50.45 +0.65 (1.31%)
Before hours: 4:15AM EDT
|Bid||0.00 x 1100|
|Ask||0.00 x 2200|
|Day's Range||47.52 - 49.88|
|52 Week Range||27.20 - 57.57|
|Beta (5Y Monthly)||1.49|
|PE Ratio (TTM)||10.34|
|Earnings Date||Jul. 16, 2020|
|Forward Dividend & Yield||1.40 (2.81%)|
|Ex-Dividend Date||Apr. 29, 2020|
|1y Target Est||54.15|
Market participants are bracing for the start of what will likely be the weakest corporate earnings season since the global financial crisis, as the coronavirus pandemic and measures to contain it hit business activity especially hard in the second quarter.
Chinese electric vehicle (EV) maker Li Auto Inc, backed by food delivery giant Meituan Dianping, has filed for a U.S. initial public offering. The move, announced on Friday, comes as share prices of EV makers including Tesla Inc and Nio Inc have surged in recent months. Five-year-old Li Auto, formerly known as CHJ Automotive, is building Li ONE extended-range electric sport-utility vehicles in China's eastern city of Changzhou.
As big banks gear up for earnings season, many investors are anticipating the worst quarter for the banks since the financial crisis. Yahoo Finance’s Brian Cheung joins The Final Round panel to break down the details.
Morgan Stanley (MS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
An initial public offering from Alibaba's Ant Group by year-end would give equity capital markets in Hong Kong a timely boost after a new security law cast in doubt the city's future as a global financial centre, analysts said on Thursday. With new deals worth $4.17 billion in the first half, Hong Kong's exchange accounted for 7.6% of the global IPO market, though down from a share of 11%, and deals worth $7.91 billion, in the same period last year, Refinitiv data showed. The fall in value ranked Hong Kong as the fourth most active exchange after the Nasdaq, mainland China's new Star Market and the Shanghai stock market.
(Bloomberg) -- DocuSign Inc.’s $38 million acquisition of Liveoak Technologies will expand the company’s digital signature offerings as more people look to do notarized transactions remotely because of Covid-19.Liveoak’s technology will enable notarized transactions over video, helping DocuSign more fully address the needs of the estimated 4-5 million notaries in the U.S., Morgan Stanley analyst Stan Zlotsky said in a note. It’s an “opportune time for the launch of the new solution” with 23 states already accepting remote online notary and many others working on temporary legislation during the pandemic, he said.The service will likely be used in the near term by large enterprises with in-house notaries but could expand to address the entire market over time, Zlotsky said.Shares of the San Francisco-based company are trading at a record and rose another 3% on Wednesday after the deal was announced. Morgan Stanley maintains an equal-weight rating on DocuSign and a price target of $170, about 17% below the current price.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Top Chinese energy firms have mandated investment banks Morgan Stanley and Goldman Sachs to act as advisors for multi-billion dollar deals transferring key oil and gas pipeline assets into a national energy infrastructure giant, four sources said. Overseen by a government vice premier, underlining the project's importance for Beijing, Beijing aims to complete the asset transfers and start operation of the new entity - valued by industry analysts at more than $40 billion - by the end of September, oil industry officials said. The mandates come after China announced in late 2019 that it would establish an entity known as National Oil and Gas Pipeline Company by combining pipelines, storage facilities and natural gas receiving terminals operated by China National Petroleum Corp (CNPC), China Petrochemical Corp (Sinopec Group) and China National Offshore Oil Company (CNOOC).
Credit Suisse wants to raise its China securities joint venture stake to 100% and increase its market share after getting the regulatory green light to take a majority holding, the head of its Asia business said. Switzerland's second-largest bank is also looking to hire more staff and invest in China, the world's second-biggest economy, as its most significant business opportunity in the world, its APAC boss Helman Sitohang told Reuters. China has gained in relevance for Credit Suisse and other international banks after Beijing fast-tracked the opening of its financial markets to foreigner investors.
Morgan Stanley (NYSE: MS) will announce its second quarter 2020 financial results on Thursday, July 16, 2020, at approximately 7:15 a.m. (ET). A conference call to discuss the results will be held on July 16, 2020, at 8:00 a.m. (ET).
