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☆ Fitch's negative outlook for China is more bad news for its stalling economy
▼ + stars: | 2024-04-10 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Read previewFitch Ratings has cut its outlook for China, adding to the gloom surrounding the world's second-largest economy. It cut its outlook from "stable" to "negative," but maintained its overall rating at "A+." The move comes after Moody's Investor Services, another major credit-rating agency, also downgraded its outlook for China to "negative" in December. As a result Fitch expects economic growth to fall to 4.5% for 2024. The ratings agency said policymakers will probably have no choice but to borrow to address its economic woes.

Persons: —, Fitch, Fitch's Organizations: Service, Business, Moody's Investor Services, Analysts, St Louis Federal Reserve, CSI Locations: China, Beijing

☆ Here are Jim Cramer’s rapid-fire takes on 5 stocks in the news Wednesday
▼ + stars: | 2024-02-07 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +2 min

"I think you should still buy Baba in light of the fact the Chinese government is panicking about their stocks," Jim Cramer said, referencing recent stimulus efforts in the country . CVS Health : Despite lowering its 2024 adjusted earnings outlook due to higher medical costs, shares of CVS Health climbed more than 3% Wednesday. "Aetna is better than people think, and I think that [CEO] Karen Lynch is better than people think," Jim said. New York Community Bancorp : Moody's Investor Service downgraded the regional bank's credit rating to junk, roughly a week after NYCB reported a surprise fourth-quarter loss and cut its dividend payout. However, "you can't boost confidence once you cut your dividend," Jim said, adding that "you can't buy" shares of NYCB right now.

Persons: Jim Cramer, Aetna, Karen Lynch, Jim, NYCB, Morgan Stanley, Uber, Roblox Organizations: CVS, CVS Health, Aetna, York Community Bancorp, Moody's Investor Service, CNBC, Club, Technologies Locations: Wells Fargo

But if the UAW can reach a tentative agreement with Ford, it would be used as a model to seek similar contract settlements with GM and Stellantis. Typically, during past auto strikes, a UAW deal with one automaker has led the other companies to match it with their own settlements. About 32% of the union’s 146,000 members at the automakers are now on strike and getting by on $500 per week in strike pay. The UAW also wants traditional defined-benefit pension plans restored for workers who were hired after 2007, an end to varying tiers of wages for UAW workers, pension increases for retirees and other benefits. One key issue is whether to extend the national UAW contract to 11 U.S. electric vehicle battery factories.

Persons: Ford, Shawn Fain, ’, Todd Dunn, “ I've, ” Dunn, “, Dunn, he's, ” Masters, Mary Barra, Wayne State's Masters, It's Organizations: DETROIT, United Auto Workers, Ford, Detroit, General Motors, UAW, GM, Kentucky, Plant, Ford's, Bloomberg News, Automotive, Marick, Wayne State University, Workers, Toyota, Moody's Investor Service Locations: Arlington , Texas, Sterling Heights , Michigan, Louisville, Detroit, Korean, Texas

International travel reached around 90% of pre-pandemic levels this year, according to the International Air Transport Association. Those trends lifted quarterly earnings of travel companies, with cruise operators like Royal Caribbean (RCL.N) reporting record results in recent weeks. Ticket prices, which in some cases have increased by double-digit percentages since the pandemic, are unlikely to plummet. She expects air fares on long-haul international routes to remain high until supply outpaces pre-pandemic levels, demand normalizes and jet fuel prices decline further. International inbound vs outbound in the U.S this yearAverage domestic airfare is currently $246 round-trip, down 8% from 2022, according to travel booking app Hopper.

