|Bid||0.00 x 800|
|Ask||0.00 x 1400|
|Day's range||114.82 - 116.45|
|52-week range||91.11 - 119.24|
|Beta (3Y monthly)||1.15|
|PE ratio (TTM)||11.90|
|Earnings date||15 Oct 2019|
|Forward dividend & yield||3.60 (3.15%)|
|1y target est||119.88|
The ‘buy the dip’ theme appears to be in full swing, as Bank of America Merrill Lynch clients took advantage of last week's stock market decline.
(Bloomberg) -- A JPMorgan Chase & Co. unit violated India’s foreign investment rules and helped property developer Amrapali Group divert funds from realty projects, the nation’s Supreme Court said in a ruling and ordered an investigation.The court on Tuesday ordered the federal anti-money laundering agency to investigate Amrapali, based in Noida, near New Delhi, for diverting funds overseas with the help of JPMorgan and others. The violations, based on a forensic audit, range from disregarding foreign investment norms, paying dividend without generating profits, setting up fake companies and overvaluing shares.JPMorgan’s Singapore-based spokesman Chris Cockerill declined to comment. The biggest U.S. bank is allowed to seek a review of the ruling. Any criminal charges will only be filed in a lower court once investigation is complete.Developers, including Amrapali, Jaypee Infratech Ltd. and Unitech Ltd., have been taken to courts by irate homeowners and creditors as apartment sales slumped in the once red-hot South Asian market following the triple whammy of a surprise cash ban, tax reforms and a consumer-protection law for the sector. Home prices in India’s financial capital dropped and unsold inventory rose 14% in first half of 2019.JPMorgan invested around 850 million rupees ($12.3 million) in an Amrapali Group company’s shares and later sold them to an office boy and nephew of the auditor for 1.4 billion rupees, according to the ruling published on the top court’s website.“The shares were overvalued for making payment to JPMorgan,” the court’s two-judge bench headed by Justice Arun Mishra said in its ruling, agreeing with the forensic auditor regarding JPMorgan’s role. “It was adopted as a device for siphoning off the money of the home buyers to foreign countries.”The ruling can impact lenders’ efforts to recover dues as the court held that home buyers have the first right over the projects rather than banks that have lent funds to the builder.The court scrapped Amrapali’s registration under real estate laws and directed government-owned NBCC India Ltd. to complete all incomplete projects.The investigations will be done under the court’s supervision by police and the federal anti-money laundering agency.“We are not a country in which courts will permit such action and permit a person to go scot-free,” according to the ruling.The case is Writ Petition (Civil) No. 940/2017, Bikram Chatterji and others v. Union of India and others in Supreme Court of India.(Updates with JPMorgan declining to comment in third paragraph)To contact the reporter on this story: Upmanyu Trivedi in New Delhi at firstname.lastname@example.orgTo contact the editors responsible for this story: Unni Krishnan at email@example.com, Abhay SinghFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bank of America and UBS have reshuffled their investment banking teams in a bid to muscle in on fundraising and advisory work for private companies, as businesses put off going public and fees from initial public offerings come under pressure. Both banks have this month created new teams focused on capital raising and advice to privately owned businesses, according to memos seen by the Financial Times. The moves reflect how early introductions to such companies have become increasingly important as Wall Street banks look to generate revenues from advising on initial public offerings and mergers and acquisitions.
