450.97 0.00 (0.00%)
After hours: 4:39PM EDT
|Bid||450.59 x 1400|
|Ask||465.00 x 800|
|Day's range||441.63 - 455.64|
|52-week range||323.98 - 576.81|
|Beta (5Y monthly)||1.32|
|PE ratio (TTM)||15.86|
|Earnings date||15 Apr 2020|
|Forward dividend & yield||14.52 (3.28%)|
|Ex-dividend date||03 Mar 2020|
|1y target est||503.00|
BlackRock and Microsoft Corp. have formed a strategic partnership to host BlackRock’s Aladdin infrastructure on the Microsoft Azure cloud platform, bringing enhanced capabilities to BlackRock and its Aladdin clients, which include many of the world’s most sophisticated institutional investors and wealth managers.
(Bloomberg) -- In Argentine trading circles, a consensus had emerged of late that the government was likely to treat some local creditors the same way it would treat those who own its foreign bonds when widely anticipated restructuring talks finally got underway.In fact, dollar-denominated bonds issued in the local market were trading just a few weeks ago at almost the exact same price as dollar bonds issued overseas -- 28 cents on the dollar, give or take. Late Sunday night, that consensus was blown up when the government unveiled plans to stop payments on local dollar debt. Now, overseas notes trade at about a 6-cent premium to domestic securities.The divergence serves as a harsh reminder of the added perils of investing in debt subject to local law instead of international law, something that seemed to have been largely overlooked as investors waited to hear the government’s restructuring proposal. President Alberto Fernandez says the country simply doesn’t have the money to keep paying its debt amid a harsh recession.In a decree late Sunday, the government said it will suspend all payments on foreign-currency securities issued in the domestic market for the rest of the year as it prioritizes shoring up the economy and suppressing the spread of coronavirus.“Global holders are pricing in that the government is moving away from equal treatment,” said Juan Manuel Pazos, the chief economist at TPCG Valores in Buenos Aires. “The local-law reprofiling gives, under that view, additional resources for the Treasury to keep globals performing until a deal is reached. That’s the working assumption.”By freeing up some $8.5 billion that would have gone to local payments this year, the move could actually be a boon for holders of foreign-law debt as they continue restructuring talks over $69 billion of bonds.The decree in the Official Gazette said payments on local-law dollar debt may resume earlier if the Economy Ministry determines that it’s warranted given progress in creating a sustainable plan.Either way, investors will have little recourse in local courts that are widely understood to be friendly toward the administration. Of course most bond buyers knew of this very risk when they purchased the securities, which were issued when Argentina was still embroiled in a nasty feud with creditors who got burned in a 2001 default that left the country locked out of international debt markets.“I never believed in this equal treatment business, as the government has so much more leverage on Argentine-law than on its New York-law debt,” said Edwin Gutierrez, the head of emerging markets sovereign debt at Aberdeen Asset Management in London.Argentina has already been unilaterally delaying payments on some peso-denominated debt, even as it kept current on overseas obligations and embarked on restructuring talks over its overseas notes. On Monday, Fitch downgraded Argentina’s long-term foreign currency debt rating to “restricted default” from “CC.”President Alberto Fernandez said in an interview published Sunday that the coronavirus pandemic had pushed debt talks to the back burner and that the country would prioritize the health emergency. Argentina has been on lockdown to try to stop the spread of the virus for weeks; so far there have been 1,554 confirmed cases with 46 deaths.Even before the health crisis, Argentina was mired in recession with sky-high inflation and insufficient central bank reserves. Along with Ecuador and Zambia, it’s the country with the highest sovereign risk of non-payment in the world.Argentina’s economy will probably contract about 6.4% this year, but in a worst-case scenario the drop could be as big as 20%, according to a TPCG report.Most of Argentina’s domestic, dollar-denominated bonds count large foreign firms as their biggest holders, with BlackRock Inc. among the top investors. That had prompted speculation that the notes dominated by overseas players would be treated well in a restructuring because the government would want to maintain friendly relations with companies they will need to invest in the country.But those assumptions now seem mistaken. Argentina took the decision just one month before it was due to make a key $1.4 billion payment on local bonds due in 2024.The debt decree listed several public securities that are exempt from the measure, including non-transferable notes held by the central bank and certain dollar-denominated notes issued by the Treasury, such as those owned by the pension-fund administered by Anses.”Analysts can say many things about what was expected and what was not,” said Alejo Costa, chief Argentina Strategist for BTG Pactual in Buenos Aires. “But at the end of the day money speaks, and market prices reveal info better than anything. This was partially priced in, but not fully.”(Updates to add Fitch ratings downgrade in 10th paragraph)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.
