|Bid||0.00 x 2200|
|Ask||0.00 x 1400|
|Day's range||54.10 - 55.61|
|52-week range||38.76 - 57.57|
|Beta (5Y monthly)||1.38|
|PE ratio (TTM)||10.51|
|Earnings date||14 Apr 2020 - 19 Apr 2020|
|Forward dividend & yield||1.40 (2.52%)|
|Ex-dividend date||29 Jan 2020|
|1y target est||61.50|
(Bloomberg Opinion) -- It’s easy to be cynical about the good intentions of a company caught up in one of the biggest frauds in history: the 1MDB scandal in Malaysia. Yet Goldman Sachs Group Inc.’s new stance on boardroom diversity shows how even the most profit-oriented of finance titans can — when pushed — further the virtues of stakeholder capitalism.Speaking at the World Economic Forum in Davos, where global leaders vowed to save humanity from climate change, Goldman’s chief executive officer, David Solomon, set forth a vision for his bank’s role in imposing better governance on its clients. From July it won’t manage the initial public offerings of American and European companies unless they have at least one non-white or non-straight male board candidate, Solomon said (the focus will be on women). In 2021, he’s going to “move toward… requesting two.”The move carries weight. Goldman is one of the top three IPO underwriters of the past decade, alongside Morgan Stanley and JPMorgan Chase & Co. It has an authority that wannabe public companies won’t be able to ignore.Going public is one of the critical junctures in a company’s history. It’s the moment when a century-old, family-owned widget maker, an upstart venture capital-backed tech unicorn, or a state-controlled behemoth, sets out on a course that will define its role in society for years to come. Getting the composition of its leaders right at the start sets the standard for what a company expects of itself just as it embarks on what’s often a period of rapid growth.Tech startups especially have been criticized for fostering a “bro’” culture that can be a hostile place for women, exemplified by Uber Technologies Inc. under the previous leadership of Travis Kalanick. But it’s not just about staff and society; shareholders will also benefit, according to Solomon. Companies with more diverse boards score better on measures of sustainability — an issue that’s increasingly important for asset managers. Broader representation has also been associated with higher profits and performance, although the empirical data is mixed.Goldman’s reputation could also use a little sprucing up, not only from the probes into its role raising money for the Malaysian investment fund 1MDB, but also around the subject of IPOs. It’s no coincidence that Solomon’s declaration follows two listing flops of epic proportions. Last year, his bank was one of the IPO underwriters for WeWork, which only added a female director after its first prospectus was pilloried. The deal was pulled eventually in part because of lingering governance concerns.International investors also spurned the biggest IPO of all time, Saudi Aramco, in part over concerns about controls and governance. Riyadh punished Goldman and its ilk by relegating them to the second-tier behind local banks, paying them considerably less after scrapping roadshows outside the Middle East.The two deals were embarrassments that Goldman will be keen to move on from by putting a more positive gloss on this part of the empire. What’s more, it’s unlikely to lose out on any big IPO business given the relatively modest ambition of its pledge. Of the listings managed by Goldman in the past two years in the U.S. and Europe, fewer than 10% had a board lacking a diverse candidate (many countries already enforce quotas). Half of the bank’s top-10 IPOs in 2018 and 2019 took place in Asia and the Middle East, regions not covered by Solomon’s promise. By flagging the more ambitious two-person target for 2021 now, Goldman is giving clients time to prepare. It’s also shrewdly reading where the “environmental, social and governance” trend is headed. Its first mover advantage may win it admirers among more enlightened startup companies and executives who have been weighing direct listings as alternatives to costly IPOs.It will take time for the “vampire squid” to shed its image as a pure opportunist, especially with 1MDB rumbling on. But whatever the motivation, pushing for greater diversity ups the collective pressure on other financiers to use their power for good. Over to you Morgan Stanley and JPMorgan.To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.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.
Morgan Stanley today announced the launch of CashPlus, a new brokerage account that offers clients a modern alternative to banking. The CashPlus Account replaces the Premier Cash Management program. CashPlus, the next generation of cash management at Morgan Stanley, puts a client’s cash activities front and center, while offering a wide range of benefits and a seamless digital experience.
