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☆ Morning Bid: Crowded bonds unnerved
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +5 min

This has some wondering if the recent dash for cash and top-rated bonds has become a bit crowded and how much more tightening central banks have to do. As we move into the weeds of the first-quarter U.S. earnings season, it's been a mixed bag so far. That clearly unnerved UK government bonds - where 10 year yields jumped 10bps - but it also jarred sovereign bonds around the world. Elsewhere, further signs of healing were evident in the global bank funding market. Japan's Sumitomo Mitsui Financial Group (8316.T) sold $1 billion of additional tier-1 debt, the first major global bank to sell the risky securities since similar bonds issued by Credit Suisse were wiped out last month.

☆ Next week's stock market moves hinge on the longer-term outlook for earnings
▼ + stars: | 2023-04-14 | by ( Scott Schnipper | ) www.cnbc.com time to read: +7 min

Next week's market action could be dictated by how well the latest quarterly reports from corporate America are received. Expectations about the immediate earnings outlook have been down for so long, the actual numbers themselves could look like up to investors. Earnings for all financials in the S & P 500 are actually expected to expand in the first quarter by 4.3%. ET: NAHB Housing Market Index (April) Earnings: Charles Schwab, M & T Bank, State Street, J.B. Hunt Transport Tuesday 8:30 a.m. ET: Philadelphia Fed President Patrick Harker speaks on the economic outlook Earnings: AT & T, American Express, D.R.

☆ Banking turmoil questions begin at board level, says Basel's de Cos
▼ + stars: | 2023-04-12 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

These events marked the first real stress test of banks since the global financial crisis of 2007-09, de Cos told an Institute of International Finance roundtable in Washington. While it was unlikely a single culprit was to blame, he said the "whodunnit" task should start with bank boards. "A bank’s board, senior management and risk management function should be asking themselves questions in a timely fashion and taking credible measures to shore up resilience," de Cos said. De Cos also said supervisors should also ask tough questions and take "decisive action" to ensure safety and soundness of banks. Mark Carney, former governor of the Bank of England and former chair of the Financial Stability Board (FSB), the G20 watchdog that drove through post-global financial crisis reforms of banking rules, has called for a rethink of bank liquidity rules.

☆ Morning Bid: Stocks defy negativity in CPI vigil
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +5 min

The Federal Reserve's interest rate stance hinges on incoming data such as Wednesday's consumer price report, but fears of recession remain just that. And so investors return to scrutinising the Fed to see if the central bank forces the recession by tightening ever further. With Fed policy meeting minutes due later in the day, the runes of what must have been a tense gathering of officials in the middle of the regional banking shock will be eyed closely. Minneapolis Fed President Neel Kashkari reckoned recession was still a risk but inflation wouldn't get back close to the 2% target until next year. Hong Kong stocks (.HSI) underperformed overnight - with geopolitical tensions high surrounding Taiwan and Chinese military operations around the island.

☆ BoE's Bailey says bank reforms worked but questions about liquidity buffers
▼ + stars: | 2023-04-12 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

"Today I do not believe we face a systemic banking crisis. Bailey, however, echoed calls from his predecessor Mark Carney by saying there might be questions over the size of liquidity buffers required of banks in order to tide them over short-term shocks. This must beg the question of what are appropriate and desired liquidity buffers that create the time needed to take action to solve the problem." Data from the European Central Bank on Wednesday showed a slight weakening in liquidity buffers at banks it regulates, though they are still well above minimum requirements. Banks' holdings of liquidity have more than doubled since the global financial crisis, helping to contain fallout from the recent banking turmoil, de Cos said.

☆ How to avoid the next crisis? Banks may have to hold more cash
▼ + stars: | 2023-04-12 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

London CNN —Regulators must learn “important lessons” from this year’s banking turmoil, the world’s top financial watchdog has said. Requiring banks to hold more cash to pay out depositors may be one of them. External shocks that have roiled global markets in recent years include the coronavirus pandemic and Russia’s invasion of Ukraine. In other words, banks could be told to hold more assets that can be easily converted into cash to pay back creditors in times of crisis. In the United States, the Federal Deposit Insurance Corporation said it would guarantee all deposits held within Silicon Valley Bank, including those above $250,000 per person.

