|Bid||132.98 x 800|
|Ask||132.99 x 1000|
|Day's range||131.14 - 133.86|
|52-week range||100.54 - 138.13|
|Beta (5Y monthly)||1.05|
|PE ratio (TTM)||16.60|
|Earnings date||15 Apr 2020 - 19 Apr 2020|
|Forward dividend & yield||1.72 (1.32%)|
|Ex-dividend date||01 Jan 2020|
|1y target est||139.52|
This partly has to do with a better-than-expected Q4 earnings season overall so far, along with a void of economic metrics this week that might cause market participants pause.
(Bloomberg) -- It’s a problem that Davos can’t solve.The World Economic Forum tried to mitigate the environmental impact of all those private jets traveling to and from this year’s conference in the Swiss town by giving them the option to fill up on so-called sustainable aviation fuel, which is designed to lower carbon emissions compared to normal flights. Many attendees who left the conference after the last session on Friday will nevertheless have had to take commercial planes that use conventional fuel.Given the WEF’s effort this week to tackle the risks facing the world economy from climate change — environmental issues topped its agenda for the first time in the event’s 50-year history — it’s an uncomfortable situation on its own doorstep. It’s also a high-profile example of an issue confronting the entire conference industry: as concern about environmental damage from air travel has given birth to a “flight shame” phenomenon which has darkened carriers’ outlook, there’s the potential for a knock-on impact on the business of organizing business meetings. An average conference attendee emits as much as 2,000 pounds of carbon dioxide per meeting, according to TerraPass, a sustainability consultancy — about the same as driving from San Francisco to New York City. Some of the environmental impact comes from piles of brochures that might not get recycled, the food that gets wasted and the marketing swag that can end up in landfills. But the vast majority of carbon emissions come from air travel. “We must get ahead of change and public perception,” Jason Geall, vice president for Northern Europe at American Express Global Business Travel, said in a speech to business travel and meetings executives in London on Monday. “A failure to act now could leave us vulnerable to existential threats, such as flight caps and increased taxation and regulation.”For now, environmental concerns haven’t hit events companies. Shares of Relx Plc, which derived about 18% of revenue from events in the first half of 2019, and Informa Plc, whose events unit contributed about 8%, were at or close to all-time highs on Friday. UBS AG analysts led by Adam Berlin forecast 4% annual growth in the global exhibitions sector in the coming year, about the same pace as in recent years.While more organizers are recognizing the need to mitigate the damage their events can cause to the environment, the industry hasn’t settled on an approach for tackling air travel. Some conference holders include carbon offsetting in the cost of the event tickets. Others leave attendees to address the problem themselves.Take MWC, the annual meeting for the telecommunications industry in Barcelona. This year’s event starts Feb. 24, and in 2019 more than 100,000 people attended. For four of the last five years, Guinness World Records named it “The World’s Largest Carbon Neutral Trade Show.” MWC lists among its main achievements the creation of a green logo, and the use of recycled post-consumer bottles in the lanyards for attendees’ badges. Guests are also directed to a website where they can calculate and offset their emissions from attending the event, a spokeswoman said. The GSMA, the mobile industry lobby group that hosts the conference, calculates and offsets any emissions remaining, including from travel.Though the events industry has been slow to tackle the problem of CO2 emissions from air travel, images of the Australian wildfires and calls for action from activists like Greta Thunberg have sparked interest in making meetings more green, said Nancy Zavada, president of environmental consultancy MeetGreen in Portland, Oregon. Demand for her services, which includes helping meeting organizers arrange teleconferencing and carbon offsetting for attendees’ flights, jumped about 20% in the last quarter, she said.“The climate, the storms, the weather, are really starting to wake people up to what’s going on,” she said. “It’s also the Greta effect.”Marcia Balisciano, director of corporate responsibility at Relx, says it’s important not to underestimate the efficiencies that can be achieved by big business events.“If you come to this marketplace where your customers are going to be, or your suppliers, then it’s going to be a lot easier for you to do your business by traveling once,” she said. MeetGreen’s president also cautions against being too quick to criticize the environmental measures taken at Davos. The WEF doesn’t serve drinks in single-use plastic containers, uses 100% renewable energy, and to encourage walking in the Alpine snow, offers shoe grips and maps.“They’re trying,” said Zavada. “They’re putting some stuff in place. They are just so public, they’re easy to pick on.”To contact the author of this story: Thomas Seal in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comFor 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.
