth report indicates addition of 130,000 jobs, down from the commendable July figures, which might impact the Fed officials' further course of action.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Weak August job gains signaled the U.S. labor market’s slowdown is deepening as the trade war with China takes a toll on the economy, even as some details of the report suggested a recession is far from imminent.Private payrolls rose 96,000, a three-month low, according to Labor Department figures Friday that trailed the median estimate of economists for a 150,000 gain. Total nonfarm payrolls climbed a below-forecast 130,000, which was boosted by 25,000 temporary government workers to prepare for the 2020 Census count.While average monthly job gains of 158,000 this year are down sharply from 223,000 in 2018, the pace is still more than enough to keep pace with population growth. In addition, the jobless rate held near a half-century low and average hourly earnings topped forecasts.Those figures offered some hope that the chief U.S. economic engine -- consumer spending -- will continue to power the record-long expansion, despite the headwinds from trade tensions and softer global growth.Even so, Friday’s figures reinforced expectations for Federal Reserve policy makers to cut interest rates by a quarter point for a second straight meeting this month. Fed Chairman Jerome Powell will have a chance to clarify the central bank’s view of the economy when he speaks at 12:30 p.m. New York time at the University of Zurich.“We are clearly seeing a deceleration in the labor market,” said Joe Song, senior U.S. economist at Bank of America Corp. “On the other hand there were some positives.” Also, employers may be having more difficulty finding workers, he said.What Bloomberg’s Economists SayPayroll gains were weaker than expected in August, and prior months were downwardly revised, but there were some important silver linings in the report, including a rebound in the workweek and at least a temporary halt in the deceleration of aggregate income growth. -- Carl Riccadonna, Yelena Shulyatyeva and Eliza WingerClick here for the full note.U.S. stocks edged higher, and Treasuries inched lower as the mixed data fueled bets the Fed will cut interest rates on Sept. 18.Higher wages and looser hiring requirements are drawing more Americans in from the sidelines. The participation rate, or share of working-age people in the labor force, increased to 63.2%, while the employment-population ratio rose to a 10-year high of 60.9%, both up 0.2 percentage point from the prior month.That reflected the household survey’s count of employment rising by 590,000, while the number of unemployed people fell by 19,000 to 6.04 million. The gains could partly stem from the temporary census hiring, said Wells Fargo & Co. economist Jay Bryson.White House economic adviser Larry Kudlow chose to highlight the household survey’s employment gain as a “blowout number.” That figure is typically more volatile than payrolls, which are derived from a separate survey of employers. Kudlow said August payrolls tend to be “quirky,” often coming in low and then being revised upward.“America is working and America is getting paid and the economy is very strong,” Kudlow said on Bloomberg Television.President Donald Trump tweeted Friday that “The Economy is great. The only thing adding to ‘uncertainty’ is the Fake News!”Despite that confidence, if weaker job gains continue that may spell trouble for Trump’s re-election prospects.Other solid points included the share of prime-age women in the labor force jumped to the highest level since 2002, and the black unemployment rate hit an all-time low in data back to 1972.In addition, two key early-warning indicators in the U.S. jobs market -- hiring for temporary-help positions and weekly working hours -- strengthened in August.There’s also the possibility statistical quirks skewed the August payrolls figure lower. Lou Crandall, chief economist at Wrightson ICAP LLC, had flagged a potential undershoot for August payrolls that will ultimately be revised higher by the Labor Department.That doesn’t discount the fact that job gains in the U.S. are decelerating.“The bottom line is that payroll growth is slowing and that is a worrying trend,” Torsten Slok, chief economist at Deutsche Bank, said on Bloomberg Television. “The general picture here is certainly of a slowing economy.”The U.S. expansion is becoming increasingly dependent on steady job gains that have been powering strong consumer spending. Concerns about a recession have recently intensified because of weakness in manufacturing that’s resulting partly from the trade war and slowing global demand.Revisions subtracted 20,000 jobs from the prior two months, bringing the three-month nonfarm average to 156,000.But the payroll figures showed weakness in several sectors. Manufacturing added an anemic 3,000 jobs, retailers cut positions for a seventh straight month and education and health services hired the fewest people since February.Industries with solid gains included construction at 14,000 and professional and business services at 37,000.The U-6, or underemployment rate, rose to 7.2% from an 18-year low of 7%. The gauge includes part-time workers who’d prefer a full-time position and people who want a job but aren’t actively looking.\--With assistance from Chris Middleton and Sophie Caronello.To contact the reporter on this story: Reade Pickert in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Scott Lanman at email@example.com, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors may sue Bank of America (BAC), Morgan Stanley (MS), Goldman Sachs (GS), Deutsche Bank (DB) and BNP Paribas for conspiring to rig prices on bonds.