'I am hoping that civility, humanity, empathy and the goal of improving America will break through. We have the resources to emerge from this crisis as a stronger country,' writes Jamie Dimon in his annual letter.
(Bloomberg Opinion) -- Writing to shareholders this week, BlackRock Inc.s chief executive officer Larry Fink ruminated on how business and society will be reshaped by the searing experience of the new coronavirus:“People worldwide are fundamentally rethinking the way we work, shop, travel and gather. When we exit this crisis, the world will be different. Investors’ psychology will change. Business will change. Consumption will change. And we will be more deeply reliant on our families and each other to stay safe.”I had a similar epiphany this week while trying to cut my own hair — it turns out my regular $30 haircut isn’t as essential as I’d thought. Preparing a meal for my family later that evening made me think that eating out or getting dinner delivered isn’t as rewarding as home cooking. Right now the do-it-yourself version also feels a whole lot safer, and probably will do for a while.Compared to the courage shown by medical workers and those in other essential functions, and the devastation wrought by coronavirus on already vulnerable communities, many of us in the western world have it easy. We’re asked to do no more than stay home. But in between worrying about our jobs, our parents and how to entertain or home-school children, we’re reevaluating priorities. What will we do differently when this is over? What will we prize more and what will we give up? Once the immediate battle to protect employees and remain solvent has passed, the business world will have to confront these questions too. Two themes stand out: Instead of visiting far-flung places and seeking out mass entertainment, I’m sure there will be a bias toward more modest, local activities. And where the coronavirus has exposed dependency or vulnerability, as with the business world’s complex cross-border supply chains, we’ll seek more security and resilience.Looming above all of this is the damage that the lockdowns are inflicting on people’s incomes. The longer the economic shutdown lasts, the more reluctant the world’s consumers will be to spend, period. With more than 10 million Americans filing new unemployment claims in the past fortnight, the omens aren’t good.In the worst-affected sectors such as travel, hospitality and leisure, businesses are already facing a bleaker future. Increased consumer awareness about the negative environmental and social impact of mass tourism has now been compounded by the realization that people on planes and pleasure boats carried the virus around the globe. Lufthansa AG’s boss, Carsten Spohr, thinks the German airline will have to shrink because the economy will be smaller than before. Easyjet Plc’s founder, Stelios Haji-Ioannou, said similar this week when calling on the carrier to cancel a big order from Airbus SE.Even once travel restrictions are lifted, demand for cruises may remain weak for a “significant length of time,” Carnival Corp. warned. The beleaguered company had to offer bond-buyers an 11.5% interest rate to get them to back a $4 billion debt offering. That’s a bad sign.Fitness is another industry that relies on cramming people into confined spaces. Until recently it was booming but customers are discovering much cheaper ways to work out. Having sampled online classes and the time-saving benefit of exercising at, or close to, home, some memberships won’t be renewed. Good news for Peloton Interactive Inc.’s indoor cycling business, perhaps not for Planet Fitness Inc. or The Gym Group Plc. Until coronavirus came along, the tech world seemed hell-bent on taking agency away from individuals and consigning ownership to the dustbin. Why learn to cook when you can have food delivered in 30 minutes? Why own a car when you can take an Uber? Why look after your gadgets, when those nice people at Apple will fix them for you. But as my colleague Adam Minter pointed out this week, it’s only in a crisis that you discover the drawbacks of not being able to repair your own phone.There will be winners from this realignment too. Right now, auto sales are collapsing in Europe because you can’t go to a showroom and you’re not meant to drive far, but the freedom and security of owning a vehicle might cause sales to rebound more quickly than other discretionary purchases (provided of course that governments can curb unemployment). In China, emerging from the first virus wave, cautious consumers have begun returning to car dealers. Home improvement stores saw a brisk trade from customers wanting to fix up their homes, balconies and allotments whilst on lockdown, and some hardware stores remain open. Once the housing market reopens, urbanites may decide they’ve had enough of crowded cities and tiny apartments. The countryside is suddenly more appealing — the more so if employers become more trusting of those who want to work from home. Coronavirus has exposed our vulnerability and it won’t be the last crisis. Our planet-warming emissions mean more pain is preordained. Faced with uncertainty or disaster, humans respond by trying to strengthen their communities. We’ll also seek more control over our lives. For societies, that means equipping our health services, paying key workers properly and securing supplies. As individuals, it means out-sourcing fewer decisions and mastering things for ourselves. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.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.
