67.90 -0.08 (-0.12%)
After hours: 5:57PM EDT
|Bid||68.14 x 800|
|Ask||68.15 x 1800|
|Day's range||66.50 - 68.25|
|52-week range||48.42 - 75.24|
|Beta (3Y monthly)||1.86|
|PE ratio (TTM)||9.89|
|Forward dividend & yield||1.80 (2.90%)|
|1y target est||N/A|
Wells Fargo & Co was dismissed as a defendant in a lawsuit brought by the cities of Philadelphia and Baltimore, which accused large banks of conspiring to inflate interest rates for variable-rate demand obligations (VRDO), a type of tax-exempt bond. Other Wells Fargo entities remain defendants. Goldman Sachs Group Inc and JPMorgan Chase & Co were previously dismissed from the case, though affiliates of those banks remain defendants, according to court records.
Wells Fargo & Co was dismissed as a defendant in a lawsuit by the cities of Philadelphia and Baltimore, which accused large banks of conspiring to inflate interest rates for variable-rate demand obligations, a type of tax-exempt bond. The dismissal came after Wells Fargo represented that it did not remarket, provide letters of credit for, or manage money market funds that invested in the bonds, according to a Tuesday filing in Manhattan federal court. JPMorgan Chase & Co and Fifth Third Bancorp were previously dismissed as defendants.
Citigroup's (C) restructuring and streamlining efforts, along with its strategic investments in core business, should bode well for the long term.
A group of leading banks will for the first time include efforts to cut carbon dioxide emissions in their decision making when providing shipping company loans, executives said on Tuesday. International shipping accounts for 2.2% of global carbon dioxide (CO2) emissions and the U.N.'s International Maritime Organization (IMO), has a long-term goal to cut greenhouse gas emissions by 50% from 2008 levels by 2050. Working with non-profit organisations the Global Maritime Forum, the Rocky Mountain Institute and London University's UCL Energy Institute, 11 banks have established a framework to measure the carbon intensity of shipping finance portfolios.
Investing.com – The S&P; 500 made a subdued start the week Monday, as bank stocks stumbled on falling Treasury yields amid growing expectations that the Fed will cut rates.
(Bloomberg) -- Citigroup Inc. is combining its foreign-exchange and rates businesses into a single unit, two months after Paco Ybarra took over as head of the institutional-clients group.Itay Tuchman will continue to lead the currencies business, while Deirdre Dunn and Pedro Goldbaum will co-lead the rates businesses. All three will report to Carey Lathrop and Andy Morton, who co-lead the firm’s markets and securities services business, the two said in an internal memo.The two units already share technology and corporate-sales teams and have overlapping products. By combining them, Citigroup is hoping to improve clients’ experience with the bank and boost earnings, Morton and Lathrop said in the memo.It’s the first sweeping change announced under Ybarra, who took over in April when President Jamie Forese announced he would leave the firm this summer. Ybarra was head of markets and securities services before his promotion.Here are other changes announced in the memo:Citigroup is looking for someone to take over as head of its North American markets and securities services division, a position most recently held by Dunn.Nadir Mahmud, who led foreign exchange and local markets, will assist in the transition and then work on strategy for Europe, the Middle East and Africa.The firm’s Group of 10 and local-markets treasury units will also combine into a single unit, led by Andy Thursfield.Flavio Figueiredo will lead corporate sales for the combined rates and currencies entity.Brian McCappin will lead foreign-exchange and local-market investor sales.Lionel Durix will continue to lead rates and currencies structuring.To contact the reporters on this story: Jenny Surane in New York at email@example.com;Donal Griffin in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Abu Dhabi National Oil Co. and chemical producer OCI NV plan to combine their Middle East and North Africa crop-nutrient businesses, creating the region’s fertilizer producer to challenge U.S. and Russian exporters.OCI will merge its ammonia and urea assets in North Africa with Adnoc’s fertilizer complex in the United Arab Emirates, the companies said in a statement Monday. The combined company will have $1.74 billion in annual sales, according to the statement, which confirmed an earlier Bloomberg News report.Shares of OCI were down 2.9% at 12:27 p.m. Monday in Amsterdam, giving the company a market value of about 5 billion euros ($5.6 billion).A global ramp-up in fertilizer output has flooded the market with too much supply, prompting players to explore consolidation to improve economies of scale and global reach. A clampdown on tax inversions scuppered CF Industries Holdings Inc.’s plan to buy OCI’s fertilizer arm in 2016.The formation of the joint venture, which will be 58% owned by OCI, is expected to generate as much as $75 million in annual savings, the companies said. It will be headed by the Dutch firm’s chief executive officer, billionaire Nassef Sawiris.Broadening Economy“It looks like a sensible deal, which should generate commercial synergies and