The Zacks Analyst Blog Highlights: JPMorgan Chase, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Bob Prince, who helps oversee the world’s biggest hedge fund at Bridgewater Associates, says the boom-bust economic cycle is over.The tightening of central banks all around the world “wasn’t intended to cause the downturn, wasn’t intended to cause what it did,” Prince, the co-chief investment officer of Bridgewater, said in an interview with Bloomberg TV at the Swiss resort of Davos. “But I think lessons were learned from that and I think it was really a marker that we’ve probably seen the end of the boom-bust cycle.”The boom-bust cycle refers to economic expansion and contraction that repeats itself. However, central bank intervention since the financial crisis and monetary easing has disrupted that cycle and has helped fuel the longest-running bull market in stocks. That has led the hedge fund industry to struggle to match gains of passive funds tracking indexes.The Westport, Connecticut-based investment firm suffered its first annual loss since 2000 in its most prominent fund--Bridgewater Associates Pure Alpha II--last year. The fund lost 0.5%, only the fourth annual decline since starting in 1991. Many of its peers, by comparison, posted some of their best returns since 2008.Prince, who oversees Bridgewater’s $160 billion in assets with Ray Dalio and Greg Jensen, said that performance this year has been so far good for the firm. He was among at least 119 billionaires converging on Switzerland this week to join bankers, politicians and other grandees for their annual pilgrimage to the Alps for the World Economic Forum.Earlier this week, Dalio urged investors not to miss out an opportunity to benefit from strong markets. “Cash is trash,” he said in a CNBC interview in Davos on Tuesday. “There’s still a lot of money in cash.”Although Dalio said he believes the Federal Reserve can no longer stimulate the U.S. economy, he doesn’t think there will be a downturn this year.Morgan Stanley Chief Executive Officer James Gorman took issue with the suggestion that the patterns of booms and busts are done.“You’d have to kill fear and greed for that to be true,” Gorman said on Bloomberg TV in Davos. “There’s a reason we have cycles going back thousands of years and I don’t think that stops.”(Updates with Gorman comment in final paragraph.)\--With assistance from Jonathan Ferro and Tom Keene.To contact the reporter on this story: Nishant Kumar in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Shelley Robinson at email@example.com, Patrick HenryFor 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.
Most Wall Street banks announced their fourth quarter profits beat industry expectations last week. Many dealmakers, traders and even one big bank CEO are getting flat-to-down bonuses and total compensation for their performance in 2019 even though overall profits grew, the sources and experts said. Morgan Stanley reduced incentive compensation for staff and cut Chief Executive Officer James Gorman's total compensation by 7% for last year compared to 2018, as the bank worked to reduce expenses, which climbed in the fourth quarter.
Carbon neutrality will come at a steep price. Here's what Credit Suisse CEO Tidjane Thiam said on the topic at the 2020 World Economic Forum.
Former FDIC chair Sheila Bair said Elizabeth Warren is "absolutely the best candidate" on policies related to the banking industry.
Greenpeace is calling out one of the biggest names in banking, JPMorgan Chase CEO Jamie Dimon, and what it calls the bank’s lack of action in battling climate change.
(Bloomberg Opinion) -- The troubled Italian lender Banca Monte dei Paschi di Siena SpA took another big step in its long path to redemption last week by selling subordinated debt for the second time in six months. An 8% coupon is expensive for the world’s oldest bank, but it can hardly complain given its years of troubles.Even though the yield is enticing, investors are still taking a gamble. They will doubtless have been encouraged by expectations that the Italian state will have their backs. Rome owns 68% of Paschi and there’s a fourth bailout on its way for the lender.The general environment for investing in Italian banks is a bit better too. Another lender, Banco BPM SpA, issued some perpetual hybrid debt on Tuesday. Paschi is deeply into junk territory yet it managed to raise a chunky 400 million euros ($444 million). This was one-third bigger than a similar 10-year Tier 2 issue in July, and at a much lower cost than the 10.5% coupon it had to offer then. It was more than twice subscribed and the yield has tightened modestly since launch.Monte Paschi’s debt coordinators showed a fair amount of skill with last week’s sale, amid another record start to bond issuance this year. Only days ago, the bank told shareholders it will have to take a big hit to profit after writing down deferred tax assets. Still, for Monte Paschi it’s very helpful that the state aid just keeps coming. The bet by bond investors that Rome will keep doing whatever it takes may be a winning one.Reeling from an acquisition that drained it of cash just as markets peaked in 2007, Paschi has had to turn to its government three times already to replenish its capital as losses on bad loans piled up. The last round, in 2017, saw Italy effectively take over the lender while pledging to exit by 2021 under terms agreed with the European Union.The bank has made progress in cleaning up its balance sheet, but a ratio of non-performing loans of about 12.5% targeted for year-end and sluggish revenue render Paschi virtually untouchable for would-be partners. Luckily, as in the past, Italian taxpayers are on hand. Italy is in talks with Brussels to allow state-backed debt manager Amco to buy more than 10 billion euros of Paschi’s soured loans, a move that would reduce its bad debt ratio to below 5%, according to Morgan Stanley analysts.You can never be certain about Monte Paschi, a bank that hid losses with complex derivatives and was found by the European Central Bank to have inadequate governance and financial controls as recently as 2017. But another round of aid might make it look more attractive to rivals. Bond markets clearly find it palatable.To contact the authors of this story: Marcus Ashworth at firstname.lastname@example.orgElisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.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.