☆ Here are Monday's biggest analyst calls: Apple, Amazon, Tesla, Macy's, Netflix, Sunnova, Intel & more
▼ + stars: | 2023-04-03 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Morgan Stanley initiates Sunnova as overweight Morgan Stanley said it sees 124% upside for the solar company. " Morgan Stanley downgrades First Solar to underweight from equal weight Morgan Stanley downgraded the stock mainly on valuation. Bank of America adds Lowe's to the US 1 list Bank of America added the home improvement giant to its top ideas list. Bank of America names Netflix a top second-quarter pick Bank of America said it's bullish on the streaming giant as the second quarter begins. Morgan Stanley downgrades Marqeta to equal weight from overweight Morgan Stanley said in its downgrade of the card payment and solutions company that it sees too many negative catalysts. "

☆ U.S. Ad Spending Still Expected to Grow in 2023 Despite ‘Stressful Economic Signals’
▼ + stars: | 2023-03-28 | by ( Megan Graham | ) www.wsj.com time to read: 1 min

A new report forecasts U.S. out-of-home advertising, which includes placements like billboards, will grow 6%, reaching $9.6 billion this year. A major ad forecaster said advertising is still expected to grow in 2023 despite mixed economic signals, a resiliency that industry pros say would have been unlikely during earlier periods of turbulence. Media owners’ U.S. ad revenues are expected to grow 3.4% to $326 billion this year, according to a quarterly forecast from Magna, a media intelligence and investment firm that is part of Interpublic Group of Cos.’ Mediabrands. That is slightly down from its December estimate of 3.7% growth.

☆ Bank of Spain sees turmoil rising funding costs, requiring liquidity sourcing review
▼ + stars: | 2023-03-28 | by ( Jesús Aguado | ) www.reuters.com time to read: +3 min

Non-performing loans stood at nearly record lows of 3.56% in January, far below the all time-high of 13.6% in December 2013. Deputy Governor Margarita Delgado also said that amid a tighter financing conditions following a period of abundant, cheap liquidity, banks should assess liquidity risks and have diverse, credible and plan-based funding sources to allow them to "adapt flexibly to the changing environment." In its report, the Bank of Spain said it expected Spanish lenders to maintain comfortable excess liquidity positions. As of February, Spanish banks' liquidity coverage ratio stood on average at 175% among the significant lenders, well above the global average of 140%, according to the Basel Committee on Banking Supervision. Olano said that Spanish banks' exposure to Credit Suisse (CSGN.S) stood at between 300 million euros ($325.23 million)and 400 million euros.

☆ Morning Bid: Banks are leaking money
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +2 min

There is some relief that First Citizens BancShares Inc (FCNCA.O) is in advanced talks to acquire Silicon Valley Bank (SIVB.O). There was also some talk the Federal Reserve could expand its new lending programme for banks as another step to reassuring depositors. Money is clearly flowing out of smaller banks toward their bigger siblings and to money market funds, which have seen an inflow of more than $300 billion in the past month to a record $5.1 trillion. Capital Economics points out that deposits across all the banks have fallen by $663 billion in the past year as customers search for higher yield. Deutsche Bank's five-year CDS hit 222 bps on Friday, the highest since late 2018, while UBS CDS shot up to 139 bps.

☆ Virgin Orbit raising $200 million from investor Matthew Brown, closing deal as soon as Thursday
▼ + stars: | 2023-03-22 | by ( Michael Sheetz | ) www.cnbc.com time to read: +3 min

Virgin Orbit is in final talks to raise funds from Texas-based investor Matthew Brown, two people familiar with the deal told CNBC, amounting to an injection of $200 million. The deal comes as Virgin Orbit scrambles to rebuild its cash coffers and avoid a potential bankruptcy filing, CNBC earlier reported. Virgin Orbit did not respond to CNBC's request for comment. Shares of Virgin Orbit surged 50% in early trading Wednesday from the stock's previous close of 44 cents a share. Virgin Orbit has been looking for new funds for several months, with majority owner Richard Branson unwilling to fund the company further.

☆ First Citizens in talks to acquire Silicon Valley Bank - Bloomberg News
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - First Citizens BancShares Inc (FCNCA.O) is evaluating an offer for Silicon Valley Bank (SIVB.O), Bloomberg News reported on Saturday, citing people familiar with the matter. SVB and First Citizens did not immediately respond to Reuters' request for comment outside of business hours. Reuters reported earlier this week that the Federal Deposit Insurance Corp had asked banks interested in acquiring Silicon Valley Bank and Signature Bank to submit bids by March 17. The auctions followed the FDIC taking over Silicon Valley Bank last Friday and Signature Bank (SBNY.O) on Sunday, as the collapses of the two U.S. mid-sized lenders whipsawed global financial markets over fears of a contagion. The FDIC had retained investment bank Piper Sandler Cos (PIPR.N) to run a new auction, the sources told Reuters.