(Bloomberg Markets) -- The BlackRock Inc. CEO was the subject of our cover Q&A in April/May 2017. Here he divulges off-duty habits and preferences to Bloomberg TV’s Francine Lacqua, co-anchor of Bloomberg Surveillance and host of Leaders With Lacqua.How many hours of sleep do you get a night?Six. Less on the road, but eight on weekends.What time do you set your alarm clock for?The iPhone is usually set for 5:15 a.m.What’s your typical workout?I work out with a trainer three days during the week and do cardio on weekends.What’s your favorite sport or sports team?Fly-fishing or skiing.Who’s your favorite musical artist?Bob Dylan.Who’s your favorite new emerging musical artist?Rüfüs Du Sol.What’s the best book you’ve read recently?In the Distance by Hernan Diaz.What’s your favorite place to go on vacation?Alaska with the guys and anywhere in the world with my wife.Do you have a strategy to fight jet lag?No work on the plane, and be horizontal as much as possible.What living or historical person do you truly admire?Phil Jackson or Lee Kuan Yew.What’s the best advice you’ve gotten?At In-N-Out Burger, order the Double-Double Animal Style.What’s the best advice you’ve given?Order the Double-Double Animal Style, but add back the raw onions.If you were 20, what business would you get into?Renewable energy.What’s your favorite city?After New York? Mexico City.What’s your favorite museum or artist?Richard Diebenkorn.Do you ever expect to retire?Absolutely.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.
BlackRock, Inc. (NYSE: BLK) today announced that it will report first quarter 2020 earnings prior to the opening of the New York Stock Exchange on Thursday, April 16, 2020. Chairman and Chief Executive Officer, Laurence D. Fink, President, Robert S. Kapito and Chief Financial Officer, Gary S. Shedlin, will host a teleconference call for investors and analysts at 7:30 a.m. ET. Additional speakers will include Chief Operating Officer, Robert L. Goldstein and Head of ETFs and Index Investments, Salim Ramji. BlackRock’s earnings release and supplemental materials will be available via the investor relations section of www.blackrock.com, before the teleconference call begins.