A week ago, Morgan Stanley (NYSE:MS) came out with a strong set of yearly numbers that could potentially lead to a...
The big U.S. banks reported earnings for the fourth-quarter of 2019, seeing decent top-line growth as a result of a strong U.S. consumer. But the bottom line earnings were helped by share buybacks.
(Bloomberg) -- The U.S. Treasury’s plan to reboot its 20-year bond clarified how the government will fund a $1 trillion deficit, but also raised questions about the decision’s ramifications elsewhere in the market.Traders took a stab at providing some answers in the immediate aftermath, reshaping the yield curve. The extra yield on 30-year bonds versus 2-year notes rose almost 3 basis points on Friday, the biggest increase since late December.While some see this move auguring a steeper curve longer term, much will depend on how the Treasury Department rejiggers its lineup of issuance. And that in turn will depend on when the sales begin, and their size, analysts say.Wall Street dealers seem generally of the view that the new issue will lead to only marginal cuts, if any, to other coupon-bearing auctions. At UBS, strategist Chirag Mirani says the market pricing has already adjusted to the prospect of new supply, and he sees the recent cheapening in longer-dated Treasuries as a buying opportunity.But Jim Caron at Morgan Stanley Investment Management sees cuts closer to the front end of the curve, which should help widen the gap between short- and longer-end yields.“We like the curve steepener, so this is a welcome thing,” Caron said Friday.Most dealers anticipate the new 20-year bonds to debut in May. Waiting until around mid-year reduces the need to shave auction sizes that are historically large, which has left the Treasury well-funded for now.But the federal budget deficit is set to surpass $1 trillion, and the U.S. also has to deal with a wall of debt starting to mature later this year. As a result, any move to shrink offerings of other coupon-bearing maturities to make room for the 20-year would soon have to be reversed. And if the Treasury does take that step, bills are seen as the most likely candidate.“The key reason for Treasury to introduce the 20-year now is that it gives it a warm-up period,” said Jim Vogel, a strategist at FHN Financial. “It will be absolutely necessary later on for larger auction sizes overall,” so cuts now would only be temporary.For decades, the Treasury has sought a regular and predictable approach to issuance, which it sees as fostering investor demand and reducing the cost to taxpayers. That approach has meant that officials prefer not to make abrupt or frequent changes to their auction slate.One reason to expect a supply-driven steepening in the curve is looking shakier: The decision to reboot the 20-year, which the U.S. stopped issuing in 1986, appears to put on ice for now the prospect of even longer maturities. Treasury Secretary Steven Mnuchin has been pondering that step since he took over in 2017. The 20-year idea seemed to gain traction last quarter.There’s another key reason analysts say the Treasury can wait a few months to introduce the two-decade maturity. Its financing position is getting a boost from the Federal Reserve’s monthly purchases of $60 billion in T-bills, a program aimed at increasing reserves. As those securities mature and the central bank rolls them over, it reduces the amount the government needs to borrow from the public.“Based on the current auction sizes and projections for the deficit, it seems unlikely to us that Treasury will start issuing the 20-years in February, but they will likely announce in May the actual start of sales,” said Zachary Griffiths, a rates strategist Wells Fargo Securities. “And at that time, Treasury could start 20-years a bit smaller than its full annual run-rate plans, or if not, just cut the 30-year auctions by a few billion.”It will likely leave the 10-year alone, because its role as the world’s borrowing benchmark means it needs to be highly liquid, according to Griffiths.Well Fargo forecasts that when the 20-year is fully up and running, Treasury will sell about $39 billion quarterly, or about $150 billion to $160 billion each year. The Treasury Borrowing Advisory Committee has recommended that the government issue $140 billion annually.More information on the 20-year will come at Treasury’s next quarterly announcement of longer-dated debt sales, on Feb. 5, the department said in a statement. In its regular quarterly survey released Friday, Treasury asked dealers about the maturity, including their view on the minimum auction size and total issue size necessary to ensure benchmark liquidity.“Treasury will likely do this in a way to limit adjustments needed in other coupon maturity sizes, or even prevent any from occurring at all,” said Mark Cabana, head of U.S. interest rates strategy at Bank of America Corp.