☆ Want to invest in companies that empower women? Here's what you need to know
▼ + stars: | 2023-03-17 | by ( Michelle Fox | ) www.cnbc.com time to read: +8 min

Known as gender lens or gender equity investing, the idea is to invest for financial return, while promoting gender diversity. Yet those funds represent less than 0.01% of total equity fund assets in the United States, according to the firm. Her women CEO and CFO clients were getting tremendous results, she said. In January, the asset management firm launched the Hypatia Women CEO exchange-traded fund (WCEO). Women in leadership matters, but we need a more robust scorecard to assess gender equity.

☆ There’s a Silver Lining for Mortgage Companies in a Bleak Market
▼ + stars: | 2023-03-08 | by ( Telis Demos | ) www.wsj.com time to read: +1 min

Mortgage originators such as Rocket Cos. and UWM Holdings have recently reported continuing drops in home-loan volumes for the fourth quarter. There is good news and bad news for big mortgage originators: The market is shrinking. Originators that make mortgages and sell them into the market such as Rocket Cos. and UWM Holdings have recently reported continuing drops in home-loan volumes for the fourth quarter. That was to be expected, as overall U.S. single-family home-mortgage originations dropped from over half a trillion dollars in the third quarter to about $400 billion in the fourth quarter, according to figures compiled by Fannie Mae. And though mortgage rates this year have been below the highs they reached last year, Fannie Mae’s recent forecast still is for under $1.7 trillion in single-family mortgage originations in 2023, versus nearly $2.4 trillion in 2022.

☆ Lowe’s Opens Warehouses to Stow Goods to Improve Seasonal Distribution Efficiency
▼ + stars: | 2023-03-08 | by ( Liz Young | ) www.wsj.com time to read: +3 min

Lowe’s Cos. is opening more warehouses that will serve as storage facilities for offseason goods, a strategy the home-improvement retailer says will help it more efficiently distribute its inventory. The facilities are part of a broader $1.7 billion investment Lowe’s has been making in its supply chain to fill online orders faster. That has included adding e-commerce fulfillment centers to its network that pick and pack orders for delivery to customers’ homes. The company now has more than 100 logistics facilities. Lowe’s reported comparable sales, those from stores and digital channels operating for at least 12 months, fell 1.5% in the fourth quarter.

☆ LVMH rejigs beauty division, names Stephane Rinderknech CEO
▼ + stars: | 2023-03-06 | by ( ) www.reuters.com time to read: +2 min

PARIS, March 6 (Reuters) - LVMH (LVMH.PA), the world's largest luxury company, on Monday named Stephane Rinderknech as chairman and CEO of its beauty division, rounding out a series of broader management changes at the owner of Guerlain and Parfums Christian Dior. Rinderknech will take up global responsibility for the group's beauty business, while Guerlain head Veronique Courtois becomes president and CEO of Parfums Christian Dior. Make Up For Ever head Gabrielle Saint-Genis Rodriguez will be president and CEO of Guerlain. The changes come as luxury groups, which have been riding a strong wave of post-pandemic demand for designer labels, look to expand in their beauty activities. As part of that process, the group in January folded Tiffany into the watches and jewellery division, under the management of Stephane Bianchi.

The effort comes as the United States seeks to sustain its liquefied natural gas, or LNG, exports to Europe to displace Russian fuel, while also promoting efforts to fight global warming. A credible market for certified natural gas could help it tackle both goals at once. Crabtree said he hosted a workshop in October with gas industry representatives, including a new industry group called the Differentiated Gas Coordinating Council (DGCC), to discuss standards for certified gas. While gas burns cleaner than other fossil fuels, its main component is the powerful greenhouse gas methane, which can leak into the atmosphere from drilling, processing, shipping and distribution. Palti-Guzman said certified gas could also be key to securing a longterm role for U.S. LNG in Europe where carbon prices last month hit a record 100 euros per tonne.

☆ Loblaw forecasts annual profit above estimates on strong grocery demand
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

Feb 23 (Reuters) - Canadian retailer Loblaw Cos Ltd (L.TO) forecast annual earnings above analysts' expectations on Thursday, helped by strength in its pharmacy business and as demand holds up for groceries. Loblaw expects full-year 2023 adjusted earnings per common share to grow in low double-digits compared with the average analyst estimate of 9.64%, according to Refinitiv IBES data. The company's fourth-quarter revenue rose about 10% to C$14.01 billion ($10.35 billion), topping the average estimate of C$13.75 billion. On an adjusted basis, Loblaw earned C$1.76 per share, beating analysts' expectations of C$1.71 per share. ($1 = 1.3533 Canadian dollars)Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Shilpi MajumdarOur Standards: The Thomson Reuters Trust Principles.

