75.50 -0.10 (-0.13%)
After hours: 7:48PM EST
|Bid||75.62 x 1200|
|Ask||75.60 x 1100|
|Day's Range||75.24 - 76.08|
|52 Week Range||48.42 - 76.28|
|Beta (3Y Monthly)||1.80|
|PE Ratio (TTM)||10.03|
|Earnings Date||Jan. 14, 2020|
|Forward Dividend & Yield||2.04 (2.68%)|
|1y Target Est||83.85|
(Bloomberg Opinion) -- For generations, budding lawyers have been taught that if the bank forecloses on your mortgage and can’t sell your house for the amount of the loan, the bank can come after you personally for the rest. Apart from a handful of “non-recourse” states (California being the most prominent), this has long been the rule. But a mystifying recent decision by the U.S. Court of Appeals for the 8th Circuit might inadvertently lead to a reevaluation of what had been settled law — and potentially change the way the secondary market values mortgage loans.The facts of the case are simple but instructive. CitiMortgage, Inc., had purchased hundreds of home loans from Equity Bank, a regional bank doing business in Kansas, Missouri, Arkansas and Oklahoma. The contract stipulated that if CitiMortgage later discovered defects in any of the loans, Equity was required to cure the defects or repurchase the loans. The dispute arose from 12 mortgages that Citigroup found defective and Equity refused to buy back. Six had already been foreclosed.A disagreement over so small a number of loans would not ordinarily lead to litigation; the parties would settle, or one would write the loans off. Here, however, there was reason to press on. Six of the 12 loans had been foreclosed, and Equity Bank made the remarkable argument that foreclosure and resale meant that the mortgage loan no longer existed, meaning that there was nothing to repurchase.The 8th Circuit agreed. Part of the ruling relied on the language of the contract, but the court’s interpretation of the language assumed that Equity was right — that foreclosure extinguished the loan. “CitiMortgage has not explained what, exactly, Equity was supposed to repurchase,” the panel wrote. “Without evidence of what, if anything, remained of the underlying loans, we are left guessing about whether Equity breached by failing to fulfill its repurchase obligation.”But no guessing should have been necessary. What remained was the right to go after the borrower’s other assets. That’s the point of a recourse loan. That the value of this right might be very small in most cases of foreclosure does not mean the right does not exist. By ruling otherwise, the 8th Circuit in effect transformed recourse loans into non-recourse loans.The distinction is not trivial. A non-recourse loan means in practice that the lender provides the borrower with a put option — that the borrower can always escape the obligation by selling the asset to the bank at the price of the current loan balance. This structure should lead to higher interest rates and reduce the likelihood of a housing boom. The truth might not be so clear-cut: A 2017 study found that non-recourse states saw higher rates of real estate speculation and larger swings in housing prices. The study noted that a lender who plans to resell the loan to distant investors has a reduced incentive to price the risk correctly.True, even when the loan allows recourse, the lender will rarely pursue the borrower’s other assets, because their value is likely to be small compared to the cost of chasing them. But the borrower knows that the threat exists. As the dissent in 8th Circuit pointed out, the mortgage borrower signs a promissory note. The note’s enforceability is not affected by the disposition of the underlying property. That’s why the majority is wrong to suggest that the loan has disappeared. The borrower’s obligation to pay survives the foreclosure.The pricing of a home loan is always imprecise, and the lender always faces risks. The borrower might not have enough cash to repay or the house itself could depreciate to the point where its value is lower than the loan balance. That’s why purchasers in the secondary market include clauses like the one at issue in the dispute between Equity Bank and CitiMortgage. If the loan originator has to repurchase defective loans, it has a greater incentive to price the loan correctly. But if as the 8th Circuit ruled, the clause becomes unenforceable because foreclosure has occurred, the purchaser won’t pay as much for the underlying loans.To be sure, there’s an argument to be made that all U.S. mortgages should be non-recourse, as they are in most of the world. Activists in other countries — most notably Spain — have argued against recourse loans on the ground that mortgage debt shouldn’t follow a family to the grave. (It doesn’t.) More to the present point, non-recourse loans might reduce inflation in the value of the underlying asset — the