(Bloomberg) -- “Stealth easing” is Nomura Holdings Inc.’s description of measures rolled out in some Chinese cities in recent months to counter a faltering property market.In one of the latest cases, Beijing’s city government offered two residential land plots for sale without specifying maximum prices for the apartments to be built on them, the South China Morning Post reported on Wednesday.Nationwide, officials have put so much effort into a campaign against property speculation -- one of President Xi Jinping’s signature policies -- that they may seem unlikely to start unwinding it now. However, a deepening economic slowdown could force just that at the end of the second quarter, according to Nomura economist Lu Ting.The smallest gain in home prices in eight months in December was reported Wednesday, adding to slowdown signs. Here are some of the recent loosening measures in individual cities.Bloomberg Intelligence analyst Patrick Wong sees wider easing as possible next quarter, but cautions that officials will be wary of fueling speculation in the biggest cities, where homes are beyond the reach of many. Nomura forecasts “major” easing, especially in tier-one and tier-two cities, including scrapping price controls and purchase and resale restrictions.HSBC Holdings Plc is focused on a clutch of cities such as Zhuhai, across the border from Macau, which seem especially vulnerable to home-price declines after their household debt blew out. For the nation as a whole, outstanding mortgages grew 823 percent since 2007 to hit 24.9 trillion yuan ($3.7 trillion) in September, the bank said.The biggest slide in home prices this year may be a 5 percent decline in the smaller, tier-3 cities, HSBC analyst Michelle Kwok said in a report this month. National sales may tumble 10 percent. However, the residential market is “far from entering a severe downturn,” she wrote.Developers can mitigate their risks by investing in cities with strong, migration-driven housing demand and less leverage, Kwok said. The builders with the biggest exposures to cities with “high risk profiles” include industry giant Country Garden Holdings Co.For its part, JPMorgan Chase & Co. expects “modest cooling” in China’s real-estate market this year, while BNP Paribas SA said the government may relax property-tightening measures in second half.“As cities in China developed, they became more and more reliant on land sales, so in short, a lot of the cities will have to quietly relax the tightening policies in order to stimulate sales this year,” Wee Liat Lee, a managing director at BNP said during a briefing in Hong Kong on Wednesday.(Corrects second chart that misspelled town name in a story that originally ran on Jan. 17, 2019.)\--With assistance from Katrina Nicholas and Shawna Kwan.To contact the reporter on this story: Paul Panckhurst in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Katrina Nicholas at email@example.com, Paul PanckhurstFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Interswitch, a Nigeria-based payments firm, has hired advisers to resurrect plans for a stock-market listing in London and Lagos later this year, people familiar with the matter said.JPMorgan Chase & Co., Citigroup Inc. and Standard Bank Group Ltd. are among the firms working on an initial public offering, which may value the financial technology company at $1.3 billion to $1.5 billion, the people said, asking not to be identified because the deliberations are private.Interswitch, owned by private equity firm Helios Investment Partners, has engaged with banks in recent weeks after a thwarted IPO attempt two years ago, the people said. The potential listing would follow those of two other major African and Middle Eastern tech company share sales this year. Jumia Technologies AG, dubbed the Amazon of Africa, listed in New York earlier this year, while Dubai-based payments firm Network International Holdings Plc went public in London.Representatives for Helios, Interswitch, JPMorgan and Citigroup declined to comment. Standard Bank didn’t immediately respond to a request for comment outside of regular business hours.Airtel, Bayport The dual listing in the U.K. and Nigeria echoes that of Airtel Africa Plc, the wireless carrier that spun off from Indian parent Bharti Airtel Ltd. in June. Bayport Management Ltd., a Mauritius-based financial services group, said last month it’s also considering a share sale, although a final decision has not been made. Interswitch pulled earlier plans to list in 2016 after the price of crude oil fell dramatically, causing a contraction in Nigeria’s economy. An uptick in growth may accelerate payments between companies and thus revenues at payment-services providers. Another African-focused payments, loans and financial services company Bayport will be looking to approach certain markets for a share sale in 2019, the company said previously.Helios is among several private funds that specialize in investing in African assets as the economic recovery taking place across the continent bolsters investor sentiment and infrastructure plans.Yet foreign interest in Africa has been fickle. New York-based Blackstone Group Inc. is scaling back there, with plans to sell its Africa subsidiary Black Rhino Group back to management, a person familiar with the matter said in February. And Bob Diamond, the former Barclays Plc chief, is turning his attention elsewhere after struggling to get his banking venture off the ground.(Updates with wider IPO activity in fifth paragraph.)