|Bid||25.35 x 1100|
|Ask||25.42 x 1000|
|Day's Range||25.34 - 25.47|
|52 Week Range||24.54 - 25.94|
|Beta (3Y Monthly)||0.04|
|PE Ratio (TTM)||5.24|
|Forward Dividend & Yield||1.50 (5.91%)|
|1y Target Est||N/A|
(Bloomberg) -- The economy’s biggest pillar -- the American shopper -- stood steadfast through a summer of mounting economic challenges characterized by soft global growth and trade uncertainty.Figures released Friday showed August retail sales advanced more than forecast, while consumer sentiment rebounded from an almost three-year low. Treasury yields and stocks moved higher as the data helped reassure investors that households will continue delivering for the economy and keep it moving forward, albeit at a slower pace.The value of overall sales rose 0.4% from the prior month, led by motor vehicles and online purchases, after an upwardly revised 0.8% increase in July, according to the Commerce Department. The University of Michigan’s index of consumer sentiment increased 2.2 points to 92, higher than the median forecast in a Bloomberg survey of economists.Spurred by a resilient labor market and income gains, the consumer remains the chief source of firepower for economic growth that’s slowed amid fragile global demand, uncertainty surrounding trade policy and lackluster factory output. The report suggests another solid quarter of household consumption, which grew in the April-June period at the fastest pace since 2014.“At a time when recession risk dominates most economic discussions, the strength of the U.S. consumer is among the more compelling examples of an economy that is still firing on all cylinders,” Tim Quinlan, senior economist at Wells Fargo Securities LLC, said in a report.Sales in the closely watched “control group” subset -- which some analysts view as a more reliable gauge of underlying consumer demand -- increased 0.3%, matching projections. The measure excludes food services, car dealers, building-materials stores and gasoline stations.In their effort to preserve the longest-running U.S. expansion, Federal Reserve policy makers reduced their benchmark interest rate by a quarter point in July. They’re projected to lower it again next week as a bulwark against the possibility that sluggish global demand and weaker trade spill over into the domestic economy more broadly.Trade tensions showed some easing this week, with China saying earlier Friday that it’s encouraging companies to buy U.S. farm products including soybeans and pork. The two sides are set to resume face-to-face discussions in coming weeks. Improved chances of an agreement have helped return U.S. stocks to near a record high, even after President Donald Trump imposed levies on a wide range of Chinese goods as of Sept. 1.The Michigan sentiment survey showed tariffs remain a concern. Some 38% of respondents made spontaneous references to the negative economic impact, the most since March 2018, according to the report.Nonetheless, consumers were more upbeat in August than a month earlier about current economic conditions and expectations.While the retail sales report was solid overall, some of the details were more mixed: Seven of 13 major categories showed monthly declines, including restaurants, which posted the biggest drop in almost a year.Grocery stores, department stores and apparel retailers registered declines in receipts from a month earlier. What’s more, the gain in the control group subset was the smallest in six months, indicating personal consumption will decelerate from the robust second-quarter pace.On the positive side, spending at automobile and parts dealers climbed 1.8% from the prior month, the most since March, after increasing 0.1% in July. Industry data from Wards Automotive Group previously showed August unit sales rose 0.9% after falling in July to a three-month low.Non-store sales, which includes online shopping, jumped 1.6%. The category posted a 1.7% gain in July amid Amazon.com Inc.’s 48-hour Prime Day event, which the company said surpassed sales from the previous Black Friday and Cyber Monday combined. The promotion, now in its fifth year, likely drove comparison shoppers to rivals like Walmart Inc. and Target Corp.Filling-station receipts decreased 0.9%, the report showed, after gasoline prices dropped 3.5% in Thursday’s consumer-price data. The retail figures aren’t adjusted for price changes, so sales could reflect changes in gasoline costs, sales, or both.Get MoreRetail sales estimates in Bloomberg’s survey of economists for ranged from a 0.2% decline to a 0.6% gain from the prior month. Control-group sales increased an annualized 8.1% over the latest three months versus a 9.4% rate in the same period through July.The sales data don’t capture all of household purchases and tend to be volatile because they’re not adjusted for changes in prices. Personal-spending figures, which also span services, will offer a fuller picture of consumption in data due at the end of the month. \--With assistance from Jordan Yadoo, Mark Tannenbaum and William Edwards.To contact the reporter on this story: Vince Golle in Washington at email@example.comTo contact the editors responsible for this story: Scott Lanman at firstname.lastname@example.org, Jeff KearnsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Prime Minister Boris Johnson will suspend Britain’s Parliament on Monday night for five weeks. Before that, his opponents are hoping