(Bloomberg Opinion) -- Transparency and public trust are essential to effective bank regulation. These guiding principles were severely compromised in the years leading up to the 2008 financial crisis. Instead of simple, straightforward metrics of bank solvency, capital requirements became an exercise in gamesmanship. Regulators deferred to banks’ own opaque and incomprehensible models of risk to determine how much capital they needed, deeming them “well-capitalized” when the banks were anything but. Reforms adopted after the crisis wisely added simpler, objective capital standards, complemented by stress tests that publicize whether large banks have sufficient capacity to weather severe economic conditions.Unfortunately, last month’s confusing and vague pronouncements by the Federal Reserve of this year’s stress test results undermined those principles. Instead of reassuring the public, they have created more uncertainty as to the strength of the banking system.Much criticism has centered on the failure of the Fed to publish bank-specific results under its “enhanced sensitivity analysis,” which took into account worsening economic scenarios caused by the Covid-19 pandemic. The stress scenarios the Fed had announced in February were not as severe as the path the economy is on now. But the Fed only published bank-specific results under February’s now essentially irrelevant assumptions.Less noticed, but we feel equally important, was the failure of the Fed to publish an enhanced sensitivity analysis using a simpler, more reliable measure of financial strength called the leverage ratio. Instead, the Fed relied solely on banks’ “risk-based ratios,” which seek to measure capital adequacy in relation to judgments about the riskiness of banks’ assets. Risk-based ratios failed spectacularly in the lead up to the financial crisis as large banks took huge, highly leveraged stakes in securities and derivatives tied to mortgages because they and their regulators deemed those assets low risk.After the crisis, global consensus emerged that regulators should backstop risk-based capital rules with leverage ratios, which proved to be more reliable indicators of solvency during the financial crisis. For the largest banks, these supplemental leverage ratios require a minimum of 5% equity funding for the banking organization, and 6% for subsidiaries insured by the Federal Deposit Insurance Corp.A review of the bank-specific results published by the Fed using February’s pre-pandemic assumptions shows that some large banks would be operating with thin capital margins even under those more benign scenarios. For instance, Goldman Sachs’s supplemental leverage ratio dipped as low as 3.5%; Morgan Stanley, 4.5%; JPMorgan Chase, 5.1%. Unfortunately, we don’t know how these and other large banks will fare under the more-distressed conditions caused by the pandemic. The Fed’s enhanced sensitivity assessment only disclosed aggregate risk-based ratios. These ranged from 9.5% for a “V-shaped” recovery to 7.7% for a more severe “W,” with the bottom 25th percentile of banks going as low as 4.8% in a “W” scenario. Leverage ratios are typically less than half of banks’ risk-based measures. Indeed, a major concern about risk-based ratios is that they imply capital levels greater than they actually are. Thus, it is likely there were a number of banks with stress leverage ratios below 3% in the Fed’s sensitivity analysis, far too thin to keep them lending and solvent without government support.The failure to disclose leverage ratios in the pandemic sensitivity analysis is consistent with the Fed’s rulemaking in March to eliminate leverage requirements from their stress tests. Unfortunately, it is not the only step regulators have taken to marginalize leverage ratios. They have also allowed large banks to remove “safe assets” such as Treasury securities and reserve deposits from the supplemental leverage ratios calculation. But the relatively low requirements were calibrated based on the assumption that they would apply to all of a banks’ assets, including safe assets as well as risky exposures such as uncleared derivatives and leveraged loans. Removing safe assets without raising the required ratio will eventually lead to significant reductions in capital minimums, according to regulators’ estimates: $76 billion for banking organizations and more than $55 billion for their insured subsidiaries.Regulators have said this step was necessary to “support credit to households and businesses.” But this is hard to reconcile with their refusal to request suspension of bank dividend payments. (They did finally impose a modest cap, which will still permit most banks to continue paying dividends at their first quarter levels.) Retaining that capital would give banks the ability to expand support for the real economy without weakening their capital position. FDIC-insured banks paid $30 billion in dividends to their holding companies in the first quarter. If that $30 billion had stayed on banks’ balance sheets, it could have supported nearly a half trillion dollars in additional capacity to take new deposits and make loans.Moreover, we challenge whether this change will further its stated goal to increase Main Street lending. It will instead create incentives to reduce lending. A number of banks will most likely need to improve their capital ratios as a result of the Fed’s continued stress assessments. But to do so, they can simply cut back on loans, which have relatively high risk-based capital requirements, and shift into U.S. Treasuries, which now have no capital requirements. They will be able to boost their risk-based ratios without having to curb dividends or issue new equity.Regulators have said removing Treasury securities and reserve deposits from the leverage ratio calculation is temporary, but bank lobbyists are expected to seek legislation making it permanent as part of the next stimulus package. Banking advocates are also pushing regulators to finalize pending changes to the