\--With assistance from Emele Onu.To contact the reporters on this story: Jan-Henrik Förster in London at firstname.lastname@example.org;Loni Prinsloo in Johannesburg at email@example.com;Dinesh Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Dinesh Nair at email@example.com, Amy Thomson, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- China opened up its financial sector to more foreign investment as the government said it will take targeted measures to cope with rising risks and challenges facing the industry. Foreign investors can take a stake or control entities including wealth management units of commercial lenders, pension fund managers and currency brokers, the central bank said in a statement on Saturday. The measures were unveiled after a high-level meeting on Friday chaired by Vice Premier Liu He, where policy makers discussed targeted steps to counter rising risks and challenges facing the $44 trillion industry.China, often criticized by U.S. President Donald Trump as a one-sided beneficiary of global commerce, is pressing on with its pledge to welcome more overseas competition in the financial sector. The sheer size of the industry makes it attractive as winning even single-digit market shares would offer sizable profits, but global firms need to navigate an often opaque regulatory environment and take on state-controlled rivals that drive much of China’s economic activity.Other measures announced on Saturday are:Overseas credit ratings companies can rate all bonds listed on the exchange and inter-bank market, and foreign institutions can be lead underwriters in the inter-bank bond marketChina will scrap foreign ownership limits of securities firms, fund firms, life insurers and futures firms in 2020 instead of 2021Foreign insurers can hold more than 25% stake in Chinese insurance asset management companiesChina is removing the entry restriction of 30 years of operating experience for foreign insurance companiesChina will take further steps to make it easier for foreign institutional investors to invest in the inter-bank bond marketForeigners currently hold just 1.6% of the nation’s banking assets and 5.8% of the insurance market, according to Guo Shuqing, China’s chief banking regulator. Authorities have so far approved plans by UBS Group AG, Nomura Holdings Inc. and JPMorgan Chase & Co. to take majority stakes in local securities ventures. JPMorgan said last year it plans to raise its holding to 100% when rules allow.China released figures this week showing growth in the world’s second-largest economy slowed to 6.2% in the second quarter, the weakest pace since at least 1992 when the country began collecting the data.The government will carry out a combination of short-and long-term steps that will take into account both micro and macro factors to boost demand and create new growth drivers, the State Council said in a statement on Saturday. “Complicated” international and domestic issues are posing more challenges currently and for the near future, according to the statement. Chinese trade negotiators have yet to meet with their U.S. counterparts since President Donald Trump and President Xi Jinping agreed to a tentative truce late last month in Japan. Liu, who is leading trade talks for China, spoke with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer over the phone this week, but slow progress has raised concerns on how the trade tensions will play out.Policy makers will continue to implement prudent monetary policy while adopting counter-cyclical adjustments in a timely and appropriate manner to ensure reasonable and ample liquidity, according to the State Council statement. The government will also work to resolve liquidity risks of small and medium-sized financial institutions and block contagion and expansion of risks, according to the statement.To contact Bloomberg News staff for this story: Miao Han in Beijing at firstname.lastname@example.org;Jun Luo in Shanghai at email@example.com;Yinan Zhao in Beijing at firstname.lastname@example.org;Lucille Liu in Beijing at email@example.com;Yan Zhang in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Shamim Adam at email@example.com, Malcolm ScottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It is arguably the biggest job on Wall Street and every few months the subject emerges — who will succeed JPMorgan Chase’s Jamie Dimon to run the largest and one of the most powerful banks on the planet. In his 14th year as chief executive, Mr Dimon has outlasted all big-bank chiefs that had to steer their businesses through the crisis.
(Bloomberg) -- Oil jumped in after-market trading following the Iranian Revolutionary Guard Corp seizing a British oil tanker and a Liberian-flagged ship in the Strait of Hormuz, raising stakes in the critical oil chokepoint.Brent futures rose as much as 1.4% from its settlement, while WTI futures also edged higher after the seizure of the tankers. U.K. Foreign Secretary Jeremy Hunt said Friday that he is “extremely concerned by the seizure of two naval vessels by Iranian authorities in the Strait of Hormuz.” “With all the noise about potential negotiations with Iran, the reality is that geopolitical risk is enormously high in the heart of the oil producing gulf and key transport corridor,” said Joe McGonigle, an energy policy analyst for Hedgeye Risk Management and a former senior official at the U.S. Energy Department. “Iran’s only response to maximum pressure by the U.S. is maximum chaos in the region that tries to win concessions from the U.S. Iran’s seizure of the British tanker is just one example and we think the market should get prepared for more risk ahead.”Despite the escalating conflict in the Middle East, New York futures ended the week 7.6% lower, the biggest weekly loss in nearly two months, amid fears about waning demand. The U.S.