American Express (AXP) delivered earnings and revenue surprises of 1.50% and 0.03%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
American Express Company (NYSE:AXP) today reported fourth-quarter net income of $1.7 billion, or $2.03 per share, compared with net income of $2.0 billion, or $2.32 per share, a year ago. The year-ago period included $496 million, or $0.58 per share, of certain discrete tax benefits.
Discover Financial fell more than 11 per cent after it reported fourth-quarter results broadly in line with Wall Street’s expectations, with revenue and net income growth of 5 per cent and 3 per cent, respectively. , rule — an accounting standard that came into effect this month — would increase loan loss reserves by $2.5bn, more than it previously expected.
(Bloomberg) -- As Visa Inc., Mastercard Inc. and American Express Co. prepare to enter China for the first time, one of their biggest competitive threats will come from a company that doesn’t issue credit cards.Jack Ma’s Ant Financial, already the biggest player in China’s $27 trillion payments market, is leveraging its ubiquitous Alipay mobile app to mount a rapid expansion into consumer lending.Instead of issuing cards, Ant allows customers to borrow with a few taps on their smartphones. The loans are wildly popular among China’s army of mobile-savvy shoppers, who often lack formal credit histories but generate enough financial data via Alipay for Ant to make informed decisions on whether they’ll default. The company’s outstanding consumer loans may swell to nearly 2 trillion yuan ($290 billion) by 2021, according to Goldman Sachs Group Inc. analysts, more than triple the level two years ago.“The consumer loans business has been growing at breakneck speed, but there are so many untapped users,” Huang Hao, president of Ant’s digital finance operations, said in a phone interview outlining the company’s strategy.Ant’s push into China’s 10 trillion yuan market for short-term consumer loans will make it an even more formidable challenger to U.S. card companies, which are counting on the world’s second-largest economy as a source of long-term growth.Many Chinese consumers and businesses are ditching credit cards as Ant and its main competitor Tencent Holdings Ltd. make app-based spending, borrowing and investing increasingly user-friendly. In a Nielsen survey of more than 3,000 Chinese people born after 1990, nearly 61% said they use online consumer credit while only 45.5% had a credit card.“For credit card companies coming to China, the biggest challenge is how to attract people,” said Zennon Kapron, managing director of Singapore-based consulting firm Kapronasia. “A lot of Chinese millennials are digital first, used to using Alipay as their first platform for payments, loans and wealth management.”The card giants appear to be moving forward with their China plans despite the headwinds. AmEx’s application to start a bank card clearing business has been accepted by the country’s central bank, while Mastercard has called China a “vital” market and Visa has said it’s working closely with regulators for a license.As part of its phase-one trade agreement with the U.S., China said it won’t take longer than 90 days to consider applications from providers of electronic-payments services. Regulators are opening the industry to foreign competition amid an unprecedented push to give international firms access to the country’s financial sector.Read more: Visa, Mastercard, AmEx Win Easier Access to China MarketIn response to questions from Bloomberg on the threat posed by Ant, Visa said it sees significant potential to support the growth and evolution of digital payments in China and is approaching the market with a long-term focus. Mastercard said it would continue to work with regulators to advance its application and is committed for the long haul. AmEx declined to comment.Ant, an affiliate of Alibaba Group Holding Ltd. that’s widely expected to pursue an initial public offering in coming years, started its consumer-credit business in 2015. Its loans tend to be small: half the users of Ant’s Huabei (translation: “just spend”) service borrow less than $290 and usually pay it back within months.The Hangzhou-based company, which declined to disclose the value of its outstanding loans, keeps delinquencies in check by tapping into a trove of data amassed by Alipay and Alibaba.Many customers have been using the payments and e-commerce platforms for years -- handing over details from ID cards to addresses and spending habits. Once Ant extends a loan, it can track how the money is spent via Alipay. The result is a bad-debt ratio stands at about 1%, below the 1.24% national average for credit cards.Read more: China’s Gen Z, With Little Income, Gets Hooked on Easy CreditAnt keeps some of the loans on its own balance sheet, charging interest rates that range from about 5% to 18%, according to Huang. But most are passed on for a fee to banks and other financial institutions.“We’re set to continue to work with more banks and finance companies,” Huang said. “We are, at the end of the day, a platform.”The risk for Visa, Mastercard and AmEx is that a swathe of Chinese consumers and businesses will view credit cards as obsolete. About 60% of borrowers on Ant’s Huabei platform don’t have one, and many smaller merchants don’t accept cards because they find it’s cheaper and easier to use Alipay or Tencent’s WePay. The former, with more than 900 million users, is Alibaba’s preferred payments provider.“The competitive landscape is full of local players,” said Hang Qian, a partner at Oliver Wyman, a consultancy. “The key challenges are how to promote small merchants to accept credit cards and how to get e-wallet users to switch.”\--With assistance from Alfred Liu.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael Patterson at email@example.com, Jodi SchneiderFor 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.