supplemental leverage ratios which would reduce required capital at the eight largest FDIC-insured banks by $121 billion, or 20% on average. If the banking lobby is successful, we fear there won’t be much left of meaningful leverage restrictions.Bank capital funding requirements are not unnecessary red tape as bank lobbyists try to portray them. They are essential to financial stability. Studies show that highly capitalized banks do a better job of lending than highly leveraged ones, especially during economic stress. The previous financial crisis demonstrated how unreliable risk-based ratios can be and the need to backstop them with overarching leverage constraints on large financial institutions. Greater reliance on simpler, transparent leverage ratios was central to regaining public trust in the solvency and resilience of the banking system. Their demise will force the public to rely on the Fed’s and big banks’ complex and nontransparent risk models. Bank capital levels will once again become an insiders’ game.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sheila Bair was chair of the Federal Deposit Insurance Corp. from 2006 to 2011.Thomas Hoenig was vice chair of the Federal Deposit Insurance Corp. from 2012 to 2018.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Palantir Technologies Inc. said it filed confidentially with U.S. regulators for a public stock listing, taking a major step toward a market debut that has been many years in the making.The secretive Silicon Valley company, which sells data analysis software used by governments and large companies worldwide, is seeking to go public by the fall, Bloomberg previously reported, though the timing could change.Palantir has been weighing a direct listing of its shares on an exchange against an initial public offering, people with knowledge of the deliberations have said.The company said in a statement Monday that it had filed with the U.S. Securities and Exchange Commission for a “public listing” of its stock, wording that has been used by other companies planning to pursue a direct listing. Such announcements typically specify a company is planning an IPO when that is the case. Palantir may still decide to pursue a traditional IPO to raise capital for the business.Palantir is in the process of raising $961 million, $550 million of which it has already secured, according to a filing earlier this month with the SEC. That includes a $500 million investment from Sompo Japan Nipponkoa Holdings Inc. and $50 million from Fujitsu Ltd.Those sums make listing the stock directly a more accessible path for Palantir, following in the footsteps of Spotify Technology SA and Slack Technologies Inc.A direct listing wouldn’t let Palantir raise money by issuing new shares, but it would allow it to bypass an investor roadshow and other formalities of an IPO, while letting current stockholders sell their shares at the opening bell rather than waiting until the end of a lock-up period.Billionaire Peter Thiel founded Palantir in 2003 with a group of business partners including Alex Karp, the chief executive officer. In 2015, Palantir reached a valuation of $20 billion, though in recent years stockholders have sold blocks of shares for much less. It isn’t clear what valuation the company would seek in going public.Breaking EvenThe company told investors this year that it expects to break even in 2020 on revenue of about $1 billion.In June, Palantir added three directors including the first woman to serve on its board, former Wall Street Journal reporter Alexandra Wolfe Schiff.Dozens of law enforcement and government agencies around the world use Palantir to compile and search for data on citizens with the intent of combating crime, hunting terrorists and in recent months, tracking the spread of Covid-19. The pandemic has boosted business as companies use its products to help determine how to reopen.However, Palantir is highly controversial for the way its tools have been used to compromise privacy and enable surveillance. Its use by police and immigration officials, in particular, has sparked numerous protests.Valuation ConcernThe Palo Alto, California-based company had long resisted a public offering to avoid getting valued as a consultancy, and to stay out of the public eye as it worked toward profitability, people familiar with the matter have said.Its dependence on engineers customizing software for each client and bloated cost structure also resulted in consistent annual losses. That heightened the possibility that it wouldn’t be valued as a software company despite its Silicon Valley credentials.That changed last year, with customers using a new more automated product that has put Palantir on the path toward profitability.Palantir’s funders include Founders Fund, the venture capital firm started by Thiel. Other investors include Morgan Stanley, BlackRock Inc. and Tiger Global Management.Thiel, a co-founder of Pay PayPal Holdings Inc., has helped launch or advance Silicon Valley firms including Facebook Inc., where he has been a board member since 2004. Through Founders Fund and other investments, his influence has been extended to an array of technology companies. Thiel has also served as an adviser to President Donald Trump, chastising other technology companies, in particular Alphabet Inc.’s Google, for their reluctance to work with the Defense Department.(Updates with statement details in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Data analytics company Palantir Technologies Inc said on Monday it has confidentially filed paperwork with the U.S. Securities and Exchange Commission (SEC) to go public. The confidential submission relates to a proposed public listing of the Class A common stock, Palantir said in a statement, adding that the listing is expected to take place after the SEC completes its review process. A string of successful IPOs is paving the way for Silicon Valley firms, concerned about the economic fallout of the global coronavirus outbreak, to follow suit.
