|Day's range||6.45 - 6.45|
Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.18 per share, payable on December 27, 2019 to shareholders of record as of December 6, 2019.
Digital banking app Revolut is set to begin issuing its cards in the United States by the end of this year via a partnership with payments company Mastercard Inc, the two companies said on Tuesday. The announcement follows a similar deal last month where Mastercard rival Visa Inc partnered with Revolut as part of its global expansion plans. Revolut, one of the world's fastest-growing bank account providers, aims to undercut established players such as Bank of America and JPMorgan Chase on everything from foreign exchange to current accounts and remittances.
(Bloomberg Opinion) -- Judging by the rally in the S&P 500 Index on Monday, it would be hard to know that this week is perhaps the most important of the year for equities in terms of fundamentals — and the news likely won’t be all good. That just shows how much of a grip the U.S.-China trade talks have on traders.The catalyst for the gains was some positive, albeit guarded, comments out of both China and the U.S. that talks aimed at reaching the first part of an initial trade deal are advancing. The absolute lack of details doesn’t really matter; it’s the lack of animosity in the rhetoric that traders found encouraging. There’s no question that the trade war has taken a toll on the global economy, and this week investors will likely find out just how lasting the damage will be when a large swath of companies post third-quarter results. Through Friday, some 15% of the S&P 500, or 77 members, had reported and their earnings came in about 2% above consensus estimates, driven by strong results from health-care and consumer-discretionary companies, according to Bank of America Merrill Lynch. This week, though, a whopping 36% of S&P 500 members will report results, led by a number of bellwether companies such as Amazon.com Inc. and Microsoft Corp. that have led stocks higher this year, as well as some key companies that are seen as referendums on the economy, such as Boeing Co. and Caterpillar Inc. There are a couple of things to keep in mind. The first is that if results come in as expected for the third quarter, which is an aggregate drop in earnings of 4%, it would be the first time since the period between Sept. 30, 2015 and June 30, 2016 that the S&P 500 posted three straight declines in profits, according to FactSet. The second is perhaps more important — namely, that this is the quarter companies generally start to provide more firm guidance for the following year. As I have previously written, there’s a good chance that estimates of 10% earnings growth are too high, especially with the International Monetary Fund last week cutting its global gross domestic product forecast for 2019 to an anemic 3% and a still sluggish 3.4% in 2020. Analysts last week lowered their estimates for combined S&P 500 earnings in 2020 by almost $1, to $178.40 a share, according to Bloomberg News. The 0.5% reduction was the biggest for any week since January. This wouldn’t be a problem if stocks were cheap, but they’re not with the S&P 500 trading at about 20 times earnings, having risen from about 16 times in early January.THE BOND MARKET’S RED SEAThe government bond market was a sea of red on Monday, with yields rising in such major markets as the U.S., the euro zone, U.K. and Japan. Before concluding that the jump means bond traders feel the global economy is poised to turn a corner on what is likely to be only a minor agreement between the U.S. and China on trade, consider that the global government yield curve remains inverted. Government debt due in one to three years yields 0.37 percentage point more than debt maturing in seven to 10 years, on average, according to the ICE Bank of America Merrill Lynch indexes. “The fact of the matter is you have the two largest, most relevant superpowers — the U.S. and China — still locked in negotiations which seem to have no near-term resolution in sight,” Ian Lyngen, BMO Capital Market’s head of rates strategy, told Bloomberg News. The just-concluded IMF meetings in Washington made clear that finance ministers from around the world are still reluctant to do what most market participants say is needed to jolt the global economy out of a synchronized slowdown. So while they talked about the need for more fiscal stimulus, there’s little agreement on how to do so.CANADA’S DOLLAR APPRECIATES In the foreign-exchange market, the default is to judge the