South African rate cut catches analysts off guard, but easing cycle may be short-lived

Lesetja Kganyago, governor of South Africa’s central bank, speaks during a news conference following a Monetary Policy Committee meeting in Pretoria, South Africa, on Thursday, May 25, 2017. The South African Reserve Bank (SARB) cut its main repo rate by 25 basis points on Thursday, surprising the vast majority of economists. Policymakers voted unanimously to cut the key rate from 6.5% to 6.25%, upending the expectations of 21 of the 24 economists polled by Reuters ahead of the decision. The Sou


Lesetja Kganyago, governor of South Africa’s central bank, speaks during a news conference following a Monetary Policy Committee meeting in Pretoria, South Africa, on Thursday, May 25, 2017.
The South African Reserve Bank (SARB) cut its main repo rate by 25 basis points on Thursday, surprising the vast majority of economists.
Policymakers voted unanimously to cut the key rate from 6.5% to 6.25%, upending the expectations of 21 of the 24 economists polled by Reuters ahead of the decision.
The Sou
South African rate cut catches analysts off guard, but easing cycle may be short-lived Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: elliot smith
Keywords: news, cnbc, companies, cycle, african, rate, guard, growth, bank, lesetja, governor, analysts, south, shortlived, cut, easing, catches, policy, monetary, kganyago


South African rate cut catches analysts off guard, but easing cycle may be short-lived

Lesetja Kganyago, governor of South Africa’s central bank, speaks during a news conference following a Monetary Policy Committee meeting in Pretoria, South Africa, on Thursday, May 25, 2017.

The South African Reserve Bank (SARB) cut its main repo rate by 25 basis points on Thursday, surprising the vast majority of economists.

Policymakers voted unanimously to cut the key rate from 6.5% to 6.25%, upending the expectations of 21 of the 24 economists polled by Reuters ahead of the decision.

Facing a raft of challenges, including delays in reforms to teetering state-owned enterprises such as the heavily indebted Eskom electricity monopoly, escalating government debt and depleted business confidence, Africa’s most industrialized economy has struggled to exit a period of anemic growth which embedded itself under previous President Jacob Zuma. The South African economy contracted in the third quarter of 2019.

The decision to cut rates marks a significant shift in tone from the traditionally hawkish central bank, with Governor Lesetja Kganyago previously attributing slow growth primarily to supply-side constraints and arguing that loosening monetary policy would do little to boost activity.


Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: elliot smith
Keywords: news, cnbc, companies, cycle, african, rate, guard, growth, bank, lesetja, governor, analysts, south, shortlived, cut, easing, catches, policy, monetary, kganyago


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Bank of England’s Carney named as Boris Johnson advisor for climate change summit

Mark Carney, the outgoing governor of the Bank of England, has been named as the U.K. Prime Minister Boris Johnson’s finance advisor for this year’s COP26 climate change conference in Scotland. In a statement, Carney said he was “honored” to have been appointed to the role of finance advisor for the summit. “To seize it, all financial decisions need to take into account the risks from climate change and the opportunities from the transition to a net zero economy,” he added. He will begin both ap


Mark Carney, the outgoing governor of the Bank of England, has been named as the U.K. Prime Minister Boris Johnson’s finance advisor for this year’s COP26 climate change conference in Scotland.
In a statement, Carney said he was “honored” to have been appointed to the role of finance advisor for the summit.
“To seize it, all financial decisions need to take into account the risks from climate change and the opportunities from the transition to a net zero economy,” he added.
He will begin both ap
Bank of England’s Carney named as Boris Johnson advisor for climate change summit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: anmar frangoul
Keywords: news, cnbc, companies, advisor, johnson, boris, englands, carney, finance, summit, england, named, role, financial, change, world, climate, warming, degrees, bank


Bank of England's Carney named as Boris Johnson advisor for climate change summit

Mark Carney, the outgoing governor of the Bank of England, has been named as the U.K. Prime Minister Boris Johnson’s finance advisor for this year’s COP26 climate change conference in Scotland.

In an announcement Thursday, the Bank of England said Carney’s “key focus” in the role would be on “mobilizing ambitious action from across the financial system needed to help achieve the 1.5°C goal of the Paris Agreement.”