Persons: Dan McKone, Amadeus, Jozsef Varadi, Hayley Berg, Hopper, that's, Glenn Fogel, Kathleen Oberg, Joanna Plucinska, Rajesh Kumar Singh, Doyinsola, David Gaffen, Matthew Lewis Organizations: International Air Transport Association, Consulting, Royal, Booking Holdings, Marriott, Lufthansa LHAG.DE, United Airlines, Wizz, Reuters, Holdings, International, U.S . National Travel, Tourism Office, British Airways, IAG, Thomson Locations: CHICAGO, Southern Europe, Britain, France, United States, Germany, Singapore, Royal Caribbean, Manila, Hong Kong, Taipei, Tokyo, Europe, Asia, COVID, U.S, Canada, London, Chicago, New York, Bengaluru

The logo of credit rating agency Moody's Investor Services is seen outside the office in Paris October 24, 2011.REUTERS/Philippe Wojazer/File PhotoNEW YORK, Aug 8 (Reuters) - Ratings agency Moody's said the U.S. banking sector is still strong even after it downgraded several small to mid-sized lenders and warned it might cut the ratings of several major banks. "What we're doing here is recognizing some headwinds - we're not saying that the banking system is broken," Ana Arsov, managing director of financial institutions at Moody's, told Reuters in an interview. An S&P index of bank stocks slid 2% after Moody's took action on 27 lenders on Monday, highlighting the challenges of higher interest rates, climbing funding costs and a looming recession that would weigh on profits. "As you look ahead, it doesn't feel like the pressure from interest rates being higher and overall monetary policy tightening is close to abating," said Jill Cetina, an associate managing director at Moody's. Reporting by Lananh Nguyen and Tatiana Bautzer; Editing by Mark Porter and Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

Persons: Philippe Wojazer, Moody's, we're, Ana Arsov, Jill Cetina, Lananh Nguyen, Tatiana Bautzer, Mark Porter, Jan Harvey Organizations: Moody's Investor Services, REUTERS, Reuters, Thomson Locations: Paris, Moody's, abating

☆ HSBC pulls some UK mortgage deals as fears of rising rates hits home buyers once more
▼ + stars: | 2023-06-09 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +1 min

"Persistently high inflation and the recent spike in lending rates will trigger a correction in the UK (Aa3 negative) housing market," Moody's Investor Service said in a report. LONDON – The U.K.'s biggest bank temporarily withdrew mortgage deals via broker services on Thursday, as the effect of higher interest rates ripples through the British housing market. HSBC told CNBC Friday that it was reviewing the situation regularly, but did not specify whether the new deals would differ from its previous offerings. Higher rates are a possibility, given that the Bank of England is continuing to increase interest rates. It comes eight months after hundreds of mortgage deal offers were pulled in one day after market chaos at the time sparked concerns about rising base rates.

Organizations: Service, HSBC, CNBC, Bank of England

☆ UK house prices set to slide 10%, Moody's warns
▼ + stars: | 2023-06-08 | by ( Andy Bruce | ) www.reuters.com time to read: +2 min

LONDON, June 8 (Reuters) - House prices in Britain are likely to fall 10% over the next two years and a more severe downturn in the housing market could trigger a lengthy recession, credit ratings agency Moody's said on Thursday. "Persistently high inflation and the recent spike in lending rates will trigger a correction in the UK (Aa3 negative) housing market," Moody's Investor Service said in a report. Moody's said a bigger decline in house prices of around 21% would have much wider implications for the economy. However, many economists expect a fall in house prices this year as the BoE's increases in borrowing costs filter through into higher mortgage costs. A Reuters poll of economists and property analysts published last week showed house prices are likely to fall 3% this year, before flat-lining in 2024.

Persons: Moody's, Liz Truss, Andy Bruce, William James Our Organizations: Service, Bank of England, Halifax, Nationwide, Thomson Locations: Britain

☆ The bad loan term that's back for banks trying to spot a recession
▼ + stars: | 2023-04-23 | by ( Tim Mullaney | ) www.cnbc.com time to read: +4 min

If there wasn't enough banking jargon to blind you, it's time to learn a new piece of it: Welcome to the industry's era of the "criticized loan." "Criticized loans could be paying or performing but a loan could be singled out because of its collateral." At Bank of America, criticized loans to office building projects rose to $3.7 billion out of $19 billion in office loans. But office buildings represent only a quarter of the bank's commercial real estate loans, and all CRE is just 7% of the bank's total loans and leases. "It's almost impossible for us to see office [losses] more than 4 or 5 percent of office loans.