home — and so reduce the risk of a bubble. But that’s a policy judgment for legislators, not one that judges ought to make.To contact the author of this story: Stephen L. Carter at email@example.comTo contact the editor responsible for this story: Sarah Green Carmichael at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Stephen L. Carter is a Bloomberg Opinion columnist. He is a professor of law at Yale University and was a clerk to U.S. Supreme Court Justice Thurgood Marshall. His novels include “The Emperor of Ocean Park,” and his latest nonfiction book is “Invisible: The Forgotten Story of the Black Woman Lawyer Who Took Down America's Most Powerful Mobster.” For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Citi announced today that it has entered into a mentor-protégé partnership with Roberts & Ryan Investments, Inc., a service-disabled veteran-owned (SDVO) institutional broker dealer. Through this partnership, Citi will provide mentorship to Roberts & Ryan across several product and service areas, and offer training to enhance their firm’s operations and compliance, as well as consultation on business and organizational management. Roberts & Ryan provides a full suite of offerings in equities and fixed income, including underwriting and trading of corporate, municipal, and agency mortgage debt, as well as equity agency trade execution, stock buybacks and equity underwriting.
(Bloomberg Opinion) -- If their latest earnings are any guide, Singapore banks will be lucky to muddle through 2020 and use the lull in traditional business to extend their tentacles into fast-growing digital commerce. Worryingly for them, British, American and Japanese lenders — as well as Chinese fintech — have similar plans for the Singaporeans’ backyard in Southeast Asia. DBS Group Holdings Ltd., the largest of the three homegrown lenders, reported Monday a better-than-expected 15% jump in net income to S$1.63 billion ($1.2 billion) in the September quarter. However, its net interest margin eased by one basis point to 1.9% from the previous three months. CEO Piyush Gupta expects the margin to shrink by about 7 basis points next year.That squeeze is expected. DBS’s smaller rivals, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd., have also reported declining interest margins. Singaporean banks did handsomely after the Federal Reserve resumed monetary tightening at the end of 2016. That cycle has now abruptly reversed, eroding the banks’ pricing power on loans. It’s a double whammy. Singapore’s economy, slowing sharply because of the U.S.-China trade war and attendant supply-chain dislocations in Asia, is threatening to push up bad loans. While DBS kept its nonperforming loan ratio stable at 1.5%, it did so by aggressively writing off soured assets. New bad loans rose almost 58% from a year earlier. There will be more credit-risk-related costs, just as interest-rate risks become unfavorable, a situation no bank likes.All this will bolster their resolve to go digital. On offer is Southeast Asia’s $100 billion-a-year internet economy, which is expected to triple by 2025. DBS has worked the hardest on third-party application interfaces. But Citigroup Inc. has built $500-million-plus annual revenue streams in Singapore, Indonesia, the Philippines, Thailand and Malaysia. The U.S. bank is using its balance sheet and expertise in transactions banking to push into regional digital deals. British lender Standard Chartered Plc, looking better than at any time in the past five years, has earned digital chops in Africa and is seeking to flex its virtual banking muscles in Hong Kong soon. HSBC Group Plc is late to the party, but it, too, will eventually try to mitigate the risk from overexposure to the restive Hong Kong economy by pivoting to Singapore and Southeast Asia. Meanwhile, the Japanese will want to deploy their ultra-low-cost funding at home to profitable lending overseas. The likes of Mitsubishi UFJ Financial Group Inc. are in the game in Indonesia, the region’s largest economy and the biggest digital-consumption opportunity.Then there’s JPMorgan Chase & Co., the biggest tech investor on Wall Street, earmarking part of its outsize capital spending to blockchain. The Monetary Authority of Singapore announced Monday a token-based prototype for multicurrency payment it has developed in collaboration with JPMorgan and Temasek Holdings Pte, the island nation’s investment firm. With Chinese President Xi Jinping announcing a “blockchain+” national strategy, there will be deep changes in Asia in the way flows of goods and assets are recorded in ledgers and financed.To stay relevant, Singapore banks will have to invest more in tech. And they will have to do it amid ho-hum prospects for the one asset they dominate: local property. A 16-month downturn in mortgages might start to fade as interest rates become more affordable. But that’s about all banks can expect. The government may not want another cheap-money-fueled property bubble. Tight curbs on immigration and high taxes on residential real estate are expected to stay in place, at least until the next general elections due by 2021. The banking market itself will become more contested with the arrival of online-only banks. In the mid-2000s, Citi won greater access to local savings thanks to the U.S.