Tue, Jun. 16, 8:22 AM
- FQ2 (ending May 31) fixed-income net revenue at Jefferies (NYSE:LUK) jumped 56% from a slow Q1, but fell 29% from a year ago. Total net revenue of $792M climbed 9.4% Y/Y.
- CEO Richard Handler notes fixed-income results improved each month during the quarter.
- Jefferies results often provide clues about how larger rivals like JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Goldman Sachs (NYSE:GS) may fare when they report their Q2s next month.
- Source: Press Release
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Tue, Jun. 16, 2:25 AM
- HSBC (NYSE:HSBC) and JPMorgan (NYSE:JPM) are in discussions to relocate parts of their businesses to the Luxembourg as they weigh tougher rules for conducting business outside of the eurozone and the possibility of a British exit from the EU, The Times reports.
- According to the International Consortium of Investigative Journalists, more than 300 companies, including PepsiCo, AIG and Deutsche Bank, have already secured secret deals from Luxembourg to slash their tax bills.
Thu, Jun. 11, 1:20 PM
- Kurt Simon, 49, joined JPMorgan (NYSE:JPM) in 2002, and has led some of the largest, industry-defining transactions across the TMT sector, says Carlos Hernandez, the head of global banking. Among those deals are this year's Broadcom and Altera sales, and Dell's going-private move in 2013.
- The bank's TMT group gets a reshuffle, with Noah Wintroub promoted to vice chairman of investment banking and continuing his focus on internet and digital media. Fred Turpin will become head of the media-and-telecommunications investment-banking group in North America. Michael Millman will become head of technology investment banking in North America.
- Source: WSJ
Wed, Jun. 10, 10:01 AM
- More than six years after the bottom, only four of the globe's biggest banks sport stock prices trading at a premium to book value. Leading the way is UBS at about 1.4x book. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) also trade for north of book.
- Deutsche Bank (NYSE:DB) - whose ROE of 2% is about one-tenth of what it was pre-crisis - brings up the rear at just about 0.5% of book. Barclays (NYSE:BCS) sells for roughly 0.7x book, and Bank of America (NYSE:BAC) only slightly more than that.
- Checking further on ROE, Goldman leads the way at about 12%. Citigroup (NYSE:C) is less than 5%, but stands out as being the only bank with a higher ROE today than before the crisis.
- Looking at total return since the crisis, Goldman again leads the way at about 170%, with Morgan Stanley and JPMorgan a close second/third. Citigroup is the only major bank with a negative total return over that time frame.
- Source: Bloomberg
Fri, Jun. 5, 10:27 AM
- This morning's strong nonfarm payroll report may put to rest the idea of a continuing economic slowdown and puts on the table a rate hike maybe as soon as September.
- The 10-year Treasury yield is up nine basis points to 2.40%.
- The KRE +1.5%, KBE +1.6%, and the XLF +1.1% amid a flat S&P 500.
- Regional banks: Regions Financial (RF +3.3%), KeyCorp (KEY +2.5%), PNC Financial (PNC +1.9%), SunTrust (STI +2.3%), U.S. Bancorp (USB +2.2%), Zions (ZION +3.7%), First Niagara (FNFG +1.4%)
- Too Big Too Fails: Citigroup (C +2.2%), Bank of America (BAC +3.4%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.9%)
- Life insurers: MetLife (MET +2.7%), Prudential (PRU +2.8%), Sun Life (SLF +1.9%), Lincoln Financial (LNC +2.5%)
- Online brokerage: Schwab (SCHW +3.8%), TD Ameritrade (AMTD +2.8%), E*Trade (ETFC +2.3%), Interactive Brokers (IBKR +2.5%)
- Previously: Jobs up 280K in May; UE rate ticks higher (June 5)
- Previously: Treasury yields surge amid strong job gains, boosted wage growth (June 5)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Wed, Jun. 3, 12:36 PM
- “A clear separation has emerged between the biggest brokers and the rest of the market,” says Jay Bennett of Greenwich Associates. A survey by his firm finds the top four U.S. equity brokers - Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Morgan Stanley (NYSE:MS) - are widening their market share lead over the rest of the industry.