create a stronger export platform for nitrogen fertilizers,” Berenberg analyst Rikin Patel said by email.OCI assets may be valued at around $5 billion, as it deserves a multiple of about 10 times earnings due to its superior efficiency, Patel said. Its Middle East and North Africa business generated about $501 million of adjusted earnings before interest, taxes, depreciation and amortization last year, according to a company presentation.State-owned Adnoc has been expanding its downstream operations and bringing in partners for businesses including its pipeline network and refining unit. It has also listed its distribution unit and agreed in October to sell a 5% stake in its $11 billion drilling business to Baker Hughes. The moves come as the emirate of Abu Dhabi, home to about 6% of the world’s crude reserves, seeks to diversify an economy that’s dependent on oil. Adnoc Fertilizers was set up in 1980 to make urea for agricultural use. It sells its products to local and international markets, including the Indian subcontinent, the U.S., Latin America, Australia and Europe.Growth PotentialOCI owns a plant in Egypt with capacity to produce about 1.65 million metric tons of granular urea per year, according to its latest annual report. It also has a 60% stake in another Egyptian production complex that makes anhydrous ammonia, as well as a trading arm in the United Arab Emirates. OCI’s fertilizer venture in Algeria can produce about 1.6 million metric tons of gross anhydrous ammonia and 1.26 million metric tons of granular urea annually.“This platform has significant potential for future growth and value creation,” Sawiris said in the statement.OCI held talks earlier this year about a potential sale of its methanol assets to Saudi Basic Industries Corp. in a deal that could have valued the business at as much as $4 billion, Bloomberg News reported in March. The Dutch company’s largest shareholder is Sawiris, who is Egypt’s richest person with a fortune of about $6.8 billion, according to the Bloomberg Billionaires Index.The transaction with Adnoc is expected to close in the third quarter of 2019. JPMorgan Chase & Co. advised OCI on the deal, while Adnoc worked with Citigroup Inc.(Updates with analyst comment in sixth paragraph.)\--With assistance from Mahmoud Habboush.To contact the reporters on this story: Andrew Noël in London at firstname.lastname@example.org;Dinesh Nair in London at email@example.com;Aaron Kirchfeld in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, Andrew Noël, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- This week’s Federal Reserve decision will be the most consequential one yet under the leadership of Chair Jerome Powell.Sure, Fed officials will almost certainly leave interest rates unchanged, and they won’t do anything with the central bank’s balance sheet beyond what they have previously indicated. But the move in financial markets has been so swift, with traders so convinced that policy makers will lower interest rates imminently, that every change in their statement’s wording, every syllable uttered by Powell during his press conference, and any tweak in the “dot plot” will be scrutinized as much as ever. After all, vast sums of money (not to mention strategists’ reputations) are riding on a decidedly dovish shift.It truly seems as if bond traders have gone too far and are setting themselves up for disappointment. They have priced in a 92% chance of a quarter-point rate reduction in July and 2.75 cuts by the end of the year. Barclays Plc strategists would say that’s too conservative — they’re calling for a 50-basis-point cut next month and an additional 25 basis points in September in one of the more aggressive Wall Street forecasts. Basically, as Michael Purves at Weeden & Co. put it, markets are “almost taunting the Fed.”Make no mistake, Fed officials have a number of reasons for caution. While President Donald Trump tabled threatened tariffs on Mexico, a potentially drawn-out trade war with China looms large. U.S. inflation continues to fall short of the central bank’s stated 2% target, while the University of Michigan's gauge of expected price changes fell to an unprecedented low late last week. And the bedrock of this rate-hiking cycle — a seemingly unstoppable labor market — is showing early signs of slowing, with American companies adding just 75,000 workers in May, missing estimates for a 175,000 gain.All of this lines up with Powell’s pivot since the end of last year, from signaling further interest-rate increases and keeping the balance sheet runoff on “automatic pilot” to being patient and winding down the bank’s “quantitative tightening.” He and other policy makers have clearly indicated this is as far as they’ll go in tightening monetary policy this time around.That’s not the same thing as saying they’re ready to begin easing.The problem is, bond traders (and, admittedly, financial journalists) don’t care about that nuance. Conviction that the Fed is done hiking, by definition, means that the next move in interest rates will be lower, making it a matter of “when,” not “if.” After Powell said earlier this month that “as always, we will act as appropriate to sustain the expansion,” it was perceived as opening the door to cutting interest rates, even though he didn’t