-Singapore free trade agreement. Now, Singapore is throwing open the local banking market for the sake of the city-state’s own competitiveness. Expect the Chinese fintech trinity of Baidu Inc., Alibaba Group Holding Ltd. and Tencent Holdings Ltd. to show deep interest.No, 2020 won’t be a banner year for Singaporean lenders. Lower-for-longer global interest rates will hurt, though if they sit down and do their digital homework, the pain will be considerably less. To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Xerox Holdings Corp. is prepared to offer HP Inc. almost a month for the companies to examine each other’s books as it seeks to win over the computer and printer maker for a takeover offer, according to people familiar with the matter.Xerox, one of the biggest sellers of photocopiers, is willing to give HP four weeks of mutual due diligence so the companies can weigh the merits of the $22-a-share cash-and-stock deal as well as the envisioned cost savings of such a combination, said the people, who asked not to be identified because discussions are private.Whether the time or scope of the access to one another will be sufficient to for HP to agree to enter discussions with its smaller rival is unclear. People familiar with the matter said, however, that HP had offered Xerox a non-disclosure agreement in September, typically a precondition of due diligence, which had been refused.The people added that while both HP and Xerox have acknowledged privately there is some rationale for combining, there are potentially intractable disagreements about which should be the buyer and which the seller, which management team should run the pro forma company, and which has a healthier underlying business.Xerox, which had a market value of about $8 billion at the close of trading on Tuesday, is pushing ahead with a plan to acquire and manage bigger rival HP, which was worth about $27.3 billion before news broke on the potential deal. The offer of $22 a share is a premium of about 20% to HP’s close Tuesday.A representative for HP declined to comment. Caroline Gransee-Linsey, a spokeswoman for Xerox, didn’t immediately return a call and email outside of normal business hours.HP confirmed last Wednesday that Xerox made a takeover offer a day earlier, a potential union of two iconic brands that would reshape the printing industry. The pair have had conversations about a potential combination “from time to time,” Palo Alto, California-based company HP said in that statement. “We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders.”Citigroup Inc. has agreed to provide Xerox financing to swallow HP, a person familiar with the matter said. The company would likely need to take on at least $20 billion of debt to close the deal.HP, one of the world’s largest printer makers, and Norwalk, Connecticut-based Xerox are struggling as waning interest in office and consumer printing blunts their most profitable businesses. HP also has contended with a stagnant PC market.Xerox Deal for HP Would Just Be a Way to Print Money: Alex WebbBoth have responded with significant cost-cutting measures. HP’s new Chief Executive Officer Enrique Lores announced another restructuring that could remove as much as 16% of the workforce by the end of fiscal 2022, amid falling sales in printer ink. Xerox said it plans to cut $640 million in expenses this year. The copy-machine company expects a combined Xerox-HP entity could save at least $2 billion in expenses, according to the Wall Street Journal.Since splitting from server maker Hewlett Packard Enterprise Co. in 2015, HP has avoided big mergers and acquisitions. HP did, however, spend $1.05 billion for Samsung Electronics Co.’s printer unit to bolster its presence in the $55 billion photocopier market, where Xerox has excelled.\--With assistance from Caleb Melby.To contact the reporter on this story: Ed Hammond in New York at email@example.comTo contact the editors responsible for this story: Aaron Kirchfeld at firstname.lastname@example.org, Kevin Miller, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Mark Mason, Chief Financial Officer of Citigroup, will present at the Goldman Sachs US Financial Services Conference 2019 on Tuesday, December 10, 2019. The presentation is expected to begin at approximately 2:50pm .