The Paris Agreement was reached at COP21 in 2015. It was at COP21 that world leaders committed to making sure global warming stayed “well below” 2 degrees Celsius above pre-industrial levels. They also agreed to pursue efforts to limit the temperature rise to 1.5 degrees Celsius.

In a statement, Carney said he was “honored” to have been appointed to the role of finance advisor for the summit.

“To seize it, all financial decisions need to take into account the risks from climate change and the opportunities from the transition to a net zero economy,” he added.

Carney’s newly announced position will dovetail with his role as the UN’s special envoy for climate action and finance, which was announced in December. He will begin both appointments when he leaves the Bank of England on March 15.

The Canadian, who has been at the Bank of England since 2013, has previously said that climate change “will affect the value of virtually every financial asset.”

COP26 will take place in the city of Glasgow in November. The U.K. government said delegates at the conference will discuss “ambitious ways in which the world can lower emissions to keep global temperatures below 1.5 degrees of warming.”


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: anmar frangoul
Keywords: news, cnbc, companies, advisor, johnson, boris, englands, carney, finance, summit, england, named, role, financial, change, world, climate, warming, degrees, bank


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Trump to nominate Shelton, Waller to serve on Fed

Judy Shelton, U.S. executive director for the European Bank for Reconstruction and Development, stands for a photograph. President Donald Trump will pick two economists, Judy Shelton and Christopher Waller, to serve on the Federal Reserve Board, the White House said on Thursday. The Fed sets U.S. interest rates and closely guards its political independence as key to its ability to act in the best interest of the country’s economic health. Before joining the Fed in 2009 Waller was an economics pr


Judy Shelton, U.S. executive director for the European Bank for Reconstruction and Development, stands for a photograph.
President Donald Trump will pick two economists, Judy Shelton and Christopher Waller, to serve on the Federal Reserve Board, the White House said on Thursday.
The Fed sets U.S. interest rates and closely guards its political independence as key to its ability to act in the best interest of the country’s economic health.
Before joining the Fed in 2009 Waller was an economics pr
Trump to nominate Shelton, Waller to serve on Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, lower, shelton, serve, rates, waller, fed, nominate, trump, president, judy, interest, bank


Trump to nominate Shelton, Waller to serve on Fed

Judy Shelton, U.S. executive director for the European Bank for Reconstruction and Development, stands for a photograph.

President Donald Trump will pick two economists, Judy Shelton and Christopher Waller, to serve on the Federal Reserve Board, the White House said on Thursday.

Trump has been critical of the Fed under Chair Jerome Powell, whom Trump put in that post in 2018, and the planned nominations have been seen as an attempt by the president to shape the world’s most powerful central bank more to his liking. The Fed sets U.S. interest rates and closely guards its political independence as key to its ability to act in the best interest of the country’s economic health.

Waller is research director at the St. Louis Fed, where he works closely with bank president James Bullard, one of the U.S. central bank’s most vocal supporters of lower interest rates last year. Before joining the Fed in 2009 Waller was an economics professor at the University of Notre Dame.

Shelton is a former Trump campaign advisor and last year, after her potential nomination was floated, called for lower interest rates as well as more coordination between the Fed and other parts of the government.

Both nominees must be approved by the U.S. Senate.


Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, lower, shelton, serve, rates, waller, fed, nominate, trump, president, judy, interest, bank


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Citigroup recorded a 27% gender pay gap — so it hiked some women’s wages

A staggering gender pay gap at one of the U.S.’s top Wall Street banks has prompted the company to readjust the salaries of some of its female employees. Citigroup recorded a 27% shortfall in the average pay of its female employees compared to their male peers for 2019, the bank revealed Thursday. The figure, which is based on “raw” data and does not take into account seniority, title or location, marks a slight reduction on the previous year, when its gender pay gap stood at 29%. The pay gap fo