-China trade war and expanding American fuel stockpiles have also weighed on prices.“The biggest factor driving oil prices today is the Iran-U.S. tension story,” said Phil Flynn, senior market analyst at Price Futures Group Inc. “The rallies appear to show the conflict in Strait of Hormuz might be more serious and that stakes are raised going into this weekend.”West Texas Intermediate for August delivery traded at $55.76 a barrel at 4:46 p.m. after settling at $55.63 a barrel on the New York Mercantile Exchange.Brent for September settlement traded as high as $63.37 a barrel before trading at $62.87 a barrel. The benchmark closed at $62.47 on the ICE Futures Europe Exchange. See also: U.S. Demands Iran Release Foreign Ship, Crew Seized This WeekAfter the U.K. tanker Stena Impero was escorted into Iranian waters, a second vessel in the area, the Liberian-flagged Mesdar, appeared to turn toward the Iranian coast, according to ship-tracking data. The second tanker has left Iranian waters, according to Fars News. In Washington, U.S. President Donald Trump said he will be “working with the U.K.” on the incident and suggested the latest developments justify his harsher approach toward Tehran. “This only goes to show what I’m saying about Iran: trouble, nothing but trouble.”A spokesman for Iran’s Guardian Council suggested the move against at least one of the ships was in retaliation for the British seizure of a tanker carrying Iranian crude earlier this month.“This is the second time in just over a week the U.K. has been the target of escalatory violence by the Iranian regime,” Garrett Marquis, spokesman for National Security Council at the White House, said in an email. “The U.S. will continue to work with our allies and partners to defend our security and interests against Iran’s malign behavior.”\--With assistance from Sharon Cho, Alex Longley, Kasia Klimasinska, Alex Nussbaum and Stephen Cunningham.To contact the reporter on this story: Harkiran Dhillon in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, ;Simon Casey at firstname.lastname@example.org, Jessica Summers, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does JPMorgan Chase (JPM) have what it takes? Let's find out.
FT premium subscribers can click here to receive Due Diligence every day by email. This was the analogy one former executive of Caesars Entertainment offered to describe the $20bn-plus sale of the venerable gaming company last month to Eldorado Resorts, an obscure regional casino outfit out of Reno, Nevada. This David-buys-Goliath deal had its very own special slingshot: property finance.
(Bloomberg) -- The downing of an Iranian drone in the Strait of Hormuz wasn’t enough to lift oil prices, which slid to the lowest in almost a month amid pessimism about the global economy.Futures tumbled 2.6% on Thursday in New York, the fourth consecutive daily loss. Prices managed to climb about 60 cents after President Donald Trump said the U.S. had downed an Iranian drone in the Persian Gulf, but even that wasn’t enough to push the market up. Instead, crude joined a decline for tech and consumer stocks amid a spate of disappointing corporate earnings, alongside signs that Beijing and Washington are making little progress on a trade deal.Russian pipeline operator Transneft PJSC, meanwhile, said it resumed full flows from the country’s largest crude producer, Rosneft PJSC, after imposing restrictions due to contamination concerns.“The market is waking up to the fact that global oil demand is wilting and the possible prompt that could improve the situation is still remote,” said Judith Dwarkin, chief economist at Calgary-based consultant RS Energy. “There’s been no improvement in the U.S.-China trade dispute even though they say they are coming back to the table.”Oil has fallen about 8% since Monday, on track for its worst weekly performance since late May. The specter of a renewed U.S.-China conflict dented the demand outlook, while American fuel stockpiles jumped. That’s overshadowed worries that Iran may shut down the Strait of Hormuz, a key chokepoint for much of the world’s oil shipments.West Texas Intermediate for August delivery closed down $1.48 to $55.30 on the New York Mercantile Exchange, falling to the lowest since June 19. It was at $55.63 at 4:05 p.m., after Trump announced the drone incident.September Brent lost $1.73 to close at $61.93 a barrel on the ICE Futures Europe Exchange, before rebounding to $62.44.In an interview with Bloomberg Wednesday, Iran’s Foreign Minister Javad Zarif said the U.S. “shot itself in the foot” by pulling out of its nuclear accord with his nation. Crude briefly rallied on Thursday after Iran confirmed the seizure of an oil tanker in the Persian Gulf this week.Iran’s state-run Press TV news channel later aired footage of a tanker that disappeared from global satellite tracking systems four days ago. The ship was smuggling fuel out of the country, the Iranian Revolutionary Guard Corps said.(An earlier version of this story misspelled the name of RS Energy’s chief economist.)\--With assistance from Sharon Cho and James Thornhill.To contact the reporters on this story: Alex Nussbaum in New York at email@example.com;Alex Longley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Carlos Caminada, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bank of America CEO Brian Moynihan just went a long way in showing not all millenials are broke.