really say that. RBC Capital Markets had a brilliant report that noted the “weak” May jobs number was actually perfectly consistent with the Fed’s outlook. No matter; traders scurried to wager on easing sooner rather than later in the wake of the payrolls data. So here we are, with markets brazenly taunting the Fed. Will Powell dare to defy them?Unfortunately, recent history doesn’t provide a clear answer. In January, I wrote that the Fed was officially at the market’s mercy, given a decision that was seen as giving in to the late-2018 equities tantrum. Two-year Treasury yields fell about 12 basis points in the following 27 hours. In March, it was more of the same, with central bankers managing to beat traders’ lofty dovish expectations by shifting the dot plot to show zero interest-rate increases in 2019, compared with two in December. Again, two-year yields tumbled, ending the week 15 basis points lower than they were before the decision.Things went differently last month. After what looked like another bond rally in the making, Powell managed to entirely reverse it, and then some, by highlighting “transitory factors” keeping inflation subdued. “Our baseline view remains that with a strong job market and continued growth, inflation will return to 2% over time,” he said. Two-year yields climbed eight basis points in the next 27 hours, to 2.35%, a level that almost exactly aligns with the current effective fed funds rate. In other words, bond investors were more or less on board with the idea of a “patient” Fed holding rates where they are.Obviously, the outlook has changed since then, but not nearly to the extent that market pricing would indicate. As one example, Citigroup Inc.’s U.S. economic surprise index is at the same level it was on May 1, the day of the Fed’s most recent decision. The persistently negative reading is hardly a cause for celebration — it signals data have been worse than expected — but it could just as likely indicate that forecasters have to come to terms with the expansion turning 10 years old and serve as an early warning that the economy is rolling over. As RBC’s Tom Porcelli and Jacob Oubina noted, it’s all about the narrative.Given all that, which Powell will investors get? The one who gives them what they want and more, or the one who is willing to push back? I believe that deep down, Powell would strongly prefer to keep interest rates where they are and only begin easing when he and other officials observe clear and persistent signs of weakness. The U.S. economy is not at that point yet. It doesn’t help that Trump continues to pound the table for lower rates, in what has become a now-commonplace break from recent presidential history, while simultaneously trumpeting the “tremendous potential our Country has for GROWTH.”If I had to guess, the dot plot will turn flat, with the current 2.375% median fed funds rate extending through at least 2021. That’s the definition of patience. Then, Powell will reiterate in his press conference that the Fed stands ready to act as appropriate. In doing so, he preserves the option to lower interest rates as soon as July or September, without making any sort of explicit commitment. If that’s seen as insufficiently dovish, as some rates strategists suggest, then tough.Powell, at the helm of the world’s most influential central bank, can afford to be more deliberate than traders looking to get ahead of the next big move. At the same time, the cacophony of calls for rate cuts is tough to shut out. Should he capitulate entirely, he will be permanently viewed as a Fed chair who was broken by bond traders. To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Russia’s central bank shifted solidly to monetary easing, saying its first interest rate cut in more than a year on Friday could be followed by two more in 2019, as inflation slows and growth sputters. The move makes Russia the latest emerging market to shift toward more dovish policy as escalating trade woes weigh on growth. The change in trajectory of interest rates in developed economies reduces the risk of persistent outflows from emerging markets, the Bank of Russia said in a statement.
Strong fundamentals, prospects and efforts to further expand revenues are expected to drive JPMorgan (JPM) in the quarters ahead.
Given the chances of a Fed rate cut early next month, State Street (STT) reduces revenue expectation for the second quarter of 2019.
Are you worried your parents didn’t teach you enough about money? You’re not alone. Nearly one in four adults in the U.S. -- 24%, according to the study -- say their parents didn’t give them any sort of financial education growing up, according to a new report.
South Africa's antitrust tribunal concluded on Wednesday that it has no powers to charge foreign banks being investigated in an exchange-rate rigging case unless they have a presence in the country. Partly on that basis, the tribunal sent the case back to the country's competition watchdog, giving it 40 days to clarify the charges it plans to bring. In a probe that has rumbled on since 2015, the Competition Commission has been seeking fines against 23 local and foreign banks that it alleges colluded to coordinate activities when giving quotes to customers buying or selling the rand and the dollar.