performance of a currency against the dollar. This makes sense because the greenback is far and away the world’s dominant reserve currency. But doing so sometimes doesn’t provide a complete picture. That may be the case with the Canadian dollar. It’s actually one of the stronger currencies since Oct. 9, appreciating about 1.90% versus the greenback. But that perhaps says more about the U.S. currency’s broad weakness over that period than it does about trader sentiment toward Canada, where the political landscape has become much more muddied. In fact, voters were headed to the polls Monday in what was being forecast as a close election that might see embattled Prime Minister Justin Trudeau retain power, but lose his parliamentary majority and force him to rely on a left-leaning party to survive a second term, according to Bloomberg News. The uncertainty may be one reason Canada’s dollar has appreciated less than 0.1% against a basket of developed-market peers since Oct. 9. A government headed by Trudeau’s Liberal Party but propped up by the New Democratic Party might be a blow to Canada’s energy sector, Bloomberg News reported. The NDP is anti-pipeline, which is a problem for markets given that the country is already suffering from reduced oil prices due to pipeline bottlenecks.PROTESTS ROCK CHILEEmerging markets have been on an upswing lately, with both the MSCI indexes of equities and currencies rising to their highest since early August. But the rising EM tide isn’t lifting all boats. Financial markets in Chile are getting smacked, with the country gripped by what Bloomberg News describes as its worst civil unrest since the nation returned to democracy more than three decades ago. It’s so bad that President Sebastian Pinera declared a state of emergency Friday and called on the army to restore order. The nation’s benchmark IPSA index of equities fell 5%, the most since November 2017 and led by retail companies at risk of looting and the utilities sector. Chile’s peso lost 2% of its value. Chile is important to global markets for one big reason, which is that it’s the world’s largest producer of copper. Workers at BHP Ltd.’s Escondida mine, the world’s largest copper operation, were due to hold a “warning stoppage” for 10 hours starting late Monday or early on Tuesday in solidarity with protests taking place across the country, and an umbrella group of unions and mining federations was calling for a general mining strike on Oct. 23. Copper futures climbed to the highest in more than a month in New York.TEA LEAVESThe question of whether the universally strong U.S. housing data for August was an aberration was partly answered last week when the Commerce Department said housing starts tumbled a greater-than-forecast 9.4% in September after soaring 15.1% the prior month. Another piece to the puzzle will be revealed Tuesday when the National Association of Realtors releases its report on existing home sales for September. The median estimate of economists surveyed by Bloomberg News is for a decline of 0.3%, following a 1.3% jump in August. There’s no question the big drop in mortgage rates has given the residential real estate market a boost, but recent reports showing pressure on consumer confidence and sentiment, along with a drop in retail sales suggest the lift may have only been due to fence sitters jumping into the market rather a sign that there’s dome deep pool of buyers.DON’T MISSNormal Yield Curve Isn't Economic Green Light: Mohamed El-ErianWhat Can Possibly Go Wrong for Sterling?: Marcus AshworthSaudi Arabia's Best Bet Is to Crash the Oil Price: Julian LeeAuthers' Newsletter: Following the Money Leads to a Grim OutlookThe World Economy Is Stumbling Toward Disaster: EditorialTo contact the author of this story: Robert Burgess at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investing.com – Bank of America (NYSE:BAC) on Monday joined some of its peers in cutting trading fees for its retail brokerage clients to zero.
Further Enhances Industry-Leading Program That Rewards Clients for Banking, Borrowing and Investing
Investing.com - U.S. futures pointed to a slightly higher opening bell on Monday, as chatter continued over the U.S. and China making a temporary trade deal.
Arianna Huffington’s Thrive Global is eyeing greater expansion into clinical operations with its latest acquisition of artificial intelligence platform Boundless Mind.
Investor sentiment upbeat on banks' Q3 earnings, with the major players displaying top-line strength on the back of higher fee income and loan growth.