(Bloomberg) -- Gold headed for the biggest weekly loss in three years as progress in U.S-China trade talks hammered demand for havens and sent miners’ shares tumbling.The metal dropped 3.7% this week, the most since November 2016, as China and the U.S. indicated they are heading toward an interim deal to halt the trade war. Some signs of stabilization in the global economy have also dented gold’s allure, and JPMorgan Chase & Co. and Citigroup Inc. closed out their bets on the traditional haven.Other precious metals also plunged, with silver losing 7.6% of its value this week.Gold prices got a lift this year from trade frictions, interest rate cuts from the Federal Reserve, and robust demand from investors and central banks.That trio of drivers is now under attack as the two largest economies near an initial pact, with the sides agreeing to a tariff rollback as part of any deal. At the same time, the U.S. central bank recently indicated that, after three rate cuts, policy makers are now pausing.“The dollar appears to be in an uptrend pattern after a month of sideways action and fresh weakness on the charts early today suggests the bear case in gold is still unfolding,” according to the Hightower Report.Gold remained under pressure on Friday even as stocks took a breather after Thursday’s gains.The large long positions in gold left the metal vulnerable to sharp drops, said Georgette Boele, an ABN Amro Bank NV strategist.“If only a small amount of positions is closed, gold prices are back at $1,400,” she said. A profit-taking wave could turn into a “bearish vibe,” causing investors to doubt the positive outlook in gold prices, she said.Spot gold was down 0.8% on Friday at $1,457.31 an ounce, after tumbling 1.5% on Thursday. Australia’s Newcrest Mining Ltd. hit a five-month low and AngloGold Ashanti Ltd. dropped to the lowest since Oct. 1.“The principal driver behind the weakness in gold has been increasing optimism about the trade outlook,” John Sharma, an economist at National Australia Bank Ltd., said in an email. “However, it should be remembered that the trade deal is not done and dusted.”\--With assistance from Swansy Afonso.To contact the reporters on this story: Krystal Chia in Singapore at email@example.com;Elena Mazneva in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Liezel Hill, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Citigroup Inc and Deutsche Bank AG may cross-examine four antitrust investigators involved in a criminal cartel prosecution against them, an Australian court ruled on Friday, a win for the defence in a closely watched legal battle. Citi, Deutsche, ANZ and eight of their staff were charged last year with withholding crucial information from shareholders about the sale.
(Bloomberg) -- HP Inc. confirmed that Xerox Holdings Corp. has made a takeover offer, a potential deal between two iconic names in technology that would reshape the printing industry.“We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination,” the Palo Alto, California-based company said Wednesday in a statement. “We received a proposal transmitted yesterday. We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders.”Citigroup Inc. has agreed to provide Xerox financing to swallow HP, a person familiar with the matter said. The company would likely need to take on at least $20 billion of debt to close the deal, which was reported earlier by the Wall Street Journal. HP’s market capitalization was about $27.3 billion at the close of trading on Tuesday, while Xerox’s was $8 billion, before news broke of the potential deal. Xerox had extended an offer at $22 a share, the Financial Times reported, a premium of about 20% to HP’s close Tuesday, before news of a potential takeover emerged.HP hasn’t decided whether the Xerox offer is the right deal, according to a person familiar with HP’s thinking. The PC maker doesn’t agree with Xerox on the potential synergies and has concerns about the debt needed for a deal, said the person, who asked not to be identified speaking publicly about internal talks. Even if HP decides a combination is worthwhile, it isn’t convinced Xerox has the relevant experience for a complex merger and doesn’t think Xerox should be the buyer, the person said.HP, one of the world’s largest printer makers, and Xerox, one of the biggest sellers of photocopiers, are struggling as waning interest in office and consumer printing has blunted both companies’ most profitable businesses. HP also has contended with a stagnant PC market.Xerox Deal for HP Would Just Be a Way to Print Money: Alex WebbBoth hardware makers have responded to the changing markets with significant cost-cutting measures. HP’s new Chief Executive Officer Enrique Lores announced another restructuring that could remove as much as 16% of the workforce by the end of fiscal 2022, amid falling sales in its lucrative printer ink business. Xerox said it plans to cut $640 million in expenses this year. The copy-machine company, based in Norwalk, Connecticut, expects a combined Xerox-HP entity could save at least $2 billion in expenses, according to the Journal.