A staggering gender pay gap at one of the U.S.’s top Wall Street banks has prompted the company to readjust the salaries of some of its female employees.
Citigroup recorded a 27% shortfall in the average pay of its female employees compared to their male peers for 2019, the bank revealed Thursday.
The figure, which is based on “raw” data and does not take into account seniority, title or location, marks a slight reduction on the previous year, when its gender pay gap stood at 29%.
The pay gap fo
Citigroup recorded a 27% gender pay gap — so it hiked some women’s wages Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: karen gilchrist
Keywords: news, cnbc, companies, male, hiked, wages, gap, citigroup, employees, womens, female, gender, salaries, recorded, pay, previous, bank, paid


Citigroup recorded a 27% gender pay gap — so it hiked some women's wages

A staggering gender pay gap at one of the U.S.’s top Wall Street banks has prompted the company to readjust the salaries of some of its female employees.

Citigroup recorded a 27% shortfall in the average pay of its female employees compared to their male peers for 2019, the bank revealed Thursday.

The figure, which is based on “raw” data and does not take into account seniority, title or location, marks a slight reduction on the previous year, when its gender pay gap stood at 29%.

The pay gap for U.S. minorities was 6%, a percentage point less than the previous year.

To be sure, when adjusted to compare like-for-like employees, the bank said its female staff were paid 99% of what their male counterparts were paid. But it noted that it had further to go; writing in a blog post that it had made “appropriate pay adjustments” this year to balance the salaries of comparable roles.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: karen gilchrist
Keywords: news, cnbc, companies, male, hiked, wages, gap, citigroup, employees, womens, female, gender, salaries, recorded, pay, previous, bank, paid


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Stocks are the most overvalued since at least the 1980s based on one measure

Brendan McDermid | ReutersWhat investors are willing to pay for stocks relative to their long-term earnings growth expectations is at an all-time high, according to Bank of America. The price-earnings to growth ratio, commonly called the PEG ratio, sits at 1.8, its highest level since the firm started tracking in 1986. The general rule of thumb is a PEG ratio over one means a stock or a market is overvalued. PEG is a stock’s price-to-earnings ratio divided by the expected long-term growth rate i


Brendan McDermid | ReutersWhat investors are willing to pay for stocks relative to their long-term earnings growth expectations is at an all-time high, according to Bank of America.
The price-earnings to growth ratio, commonly called the PEG ratio, sits at 1.8, its highest level since the firm started tracking in 1986.
The general rule of thumb is a PEG ratio over one means a stock or a market is overvalued.
PEG is a stock’s price-to-earnings ratio divided by the expected long-term growth rate i
Stocks are the most overvalued since at least the 1980s based on one measure Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, stocks, peg, expected, grow, bank, earnings, based, 1980s, stock, ratio, growth, measure, overvalued, high


Stocks are the most overvalued since at least the 1980s based on one measure

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2020. Brendan McDermid | Reuters

What investors are willing to pay for stocks relative to their long-term earnings growth expectations is at an all-time high, according to Bank of America. The price-earnings to growth ratio, commonly called the PEG ratio, sits at 1.8, its highest level since the firm started tracking in 1986.

The general rule of thumb is a PEG ratio over one means a stock or a market is overvalued. PEG is a stock’s price-to-earnings ratio divided by the expected long-term growth rate in earnings per share. The idea is to show whether stocks are cheap or expensive relative to how much earnings are expected to grow over time. This ratio shows either stock prices need to fall or earnings need to grow much faster than expected. The S&P 500 has rallied nearly 9% since November, shrugging off tensions with the Middle East and tariffs on Chinese goods. “The S&P 500 is running on fumes,” Bank of America equity and quant strategist Savita Subramanian said in a note to clients Thursday. “We have pulled forward some of the gains from later this year, and could see some multiple compression,” Subramanian added.

Look to Amazon and energy stocks for why there has been a pullback in earnings growth outlooks for the year, Bank of America said. Last quarter, Amazon’s stock got clobbered when its earnings fell short of expectations. The e-commerce giant missed on its cloud business’ sales, which could be a drag on future earnings as it has provided the bulk of Amazon’s operating income for the past four years. Plus energy stocks, the worst performing sector of 2019, are struggling to grow profits as high operating costs and lower oil prices continue to eat into revenue. Other metrics are also near extremes, including the most common way to value stocks.