(Bloomberg) -- Converge Information and Communications Technology Solutions Inc., a fast-growing Philippine provider of fixed broadband services, aims to raise as much as $725 million in a maiden share sale in October.The company will use the proceeds to fund capital expenditure and help accelerate its nationwide fiber network rollout, according to a preliminary prospectus filed with the Philippine SEC.“The Philippine fixed broadband market is currently at an inflection point, with demand for broadband subscriptions expected to increase as supply continues to meet the significant latent demand,” Converge’s investor Warburg Pincus said in a statement.Morgan Stanley, UBS Group AG, BDO Unibank Inc., Bank of the Philippine Islands will arrange the share sale, confirming a Thursday report by Bloomberg. At its maximum size, Converge ICT’s maiden share sale would be the largest Philippine IPO.Other Highlights:The plan is to sell as many as 1.30 billion shares with 195.19 million shares over-allotment option at a maximum price of 24 pesos each. Offer period will be from Oct. 13 to 19 and listing on Oct. 26Shares to be sold will comprise 415.68 million primary shares and 1.08 billion secondary shares by Comclark Network and Technology Corp. and Coherent Cloud Investments B.V.Converge added about 60,000 new residential subscribers in June, beating the record 50,000 set in May and bringing total home subscribers to about 750,000Its fiber network of more than 30,000 kilometers could reach about 4.1 million homes in the main island of Luzon as of March 31The Philippines’ fixed broadband penetration is significantly behind regional peers at 14% overall and only 6% on high-speed broadbandStory Link: Converge ICT Seeks to Raise $725m in Largest Philippine IPOFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Wall Street was set to open higher on Thursday as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns. Nonfarm payrolls rose by 4.8 million jobs in June, the Labor Department's closely watched monthly employment data showed, the most since the government began keeping records in 1939, although a recent surge in COVID-19 cases has threatened the fledgling recovery. Optimism about a post-pandemic rebound in business activity, aggressive U.S. stimulus and hopes of a COVID-19 vaccine have fueled a Wall Street rally since April, with the Nasdaq notching up its sixth record closing high since early June on Wednesday.
(Bloomberg) -- The Chinese company behind the fast-growing Perfect Diary cosmetics brand has picked Goldman Sachs Group Inc. and Morgan Stanley to prepare for a potential initial public offering, according to people familiar with the matter.Guangzhou Yatsen E-Commerce Co., or Yatsen Global as it is known, aims to raise $400 million to $500 million in an offering, which could happen as soon as the end of this year, the people said. It has been considering Hong Kong among potential listing venues though no final decision has been made, said the people, asking not to be identified as the matter is private.Yatsen raised about $100 million in its latest funding round earlier this year, valuing the firm at about $2 billion, the people said. Tiger Global Management, Hopu Investment Management, Hillhouse Capital and Hony Capital are among its backers, according to its website.The founders started the cosmetic company in 2016, naming it after their alma mater which commemorates China’s first president Sun Yat-sen. The firm has developed over 700 beauty products and now has more than 25 million online followers. It plans to increase the number of Perfect Diary stores to more than 600 by 2022, up from 40 in 2019. In June, Yatsen launched its second brand, Abby’s Choice, featuring skincare, makeup and other products aimed at a female young adult demographic.Preparations for the IPO are at an early stage and details including size and timing could change, the people said. Representatives for Goldman Sachs, Morgan Stanley and Yatsen Global declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Lemonade Inc., the online home insurance provider backed by SoftBank Group Corp., is set to raise $319 million in its U.S. initial public offering.The company will sell 11 million shares at $29 apiece, Lemonade said in a filing, confirming an earlier Bloomberg News report. It was marketing 11 million shares at $26 to $28 each after boosting the range from $23 to $26, according to filings with the U.S. Securities and Exchange Commission.At $29, Lemonade would have a market value of $1.6 billion, based on the number of shares outstanding listed on its IPO filings.SoftBank led a $300 million funding round in Lemonade last year, valuing the company at $2.1 billion at the time, Bloomberg News previously reported. SoftBank will own a 21.8% stake in the company upon the IPO, the filing shows. Sequoia Capital Israel and General Catalyst are also among backers.Lemonade has yet to turn profitable since its inception in 2015, it said in its prospectus. It reported a $36.5 million net loss in the three months ended March compared to a net loss of $21.6 million during the same period last year. Its sales have more than doubled in that period.The company allows customers to buy insurance policies on a mobile app after answering several questions. It also pledges to donate the leftover funds, after expenses, to a charity in order to discourage fraudulent claims.While the company is headquartered in New York, it has roots in Israel and it has 123 full-time employees there, its filing showed.Goldman Sachs Group Inc., Morgan Stanley, Allen & Co. and Barclays Plc are leading the offering. Citadel Securities is the designated market maker for the listing.Lemonade will list on the New York Stock Exchange Thursday under the symbol LMND.(Updates with details from statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Constellation Brands is acquiring Gary Vaynerchuk's direct-to-consumer subscription wine platform, Empathy Wines. Yahoo Finance's Brian Sozzi, Heidi Chung, and Ines Ferre discuss why the partnership is right, consumer trends, and marketing the Empathy Wines brand on social media platforms with Empathy Wines Co-Founder Gary Vaynerchuk and Constellation Brands EVP Robert Hanson.