“Financing a $30 billion HP transaction with mostly debt may be challenging for Xerox, but not an insurmountable obstacle,” Robert Schiffman, an analyst at Bloomberg Intelligence, wrote Wednesday in a note.In its statement, HP expressed confidence in its plan for the future.“We have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation,” HP said.Since splitting from server maker Hewlett Packard Enterprise Co. in 2015, HP has avoided big mergers and acquisitions. The company has focused on financial discipline, minimizing debt and returning capital to shareholders in an operating template set by former Hewlett-Packard Co. CEO Meg Whitman. HP did, however, spend $1.05 billion for Samsung Electronics Co.’s printer unit to bolster its presence in the $55 billion photocopier market, where Xerox has excelled.Separately, Xerox announced Tuesday that it would get $2.3 billion from longtime partner Fujifilm Holdings Corp. for its stake in their joint venture, Fuji Xerox. The U.S. company had indicated since last year that it intended to end its ties with the Japanese company after a complex merger transaction fell apart.(Updates with reported bidding price from the third paragraph)To contact the reporters on this story: Nico Grant in San Francisco at firstname.lastname@example.org;Ed Hammond in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, ;Liana Baker at email@example.com, Andrew Pollack, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- In what universe can a tiring, $8.8 billion maker of photocopiers even think about acquiring a $27 billion, moderately sexier maker of printers and PCs?This one, apparently. Xerox Holdings Corp. is contemplating a cash-and-stock bid for HP Inc., the Wall Street Journal reported on Tuesday. While the size of the discrepancy in market values makes a deal seem hard to digest, the capital requirements don’t exceed the realms of possibility. Xerox wouldn’t be buying an exciting new growth business. It would get HP’s cash flow and the ability to reduce costs, probably through significant job cuts.Xerox’s efforts to sell itself appear to have failed. But HP has endured a difficult year, with its stock declining 25% since an October 2018 peak. Its enterprise value is at the lowest level relative to estimated 12-month earnings since 2016. It’s vulnerable to an approach.Its situation has been exacerbated by operational turbulence. Chief Executive Officer Dion Weisler stepped down at the start of the month for family reasons, announcing a new turnaround plan soon before he left, which successor Enrique Lores inherited. Take into account HP’s relatively low debt and continued ability to generate strong free cash flow, and a bid from Xerox appears entirely feasible.The smaller company would, in a sense, be buying a license to print more money through HP’s cash flows. Remaining independent is only going to become more difficult, with global printer shipments set to decline by 2% annually through 2023, according to research firm Gartner. Teaming up would reduce costs and competition in the segments where they overlap; HP is generally stronger in the market for smaller printers, while Xerox holds the lead in larger ones. That could boost profitability even as revenue stagnates.Were Xerox to offer a 30% premium to HP’s average share price over the past 12 months, then a bid in the region of $35 billion might be realistic. Yes, even with a stock component, the required debt pile would be a lot for Xerox to swallow — funding needs could hit $20 billion, according to Bloomberg Intelligence analyst Robert Schiffman. But the merged entity would need to realize savings representing less than 5% of the companies’ combined $9.3 billion annual operating costs to cover the cost of capital, based on 2022 earnings projections.The Journal reported that Xerox, which is based in Norwalk, Connecticut, had received an informal funding commitment for the deal from a bank, which Bloomberg News identified as Citigroup, citing an unidentified person with knowledge of the matter. Xerox sees room for about $2 billion of annual cost savings from combining the two companies, the person said. If a bid materializes, credit Xerox CEO John Visentin for thinking big. Since he was appointed last year with the backing of activist investor Carl Icahn, Xerox’s second-biggest shareholder, the stock has outperformed that of HP. News of the possible bid for HP came just hours after Xerox agreed to sell a stake in a lucrative 57-year-old joint venture with Japan’s Fujifilm Holdings Corp. for $2.3 billion.Would it make sense for HP to do the inverse deal and acquire Xerox? Probably not entirely. It most likely already had the opportunity to do so and passed. But for Xerox, it could prove a canny piece of financial engineering.To contact the author of this story: Alex Webb 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.