Price-to-earnings ratio at 18-year high


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, stocks, peg, expected, grow, bank, earnings, based, 1980s, stock, ratio, growth, measure, overvalued, high


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China’s central bank injects $58 billion of loans but keeps rates steady

The People’s Bank of China (PBOC) said on its website the interest rate on one-year MLF loans remained at 3.25%, unchanged from the previous operations. Separately, the PBOC also extended 100 billion yuan of 14-day reverse repos with the interest rate unchanged at 2.65%. The MLF now acts as a guide for the PBOC’s new lending benchmark Loan Prime Rate (LPR), with the monthly fixing due next Monday. “While MLF rate can serve as guidance for LPR, an adjustment in the LPR is in theory possible with


The People’s Bank of China (PBOC) said on its website the interest rate on one-year MLF loans remained at 3.25%, unchanged from the previous operations.
Separately, the PBOC also extended 100 billion yuan of 14-day reverse repos with the interest rate unchanged at 2.65%.
The MLF now acts as a guide for the PBOC’s new lending benchmark Loan Prime Rate (LPR), with the monthly fixing due next Monday.
“While MLF rate can serve as guidance for LPR, an adjustment in the LPR is in theory possible with
China’s central bank injects $58 billion of loans but keeps rates steady Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15
Keywords: news, cnbc, companies, steady, billion, rates, loans, rate, liquidity, mlf, pboc, monthly, demand, unchanged, lunar, market, keeps, injects, chinas, bank, lpr, central


China's central bank injects $58 billion of loans but keeps rates steady

China’s central bank extended fresh short- and medium-term loans on Wednesday but kept the borrowing cost unchanged, as it seeks to maintain adequate liquidity in a slowing economy and ease a potential crunch ahead of the Lunar New Year.

The People’s Bank of China (PBOC) said on its website the interest rate on one-year MLF loans remained at 3.25%, unchanged from the previous operations. It injected 300 billion yuan ($43.51 billion) via the liquidity tool.

Separately, the PBOC also extended 100 billion yuan of 14-day reverse repos with the interest rate unchanged at 2.65%.

There is no maturing MLF loan or reverse repo on Wednesday.

In a statement, the central bank said the injection was meant to “offset impact from factors including tax payment and cash demand” and ensure that banking system liquidity was “reasonably ample” before the week-long Lunar New Year holidays kick off next Friday.

Rising cash demand from companies and households for the Lunar New Year holiday, a flood of special bond issuance by local governments and corporate quarterly tax payments have all combined to drain funds from the banking system. Some analysts expect the liquidity gap could amount to as much as 2.8 trillion yuan.

The MLF now acts as a guide for the PBOC’s new lending benchmark Loan Prime Rate (LPR), with the monthly fixing due next Monday.

“While MLF rate can serve as guidance for LPR, an adjustment in the LPR is in theory possible with or without an MLF rate cut,” said Frances Cheung, head of macro strategy for Asia at Westpac in Singapore.

“We continue to see each monthly LPR reset as presenting an opportunity for a baby-step 5 basis point cut. We expect more open market operations injections in the next few days. Market reaction should be muted as liquidity injections have been expected to cover demand.”

The LPR is a lending reference rate set monthly by 18 banks. The PBOC revamped the mechanism to price LPR last August. Since then, the one-year LPR has been lowered by a total of 10 basis points in an attempt to lower corporate borrowing costs and support an economy partly hurt by the U.S.-China trade war.

China is expected to post its slowest economic growth in 30 years in 2020 as domestic and global demand remain sluggish, a Reuters poll showed this week, reinforcing views that Beijing will roll out more support measures.

The volume-weighted average rate of the benchmark seven-day repo traded in the interbank market, considered the best indicator of general liquidity in China, was 2.6918% as of 0223 GMT, up 0.5 basis points from the previous day’s closing average rate.