Fund managers shifted to risk in July on the back of expectations for Fed easing and a partial trade deal. Investors are still worried about the slowdown, pricing expectations, and corporate leverage. BAML (Bank of America Merrill Lynch) conducted a survey that polled 207 global investors with $598 billion in total assets under management between July 5 and July 11. Fund managers’ asset allocation We noted in Fund Managers’ Allocations Point to Recessionary Conditions that fund managers’ allocations in June implied recessionary conditions.
Earnings season is underway and corporate buybacks are set to boost earnings per share for S&P 500 companies.
(Bloomberg Opinion) -- Goldman Sachs Group Inc. and Morgan Stanley are the two Wall Street banks most connected to high-stakes trading. Historically, that made them seem glamorous relative to the other big U.S. institutions, which focused on the more steady business of retail banking.The tide has turned. Persistently low volatility has made it clear that banks can’t count on traders to drive profits. Goldman’s equities revenue beat expectations earlier this week, in a small sign of hope, but Morgan Stanley’s results on Thursday were more far more indicative of the trend. Its $2.13 billion from equities was the highest among banks but was down 14% from a year ago and fell short of even the lowered estimates of $2.27 billion. In fixed income, currencies and commodities, revenue dropped 18% rather than the expected 7% decline.This puts Goldman and Morgan Stanley in a tough spot. They’re not well positioned to immediately compete with Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. in catering to the banking needs of Main Street. At the same time, the bank executives have to feel pressure to limit the quarter-to-quarter fluctuations that are at the mercy of the whims of the global markets.Reading between the lines, their answer to this quandary appears to be more emphasis on wealth management.Now, this isn’t exactly a revelation, nor an abrupt shift. Morgan Stanley has been moving into wealth management strategically for a while, and Goldman’s division already oversees more than $1 trillion in assets. Still, the banks’ latest commentary and moves in the past quarter make clear that they see this business, which produces a steady stream of fee-based income, as a way to leverage their reputation as titans of Wall Street.In Morgan Stanley’s earnings call on Thursday, Chief Executive Officer James Gorman specifically praised Dan Simkowitz for his work on building up the firm’s asset-management unit. And by all accounts it was well deserved, with the division’s revenue at the highest in five years. On the wealth-management side, Morgan Stanley posted $4.41 billion of revenue, which was 2% higher than last year and blew away analysts’ estimates for a 9% decline.Moreover, Morgan Stanley’s wealth-management division posted an impressive 28% profit margin. So impressive, in fact, that it drew more than one question from analysts about whether the bank can sustain that sort of momentum, including from Mike Mayo of Wells Fargo. Gorman insisted “it’s not like we are sitting back and saying we are really milking this.” Rather, “we’re playing for the long run.”At Goldman, Chief Executive Officer David Solomon on Tuesday highlighted its $750 million purchase of wealth manager United Capital, which was announced in May and represented one of Goldman’s biggest acquisitions in recent memory. Bloomberg News’s Sridhar Natarajan noted at the time that Solomon has made building out fee-based businesses a high priority so that shareholders can more easily estimate the bank’s growth and earnings.None of this is to say that Morgan Stanley and Goldman will abandon their positions as premier trading firms. But it’s notable to parse what Morgan Stanley Chief Financial Officer Jon Pruzan told Bloomberg News’s Sonali Basak in an interview. “We’re No. 1 in the world” in equities trading, he said, adding that “we would expect to maintain our market share in this type of environment.” He reiterated those comments during the analyst call.It’s certainly possible that volatility will resume, given that stock markets are hovering near all-time highs and global central banks are on the verge of further easing monetary policy. But framing expectations in terms of maintaining market share would seem to indicate that Pruzan expects further challenges for trading in the coming months and years. Ted Pick, who oversees all of Morgan Stanley’s traders and investment bankers, made some interesting comments in May about the equities business. He said he had led the division with “high levels of paranoia” because it felt like a couple of competitors were coming after the bank, either on price or looser risk requirements or something else. He said “that’s not a game we’re going to play.”Rather, as these second-quarter earnings make clear, Morgan Stanley is playing the long game. So is Goldman. When it comes to dealing with the fickle nature of financial markets, sometimes the most sound strategy is to play the hand you’re dealt.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.
Rise in interest income and lower costs support Morgan Stanley's (MS) Q2 earnings. However, weak trading and investment banking performance is on the downside.
SunTrust (STI) witnesses higher revenues in the second quarter of 2019. Yet, higher expenses and rise in provisions hurt results.