53.48 -0.01 (-0.02%)
After hours: 7:59PM EST
|Bid||53.05 x 1300|
|Ask||53.40 x 1400|
|Day's Range||53.10 - 53.56|
|52 Week Range||43.02 - 55.04|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||11.51|
|Earnings Date||Jan. 14, 2020|
|Forward Dividend & Yield||2.04 (3.83%)|
|1y Target Est||50.92|
(Bloomberg Opinion) -- The global bond market rallied for a second consecutive day on Thursday in an awkward development for the growing chorus of voices that have cropped up the last few weeks contending that the synchronized global slowdown was over. From China to Germany, and from Cisco Systems Inc. to freight shipments, the latest data show it’s too soon to turn optimistic.In China, industrial output rose 4.7% in October from a year earlier, below the median estimate of 5.4%. Germany did post a surprise expansion in its gross domestic product for the third quarter, but that came with plenty of caveats. For one, the increase was only 0.1%, and the contraction for the second quarter was deeper than initially reported — negative 0.2% versus negative 0.1%. In the U.S., economists were passing around the latest Cass Freight Index for October, which fell 5.9% to mark its 11th consecutive year-over-year decline. This gauge has been around since 1995 and tracks freight volumes and expenditures by hundreds of companies in North America conducting $28 billion of transactions annually. More important, the compilers of the index noted in the latest survey that the index “has gone from ‘warning of a potential slowdown’ to ‘signaling an economic contraction.’” Cisco is not in the freight business, but comments by Chief Executive Officer Chuck Robbins late Wednesday after the computer company released fiscal second-quarter results echoed the sentiment in the freight industry. “Just go around the world and you see what’s happening in Hong Kong, you look at China, what’s happening in D.C., you’ve got Brexit, uncertainty in Latin America,” he said on a conference call with investors and analysts. “Business confidence suffers when there’s a lack of clarity, and there’s been a lack of clarity for so long that it’s finally come into play.”Maybe the global economy isn’t worsening, but it’s too soon to say an upswing is underway. Despite the sell-off in the bond market since September, yields are still showing caution. Yields on bonds worldwide as measured by the Bloomberg Barclays Global Aggregate Index stand at 1.45%, which is closer to its all-time low of 1.07% in 2016 than last year’s high of 2.27% in November.AWASH IN MORE DEBTThe Institute of International Finance came out with its quarterly look at the mountain of global debt, concluding that it rose by about $7 trillion in the first half of the year to a record of just more than $250 trillion. That increase is more double the $3.3 trillion expansion for all of last year. It pegs global debt, which it sees expanding to $255 trillion by the end of the year, at a lofty 320% of global GDP. It’s no surprise that the world is awash in debt, but yields show there seems to be a dearth of it for the public because of massive purchases by central banks. As of October, the collective balance-sheet assets of the Federal Reserve, European Central Bank, Bank of Japan and Bank of England stood at 35.7% of their countries’ total GDP, up from about 10% in 2008. Still, this is no time to be complacent. The IIF points out that much of the growth in debt has come in emerging markets, which is generally considered riskier than that of developed economies and where central banks are not doing things like quantitative easing. This could become an issue relatively quickly; the IIF pointed out that $9.4 trillion of bonds and syndicated loans from emerging markets come due by the end of 2021.CORPORATE CASH SHRINKSThe latest doubts about the strength of the economy kept the S&P 500 Index little changed for a second consecutive day. Perhaps that’s for the better because falling interest rates and bond yields are perhaps the single-biggest reason equities are up 23.4% this year in the absence of earnings growth. The second is probably share repurchases. But a new report from Societe General SA raises concern that the cash companies use to fund those buybacks is being depleted. “A boon for U.S. share buybacks” has left companies with less cash in their coffers, Societe Generale strategists Sophie Huynh and Alain Bokobza wrote in a report. Cash and money-market investments held by companies in the S&P 500 peaked in 2018’s first quarter on a per-share basis before falling 5.3% through the third quarter of this year, according to Bloomberg News’s David Wilson. S&P 500 companies have bought back the equivalent of 22% of their market value since 2010, the Societe Generale strategists noted in their report.CHILEAN CRISIS ENTERS NEW PHASEThe chaos in Chile, long known as the safest bet in Latin America, has become so bad that not even direct intervention by the nation’s central bank was able to reverse the slide in the peso. The currency fell about 1% Thursday, bringing its slide to 11.4% since mid-October. That’s the worst of the 31 major currencies tracked by Bloomberg