Company: cnbc, Activity: cnbc, Date: 2020-01-15
Keywords: news, cnbc, companies, steady, billion, rates, loans, rate, liquidity, mlf, pboc, monthly, demand, unchanged, lunar, market, keeps, injects, chinas, bank, lpr, central


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Bank of America beat analysts’ profit estimate on rebound in bond-trading revenue

Bank of America posted profit that exceeded analysts’ expectations on a rebound in trading revenue and as the company repurchased shares. The impact of lower interest rates was felt widely at Bank of America, impacting its core lending and banking operations. He also said that fourth-quarter trading revenue is expected to climb 7% to 8% from a year earlier (his guidance proved conservative — trading revenue actually climbed 13% in the quarter) and that investment banking revenue was headed 3% t


Bank of America posted profit that exceeded analysts’ expectations on a rebound in trading revenue and as the company repurchased shares.
The impact of lower interest rates was felt widely at Bank of America, impacting its core lending and banking operations.
He also said that fourth-quarter trading revenue is expected to climb 7% to 8% from a year earlier (his guidance proved conservative — trading revenue actually climbed 13% in the quarter) and that investment banking revenue was headed 3% t
Bank of America beat analysts’ profit estimate on rebound in bond-trading revenue Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, bondtrading, increase, billion, rebound, rates, revenue, bank, america, interest, posted, profit, estimate, analysts, beat, trading


Bank of America beat analysts' profit estimate on rebound in bond-trading revenue

Bank of America posted profit that exceeded analysts’ expectations on a rebound in trading revenue and as the company repurchased shares.

The bank on Wednesday posted fourth-quarter profit of $7 billion, a 4% decline from a year earlier, or 74 cents a share, which was an unexpected 6% increase helped by a reduction in outstanding shares. That figure exceeded the 68 cent estimate of analysts surveyed by Refinitiv. Revenue fell 1% to $22.5 billion, edging out the $22.35 billion estimate.

“In a steadily growing economy marked by solid client activity, our teammates produced another strong quarter and year, allowing us to increase investments in our customers, communities, and employees,” CEO Brian Moynihan said in the release. “We also delivered for shareholders in 2019 by returning a record $34 billion in excess capital through dividends and share repurchases.”

Of the bank’s three main divisions, only its global markets business posted a quarterly increase in profit. The firm’s Wall Street trading division posted a 13% increase in earnings to $574 million as bond trading revenue surged 25% to $1.8 billion, exceeding the $1.68 billion estimate. Stock trading produced $1 billion in revenue, a 4% decline that was just under the $1.07 billion estimate.

The impact of lower interest rates was felt widely at Bank of America, impacting its core lending and banking operations. Companywide net interest income fell 3% to $12.3 billion, and the bank’s net interest margin fell 17 basis points to 2.35%, just under analysts’ 2.36% estimate.

At the lender’s giant retail bank, profit dropped 10% to $3.1 billion on the impact of lower rates. The company also cited interest rates as a reason for lower revenue in its global banking and wealth management divisions.

The second-biggest U.S. lender after J.P. Morgan Chase is among the most sensitive of large banks when it comes to changes in interest rates, according to analysts. So investors will be keen to hear how rates – which were cut three times last year by the Federal Reserve — impacted the quarter, as well as guidance for 2020.

Last month, Moynihan said that the U.S. economy remained strong as consumer spending continued to grow. He also said that fourth-quarter trading revenue is expected to climb 7% to 8% from a year earlier (his guidance proved conservative — trading revenue actually climbed 13% in the quarter) and that investment banking revenue was headed 3% to 4% higher.

Shares of the bank surged more than 40% last year, exceeding the 29% gain in the Standard & Poor’s 500.

On Tuesday, J.P. Morgan and Citigroup both posted profit that beat analysts’ expectations on surging bond-trading results and strong revenue from credit-card operations. Wells Fargo missed analysts’ profit estimates as it booked costs tied to its fake accounts scandal.

Here’s what Wall Street expected:

Earnings: 68 cents a share, a 2.3% decline from a year earlier, according to Refinitiv.

Revenue: $22.35 billion, a 2.4% decline from a year earlier.

