|Bid||24.88 x 800|
|Ask||24.97 x 800|
|Day's Range||24.87 - 25.00|
|52 Week Range||24.28 - 25.50|
|Beta (5Y Monthly)||1.57|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||1.08 (4.36%)|
|Ex-Dividend Date||Apr. 14, 2021|
|1y Target Est||N/A|
(Bloomberg) -- Japan’s recovery stalled last quarter, with the economy shrinking more than analysts expected, as renewed restrictions to contain the coronavirus hit activity, raising the risk of a double-dip recession if the country cannot bring its virus emergency to a swift end.Gross domestic product shrank an annualized 5.1% from the prior quarter in the three months through March, ending a two-quarter streak of double-digit growth, the Cabinet Office reported Tuesday. Economists had forecast an overall contraction of 4.5%.The worse-than-expected result came as businesses unexpectedly cut investment, consumers pulled back and government outlays fell amid a suspension of a travel-promotion campaign to help the ailing tourism industry.Signs of renewed fragility in the economy heighten the risk that the economy could shrink again this quarter, as Prime Minister Yoshihide Suga’s administration struggles to speed up its vaccine rollout and contain virus cases using a targeted approach that attempts to limit the damage to the economy.“If the state of emergency is extended, that will certainly raise the odds of a contraction,” said economist Yoshiki Shinke at Dai-Ichi Life Research Institute. “Consumer spending is the biggest missing piece for the economy and it’s hard to predict because it’s very much dependent on the virus situation..”Suga last week added three more prefectures to the latest state of emergency, a move that puts about half of the economy under restrictions and further heightens the risk of another contraction this quarter.What Bloomberg’s Economist Says...“In the details of Japan’s deeper-than-expected GDP contraction in 1Q, there was even more bad news -- a surprise drop in private investment and an unexpectedly steep buildup in inventories. These signal weakness in the manufacturing sector -- a rare growth driver amid the virus emergency -- and add to downside risks to the economy in 2Q.--Yuki Masujima, economistTo read the full report, click here.The drop in businesses investment, which was unexpected, suggests companies may be more cautious about the outlook than previously thought. Still, shoppers didn’t pull back as much as economists feared, which may signal a reservoir of underlying demand that could help power the recovery ahead.“Consumption didn’t fall much, which means efforts to contain the virus are not having much of an impact,” said economist Hiroaki Muto at Sumitomo Life Insurance Co. “The virus will continue to weigh on the economy in the second quarter. With vaccination delayed, the second quarter will be a tough period.”Strong exports and industrial production continue to provide a bedrock of support to the economy, even though a rise in imports caused the trade-component of the GDP to go negative in the first quarter.The outlook depends largely on whether Suga can lift a third virus emergency by the end of May, as planned.Japan has had far fewer virus deaths than other G-7 economies, but a slow vaccine rollout has limited its tools for fighting the outbreak and getting the economy back into gear. So far, only about 3% of the population has received even a single dose.(Updates throughout.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bank of America Corp. joined the network created by Paxos Trust Co. to settle stock trades in minutes rather than days by using blockchain, the latest sign of Wall Street’s growing adoption of the technology.The second-biggest U.S. bank joins Credit Suisse Group AG and Nomura Holdings Inc.’s Instinet on the Paxos Settlement Service. In 2019, the Securities and Exchange Commission allowed Paxos to begin a pilot program for settling equity trades.Bank of America has been conducting internal transactions for the past few months and, if approved as a clearing agency, will offer the service to clients next, said Kevin McCarthy, head of financing and clearing at the Charlotte, North Carolina-based firm.The Paxos system is one of several areas where banks are using blockchain to reshape how they interact with markets. JPMorgan Chase & Co. has been using a version of Ethereum to execute overnight repurchase agreements since late last year, with daily transactions exceeding $1 billion. Goldman Sachs Group Inc. is preparing to join that market as well.McCarthy said the flexibility and cost savings offered by Paxos appealed to the bank.“We can determine the settlement cycle down to T+0,” he said, referring to a settlement that happens at the same time or on the same day as the trade. “We then can free up the collateral we’d have to post on an overnight basis,” which could lead to big savings. “The return-on-assets in this business would improve, which has been a challenge,” he said.The move to more flexible and speedier stock settlement could pose a threat to the Depository Trust & Clearing Corp.’s half-century dominance in equity markets. Only trades logged by DTCC by 11:30 a.m. are eligible to be settled that day. That misses about 75% of all stocks traded on a given day, according to Paxos Chief Executive Officer Chad Cascarilla.The current settlement time is about two days, during which money to sellers from buyers is stuck in the market’s plumbing.That’s a relative eternity when trades can happen in milliseconds. The Paxos system connects investors directly using a version of the Ethereum blockchain. The DTCC is working to shorten its settlement times and offers same-day settlement for some trades.The equity market is big enough for multiple settlement systems, said Bina Kalola, BofA’s head of global banking and markets financial technology innovation and investments.“That flexibility and change in workflows to bilateral settlement is very interesting,” she said, noting it’s important that Paxos has a link to the DTCC and that there has been broad cooperation. “Everyone is partnering and that’s critical.”Paxos raised $300 million from investors last month, giving it a valuation of $2.4 billion.‘Mainstream Adoption’Pushing blockchain acceptance in banking and other industries is key for the technology to succeed, Cascarilla said.“The way we get mainstream adoption is by having firms like Bank of America come on and feel comfortable,” he said.Kalola said the lender is serious about exploring new ways to adopt innovation to the current market structure.“We will go through this journey together, and the collaboration and partnerships really matter,” she said. “We will see a new way of doing things that will benefit everyone.”(Updates with valuation in 12th paragraph. An earlier version of this story corrected the time of day and a reference to same-day settlement.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Bank of America (BAC) agrees to pay a penalty of $75 million to settle excessive fees probe.