Citigroup's (C) lack of internal control measures, as stated by the Financial Services Agency, results in a ban on the company from availing some special auction participation entitlements.
(Bloomberg) -- Nintendo Co. fell the most in a month after delaying the release of Animal Crossing: New Horizons till next year, postponing a marquee holiday title that could have supported the launch of a cheaper Switch console.Its shares dropped as much as 2.8% in Tokyo, the most on an intraday basis since May 8. The game was pushed to March 2020, the company said in an online video Tuesday. Nintendo reaffirmed that another big 2019 title -- Luigi’s Mansion 3 -- is on schedule but failed to provide a release date. The 40-minute video, broadcast during the E3 game expo in Los Angeles this week, also highlighted support for the Switch from publishers and teased a sequel to mega-hit The Legend of Zelda: Breath of the Wild.Despite the delay, the Switch still sports an impressive lineup for 2019, an improvement from a year ago when a poor showing at E3 preceded a tough year for shareholders. Nintendo had been up 34% this year through Tuesday -- outpacing many of its rivals -- as new titles and expectations for additional hardware boost confidence that the company can navigate big changes in the industry.“Animal Crossing: New Horizons was originally slated for release in 2019. That it will now go on sale after the Christmas shopping season is mildly disappointing,” Citigroup Inc. analysts Minami Munakata and Yui Shoji said in a report. “Legend of Zelda: Breath of the Wild has an extremely strong reputation, particularly among hardcore gamers, so future developments related to the sequel bear watching.”In Tuesday’s video, Nintendo didn’t say when the sequel to Breath of the Wild could be released. It confirmed that a remake of an older Zelda title -- Link’s Awakening -- will launch Sept. 20. New third-party games included The Witcher 3: Wild Hunt, set for a 2019 release. The Switch-exclusive Astral Chain will also be released Aug. 30. No new games were shown for the 3DS or mobile platforms.“The 1H pipeline looks beefier to us than it did last year,” Morgan Stanley analysts Masahiro Ono and Yui Yasumoto said in a report. “The announcement of release dates for major titles, where Nintendo had so far only given a general timeframe, is a positive.”Still, another delay of a key title is a worry for investors after the company this year pushed back the releases of mobile game Mario Kart Tour and Switch exclusive Metroid Prime 4. That prompted a barrage of criticism as analysts questioned the company’s approach to software development.On the hardware front, Nintendo didn’t mention a new Switch, which Bloomberg News reported was likely to launch this month. Executives said in April that new hardware wouldn’t be shown at E3.The video-game industry is undergoing structural changes, as faster network speeds make it possible to play games via the cloud or internet, bypassing the need for consumers to own consoles. That’s opening the door to new entrants like Google and forcing longtime rivals Microsoft Corp. and Sony Corp. to explore collaboration even as both prepare to launch new hardware next year.Kyoto-based Nintendo has a spotty history with online play and was a decade behind rivals in releasing a paid subscription service. It didn’t make any cloud-related announcements on Tuesday and its experience with cloud gaming is limited to a partnership with Taiwanese startup Ubitus Inc., which began streaming a few games to Switch users in Japan last year. The service hasn’t taken off and executives haven’t said if they plan to expand it globally.(Updates with shares from the second paragraph.)\--With assistance from Ayaka Maki.To contact the reporters on this story: Yuji Nakamura in Tokyo at firstname.lastname@example.org;Christopher Palmeri in Los Angeles at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Rob Golum, Nick TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Citigroup (C) seeks to bolster presence in Southeast Asian markets with the support of Grab's popularity and strong demand in the area.
The Ministry of Finance ordered Citigroup Global Markets Japan Inc.’s exclusion from participating in “non-price competitive auctions” and certain other government bond sales for a month from June 13, it said in a statement Tuesday. The suspension comes days after the Financial Services Agency fined the firm 133 million yen ($1.2 million) and ordered it to improve internal controls for failing to detect instances of manipulation of the Japanese government bond market. Citigroup was found to have placed orders last October for JGB futures contracts without intending to execute them, a practice known as spoofing.
Citigroup has teamed up with Singapore-based ride-hailing firm Grab to launch co-branded credit cards, as it looks to boost its Asian customer base by about 13% via partnerships with digital firms, a senior Citi executive said. The new cards mark the latest step in Grab's big push into the financial services sector, an area it has earmarked for growth. The Citi-Grab co-branded cards will be issued in the Philippines on Tuesday and in Thailand later this year, before being rolled our in other Southeast Asian markets.