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Xerox Holdings Corp. has lined up financing from Citigroup Inc. as it weighs as potential bid for HP Inc., according to a person with knowledge of the matter.Xerox is considering making a cash-and-stock offer for HP, said the person, who asked to not be identified because the deliberations are private. Xerox Chief Executive Officer John Visentin would run the combined company under the proposal being discussed, the person said.Xerox sees room for about $2 billion of annual cost savings from combining the two companies, the person said. No final decisions have been made and there’s no certainty the deliberations will lead to a firm offer, according to the person.HP, based in Palo Alto, California, rose as high as 18% Wednesday, after the Wall Street Journal reported late Tuesday that Xerox was considering a bid. The shares were up 12% to $20.67 at 9:39 a.m. in New York trading, giving it a market value of about $30.6 billion.Norwalk, Connecticut-based Xerox rose 2.8% to $37.40, giving it a market value of about $8.3 billion.A representative for Xerox declined to comment. Representative for Citigroup and HP weren’t immediately available for comment.Acquiring HP would buttress Xerox’s share of the printing and copying market, which has been hit hard by a global shift toward cloud computing.HP, which traces its roots to 1939, is the world’s largest personal computer maker behind China’s Lenovo Group Ltd. In 2015, it split from software provider Hewlett Packard Enterprise Co.(Updates with Xerox declining to comment in sixth paragraph.)\--With assistance from Julie Verhage.To contact the reporter on this story: Ed Hammond in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Ben Scent, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- China’s yuan rallied past 7 per dollar only yesterday and analysts are already warning the strength won’t last.The currency jumped as much as 0.60% to 6.9880 a dollar Tuesday, trading stronger than the key level for the first time since August. The offshore rate rose as much 0.66%. The level had been a key support for the currency for years until August, when the central bank allowed it to weaken past 7 for the first time in more than a decade.China’s yuan has proven to be a good barometer of progress in trade talks between Beijing and Washington. Its surge in the past month came as the two sides inched toward a deal and the greenback weakened. Still, the latest gains coincide with China’s slowest economic growth since the early 1990s -- a factor that prompted the central bank to lower one of its many interest rates on Tuesday.“The yuan’s rally above 7 will only be temporary,” said Commerzbank AG’s Zhou Hao, the top yuan forecaster. “The MLF cut shows the Chinese central bank may see a strong currency as harmful to the economy.”Zhou also pointed to the People’s Bank of China’s daily reference rate -- which was set weaker-than-expected in the four sessions through Tuesday -- as a factor limiting more gains. The fixing has been closely watched after the PBOC set it weaker than 7 per dollar in August, shattering a psychological barrier that officials had spent years defending.The central bank set the daily reference rate at 7.0080 on Wednesday, slightly stronger than predicted. The offshore yuan gained 0.05% to 6.9989 after the fixing.The Chinese currency has now rebounded 2.4% since it fell to the weakest level since 2008 in early September. U.S. Commerce Secretary Wilbur Ross said Tuesday that reaching a phase-one deal will help rebuild trust between the two sides and could serve as a precursor to more talks.“The easing trade tensions helped to override the downside surprises seen in the dreary China domestic economic data and have contributed to a convincing rally on the yuan,” said Stephen Innes, a strategist at AxiTrader Ltd.While Citigroup Inc. strategists say the yuan might strengthen toward 6.9 if Washington agrees to roll back tariffs imposed on Chinese goods in September, Li Liuyang, an analyst at China Merchants Bank Co. said doubts will remain until a deal has been finalized.Societe Generale SA’s Jason Daw says the yuan is more likely to weaken to 7.2 in the coming months, rather than strengthen to 6.8. That means there’s no point chasing the rally now, he wrote in a Wednesday note.The median forecast of analysts surveyed by Bloomberg is for the yuan to end the year at 7.15.(Adds analyst comment in second-to-last parapraph)\--With assistance from Tian Chen, Claire Che and Qizi Sun.To contact Bloomberg News staff for this story: Livia Yap in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Sofia Horta e Costa at email@example.com, Philip GlamannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On Monday, J.P. Morgan raised its target price on Citigroup, Bank of America, and Wells Fargo stock. Citigroup and Bank of America shares closed higher.
