|Bid||96.88 x 0|
|Ask||96.94 x 0|
|Day's range||92.93 - 98.99|
|52-week range||73.04 - 192.99|
|Beta (5Y monthly)||1.18|
|PE ratio (TTM)||6.92|
|Earnings date||29 Apr 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||27 Feb 2020|
|1y target est||221.84|
(Bloomberg) -- As fresh evidence of the economic toll from the coronavirus pandemic floods in, the Federal Reserve unleashed another round of emergency measures, including a pledge to provide support to risky corners of financial markets that have been some of the hardest hit.The Fed said Thursday it will invest up to $2.3 trillion in loans to aid small and mid-sized businesses and state and local governments as well as fund the purchases of some types of high-yield bonds, collateralized loan obligations and commercial mortgage-backed securities.The money comes on top of the massive stimulus that the Fed had already announced and it thrusts the institution into the sort of speculative lending activities it had shunned in the past -- underscoring the risks that Chairman Jerome Powell is willing to take to shore up the economy.‘Forcefully, Pro-Actively’“We will continue to use these powers forcefully, pro-actively, and aggressively until we are confident that we are solidly on the road to recovery,’ he said in a speech 90 minutes after the details of the measures were announced.Just as the Fed unveiled the measures, a new report from the Labor Department highlighted the economic pain: 6.6 million Americans filed for unemployment benefits in the week ended April 4, bringing the number to 16.8 million in the past three weeks.“Our country’s highest priority must be to address this public health crisis,” Powell said in a statement accompanying details of the new actions. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”Junk DebtInvestors quickly bid up prices on corporate bonds and stocks after the announcement. High-yield debt was among the biggest gainers, with some of the largest ETFs tracking those bonds surging the most in a decade.But the nature of the Fed’s actions pass the traditional boundaries of the central bank to purchase lower-rated debt and the credit of municipalities, raising questions about its future role.“The Fed has now done virtually everything we think it should be doing and we think it can do,” said Michael Gapen, chief U.S. economist at Barclays Capital in New York.That said, the direct purchase of municipal debt could put the Fed in an uncomfortable political position, he said.“It opens the Fed to political criticism for picking winners and losers,” he said. “They’ve stated many times they’d prefer not to do that, and now they’re doing it.Powell addressed the issue in remarks later Thursday morning during in a webinar hosted by the Brookings Institution.Moral Hazard“Many of the programs we are undertaking to support the flow of credit rely on emergency lending powers that are available only in very unusual circumstances,” he said in his speech. “I would stress that these are lending powers, not spending powers. The Fed is not authorized to grant money to particular beneficiaries.””That does present some moral hazard but a lot will depend on how these programs are executed and how they’re unwound,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “Are they executed in a way that doesn’t unduly benefit people? If the programs are devised effectively, hopefully that won’t be the case.”The Fed has deployed nearly every tool in its toolbox since March to try and help keep lending flowing in the economy -- as businesses shuttered to stem the spread of the virus. It’s unleashed programs used in the 2008-2009 financial crisis to improve liquidity in the Treasury and credit markets, and reached into unchartered territory to support American businesses, states and local governments.In its latest announcement, the Fed laid out details of the heavily anticipated Main Street Lending Facility, which will deliver funding to companies much bigger than those yet eligible for help. Eligible borrowers can have up to 10,000 employees or up to $2.5 billion in annual revenue. Loan sizes will range from $1 million to $150 million.Borrowers will be subject to restrictions imposed by the $2.2 trillion stimulus package that Congress passed in the CARES Act including on employee retention, distribution of dividends and other factors. The program will be backstopped by $75 billion from the Treasury to absorb losses. Banks that handle the loans will be required to retain a 5% interest in each loan, with the facility purchasing the remainder.Fallen AngelsIn a move that surprised some investors, the central bank will also expand its bond-buying program to include debt that was investment-grade rated as of March 22 but was later downgraded to no lower than BB-, or three levels into high yield. It’ll also buy exchange-traded funds, the preponderance of which will track investment-grade debt along with some that track speculative-grade debt. Together, the programs will support as much as $850 billion in credit.“The reason the Fed had to expand the pool of credit that they are willing to buy is that so many borrowers are slipping into these lower-rated categories,” said Mark Vitner, senior economist at Wells Fargo Securities. “This is aimed more at fallen angels rather that dastardly devils.”The Fed also said it will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.What Bloomberg Economists SayThe Federal Reserve continues to defy the skeptics who questioned whether there was further scope for monetary policy action. The constraints of the zero lower-bound for interest rates may have changed the configuration of additional policy accommodation, but it has clearly not limited the heft of Fed action.\--Yelena Shulyatyeva and Carl Riccadonna, click here for their full noteOther HighlightsThe Municipal Liquidity Facility will offer as much as $500 billion in lending to states and municipalitiesThe Main Street Lending Program will “ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans.”The expanded Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility will support as much as $850 billion in credit.The Fed will starting the Paycheck Protection Program Liquidity Facility, “supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses.”(Updates with Bloomberg Economist reaction.)For 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.