Morgan Stanley Family Office Resources today announced the launch of a new Single Family Office Best Practices report. In response to the ten-fold increase in the number of family offices since 2008, the report provides a broad discussion of best practices that address the key questions Morgan Stanley single family office clients raise most often. The report was conducted by the Firm’s Single Family Office Advisory team in collaboration with Morgan Stanley Wealth Management professionals, including the Family Office Resources team, single family office executives, and the network of preferred providers in the Morgan Stanley Signature Access program.
Supported by a strong liquidity position, Morgan Stanley (MS) seems well-poised to be able to maintain its current dividend payment in the near term even if the economic situation worsens.
(Bloomberg) -- The value of mergers and acquisitions fell 50% in the first half from the year-earlier period to the lowest level since the depths of the euro-zone debt crisis, as the coronavirus pandemic brought global dealmaking to an abrupt halt.Every region was hit by the economic impact of Covid-19, which gripped markets in March and sparked countrywide lockdowns. This situation has made face-to-face meetings, a lifeblood of M&A, all but impossible. Little more than $1 trillion of deals have been announced this year, making for the slowest first half since 2012, according to data compiled by Bloomberg.The sharpest fall has been in the Americas, where the value of deals is down 69% in the first half. While every major industry has been hurt, the financial sector fared better than most. It was boosted by insurance brokerage Aon Plc’s $30 billion offer for Willis Towers Watson Plc and Morgan Stanley’s proposed $13 billion acquisition of E*Trade Financial Corp. The top three advisers on deals targeting the Americas so far in 2020 were Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., the Bloomberg-compiled data show.Deals involving targets in Europe, the Middle East and Africa are down 32%. Large transactions that helped prevent a more dramatic drop include the $19 billion leveraged buyout of Thyssenkrupp AG’s elevator unit by Advent International and Cinven. There was also a recent flurry of activity in the Middle East, including Abu Dhabi’s sale of a $10.1 billion stake in its gas pipeline network that ranks as the biggest infrastructure transaction of the year. Goldman Sachs, JPMorgan and Rothschild & Co. were the busiest advisers on EMEA deals.Asia Pacific has held up better, with overall volumes falling just 7% and most sectors seeing smaller declines than in other parts of the world. The technology, media and telecommunications industry reported a 13% increase, helped by Indian billionaire Mukesh Ambani’s digital arm attracting $15 billion of investments from the likes of Facebook Inc. and KKR & Co. Another landmark transaction was Tesco Plc’s sale of Asian businesses to Thai billionaire Dhanin Chearavanont for more than $10 billion. The most active banks on deals in the region were Morgan Stanley, HSBC Holdings Plc and JPMorgan.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
On June 25, 2020, the Board of Governors of the Federal Reserve System released its CCAR 2020 results and notified Morgan Stanley (NYSE: MS) that it will be subject to a Stress Capital Buffer (SCB) of 5.9% from October 1, 2020 to September 30, 2021. Together with other features of the regulatory capital framework, this SCB results in an aggregate U.S. Basel III Standardized Approach Common Equity Tier 1 (CET1) ratio of 13.4%. The Firm’s U.S. Basel III Standardized Approach CET1 ratio was 15.7% as of March 31, 2020.
Morgan Stanley (NYSE: MS) is pleased to announce $10 million in grants to support the National Urban League (NUL) and expand a number of critical initiatives in communities where the Urban League operates. The funds will support the following initiatives:
Not everyone in the market is buying hand over fist. Interactive Brokers founder and chairman Thomas Peterffy joins Yahoo Finance to discuss markets.
The Fed will bar big banks from increasing their dividend payments, following the central bank’s annual stress tests that included a “sensitivity” analysis incorporating the impact of the COVID-19 crisis.