(Bloomberg Opinion) -- Investors in Luckin Coffee Inc., China’s upstart rival to Starbucks Corp., should have seen this coming.Luckin shares plunged as much as 81% in U.S. trading Thursday after the country’s largest coffee chain said employees fabricated much of its sales last year. Car Inc., which shares a chairman with Luckin, tumbled as much as 72% in Hong Kong on Friday morning before trading was halted.Skepticism swirled around the sustainability of Luckin’s business model well before its Nasdaq initial public offering last May. Luckin’s success relied heavily on generous discounts funded by investor money, as I wrote in December 2018. The company spent 152 yuan ($21.45) for every 100 yuan it made selling coffee, my colleague Tim Culpan noted in May. In February, after short seller Muddy Waters Capital said it had received an 89-page anonymous report alleging that Luckin fabricated financial and operating numbers, we again noted its reliance on near-permanent discounts.Investors in the chain include Singapore’s sovereign wealth fund, GIC Pte, U.S. fund manager BlackRock Inc. and crop trading giant Louis Dreyfus Co., as well as a slew of venture capital firms. Early backers included Centurium Capital, a private equity fund founded by the former China head of Warburg Pincus.Luckin’s turbo-charged growth and technology sheen were central to the investor buzz it created. Having opened its first store in Beijing only three years ago, the company had 4,500 domestic locations by the end of last year, outstripping Starbucks’ 4,300 Chinese stores.The company described itself as a coffee “network” in its IPO document and prided itself on an app that offers a “100% cashier-less environment.” That slapped a new-economy aura on a largely humdrum and routine business — not unlike the office-sharing company WeWork, another hot unicorn that subsequently fell from grace.Luckin said Chief Operating Officer Jian Liu and employees reporting to him engaged in misconduct and it is investigating. The aggregate sales amount associated with the fabricated transactions totaled about 2.2 billion yuan. Certain costs and expenses were also substantially inflated, according to the filing. Liu and others have been suspended and investors shouldn’t rely on previous financial statements for the nine months ended Sept. 30, the company said. Luckin reported net revenue of 2.9 billion yuan for the nine months through September.It’s a moment of truth and a wake-up call for investors who pile into Chinese startups that show meteoric growth rates. That’s a message that few appear to have taken to heart after the spectacular boom and bust of bike-sharing companies such as Ofo. WeWork’s failed attempt to list taught U.S. investors that you can’t burn cash forever. Luckin could deliver a similar lesson for China.Luckin’s management will need a long time to re-establish investor trust, if it can do so at all. The market for Chinese IPOs in the U.S. is also sure to suffer. After all, it’s far from the first time that an overseas-listed Chinese company has been embroiled in allegations of accounting manipulation. Luckin at least can be thankful that it raised $778 million selling shares and convertible bonds earlier this year, giving it some leeway to ride out the storm. For investors, the moral is an old one: If something looks too good to be true, it probably is. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.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.
Investment managers BlackRock and Schroders have suspended trading in UK real estate funds aimed at institutional investors, citing difficulty in getting an accurate price for their assets. The suspension of the funds with quarterly or monthly redemptions, whose assets total nearly 6 billion pounds ($7.5 billion), follows the freezing last month of several funds aimed at retail investors, which allow people to get their money out daily. Regulators have expressed concern about funds that invest in illiquid assets but allow investors to get their money out regularly.
BlackRock's Managing Director Amer Bisat said on Wednesday that the world economy could contract by 11% in the first half of 2020 and lose $6 trillion in economic output due to the coronavirus pandemic. "It won't be as bad as the (1930s) Global Depression, which is a significantly worse contraction, but it will certainly be the second-worst economic shock that we've seen globally." BlackRock is the world's largest asset manager.