and more than five times the next biggest loser, the Hungarian forint. What should have investors worried is that the peso depreciated even after the central bank announced a $4 billion currency swap program to ease liquidity in the market amid the worst civil unrest in a generation. “I don’t think it will help stop the sell-off in any way,” Brendan McKenna, a currency strategist at Wells Fargo, told Bloomberg News in reference to the swaps program. “There has to be some breakthrough on the political front for the currency to stabilize.” Foreign investors have been especially rattled since the government said Sunday that it backed plans to rewrite the constitution in response to four weeks of riots and protests in support of better pensions, wages, education and health care. If that were to happen, it’s possible the government would swing too far to the populist left to the detriment of the economy. FOLLOW THE CLIMATE CHANGE MONEYDespite the overwhelming evidence about climate change, there is still an alarming number of deniers. But if it was really all a big hoax or overblown, then why are the world’s biggest, most influential investment firms steering away from areas that are likely to be hit the hardest, such as the coasts? Goldman Sachs Group Inc. is considering real estate markets including Denver; Austin, Texas; and Nashville, Jeffrey Fine, a managing director at the firm’s merchant-banking division, said Thursday at a conference hosted by the NYU School of Professional Studies. Fine may not have specifically cited climate change, but according to Bloomberg News’s Gillian Tan, he did note that more companies and young people are moving away from the coasts. The Fed held its first conference on climate change last week in San Francisco, with one central bank official saying it has the potential to “displace people permanently” amid damaging wildfires in California and storms punishing the Eastern Seaboard. About 3 billion people — or some 40 percent of the world’s population — live within 200 kilometers (124 miles) of a coastline, according to Bloomberg News. It’s projected that by 2050 more than 1 billion will live directly at the water’s edge.TEA LEAVESThe idea that the U.S. consumer was strong and carrying the economy took a hit a month ago when Commerce Department data showed that retail sales in September fell unexpectedly. The 0.3% decline from August was directly opposite the 0.3% advance expected based on the median estimate of economists surveyed by Bloomberg. That’s why Friday’s update from the government on October retail sales is so critical, especially heading into the holiday sales season. Economists are calling for a 0.2% rebound. Bloomberg Economics isn’t so optimistic, saying that decelerating wage growth suggests household demand will moderate. It is forecasting no change in spending. Although the headline number will get the attention, the smart money will be looking at sales among a control group that are used to calculate GDP and exclude food services, auto dealers, building-material stores and gas stations. By that measure, sales are seen rising 0.3% from no change in September.DON’T MISS Stock Investors Could Use a Refresher on the Basics: Nir Kaissar You Care About Earnings? The Stock Market Doesn’t: John Authers Too Many Young American Men Still Aren’t Working: Justin Fox Brazil’s Politics and Economics Are Growing Apart: Mac Margolis Matt Levine's Money Stuff: You Can Buy Almost All the StocksTo contact the author of this story: Robert Burgess 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.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The Wells Fargo Foundation has made a historic $10 million grant to NALCAB — National Association for Latino Community Asset Builders — to support growth-oriented lending to minority-owned businesses nationwide through a network of Latino-led nonprofit business lenders. The new Acceso Loan Fund is designed to help diverse entrepreneurs scale to a greater size — expanding their revenue, impact on the economy and ability to provide jobs. The Acceso Loan Fund will provide small business loans in the range of $50,000–$500,000.
Continuing with strategic moves, Apollo Global (APO) signs deal to acquire Tech Data (TECD), with the aim to boost the latter's position in the market.
Parker joined Wells as general counsel in March 2017, served as interim CEO and president from March 2019 to October 2019, and then returned to the general counsel role. In September, the Wall Street bank named Charles Scharf as its next leader, after a wide-ranging sales practices scandal claimed two CEOs.
Wells Fargo & Company today announced that General Counsel C. Allen Parker has made the decision to leave the company effective March 31, 2020, to pursue other business opportunities. Parker joined Wells Fargo as General Counsel in March 2017, served as interim CEO and President from March 2019 to October 2019, and then returned to the General Counsel role. The company will commence a search for a new General Counsel immediately with the goal being that Parker will assist in a smooth transition to the new General Counsel.