(Bloomberg) -- Franklin Templeton star bond investor Michael Hasenstab, who saw two of his biggest investments flop in August, is loading up on safe-haven currencies and winding down massive holdings in emerging markets.The fund manager doubled exposure to the yen to 40% in the $30 billion Templeton Global Bond Fund in the third quarter, according to a recent filing. He’s also added long positions in the Norwegian krone and Swedish krona and is increasing liquidity by boosting cash across his funds, he said in an October note.Total net assets in the global bond fund dropped by $3 billion in the three months through September as a massive holding in Argentina was pummeled by the country’s default. The fund was also holding a huge short position in U.S. Treasuries as yields sank to a three-year low.“A number of global risk factors have increased, raising the need to hedge some of our foreign exchange risk exposures and counterbalance our U.S. rate hedge,” said Hasenstab, who oversees more than $100 billion. “The potential for a geopolitical event appears higher than it has been in decades, given ongoing tensions among major world powers.”Templeton’s Global Bond Fund has underperformed more than 80% of peers this year, losing 1.6% compared with a return of about 7% from Treasuries. The fund has returned 2.3% in the past three years, data compiled by Bloomberg show.Cash and cash equivalents represented around 23% of assets in the fund as of the end of September. A Bank of America survey of global fund managers published this week showed cash holdings averaged about 5%.Treasury ShortThe fund is holding on to its Treasury short, but shifting the focus to those with longer maturities, according to the report. Hasenstab argues that markets continue to overvalue long bonds given rising deficit spending and rising debt. He is also betting that the yen will appreciate against the dollar as monetary-policy divergence narrows between the Federal Reserve and the Bank of Japan.Average duration in the Global Bond Fund, a measure of sensitivity to shifts in rates, increased to minus 1.39 years as of the end of September, the filings show. At the end of June it was a record low of minus 2.82 years.While Hasenstab continues to see value in emerging markets, he says he is now “sizing and hedging” positions for individual risks. A 14% holding in Brazilian bonds, for example, is being offset by a net-negative position in the Australian dollar, according to the report.“Investment strategies that may have worked well over the last decade are not as likely to be effective in the next one,” Hasenstab said. “Investors need to prepare for today’s challenges by building portfolios that can provide true diversification against highly correlated risks present across many asset classes.”(Updates with cash position in sixth paragraph.)To contact the reporter on this story: Natasha Doff in Moscow at firstname.lastname@example.orgTo contact the editors responsible for this story: Gregory L. White at email@example.com, Cecile Gutscher, Samuel PotterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- For the first time in four years, interest rates hurt instead of helped the biggest U.S. banks. It wasn’t enough to knock them off pace to top last year’s profit record.Revenue at the six largest firms climbed from a year earlier for the 12th time in the past 13 quarters, helped by better-than-expected gains in trading and a surprise jump in investment banking. JPMorgan Chase & Co., the nation’s biggest bank, notched a new revenue record. That all came in spite of the group’s net interest income posting its first drop since 2015 as the Federal Reserve lowered interest rates twice in the quarter.For all the hand-wringing about low rates, trade wars and a possible economic slowdown, the biggest banks are still riding high. A healthy consumer, lower corporate tax rates and stock markets at all-time highs have the firms on track to break the all-time earnings high of $120 billion in 2018.“The banks had set low expectations in September, and it turned out that the results were pretty strong,” Julien Courbe, financial services advisory leader at PricewaterhouseCoopers. “I think a big question would be whether the rate cuts would actually stimulate loan demand, and we heard from the earnings that it did.”While capital rules introduced to make banks safer after the financial crisis have ended the glory days, when return on equity often topped 20%, all six banks have clawed their way back to double-digits this year for the first time since the crash.Investors are taking note: shares of all the banks except Citigroup Inc. climbed this week, with Morgan Stanley, Bank of America Corp. and JPMorgan all surging more than 3.5%. Here are the week’s main takeaways:TradingBanks upended forecasts by posting strong revenue in their trading businesses this week.Every firm beat analysts’ estimates as volatility in fixed-income markets created opportunities for trading desks. Morgan Stanley was the biggest surprise, with debt trading jumping 21% instead of dropping 5% as analysts had predicted. Fixed-income trading at JPMorgan rose by the most in almost three years.At Bank of America, strong trading results added to good news on the investment-banking front, where revenue shot up almost 26% from a year earlier and beat expectations. Goldman Sachs Group Inc. suffered the opposite fate: It posted strong trading results but investment-banking fees took a bigger hit than expected.ConsumerThe top four retail banks pulled in record revenue for the fifth straight quarter, a sign that the U.S. consumer remains healthy even as some economic indicators have sparked fears of a coming recession.