These two FTSE 100 (INDEXFTSE:UKX) stocks could offer good value for money, in my opinion.The post These 2 FTSE 100 share prices have fallen by over 50%. Here’s why I’d buy them with £1k today appeared first on The Motley Fool UK.
HSBC, Lloyds, RBS, Barclays, Santander and Nationwide will all offer a freeze on payments for customers affected financially by the coronavirus.
The Financial Conduct Authority said on Thursday it would add car financing to the temporary relief measures aimed at supporting households facing sudden financial hardship as result of the coronavirus. As expected, the FCA also confirmed proposals set out last week requiring banks to offer a three-month payment freezes on loans and credit card debt. "We know there is still more work to be done, and we will be announcing further measures to support consumers in other parts of the credit market in the future, including in the motor finance sector next week," FCA Interim Chief Executive Christopher Woolard said in a statement.
UK-listed companies could cancel about $60 billion in dividend payments this year following Britain's lockdown and calls from regulators to preserve cash during the coronavirus crisis, according to a report by analytics company Link Group. As Britain battles to curb the spread of virus, the report published on Thursday showed that a record 41% of dividend payouts by the country's listed companies were under threat if the situation worsens. Link Group, which provides shareholder management services as well as analytics, said it based its UK Dividend Monitor findings on publicly available data from companies listed on Britain's main stock market, and consensus analyst forecasts.
Barclays announces the appointment of Khaled Habayeb as a Managing Director in Healthcare Equity Capital Markets (ECM). Mr. Habayeb will be based in New York, and will report to Taylor Wright and Kristin DeClark, Co-Heads of ECM Americas at Barclays. He will partner with Joe Lombardo in leading the further development and execution of the firm’s Healthcare ECM business strategy.
Andy Ross thinks these three FTSE 100 shares combine fantastic value and growth qualities that could greatly reward shareholders. The post Forget buy-to-let! Here’s 3 FTSE 100 shares I’d buy for a Stocks and Shares ISA appeared first on The Motley Fool UK.
Britain's Barclays and Spain's Banco Sabadell on Tuesday said senior executives would give up some of their pay, joining a list of European banks where bosses have made such a gesture as part of efforts to combat the new coronavirus. Barclays said Chief Executive Jes Staley, Chairman Nigel Higgins and Chief Financial Officer Tushar Morzaria would all donate a third of their fixed pay for the next six months to a new 100 million pound community aid fund launched by the bank. Sabadell and its British subsidiary TSB said that senior management of both banks would give up their bonus awards for 2020, so that the banks can better reward junior staff who are helping customers deal with the virus.
(Bloomberg) -- Barclays Plc’s bosses are giving away a third of their fixed pay for the next six months to help people affected by the coronavirus pandemic.The donations from Chairman Nigel Higgins, Chief Executive Officer Jes Staley, and finance director Tushar Morzaria come as the British lender sets up a package of 100 million pounds ($123 million) for charities aiding those affected by the virus, Barclays said in a statement Tuesday.The decision to forgo some pay follows similar moves by other banks, which are under pressure to keep lending while conserving capital during the crisis. Nationwide Building Society Chief Executive Officer Joe Garner said he would cut his salary by a fifth and give up his bonus. Top managers at TSB earlier Tuesday waived their bonuses for 2020, following the lead of executives at their Spanish parent Banco de Sabadell SA. Standard Chartered Plc has committed $1 billion to companies involved in the fight against the pandemic.Last week, the Bank of England’s Prudential Regulation Authority called on the U.K.’s leading lenders, including Barclays, HSBC Holdings Plc and Lloyds Banking Group Plc, to cease paying cash bonuses to their top staff and scrap dividends. Banks agreed to the latter but haven’t commented on bonus plans.Staley received a total of 5.9 million pounds last year, including 2.35 million pounds in fixed pay.For 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.