☆ How the market’s biggest companies manage their cash and investments
▼ + stars: | 2023-04-05 | by ( Tim Mullaney | ) www.cnbc.com time to read: +3 min

The cash balances of big companies will, though, be in focus again as another earnings season begins. U.S. companies are sitting on at least $2 trillion of cash, with a quarter of it concentrated in a few top technology companies, according to Moody's Investor Service. Other big holders of cash are carmakers like Ford and Tesla , and health-care companies like Pfizer . Taking the bank example, depositors may run if they think an institution is in trouble, as we just saw. Look for the line on the income statement that discloses "other income," usually between operating profit or loss and disclosure of the company's tax bill.

The new documents, reviewed by Reuters, shed light on the concern among the Finance Ministry's most senior officials, who cited unease among foreign investors and a shekel that has depreciated sharply to a three-year low. "Implementing the proposed judicial reform could bring very significant harm to the economy," said a document from the ministry's chief economist. The ministry's budget department wrote separately that there have been "initial indications" of the development of negative sentiments towards the Israeli economy. Moody's Investor Service said this month that the Israeli government's planned judicial reforms could weaken institutions and negatively impact Israel's sovereign credit profile. The Bank of Israel, which has urged judicial independence, expects economic growth of below 3% in 2023 after a 6.4% spurt last year.

☆ Sellers are targeting this bank because of its deposit mix, but Citi says it's a buy
▼ + stars: | 2023-03-14 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

The fear of further bank woes has taken down some solid stocks that could rebound, including Comerica , according to Citi. Horowitz said the bank was likely sold by many investors because of its high percentage of uninsured deposits, at roughly 70%. That is higher than the average bank but well below the levels at SVB and failed Signature Bank. Comerica's high level of uninsured deposits is reflective of a business tilted toward commercial customers, Horowitz said, which was also the case at SVB and Signature. However, the bank's average account balance for deposits over the $250,000 insurance threshold was less than half of SVB's, Horowitz said.

☆ Riskified latest company to transfer money out of Israel -media
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +1 min

JERUSALEM, March 8 (Reuters) - Israeli financial technology firm Riskified (RSKD.N) is transferring $500 million out of the country, joining private sector opposition to the government's planned overhaul of the judicial system, Israeli media reported on Wednesday. The judicial overhaul plan, which has already received initial parliamentary approval, would give the government greater sway on selecting judges and limit the power of the Supreme Court to strike down legislation. Moody's Investor Service warned on Tuesday that the planned judicial overhaul could weaken institutions and negatively impact Israel's sovereign credit profile. A number of other high-profile companies in Israel have already said they would be transferring large sums of money abroad due to the political uncertainty. Proponents say the changes are needed to curb what they deem an activist judiciary that interferes in politics.

☆ Fintech threat to big banks fizzled in 2022 as rates rose - report
▼ + stars: | 2023-02-15 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

Feb 15 (Reuters) - The competitive threat of financial technology companies to big banks diminished over the past year as rising interest rates constricted funding, a new report from Moody's Investor Service found. The report cited figures from CB Insights that showed global fintech funding fell 46% from 2021 to 2022. Banks have long recognized that technology could disrupt business models and allow technology conglomerates to enter banking, Moodys said. Fintech companies often face more regulatory obstacles than banks and may have encountered new requirements in certain jurisdictions in recent years, according to Moody’s. But although the current macroeconomic environment may pose challenges to fintech companies, the sector still has the potential to increase financial inclusion and lower costs to consumers, the report found.

☆ S&P downgrades Southwest Airlines outlook, expects weaker FFO
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

Jan 9 (Reuters) - Global ratings agency S&P Global lowered Southwest Airlines Co's (LUV.N) outlook to stable from positive, saying it expects the airline to generate weaker funds from operations (FFO) through 2023 amid the recent operational meltdown. Lingering effects from the operational issues and a possible decline in travel demand due to inflation could limit Southwest's ability to raise its fares to cover higher costs, S&P said. Moody's believes the impact on Southwest's passenger volumes and finances will barely be noticeable by this spring and beyond. Last week, Southwest forecast a pre-tax hit of $725 million to $825 million to quarterly earnings due to the cancellations. Reporting by Shivansh Tiwary and Aishwarya Nair in Bengaluru; Editing by Krishna Chandra Eluri and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

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