to inflict two more defeats on him.This is what’s coming, on a day that saw the pound rally to the highest level against the dollar since July, before paring gains after House of Commons Speaker John Bercow announced he was stepping down.Before 7.15 p.m.: Document ReleaseAn emergency debate aimed at forcing the government to release details onits no-deal Brexit planningdiscussions that took place ahead of the decision to suspend parliament for so longSince Johnson expelled 21 Conservative members of parliament, he’s a long way short of having a majority, and he’s likely to lose.Before midnight: Snap General ElectionIn the final debate of the evening, Johnson will make a second attempt to get Parliament to vote for a snap general election. He needs two-thirds of MPs -- 434 of them -- to vote for this. Last week he got 298, and there’s no reason to think he’ll get any closer this week.The pound may get a limited boost if the attempt gets voted down, according to Brendan McKenna, a currency strategist at Wells Fargo Securities in New York. That result would probably increase the probability of avoiding a no-deal Brexit, given the bill that was just passed, he said.Johnson could make a statement after the second vote. When that business has finished, Parliament will be “prorogued,” in a ceremony involving a statement from Queen Elizabeth II being read in the upper House of Lords. Parliament will be suspended.If all goes as expected, on the six votes that Johnson has tried to win in Parliament since becoming prime minister, he will have been defeated every time.(Adds currency analyst comment in final section.)\--With assistance from Susanne Barton.To contact the reporters on this story: Robert Hutton in London at email@example.com;Kitty Donaldson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Tim Ross at email@example.com, Flavia Krause-JacksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- WeWork’s initial public offering won’t be quite the celebration the office-rental unicorn once foresaw.The New York-based startup is considering seeking a valuation of about $20 billion to $30 billion in the IPO, people with knowledge of the matter said. The range could end up closer to $20 billion, said one of the people, which would be less than half the valuation it secured from its biggest backer just a few months ago.The outlook for the public debut of WeWork, which has racked up billions of dollars in losses in recent years as the company funds grand ambitions, is cooling after the disappointments of other major IPOs this year such as Lyft Inc. and Uber Technologies Inc. That could put pressure on WeWork, which has a mammoth credit line tied to the success of the IPO, as well as SoftBank Group Corp., which invested at a $47 billion valuation earlier this year.“They would probably price this thing at the more conservative end, maybe in the $20 billion range, given that the company is trying to raise more money,” Phil Haslett, co-founder of EquityZen, a marketplace for private stock sales, said on Bloomberg Television.Potential terms for the share sale are still being discussed, and the eventual valuation could change depending on investor demand, said the people, asking not to be identified because the information is private. A representative for WeWork, whose parent is The We Co., declined to comment.What Bloomberg Intelligence Says“WeWork will still have to convince investors during its upcoming roadshow that it deserves a tech company multiple. We continue to believe that WeWork is a real estate company, not a technology company, and one that appears years away from profitability.”--Jeffrey Langbaum, REITs analystClick here to read the researchWeWork CEO Adam Neumann met with SoftBank CEO Masayoshi Son in Tokyo last week to discuss a potential capital infusion, the Wall Street Journal reported, citing unidentified people familiar with the matter. The possibility of SoftBank investing money to enable WeWork to delay the IPO until 2020 was also raised in the discussions, the paper said.SoftBank and its affiliates own about 29% of WeWork ahead of its initial public offering, an executive for the co-working company said in a private meeting with analysts this week. Neumann has a stake of about 22%, which will rise to 29% over time after his stock vests, the executive said in the meeting, according to a person with direct knowledge of the matter.WeWork is planning to kick off its IPO roadshow as soon as next week. The company is targeting a share sale of about $3.5 billion, a person familiar with the matter said in July. That would be the second-biggest IPO this year behind Uber, another loss-making startup funded by SoftBank.WeWork plans to take out a $2 billion letter-of-credit facility and a $4 billion delayed-draw term loan from several banks concurrent with the IPO. Lenders will have to make good on their commitments only if at least $3 billion is raised in the equity offering, according to a filing.Neumann told analysts at the meeting that he was particularly pleased Wells Fargo & Co. had participated in the credit facility. “If Wells Fargo, the largest lender in this country, can get comfortable with this, then everybody should,” Neumann said, according to a person with direct knowledge of the matter.WeWork’s IPO plans filed last month were greeted by sometimes blistering criticism for the way it obscured key details about the economics