- According to Greenwich, all had more than an 8% share of trading, with number five Credit Suisse (NYSE:CS) at 6.9%.
- Bennett calls it a segmented market composed of the big four, the rest of the bulge bracket, and a long tail of competitors with relatively smaller shares.
- ETFs: IAI, KCE, KBWC
Tue, Jun. 2, 12:40 PM
- "We realized that hardly anyone uses voice mail anymore because we’re all carrying something in our pockets that’s going to get texts or e-mail or a phone call,” says Gordon Smith, head of JPM's consumer and community bank.
- The bank has nearly 136K employees in its retail division, and voice mail services cost $10 per month per line. JPMorgan is looking to trim $2B in annual expenses and other initiatives include cutting branch staff and pushing customers into mobile/automated channels.
- Webcast from today's Deutsche Bank conference presentation
Mon, Jun. 1, 7:32 AM
- David Lau replaces Catherine Leung who was pushed out by JPMorgan (NYSE:JPM) amid an investigation into its Chinese hiring practices.
- In addition to his new post as head of global investment banking for Hong Kong, Lau will retain his responsibilities as head of China corporate finance, according to the WSJ.
Thu, May 28, 2:10 PM
- J.P. Morgan Chase (JPM -0.7%) has begun layoffs that are expected to total more than 5,000 by next year, eliminating at least 2% of the bank's total workforce,WSJ reports.
- The layoffs are said to affect all four of the bank’s major business units: corporate and investment banking, consumer and community banking, asset management and commercial banking.
- At least 1,000 of the 5,000 layoffs already have been carried out in the past few months, but more are expected as JPM continues to slim expenses in an effort to meet profitability goals, according to the report.
- JPM cut 7,900 mortgage jobs and left certain businesses last year, and has slimmed its workforce to ~240K employees following cuts in 11 of the last 12 quarters.
Thu, May 28, 2:30 AM
- The world's most popular sport was plunged into turmoil on Wednesday as U.S. authorities announced charges against nine FIFA officials and five sports executives, alleging they were part of a scheme in which more than $150M in bribes were paid in exchange for the commercial rights to soccer tournaments.
- The bribes were reportedly paid using accounts at major global banks, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal. Banks involved: JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, BofA (NYSE:BAC), UBS and Julius Baer (OTCPK:JBAXY).
- Nike, which also might be in the hot seat, said it would cooperate with authorities.
Wed, May 27, 3:47 PM
- “God knows how any of you can place your vote based on ISS or Glass Lewis,” says the JPMorgan (JPM +1.3%) CEO, chiding "lazy" investors who pay too much heed to proxy advisors. "If you do that, you are just irresponsible, I’m sorry. And you probably aren’t a very good investor, either.”
- Top executives narrowly won approval for their pay 2014 pay package, in part after ISS and Glass Lewis recommended investors reject the deal.
- Moving to operations, Dimon says Q2 trading volumes are about inline with where they stood one year ago.
- "It's a terrible thing to have to go through," says Dimon, speaking of last week's guilty plea over forex manipulation. While not crippling, Dimon does expect the outcome to cost the bank some business.
Wed, May 27, 12:53 PM
- Amid its investigation of JPMorgan's (NYSE:JPM) hiring practices in China, the SEC last month issued a subpoena requesting all communications between the bank and 35 mostly high-ranking Chinese officials. Topping the list, reports the WSJ, is Beijing's point man on anticorruption, Wang Qishan (the DOJ has requested information as well).
- Mr. Wang's name previously had not come up in media reports of the investigation, and his inclusion could put a strain on U.S.-China relations.
- Including Mr. Wang, none of the Chinese officials connected to the hiring affair have faced censure there, and it's unclear whether Beijing even considers such behavior a problem.
Tue, May 26, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
Thu, May 21, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Wed, May 20, 10:10 AM
- Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
- Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
- There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
Tue, May 19, 2:14 PM
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