“The U.S. economy is still in solid shape, despite the worries and concerns about trade wars, capital-investment slowdowns or other global macro conditions,” Bank of America Chief Executive Officer Brian Moynihan said on a conference call with analysts. “Across nearly every line of business, we are seeing strong consumer activity.”JPMorgan, Bank of America, Citigroup and Wells Fargo & Co. collectively made $40.6 billion in consumer revenue this quarter. JPMorgan led the group with the most consumer revenue it’s ever had in the third quarter.Still, there were notes of caution. JPMorgan and Wells Fargo increased loan-loss reserves for the second time in the past seven quarters and Citigroup increased its reserves by the most in two years.Wealth ManagementThe push by discount brokerages to eliminate commissions on many types of trades did little to dent confidence at the big banks.Bank of America and Morgan Stanley, which both own U.S. brokerages with almost $3 trillion in assets apiece, said they’re focused on longer-term relationships with wealthier customers -- the ones who are willing to pay up for better service and advice.Almost 90% of Bank of America’s self-directed trading business is already handled without commissions, Moynihan said Wednesday.Morgan Stanley CEO James Gorman said his company is aiming at households worth more than $1 million, and especially those with more than $10 million.\--With assistance from Lananh Nguyen, Michelle F. Davis, Sridhar Natarajan and Jenny Surane.To contact the reporter on this story: Gwen Everett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The biggest U.S. lenders aren’t ruffled by the push among discount brokers to cut commissions to zero.Wall Street firms from Bank of America Corp. to Morgan Stanley said they’re focused on longer-term client relationships instead of just boosting stock-trading activity. Discount brokers Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp. announced this month that they would cut fees to trade U.S.-listed stocks, ETFs and options to zero, sending shares plunging and fueling speculation about potential mergers.“We don’t focus on trying to drive a pure trading type of thing,” Bank of America Chief Executive Officer Brian Moynihan told analysts on Wednesday. “The $0 change won’t affect us much, largely because we frankly introduced it 13 years ago,” and about 87% of the company’s self-directed trading business is already done without commissions, he said.For Morgan Stanley, commissions from buying and selling stocks represents a small portion of the firm’s wealth-management revenue, according to its chief, James Gorman. Instead, the firm sees more potential to expand its financial-advisory services to households worth $1 million to $10 million, as well as those with more than $10 million.“That’s where the growth is,” Gorman told analysts Thursday. “That is where the advice fee is very fair and very reasonable.”As brokerage shares fell after the free-trading announcements, analysts and industry participants speculated that some firms would come under pressure to merge or sell. At least one bank, Goldman Sachs Group Inc., said it’s not interested in buying.“The discount brokerage area is not one that we’re particularly focused on,” Goldman Sachs Group Inc. Chief Executive David Solomon said Tuesday.To contact the reporters on this story: Lananh Nguyen in New York at firstname.lastname@example.org;Jenny Surane in New York at email@example.com;Hannah Levitt in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve Dickson, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Major U.S. market indexes closed in the negative territory on Wednesday on the back of weak retail sales for September and fresh tensions between the United States and China.
European stocks pulled back slightly from their strongest closing high in more than a year as clashing headlines on Britain's last-minute efforts to forge a divorce deal with the European Union left investors hanging on the outcome. On Wall Street, stocks retreated after monthly retail sales data for September showed a decline for the first time in seven months, raising concerns that softness in the manufacturing sector was starting to spread to the broader economy.
Bank of America Corporation announced today that it will redeem all $1,000,000,000 principal amount outstanding of its 2.151% Senior Notes, due November 2020 (CUSIP No. 06051GGB9) (the “Notes”), on November 9, 2019, at a redemption price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest to but excluding the redemption date of November 9, 2019. Since November 9, 2019 is not a business day, the redemption price will be paid on the next succeeding business day, November 12, 2019. Payment of the redemption price for the Notes will be made through the facilities of The Depository Trust Company.