The Zacks Analyst Blog Highlights: Bank of America, Fannie Mae, JPMorgan, Citigroup and Wells Fargo
Citi has launched a new analytics framework and data visualisation tool that measures the performance of a currency hedged share class versus the performance of the base currency share class, and attributes any deviation in performance to its various sources. The performance attribution tool is the latest enhancement to Citi’s passive currency overlay services and can be accessed via Citi Velocity, the firm’s online client portal.
Banks' worries will likely ease as the HUD issues a MOU with the DOJ for the appropriate use of the False Claims Act in relation to violations by FHA-insured mortgage lenders.
The savings account, Citi Miles Ahead savings account, will offer up to 50,000 miles as a sign-on bonus and a 25% boost on miles earned through the card, the bank said in a statement. American Airlines did not immediately respond to Reuters' request for comment.
Wall Street banking giants - JPM, BAC, C and WFC's - third-quarter results reflect consumer banking strength and adverse impact from lower interest rates.
(Bloomberg) -- After months of work, Citigroup Inc. was absent from a Chinese real estate website’s $78 million U.S. public offering after a dispute over fees, according to people familiar with the matter.Fangdd Network Group Ltd. and Citi, which had been hired as the second bookrunner on the IPO, could not reach an agreement on the underwriting fees as late as Thursday, people familiar with the matter said, asking not to be identified because the matter isn’t public.Citigroup, the fourth most active IPO arranger globally this year, had initially been listed in the IPO document in the second position after Morgan Stanley, but didn’t appear on the press release announcing the downsized IPO Friday on the Nasdaq Global Market.Fangdd had cut the amount of shares it sold in its IPO from 7 million to 6 million after demand for its stock during its roadshow was lower than expected.Representatives for Citigroup and Fangdd declined to comment.Fangdd was trading slightly higher than its $13 offer price at $13.10 at 12:40 a.m. in New York on Friday.U.S. offerings typically pay a higher percentage in IPO fees compared to most Asian countries. But U.S. IPOs of Chinese companies have shrunk in size this year as investors grew wary about the tensions between U.S. and China, squeezing fees for Asian investment bankers.DouYu International Holdings Ltd., which raised $775 million in July, is the biggest U.S. IPO of a Chinese company this year while four deals from last year topped $1 billion, according to data compiled by Bloomberg. Chinese companies raised $2.9 billion in the U.S. this year, down from the $7.9 billion was raised during the same time last year.Morgan Stanley, UBS Group AG, China International Capital Corp., and AMTD Global Markets Limited were as joint bookrunners for the Fangdd’s IPO.To contact the reporters on this story: Carol Zhong in Hong Kong at firstname.lastname@example.org;Crystal Tse in New York at email@example.comTo contact the editor responsible for this story: Liana Baker at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In a sign of its ongoing commitment to the UK market, Citi has appointed Bill Stanton as head of its UK Commercial Banking business. Reporting to Raymond Gatcliffe, EMEA Head of Citi Commercial Bank (CCB), Bill will be responsible for leading the UK franchise, serving the mid-market corporate segment across a number of industries.
Citi Private Bank has been crowned Best Global Private Bank at the PWM/The Banker Global Private Banking Awards 2019, retaining the top honour for the second year running. In addition, the bank was also named Best Private Bank for Customer Service, as well as Best Bank for Global Families and Family Offices.