Wells Fargo spokesman Peter Gilchrist said participation in the voluntary rebate would not be considered when awarding future contacts. The bank is expected to issue a new request for business proposals from its IT vendors in the first quarter of next year. Chief Financial Officer John Shrewsberry recently pointed to professional services, or work by consultants, as a expense line that analysts and investors can expect to be reduced in the next quarter.
Wells Fargo & Company (WFC) today announced that Kara McShane has been named head of Commercial Real Estate (CRE) within the company’s Wholesale Banking group. “Kara is an exceptional leader who has made a significant impact on our CRE business since joining our company nine years ago,” said Perry Pelos, head of Wholesale Banking. McShane joined Wells Fargo in 2010 and has held various senior roles within CRE and Asset-Backed Finance.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.Federal Reserve Chairman Jerome Powell is likely to signal again this week that monetary policy is on hold, buttressing the belief that he may steer clear of action through 2020.Surprisingly, that would be an historic anomaly for a U.S. presidential election year. Rather than keeping its head down, the Fed has changed policy in one direction or another in each of the last 10 presidential polling years -- though in 2016 it didn’t act to raise interest rates until after the November election.In 2012 the Fed didn’t move its benchmark rate, which was already at zero, but did announce its third round of large-scale asset purchases in September.“If you look back in history and see what the Fed did in election years, the Fed did everything they had to do,’’ said Roberto Perli, a partner at Cornerstone Macro in Washington. The best way for them to preserve their independence and credibility “is to do what they think is right.’’That hasn’t always shielded them from criticism. President George H.W. Bush famously blamed then-Fed Chairman Alan Greenspan for costing him re-election in 1992 by failing to cut interest rates more aggressively. But it’s particularly vital now for the Fed to make the case that its policies are warranted by the economic outlook because of the relentless public assault on the institution by President Donald Trump.Click here for the World Interest Rate Probability toolBreaking with more than a quarter century of precedent, Trump has repeatedly lambasted the Fed and accused it of keeping credit too tight.“We are actively competing with nations who openly cut interest rates so that now many are actually getting paid when they pay off their loan, known as negative interest,” Trump told the Economic Club of New York Tuesday.“Give me some of that money. I want some of that money. Our Federal Reserve doesn’t let us do it,” Trump said, drawing a laugh from the audience. “It puts us at a competitive disadvantage to other countries.”Powell will have a chance to make his case twice this week, on Wednesday before the Joint Economic Committee of Congress and on Thursday to the House Budget Committee. He’s likely to echo the message he delivered after the latest Fed rate cut on Oct. 30: The economy and monetary policy are in good place in the 11th year of America’s longest expansion.Investors seem to agree. Stock and bond prices have risen in recent days on signs that the U.S. economy is weathering a slowdown abroad and on hopes of a phase-one deal in the U.S.-China trade war.“Things feel a lot less threatening than they did two months ago,’’ said Carl Tannenbaum, chief economist with Northern Trust Corp. in Chicago. “The data for the U.S. has suggested that we’re not on the edge of falling off a cliff.”Front and center in that regard was the October employment report, which showed payrolls rising by 128,000 despite the loss of 41,600 jobs due to the since-ended General Motors Co. strike.Solid PayrollsThe solid jobs report allayed fears that companies spooked by the worldwide slowdown would chop payrolls just as they have done to capital outlays.It also bolstered the Fed’s hopes that the consumer will continue to have the staying power to keep the expansion on track in the face of cutbacks by businesses.Coupled with the policy message coming from Powell, the improved economic data prompted such Fed watchers as Michael Feroli of JPMorgan Chase & Co. and Matthew Luzzetti of Deutsche Bank Securities to rescind their forecasts of further rate cuts.