The benchmark S&P 500 stock index edged lower on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter corporate earnings reports.
(Bloomberg) -- Bank of America Corp. stock held onto gains on Wednesday, even as other banks turned negative, as analysts hailed better-than-expected quarterly results. The bank also kept its 2019 net interest income, or NII, growth forecast at 1%.Shares were 2% higher in the afternoon, paring a gain of as much as 3.3% to the highest since Aug. 1. At the same time, the KBW bank index fell as much as 0.4%.“In a moderately growing economy, we focused on driving those things that are controllable,” BofA CEO Brian Moynihan said. His comments in BofA’s earnings statement came along with CFO Paul Donofrio, saying that BofA had “remained disciplined in managing expenses and responsible in our approach to underwriting, which led to continued low costs and strong asset quality.”Other bank stocks that were clinging to gains after earnings beats on Wednesday included BNY Mellon Corp., which pared an increase of as much as 3%; PNC Financial Services Group, paring a rise of as much as 1.8%; and US Bancorp, which trimmed a gain of as much as 3.2%. Meanwhile, big banks that had post-earnings gains on Tuesday slipped with Wells Fargo & Co. dropping as much as 1.3% and Citigroup Inc. falling 2.2%. JPMorgan Chase & Co. was little changed.Those Tuesday earnings had showed the “consumer is booming, with better than expected loan growth and spend and lower than expected credit losses,” Morgan Stanley analyst Betsy Graseck wrote in a note. “How long will it last? Until layoffs start rising ... which we don’t see many signs of right now.” Separately on Wednesday, U.S. retail sales unexpectedly posted the first decline in seven months.Here’s a sample of the latest commentary on BofA:Evercore ISI, Glenn SchorrBofA beat on earnings “like a boss,” Schorr wrote in a note. He cited solid core loan and deposit growth, strong investment banking, better card trends, flat core expenses and “even better” credit trends.“Issues in the quarter mainly centered on balance-sheet related dynamics,” he added. The bank may discuss on the call why asset sensitivity increased and what to expect from further rate cuts, he said.Credit Suisse, Susan Roth KatzkeBofA’s EPS beat was due to “better revenue generation and lower-than-forecast credit costs,” along with a 3 cent benefit from a lower-than-expected tax rate, Katzke wrote.She flagged 6% year-over-year average business unit loan growth; beats in FICC and equities trading and investment banking; and positive wealth management net flows. Credit costs were also lower than forecast, with a lower net charge off rate. “All eyes” were on net interest income, which beat with less net interest margin compression, she said.Wolfe Research, Steven ChubakKey highlights included net interest income, investment banking, trading, credit and costs -- “basically everything,” Chubak said.He expected shares to outperform, with a higher net interest income “jump off” and positive expense surprise likely to trigger upward revisions to estimates.KBW, Brian KleinhanzlKleinhanzl flagged the unchanged 2019 NII guidance and said, “loan growth can continue to be strong.” Earlier, he wrote that BofA overall “posted a broad-based beat with NII, provision, expenses, share count, and loan growth coming in better than expectations.”Here’s what Bloomberg Intelligence said:The “trading bar” for Morgan Stanley, which is due to report on Thursday, was raised as BofA joined a “sweep of beats,” analyst Alison Williams wrote.“Morgan Stanley’s trading is a focus with 3Q results, with declines expected for equities and fixed-income trading revenue vs. 3Q18. Its year-ago quarter generally fared better than the peer aggregate, and consensus expectations for the bank to modestly underperform barely changed overall trading across global peers this quarter. The largest U.S. competitors have broadly exceeded expectations, with a sweep of FICC beats, and aggregate equities close to in-line. BofA and Goldman bested equities estimates, while JPMorgan missed and Citi was close to in-line. Morgan Stanley is relatively more equities focused, with its overall revenue from trading share second only to Goldman Sachs.”(Updates shares in 1st and 2nd paragraphs. Adds comments from KBW.)To contact the reporter on this story: Felice Maranz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.