of the business. The New York-based startup headed by Neumann leases and owns spaces in office buildings, which it decorates and then rents out to companies from tiny startups to large corporations. It has raised more than $12 billion since its founding nine years ago but has never turned a profit.Neumann, a co-founder and polarizing figure, has also courted controversy. Tangled business relationships involving Neumann and his family show an interdependence that runs deeper than most entrepreneurs to their creations and one that raises concerns among prospective shareholders. In particular, Neumann owns several commercial properties that he leased to WeWork, and he has sold significant amounts of his equity ahead of the public stock offering.According to the IPO filings, WeWork lost $2.9 billion in the past three years and $690 million in just the first six months of 2019. Its annual revenue, though, had more than doubled to $1.8 billion in 2018, compared with $886 million the previous year.(Updates with Neumann and SoftBank’s stakes in seventh paragraph.)\--With assistance from Nabila Ahmed and Ellen Huet.To contact the reporters on this story: Michelle F. Davis in New York at firstname.lastname@example.org;Giles Turner in London at email@example.com;Gillian Tan in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, ;Liana Baker at firstname.lastname@example.org, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- WeWork co-founder Adam Neumann has a message for anyone skittish about the company’s pending IPO: Wells Fargo backs his business.“If Wells Fargo, the largest lender in this country, can get comfortable with this, then everybody should,” Neumann said Wednesday, referring to a $6 billion WeWork credit facility the bank is participating in. “I’m most proud of Wells Fargo coming in. Who’s here from Wells Fargo? Thank you, thank you,” Neuman said at a private education session for analysts in New York, according to a person with direct knowledge of the matter.Under the terms of the financing, banks will have to make good on their commitments only if the initial public offering raises at least $3 billion for the New York-based venture, which rents furnished office space to companies and freelancers. San Francisco-based Wells Fargo & Co. is one of nine banks handling WeWork’s IPO and participating in the credit facility.“The reason I’m proud of your team is you guys are not usually debt-equity story people,” Neumann told the Wells Fargo analysts who attended the session, according to the person, who asked not to be identified discussing a private meeting. “I met the decision makers in your firm and they couldn’t care less about the equity story. They only cared about one thing -- are the buildings profitable and are we getting paid back,” Neumann said.“I’m not even sure you guys have a CEO at the moment, so it’s not easy,” he joked.Wells Fargo is more than five months into a search for a new chief executive officer. Its previous leader, Tim Sloan, stepped down in March, and former general counsel Allen Parker has been running the bank in the interim.Wells Fargo has long aspired to expand its corporate and investment bank. Chief Financial Officer John Shrewsberry said at an investor conference in 2018 that revenue from the business could double in five years.WeWork’s IPO won’t be quite the celebration it once foresaw. The startup is considering seeking a valuation of about $20 billion to $30 billion, people with knowledge of the matter said. The range could end up closer to $20 billion, said one of the people, which would be less than half the valuation it secured from its biggest backer just a few months ago.Representatives for WeWork and Wells Fargo declined to comment.\--With assistance from Hannah Levitt.To contact the reporter on this story: Gillian Tan in New York at email@example.comTo contact the editors responsible for this story: Alan Goldstein at firstname.lastname@example.org, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Farmers just began harvesting their crops but a wet spring and the U.S.-China trade war are creating uncertainty that is depressing crop prices.
Wells Fargo & Co will pay the Navajo Nation $6.5 million (£5.3 million) to settle a lawsuit over "predatory and unlawful practices" by the bank, the Native American tribe said on Thursday. The Navajo Nation sued Wells Fargo in federal and tribal courts in 2017, alleging the San Francisco-based bank had opened unauthorized accounts for vulnerable tribe members as part of the potentially millions of fake accounts opened by bank employees nationwide. The settlement with the Navajo Nation followed a $575 million deal in 2018 with U.S. states over claims that Wells Fargo opened phony customer accounts and improperly referred and charged customers for financial products.
Amidst growing concerns over skyrocketing gun violence in America, big banks maintain their financial relationships with gun manufacturers and the NRA.
Joe Brusuelas, chief economist at RSM, tells Yahoo Finance’s On the Move, that the Fed's action will force banks "to pump money into the real economy."
Wells Fargo (WFC) posted better-than-expected second-quarter results on Tuesday. The bank’s revenues and EPS beat analysts' expectations.
Wells Fargo said expenses for 2019 will be near the "high end" of its previously given estimates as it continues to spend on compliance and risk management.