Wed, Jun. 3, 2:32 AM
- FIFA president Sepp Blatter's decision to resign amid corruption allegations at soccer's governing body is a relief for corporate sponsors who have called for more transparency at the organization.
- "FIFA needs profound restructuring," Blatter declared. "Although the members of FIFA gave me a new mandate, this mandate does not seem to be supported by everyone in the world."
- Sponsors Coca-Cola (NYSE:KO), Visa (NYSE:V), Adidas (OTCQX:ADDYY), Hyundai (OTC:HYMLF) and Anheuser-Busch InBev (NYSE:BUD) called the resignation a positive step, but some sponsors said they expected FIFA to do more to clean up its act.
- Previously: Sponsors face pressure after FIFA scandal (May. 29 2015)
Sun, May 31, 8:13 AM
- Visa (NYSE:V), MasterCard (NYSE:MA) and other global bank card operators will be allowed to clear domestic Chinese payments starting Monday, following a long-running effort to enter the market dominated by state-backed UnionPay.
- In late October, China's cabinet announced it would allow foreign companies to access the $73T-a-year market. The government then followed up with the official rules last month.
- Previously: Door opens for MasterCard and Visa in China (Apr. 22 2015)
Fri, May 29, 3:51 AM
- The corruption scandal engulfing FIFA is having corporate sponsors ponder whether to back away from the powerful marketing outlet, although severing ties will not likely be easy.
- Visa (NYSE:V) said it wants sweeping changes at FIFA and could otherwise end its agreement, which runs until 2022. Other top sponsors such as Adidas (OTCQX:ADDYY), McDonald's (NYSE:MCD) and Coca-Cola (NYSE:KO) also expressed deep concerns.
- FIFA collected $1.6B in sponsorship money in the four years leading up to the 2014 World Cup, nearly half of which came from its six top "partners" (the four mentioned above, Emirates and Hyundai (OTC:HYMLF)).
- Meanwhile, Sepp Blatter is expected to secure re-election as FIFA President today, despite the many calls for him to step down.
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)
Tue, May 19, 10:56 AM
- Visa (V +0.6%) announces it has added a significant number of high-profile merchants to its Visa Checkout platform.
- The company also disclosed that a new report from comScore indicates 69% of Visa Checkout shoppers convert to online buyers due to the ease of use of the payment method.
- New Visa Checkout merchant partners include Dunkin' Donuts, Pizza Hut, Fandango, and Indigo.
Fri, May 8, 2:52 PM| Fri, May 8, 2:52 PM | 21 Comments
Thu, Apr. 30, 5:12 PM
- Visa (NYSE:V) reports a strong U.S dollar cut into growth by 2.5 percentage points in Q1.
- Total processed transactions during the quarter were up 11% Y/Y to 17.0B.
- Payments volume growth rose 11% on a constant dollar basis to $1.2T and cross-border volume was up 8%.
- Service revenue was up 8% to $1.6B on a reported ending date of Dec. 31.
- The company's operating expenses rose 1% to $1.1B.
- Guidance: Visa reaffirms previous guidance of low double-digit revenue growth in constant currency terms. F/X is seen as a -2% drag on sales.
- Visa didn't mention China in its earnings release, but the topic could come up on the earnings call.
- V -2.35% after hours.
Thu, Apr. 30, 4:07 PM
Tue, Apr. 28, 3:53 PM
- MasterCard (NYSE:MA) is in slightly better position than Visa (NYSE:V) in China due to its advanced relationship with UnionPay, notes Wedbush Securities.
- The company has been in a co-branded card relationship with UnionPay since 2010.
- Previously: Door opens for MasterCard and Visa in China (April 22)
- Previously: China benefit estimates out on Visa and MasterCard (April 22)
Thu, Apr. 23, 4:43 PM
Wed, Apr. 22, 11:35 AM
- Morgan Stanley is out with a new note covering the impact of China opening up competition for bank card clearing services in the nation.
- The investment firm thinks Visa (V +5.9%) and MasterCard (MA +4.6%) could begin operations in China in late 2016 or early 2017.
- The development could add $336M to $360M in revenue for Visa and $224M to $240M for MasterCard by 2021.
- Shares of both payments stocks have ripped gains on strong volume.
- Previously: Door opens for MasterCard and Visa in China
Wed, Apr. 22, 10:33 AM
- MasterCard (MA +3.4%) and Visa (V +4%) shoot higher after China opens up bank card processing to foreign firms.
- The companies will have the ability to enter the market on June 1 through local partnerships/units or acquisitions.
- The development was tipped last fall, but the Chinese government just issued the official rules today.
Fri, Apr. 17, 3:45 PM
- In the sort of things dreams are made of for retailers, Costco's (COST -1.7%) new deal with Visa (V -1.6%) and Citigroup (C -1.6%) will have the company paying next to nothing for transactions vs. the roughly 0.6% it pays current partner American Express (AXP -4.2%).
- "The numbers didn't add up," said AmEx CEO Ken Chenault last month when telling his shareholders why the company let the Costco relationship go. "We couldn't accept their financial terms."
- For Citigroup, it's plan is to make money by customers carrying loan balances, and for Visa it hopes to earn when customers use those cards at other retailers where fees are higher. Banks generally make about 80% of their credit card revenue from interest balances and other fees, with interchange making up the rest, according to Bernstein's Lisa Ellis.
- To put some numbers on it, Costco had about $100B in sales last year, with its customers accounting for 20% of AmEx's loans and 8% of spending.
Fri, Apr. 17, 11:02 AM
- "If any doubt remained, it is very clear that dollar strength is a major problem right now for large multinationals," says Topeka, after going over American Express' (AXP -4.5%) Q1 results, and noting the corporate card business slowdown wasn't isolated to any particular industry.
- AmEx, notes the team, has 31% of its volume outside of the U.S. and is highly dependent on cross-border and business-related travel. 'This reads negatively for Mastercard (MA -1.4%), and, less so, Visa (V -1.4%)."
- AmEx earnings call transcript and presentation slides.
- Previously: AmEx beats on bottom line, but outlook still dour (April 16)
Tue, Apr. 14, 6:34 PM
- After months of negotiations, Target (NYSE:TGT) is close to a settlement with MasterCard (NYSE:MA) that would reimburse banks with roughly $20M over Target's 2013 data breach, Dow Jones is reporting.
- The cost is another on top of what has been a stack related to the heavy data incursion. The retailer noted in its annual report that it faced $252M in costs related to the breach.
- The settlement covers card reissuance as well as some fraud that resulted from the data exposure. MasterCard will distribute funds to affected banks, including Citigroup, Capital One and Chase.
- Target faces a bigger payout in its negotiations with Visa (NYSE:V), which are separate from this settlement.
- Previously: Target to pay $10M data breach settlement (Mar. 19 2015)
Wed, Apr. 8, 7:36 AM
- Citing Capital One's (NYSE:COF) strong card loan growth, capital return, and reasonable valuation, Citi keeps a Buy rating on the stock and $95 price target. Continuing to see a "modestly" improving U.S. consumer, Citi also has Buy ratings on AmEx (NYSE:AXP), Discover (NYSE:DFS), MasterCard (NYSE:MA), Synchrony Financial (NYSE:SYF), and Visa (NYSE:V).
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