Net Interest Margin: 2.36%, according to FactSet

Trading Revenue: Fixed Income $1.68 billion, Equities $1.07 billion

This story is developing. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, bondtrading, increase, billion, rebound, rates, revenue, bank, america, interest, posted, profit, estimate, analysts, beat, trading


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Goldman Sachs tops revenue expectations, but quarterly profit hit by $1.1 billion legal bill

Goldman Sachs on Wednesday beat analysts’ estimates for revenue, but quarterly profit was marred by a $1.1 billion litigation charge. The New York-based bank posted quarterly revenue of $9.96 billion, a 23% increase and more than $1 billion higher than the $8.51 billion expected by analysts. On Tuesday, J.P. Morgan and Citigroup posted profit that beat analysts’ expectations on surging bond-trading results and strong revenue from credit-card operations. Wells Fargo missed analysts’ profit estima


Goldman Sachs on Wednesday beat analysts’ estimates for revenue, but quarterly profit was marred by a $1.1 billion litigation charge.
The New York-based bank posted quarterly revenue of $9.96 billion, a 23% increase and more than $1 billion higher than the $8.51 billion expected by analysts.
On Tuesday, J.P. Morgan and Citigroup posted profit that beat analysts’ expectations on surging bond-trading results and strong revenue from credit-card operations.
Wells Fargo missed analysts’ profit estima
Goldman Sachs tops revenue expectations, but quarterly profit hit by $1.1 billion legal bill Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, goldman, bank, revenue, profit, share, solomon, quarterly, increase, expectations, trading, tops, analysts, sachs, posted, legal, hit, billion


Goldman Sachs tops revenue expectations, but quarterly profit hit by $1.1 billion legal bill

Goldman Sachs on Wednesday beat analysts’ estimates for revenue, but quarterly profit was marred by a $1.1 billion litigation charge.

The New York-based bank posted quarterly revenue of $9.96 billion, a 23% increase and more than $1 billion higher than the $8.51 billion expected by analysts.

But quarterly profit was stung by the litigation charge, driving a 22% decline in earnings to $4.69 per share. Excluding the legal expense, which stems from an impending settlement of the bank’s 1MDB scandal, profit was $7.64 per share, which would have exceeded the $5.47 estimate of analysts surveyed by Refinitiv.

Shares of the bank dropped less than 1% in New York trading.

“Strong performance in the fourth quarter helped us to deliver solid results for the year, while continuing to invest in new businesses,” CEO David Solomon said in the release. “We aim to drive higher returns in the future, and look forward to sharing our strategic goals and financial targets at Investor Day later this month.”

The bank’s global markets division, by far its largest business, posted a 33% increase in revenue to $3.48 billion as bond trading revenue jumped 63% to $1.77 billion, exceeding the $1.16 billion estimate by more than $500 million. Stock trading climbed 12% to $1.71 billion, essentially matching analysts’ estimate.

Another factor in the bank’s sales beat was the 52% increase in asset management revenue to $3 billion on gains in public and private equity holdings. That is an activity that used to be disclosed in its investing and lending division before the bank changed its reporting lines this month.

Investment banking revenue slipped 6% to $2.06 billion on a drop in advisory and corporate lending fees as merger activity slowed in the last three months of 2019.

In the firm’s new consumer and wealth management division, revenue climbed 8% to $1.41 billion on rising assets under management and deposits. But the nascent consumer efforts, which includes the firm’s popular credit card with Apple, also helped drive a 51% increase in credit loss provisions to $336 million as retail loans soured.

Solomon has had a busy few months. Last week, Goldman disclosed that it is reorganizing its businesses to more closely resemble its big-bank peers and give retail banking operations its own category for the first time. It also released a mobile app for its Marcus consumer finance business.

The bank is in advanced negotiations with the Department of Justice to pay about $2 billion to resolve an investigation into the 1MDB scandal, according to people with knowledge of the matter. The firm will likely have to create an independent monitor to oversee compliance efforts, the people said.

Goldman bankers have been accused of helping a Malaysian financier plunder billions of dollars from the $6.5 billion 1MDB investment fund, money that was meant to spur the country’s economic development.

But more importantly to investors, later this month Goldman is holding its first-ever investor day, where Solomon will disclose the results of a business review and his plans to turbocharge growth and hit new financial targets.