(Bloomberg) -- BlackRock Inc. is among funds and tycoons buying cheap stocks in Latin America’s largest economy.The global investment firm boosted its holdings in four Brazil-based companies above 5% last month, according to a review of more than 40 corporate filings. Singapore’s sovereign wealth fund GIC, Banco Bradesco SA and a fund backed by billionaire Jorge Paulo Lemann also got in on the action with relevant stakes in other stocks since late February.As indices around the world show signs of stabilizing, some investors and money managers are wading back in to battered markets like Brazil. With a 53% plunge, the nation’s Ibovespa is the worst performer among major global guages this year in dollar terms. But with dip-buyers still far and few between and Wall Street strategists largely bearish on emerging markets, there’s clearly a trend toward caution.“The truth is, stocks are so cheap it’s like shooting fish in a barrel,” said Bruno Garcia, the chief investment officer at Truxt Investimentos in Rio de Janeiro. “The trick is to find the ones that won’t go bust.”Ed Kuczma, who oversees BlackRock’s Latin American equity funds, said he and his team have been talking to a number of companies that are positioning themselves to come out of the coronavirus crisis as a stronger competitor.“Multiple bargains are emerging,” Kuczma said. The firm has been putting money to work in sectors including financial, consumer discretionary and real estate. “We are confident that Brazilian equities are likely to benefit from a sustained easing of volatility.”Some of BlackRock’s recently increased Brazilian bets include the utility known as Taesa; Cia. Brasileira de Distribuicao, which operates Pao de Acucar supermarkets; Notre Dame Intermedica Participacoes SA; Qualicorp Consultoria & Corretora de Seguros SA and auto-parts maker Iochpe Maxion SA, according to regulatory filings.BlackRock doesn’t comment on specific stocks. And while Brazilian law requires companies to disclose any stakeholders owning 5% or more, they don’t always say how many shares were purchased or if the buyer held a prior stake.Singapore’s sovereign wealth fund GIC, meanwhile, acquired a relevant stake in web-services provider Locaweb Servicos de Internet SA. Local firm Tarpon Asset Management boosted its stake in silo manufacturer Kepler Weber SA. And Bradesco, Latin America’s second-biggest lender, raised its interest in medical diagnostic firm Fleury SA through an insurance unit.Brazil’s corporate tycoons are also taking advantage of recent tumbles to buy stocks. The Molina family, which founded meat giant Marfrig Global Foods SA more than 20 years ago, upped its holding to 45%.To be sure, while the buying spree is a good sign that some shares may have been oversold, uncertainty remains and many of the stocks flagged in the review of regulatory filings have since lost value. What’s more, top investors and strategists, from Goldman Sachs Group Inc. to JPMorgan Chase & Co. and Franklin Templeton, are telling clients to hold off on bargain hunting in emerging markets. They’re worried the coronavirus could devastate nations from India to Brazil, where infections are only now starting to gather pace.Credit Suisse-backed hedge fund Verde Asset Management became a cautionary tale for buying the dip too soon. But while the firm acknowledged its mistake in a letter to clients in March, it said it’s still snapping up shares in the U.S. at a thrifty pace. In Brazil, recent bets included clothing retailer Cia. Hering. Verde declined to comment on specific positions.Florian Bartunek, a veteran stock picker at Constellation Investimentos & Participacoes, which is backed by Lemann, said his strategy is focusing on names that are undisputed leaders in their sectors. Constellation bought shares of software maker Totvs SA, according to one filing.“If you’re looking to scoop up shares of exotic companies just because they are very cheap, there’s a greater chance you’ll make a mistake,” Bartunek said during a live broadcast hosted by Banco BTG Pactual last week. “I’d focus on the obvious firms.”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.
BlackRock (BLK) applies for a license to the China Securities Regulatory Commission to set up a mutual fund unit in China as the country opens its wealth management industry wider for global firms.
(Bloomberg) -- Zambia’s Eurobonds extended losses on Wednesday and its currency tumbled to a record low after Africa’s second-biggest copper producer asked banks for proposals on reorganizing as much as $11.2 billion of foreign debt.The country “intends to implement a liability management of its external debt portfolio to lengthen maturity and enhance its capacity to meet debt-service obligations,” the finance ministry said in a request for proposals sent to lenders, seen by Bloomberg and verified by two of the recipients.The advisers’ mandate would include assisting the government in negotiations with creditors, as well as “formulating restructuring plans for loans” where creditors agree, according to the document. Yields on Eurobonds surged to fresh highs and the kwacha weakened for a 10th straight day.Zambia’s currency is the world’s worst performer this year, and foreign-exchange reserves have fallen to a record low and cover less than two months of imports. Credit ratings companies including Fitch Ratings had already warned of a high risk of default even before copper prices fell 20% this year as the coronavirus pandemic roils markets.The southern African nation’s $3 billion of Eurobonds have been trading at distressed levels. The debt is held mostly by European and U.S. investors, with BlackRock Inc., NN Group NV and Ashmore Group Plc among the biggest holders.