American Express Company (NYSE: AXP) plans to host its annual Investor Day on Tuesday, March 17, 2020 at 9 a.m. (ET). At the meeting, senior executives will discuss key business trends, initiatives and long-term strategies.
The Zacks Analyst Blog Highlights: Microsoft, American Express, Fidelity National Information Services, Goldman Sachs and Southern
American Express' (AXP) Q4 earnings are likely to have benefited from strong billings growth and accretive effect of share buyback partly offset by increase in card service costs.
American Express (AXP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
With most blue-chip companies' earnings scheduled over the coming weeks and sentiments being mixed, investors should closely monitor the movement of the Dow ETF.
The Zacks Analyst Blog Highlights: SL Green Realty, American Express, Hill-Rom, Invesco and LPL Financial
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The biggest U.S. card companies just moved a step closer to gaining access to China’s $27 trillion payments market.China said it won’t take longer than 90 days to consider applications from providers of electronic-payments services such as Mastercard, Visa and American Express Co., according the text of a landmark trade agreement with the U.S. It should be an especially welcome reprieve for Mastercard and its partner NetsUnion Clearing Corp., which set up a venture in March that is still awaiting approval from the People’s Bank of China to begin operations.“China is a vital market for us,” Seth Eisen, a spokesman for Mastercard, said Wednesday in an emailed statement. “We continue to make every effort to secure the requisite license to be able to operate in China domestically. This deal is a step forward in that process.”The move shows progress in the U.S. payment networks’ battle for access to mainland China, which has been a point of contention in the trade dispute. Officials from the world’s two largest economies finalized a bevy of deals before signing off on the first phase of a sweeping trade agreement, which they have sought to cast as a major breakthrough in relations.Mastercard Chief Executive Officer Ajay Banga and Visa CEO Al Kelly were in attendance at Wednesday’s festivities at the White House for the trade deal announcement. In a statement, Visa said it sees potential to help further develop digital payments in China through the 2022 Olympics in Beijing and that it’s approaching entry into the country “with a long-term focus.”“Visa is working closely with the Chinese government, including the People’s Bank of China, throughout the application process for a bank card clearing institution license,” the company said in the statement, welcoming the signing of the trade agreement.China in June 2015 allowed foreign bank-card clearing providers to obtain licenses by setting up units or acquiring a local company, ending a monopoly by state-run China UnionPay Co. But progress has since been slow for Visa and Mastercard, the world’s largest payment networks. American Express cleared a key hurdle in early January when regulators accepted its application to start a bank-card clearing business with a Chinese partner.“We’re pleased with the progress we’re making to become the first foreign network to receive a clearing and settlement license to operate in mainland China,” Leah Gerstner, a spokeswoman for AmEx, said in a statement. “We will continue to work through the regulatory approval process through our joint venture in China.”As part of Wednesday’s agreement, the U.S. also pledged not to discriminate against China UnionPay, or CUP, or other Chinese electronic payment services.Mastercard and Visa have long complained that their delayed entrance into China means they’ll be pitting themselves against large domestic players in a market that’s seen mobile payments explode in recent years. Mobile transactions topped 190 trillion yuan ($27 trillion) in China in 2018, making it the world’s largest such market, according to iResearch. Ant Financial’s Alipay and Tencent Holdings Ltd.’s WeChat Pay are the dominant mobile payments firms.They won’t be starting from nothing. Mastercard and Visa have long worked with Chinese banks to slap their brands on cards to facilitate transactions that consumers make outside China. But Wednesday’s announcement means the networks will now have a chance to compete for those cardholders’ domestic spending as well.China had 8.2 billion bank cards in circulation at the end of September, with 90% of them debit cards.(Updates with Visa comment in sixth paragraph, AmEx comment in eighth.)\--With assistance from Jenny Surane and David Scheer.To contact Bloomberg News staff for this story: Lucille Liu in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Candice Zachariahs at email@example.com, ;Alan Goldstein at firstname.lastname@example.org, Jonas Bergman, Dan ReichlFor 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.
Extending its last year's rally, Dow Jones touched 29,000 for the second time in three days, suggesting strong complacency in the market.