Goldman shares climbed 37% last year, but the bank still has the lowest valuation among the big six U.S. lenders, a situation Solomon would like to remedy.

Also Wednesday, posted higher-than expected profits on a rebound in trading revenue. On Tuesday, J.P. Morgan and Citigroup posted profit that beat analysts’ expectations on surging bond-trading results and strong revenue from credit-card operations. Wells Fargo missed analysts’ profit estimates as it booked costs tied to its fake accounts scandal.

Here’s what Wall Street expected for Goldman:

Earnings: $5.47 a share, a 9.5% decline from a year earlier, according to Refinitiv.

Revenue: $8.51 billion, a 5.3% increase from a year earlier.

Trading Revenue: Fixed Income $1.16 billion, Equities $1.72 billion.

Investment Banking Revenue: $1.86 billion.


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, goldman, bank, revenue, profit, share, solomon, quarterly, increase, expectations, trading, tops, analysts, sachs, posted, legal, hit, billion


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Stocks making the biggest moves premarket: Bank of America, UnitedHealth, Goldman, Target & more

Check out the companies making headlines before the bell:Bank of America (BAC) – Bank of America reported fourth-quarter earnings of 74 cents per share, 6 cents a share above estimates. Revenue also came in above Wall Street forecasts, boosted by increasing inflows into its exchange-traded funds as well as its cash-management business. Revenue beat estimates, with record consumer and wealth management revenues as well as record assets under management. UnitedHealth (UNH) – The health insurer rep


Check out the companies making headlines before the bell:Bank of America (BAC) – Bank of America reported fourth-quarter earnings of 74 cents per share, 6 cents a share above estimates.
Revenue also came in above Wall Street forecasts, boosted by increasing inflows into its exchange-traded funds as well as its cash-management business.
Revenue beat estimates, with record consumer and wealth management revenues as well as record assets under management.
UnitedHealth (UNH) – The health insurer rep
Stocks making the biggest moves premarket: Bank of America, UnitedHealth, Goldman, Target & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: peter schacknow
Keywords: news, cnbc, companies, goldman, bank, management, revenue, share, moves, estimates, premarket, america, stocks, unitedhealth, wall, street, reported, cents, making, biggest, earnings, target


Stocks making the biggest moves premarket: Bank of America, UnitedHealth, Goldman, Target & more

Check out the companies making headlines before the bell:

Bank of America (BAC) – Bank of America reported fourth-quarter earnings of 74 cents per share, 6 cents a share above estimates. Revenue came in above estimates as well, helped by a 25% jump in fixed income, currency, and commodities revenue.

BlackRock (BLK) – The asset management firm earned $8.34 per share for the fourth quarter, compared to a consensus estimate of $7.69 a share. Revenue also came in above Wall Street forecasts, boosted by increasing inflows into its exchange-traded funds as well as its cash-management business.

Goldman Sachs (GS) – Goldman reported GAAP earnings of $4.69 per share, compared to a consensus estimate of $5.47, but the GAAP number includes a sizeable litigation charge which – if excluded – would put Goldman’s EPS above estimates. Revenue beat estimates, with record consumer and wealth management revenues as well as record assets under management.

Target (TGT) – The retailer’s holiday season sales were up 1.4%, a result Target is calling “disappointing.” CEO Brian Cornell said the company faced challenges in some key merchandise categories. Target reaffirmed its prior fourth-quarter earnings guidance, however.

UnitedHealth (UNH) – The health insurer reported quarterly earnings of $3.90 per share, 12 cents a share above estimates. Revenue was slightly below forecasts. UnitedHealth got a boost from higher revenue at its Optum pharmacy benefits management unit.

Beyond Meat (BYND) – Beyond Meat struck a pea protein supply deal with ingredients supplier Roquette Freres, expanding an existing partnership and helping the plant-based burger maker avoid shortages.

Microsoft (MSFT) – Microsoft released a patch for a Windows 10 security flaw discovered by the National Security Agency. Both Microsoft and the NSA said there is no evidence the flaw had actually been used for any malicious purposes.

Nektar Therapeutics (NKTR) – Nektar withdrew its application for its opioid painkiller designed to treat chronic low back pain. The move comes after a Food and Drug Administration panel unanimously voted against recommending the drug’s approval.