“They’re in a situation where they’re going to need assistance,” Yvonne Mhango, an economist with Rencap Securities Pty Ltd. in Johannesburg, said by phone Wednesday. “It’s a commodity exporter and you essentially have a global demand shock. The market is reading that and they know Zambia already has really low foreign exchange reserves.”The yield on $1.25 billion of securities due July 2027 jumped 89 basis points to 34.49% by 11:29 a.m. in London as the price fell to 33.12 cents on the dollar. The yield on the shortest-dated bonds due 2022 soared 14.74 percentage points to 66.32%. The kwacha slumped 1.5% to 18.45 per dollar.The request for proposals is part of Zambia’s plan to put in place measures to ensure debt sustainability and deal with liabilities that will become due in the medium term, Chileshe Kandeta, the Finance Ministry spokesman, said in an emailed response to questions.‘Respect Agreements’The document was sent to lenders including Barclays Plc, Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc. The ministry also sent it to Greylock Capital Management LLC, an investor in emerging-market distressed debt.“The government has no intention of unilaterally restructuring its debt without consulting creditors,” Kandeta said. “The government will respect agreements and use market-based instruments where applicable.”Any restructuring plan will include debt held by multilateral and bilateral lenders, commercial banks, capital-market investors export-credit organizations and others, the document said.The move could improve the chances of International Monetary Fund support, but has made bondholders more anxious, Citigroup Global Markets analysts Sara Felizardo and Luis Costa said in an emailed note.“At the same time, a high share of external debt is related with China,” they said. “This means that Chinese debt needs to be involved in order to provide a substantial debt service capacity.”The country has been seeking support from the IMF since at least 2014, and Finance Minister Bwalya Ng’andu reiterated his nation’s intentions last month.“They were very clear that one of the things they want to see before we can get down to a program is we exhibit debt sustainability,” he had said of a meeting with fund staff. “I think what they were looking for was some indication from us beginning to take measures that point to the right direction.”Coronavirus FundingZambia also plans to apply for emergency financing from lenders such as the IMF to help respond to the coronavirus pandemic, Ng’andu said March 27.The selected advisers will “review the entire debt-loan portfolio to identify loans that are plausible for liability management,” according to the request for proposals. They will also “formulate restructuring plans for loans where liability management terms have been agreed to by creditors,” and help arrange financing, it said.Zambia debuted in the Eurobond market in 2012, when low interest rates in the wake of the global recession and the ensuing hunt for yield among investors meant it could borrow more cheaply than Spain at the time. Two other Eurobond sales followed in 2014 and 2015.It’s also contracted billions of dollars in loans for infrastructure projects from lenders including Export-Import Bank of China, Industrial and Commercial Bank of China and Saudi Fund for Development.(Adds analyst comment in fourth paragraph below ‘Respect Agreements’ subheadline)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.
(Bloomberg) -- BlackRock Inc. Chief Executive Officer Larry Fink predicted the economy will eventually recover from the coronavirus outbreak, though he said the crisis will reshape investor psychology, business practices and consumer habits.The pandemic that swept through nations across the globe this year is causing people to re-evaluate “just-in-time” supply chains and dependence on air travel, Fink wrote in his annual letter to shareholders dated Sunday.“In my 44 years in finance, I have never experienced anything like this,” Fink wrote, adding that “as dramatic as this has been, I do believe that the economy will recover steadily, in part because this situation lacks some of the obstacles to recovery of a typical financial crisis.”The spreading coronavirus has infected more than 780,000 people and prompted cities across the world to lock down, threatening deep recessions that will push households and companies to the brink. Deaths now top 37,000.Fink and New York-based BlackRock are already playing a role responding to the economic pain. The world’s largest asset manager is overseeing three separate debt-buying programs on behalf of the Federal Reserve. President Donald Trump also consulted on coronavirus-related aid for companies with Fink and other top Wall Street executives.Influenced by the 2008 global financial crisis, central banks are moving quickly to address credit market troubles and governments are being aggressive with fiscal stimulus, Fink added.“That is not to say the world is without risk, nor to suggest that the market has reached its bottom,” he wrote. “It is impossible to know.”(Updates with virus toll in fourth paragraph.)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.