‘Material Reassessment’Powell told reporters on Oct. 30 that it would take a “material reassessment’’ of the economic outlook for the Fed to change its current 1.5% to 1.75% interest rate target range.In their September forecasts, policy makers saw the economy growing by 2% in 2020, inflation rising to near their 2% target and unemployment ending the year at 3.7%, according to their median projection. They’ll update predictions at their Dec. 10-11 meeting.Speaking to Bloomberg Television on Nov. 1, Fed Vice Chairman Richard Clarida said if the central bank saw “accumulating evidence” that it was missing on its mandate for maximum employment or stable prices, or the growth needed to sustain both goals, “we would have to factor that in.”Never BetterWhile saying that he still saw downside risks to the outlook, Clarida also highlighted the financial strength of U.S. households. “In the aggregate, the U.S. consumer’s never been in better shape,” he said.Deutsche’s Luzzetti said it would take a real crack in the labor market and the consumer for the Fed to resume reducing rates. He expects policy to remain on hold next year even though he sees slowing growth pushing unemployment to 3.9%. It was 3.6% in October.The bar to a rate hike seems even higher. Powell said that any decision to raise rates would be tied to the behavior of inflation, which remains stuck below the Fed’s 2% target.“We would need to see a really significant move up in inflation that’s persistent before we would consider raising rates to address inflation concerns,’’ Powell said.In describing the Fed’s current strategy, Powell has referred to the mid-cycle policy adjustment in 1995 and 1996, when Greenspan lowered rates three times after raising them previously.The final cut back then came in January 1996, the start of a presidential election year. The central bank then kept rates unchanged for the rest of 1996.“The Fed is probably on hold for a very long period of time,’’ Northern Trust’s Tannenbaum said.(Adds Trump comments in seventh and eighth paragraphs.)To contact the reporters on this story: Christopher Condon in Washington at firstname.lastname@example.org;Rich Miller in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org, Alister Bull, Scott LanmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
10 companies join partnership to boost clean technologies, decrease energy costs, make housing more affordable
Wells Fargo & Company (WFC) today announced its third annual Holiday Food Bank program to help provide food to people and families in need during the holiday season. Wells Fargo launched the program with a donation of up to $5 million to Feeding America® through direct donations and charitable matching. Feeding America is the largest domestic hunger-relief organization in the U.S. with 200 member food banks across the U.S. The organization estimates that, with every $1 contribution providing at least 10 meals, Wells Fargo will help provide more than 50 million meals for people in need.
Wells Fargo & Company (WFC) today announced that William M. Daley has been named Vice Chairman of Public Affairs, effective November 13, 2019. Daley will serve on the Operating Committee and will report directly to CEO Charles Scharf. “I am delighted to welcome Bill to Wells Fargo,” said Scharf.
The Zacks Analyst Blog Highlights: Bank of America, Fannie Mae, JPMorgan, Citigroup and Wells Fargo
Small business owners showed continued optimism for their businesses and the U.S. economy in the latest Wells Fargo/Gallup Small Business Index. Optimism from business owners about their present and future financial situations saw slight increases, with scores of 67 and 75 respectively. One indicator tempering this optimism is that a third of business owners (33 percent) said an economic downturn is either “very” or “extremely” likely in the next 12 months, though two-thirds said they are somewhat or very prepared for such an occurrence.
Wells Fargo & Company (WFC) today announced that Mark Myers, Executive Vice President and head of Commercial Real Estate (CRE) within the company’s Wholesale Banking group, has shared his intention to retire. Wells Fargo expects to announce a new head of Commercial Real Estate in the coming weeks. “Throughout his 39 year tenure at Wells Fargo, Mark has played a critical role in some of Wholesale’s most significant business initiatives,” said Perry Pelos, head of Wholesale Banking.
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.
Moody's upgrades ratings for SLM Corporation (SLM) on the back of its strong credit fundamentals and ability to maintain leading position in student loans market.
Wall Street banking giants - JPM, BAC, C and WFC's - third-quarter results reflect consumer banking strength and adverse impact from lower interest rates.
Investing.com – Marvell Technology surged on Monday as Wells Fargo (NYSE:WFC) upgraded its outlook on the chipmaker, betting that the revival in data center spending and the rollout of 5G-enabled phones would boost chip sales.
Wells Fargo & Co. (WFC) announced the company has donated more than $170 million overall since 2012 to military- and veteran-related nonprofits that support housing, career transition, financial education and more. Donated more than 400 mortgage-free homes, valued at more than $60 million, to support veterans in all 50 states, and through several programs provided more than $26 million in grants to support sustainable housing and homeownership for veterans. Sponsored the donation of more than 30 vehicles — plus financial mentoring — to veterans and Gold Star families across the U.S., with a value of more than $1 million.