ViacomCBS (VIACA) – ViacomCBS has reportedly hired George Cheeks, the vice chairman of Comcast’s (CMCSA) NBCUniversal Contest Studios, to fill a senior executive role. That’s according to The Wall Street Journal, which said Cheeks could ultimately succeed Joe Ianniello as head of the company’s CBS network. Comcast is the parent company of NBCUniversal and CNBC.

PG&E (PCG) – PG&E is near a deal with investment firm Pimco and Elliott on a restructuring plan, according to a Bloomberg report. The agreement is said to give creditors of the utility a mix of equity and new debt if they abandon their rival restructuring plan.


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: peter schacknow
Keywords: news, cnbc, companies, goldman, bank, management, revenue, share, moves, estimates, premarket, america, stocks, unitedhealth, wall, street, reported, cents, making, biggest, earnings, target


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JP Morgan admits to `terrible customer experience’ in response to discrimination allegations

“It’s clear Mr. Kennedy had a terrible customer experience with us. In letters to congressmen and senators who requested information from the bank about allegations in the article, the bank acknowledged several shortcomings. The article detailed racial discrimination experienced by a black J.P. Morgan employee and customer at branches in the Phoenix, Arizona area. J.P. Morgan Chase admitted to failures brought to light in a New York Times article last month and said it had taken a series of step


“It’s clear Mr. Kennedy had a terrible customer experience with us.
In letters to congressmen and senators who requested information from the bank about allegations in the article, the bank acknowledged several shortcomings.
The article detailed racial discrimination experienced by a black J.P. Morgan employee and customer at branches in the Phoenix, Arizona area.
J.P. Morgan Chase admitted to failures brought to light in a New York Times article last month and said it had taken a series of step
JP Morgan admits to `terrible customer experience’ in response to discrimination allegations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, york, allegations, bank, admits, employees, letters, series, times, experience, discrimination, customer, article, executives, morgan, terrible, response


JP Morgan admits to `terrible customer experience' in response to discrimination allegations

People pass a sign for JPMorgan Chase at it’s headquarters in Manhattan, New York City.

“The Times also reported about a client, Jimmy Kennedy, who experienced multiple delays in onboarding, from opening a new investment to transferring money in his account,” bank executives said in the letters obtained by CNBC. “It’s clear Mr. Kennedy had a terrible customer experience with us. Our review of the matter found there was a series of administrative delays in processing his investments that would have frustrated any client.”

In letters to congressmen and senators who requested information from the bank about allegations in the article, the bank acknowledged several shortcomings. The article detailed racial discrimination experienced by a black J.P. Morgan employee and customer at branches in the Phoenix, Arizona area.

J.P. Morgan Chase admitted to failures brought to light in a New York Times article last month and said it had taken a series of steps to learn from the episode.

In another instance, a discussion between a manager and a financial advisor about the suitability of a client in subsidized housing was “totally unacceptable,” the company said.

The article sent shock waves throughout J.P. Morgan, the biggest U.S. lender with 257,000 employees, igniting introspection at a time when economic inequality in the U.S. has dominated discourse.

J.P. Morgan CEO Jamie Dimon has told employees that he’s “disgusted by racism and hate in any form” and instructed staff to look deeper into the bank’s policies and culture.

In the 12-page letter to lawmakers, the bank also detailed its various diversity and job training programs and explained how it collects and investigates discrimination claims.

In a separate memo sent to employees Wednesday, the same day the letters to Congress were delivered, executives of the bank’s sprawling retail operations said they created a firm-wide team of top leaders to spur improvements on discrimination. They’ve also conducted focus groups about the experiences of workers and customers.

“Over the coming weeks and months, we will create more opportunities to have discussions with employees to gain a deeper understanding of how we might get better,” the executives wrote. “And as always, please rapidly escalate any and all issues that make you feel we are falling short.”


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: hugh son
Keywords: news, cnbc, companies, york, allegations, bank, admits, employees, letters, series, times, experience, discrimination, customer, article, executives, morgan, terrible, response


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