(Updates with views on the U.S. Treasury yield curve)\--With assistance from Saleha Mohsin and Elizabeth Stanton.To contact the reporters on this story: Liz Capo McCormick in New York at email@example.com;Emily Barrett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Benjamin Purvis at email@example.com, Nick Baker, Mark TannenbaumFor 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) -- Major technology and internet companies have long fueled the U.S. stock market’s climb to record levels, but that trend has come with one notable exception: Amazon.com Inc., which has languished in a fairly narrow trading range for months.Amazon shares haven’t notched an all-time high since September 2018, in contrast to mega-cap peers like Apple, Microsoft, Alphabet and Facebook, which have been hitting records on a near-daily basis. Many of these names experienced pronounced draw-downs over the past year and a half, mostly due to disappointing earnings reports or outlooks. But they regained their momentum last year, as their growth assuaged investor caution. Amazon, however, remains about 8.5% below its own peak.Because of its long-term prospects, Amazon is about as close as a stock can be to a consensus choice among Wall Street firms. Over the near term, though, it is “the most hotly debated among investors” as “debates persist on both AWS and next day shipping efforts,” according to UBS analyst Eric Sheridan, referring to its Amazon Web Services cloud-computing business.Since the start of 2019, Amazon shares are up about 24%, below the 32% rise of the S&P 500, as well as the much larger gains seen in other bellwethers. Microsoft and Facebook are both up more than 60% since the start of last year, while Apple has doubled. The rally resulted in trillion-dollar valuations for Apple, Microsoft and Google-parent Alphabet, a milestone that Amazon briefly eclipsed in 2018.The underperformance reflects concerns over Amazon’s earnings trends, even as it has continued to grow revenue at a double-digit clip. Major investments into initiatives like one-day shipping are seen as headwinds, and shares “may be range bound ‘tactically’” given the impact of this spending, Morgan Stanley wrote on Thursday. The firm added that “near-term profitability is likely to still disappoint” because of these investments, even as it sees the effect as temporary and one-day shipping deepening Amazon’s competitive moat within e-commerce.Another key issue is the waning dominance of Amazon Web Services, which has long been a major driver for earnings and margins, but has faced growing competition from rivals like Alphabet and especially Microsoft. According to Bloomberg Intelligence, which cited IDC data, Amazon Web Services was 12 times larger than Microsoft’s cloud business in 2014. By 2018, the most recent year for which data is available, it was just four times larger.James Bach, an analyst at Bloomberg Intelligence, wrote that Amazon was particularly facing “stiffer competition” with government contracts. “Microsoft’s extensive sales experience, installed base within U.S. agencies and broad range of edge-computing products all make a compelling offering,” he wrote. Microsoft is “uniquely positioned to claim market share as federal agencies upgrade and secure IT systems.”In October, Microsoft beat out Amazon for a $10 billion Pentagon cloud contract, a deal Amazon had been seen as the favorite to win. The company subsequently claimed it lost the contract because of political interference by President Donald Trump, and filed a lawsuit challenging its validity.Amazon earlier this week named a new sales chief for AWS. Deutsche Bank wrote that the “magnitude of personnel changes” at AWS, along with rising competition, underscored the “increased risk of further deceleration” at the business.Separately, Morgan Stanley this week wrote that a quarterly survey of chief investment officers suggested some cause for caution about AWS growth. “Quarterly survey results can be volatile, but AWS saw a notable [quarter-over-quarter] drop in net expected budget share gains” over the next three years, analyst Brian Nowak wrote. “It will be important to continue to monitor these metrics going forward as we think about AWS forward growth.”Amazon is expected to report fourth-quarter results later this month. According to data compiled by Bloomberg, Wall Street is looking for revenue growth of nearly 19% and expecting net income to fall by nearly a third. AWS revenue is seen growing more than 30% on a year-over-year basis, according to a Bloomberg MODL estimate.Wall Street remains almost unanimously positive on the stock. According to data compiled by Bloomberg, 53 firms recommend buying the stock, compared with the four with a hold rating. None advocate selling the shares.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Janet FreundFor 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.