☆ WPP, Like Ad-Company Rivals, Says It Expects 2023 Growth
▼ + stars: | 2023-02-23 | by ( Megan Graham | ) www.wsj.com time to read: +2 min

WPP PLC is the latest major advertising holding company to say it expects continued growth in 2023 as clients keep spending on its services. PREVIEWWPP said like-for-like revenue less pass-through costs increased 6.9% in 2022 and 6.4% in the fourth quarter. Total revenue in 2022 was £14.4 billion, equivalent to about $17.3 billion, while revenue less pass-through costs was £11.8 billion. Chief Executive Mark Read said that consumers have continued to spend, and clients have continued to invest in their brands. Omnicom Group Inc. and Publicis Groupe SA both said they expect organic revenue growth this year of 3% to 5%.

☆ 'Stubborn' food inflation leaves U.S. shoppers with slim appetite for other goods
▼ + stars: | 2023-02-23 | by ( Siddharth Cavale | ) www.reuters.com time to read: +4 min

Higher prices on food led to soft sales of electronics, toys, home and apparel in the most recent quarter at Walmart. McMillon said he believed inflation on dry groceries and items made for immediate consumption would remain high "for a while". "Food inflation has been the most stubborn of all the categories," Walmart's U.S. CEO John Furner said. Sharp sales declines in categories other than food are forcing retailers like Target (TGT.N) to slash prices on everything from toys to electronics. While groceries comprise 56% of Walmart sales, they make up about 20% of sales at Target, which depends more on home furnishings, apparel and beauty.

☆ Morning Bid: Blue chips cheered up
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +5 min

[1/2] The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. Its CEO Jensen Huang said use of its chips to power AI had "gone through the roof in the last 60 days." The Federal Reserve at least seems keen on the higher-for-longer message that's shaken world stock and bond markets this week. And as the minutes pre-date red-hot jobs and retail data for January, the message from Fed officials is probably even sterner now. A Reuters poll of equity analysts showed global stock markets are expected to correct in the next three months.

☆ T.J. Maxx parent sees weak annual profit pressured by rising costs
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 22 (Reuters) - TJX Cos Inc (TJX.N) forecast annual profit below Wall Street expectations on Wednesday, as the off-price retailer's margins face pressures from persisting supply chain costs and surging inflation. However, TJX has continued to draw in shoppers as it managed to keep its prices lower than other retailers or department stores. The T.J. Maxx parent also posted better-than-expected fourth-quarter revenue, benefiting from bargain-hungry but brand-conscious customers turning to off-price stores during the holiday season. Analysts see TJX as one of the more well-positioned off-price retailers which is expected to gain market share in a weakening consumer discretionary environment. Reporting by Aatrayee Chatterjee and Ananya Mariam Rajesh in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ TJX sees weak annual profit as costs bite
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 22 (Reuters) - TJX Cos Inc (TJX.N) forecast annual profit below Wall Street expectations on Wednesday, as the off-price retailer's margins take a hit from persisting supply chain costs and inflationary pressures. TJX, which has been battling higher freight and labor costs due to persistent global supply chain disruptions, the Russia-Ukraine war and surging inflation, had selectively increased prices from fiscal 2022 on some products. The discount store operator now expects full-year adjusted profit per share between $3.29 and $3.41, compared with analysts' estimates of $3.57, according to IBES data from Refinitiv. The company's net sales rose to $14.52 billion from $13.85 billion in the fourth quarter, beating analysts' estimates of $14.07 billion. Reporting by Aatrayee Chatterjee and Ananya Mariam Rajesh in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Home Depot warns of weak 2023 profit as rising prices hurt demand
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

1 U.S. home improvement chain posted a surprise drop in fourth-quarter comparable sales, sending its shares down more than 4% in premarket trading. Shares of smaller rival Lowe's Cos Inc (LOW.N) also slipped after Home Depot's dour forecast amid a strained U.S. housing market. Wall Street analysts have warned that home improvement chains are set for a challenging 2023. Home Depot said comparable sales fell 0.3% in the fourth quarter ended Jan. 29, compared with analysts' average estimate of a 0.56% increase. Home Depot said it would spend an additional $1 billion in annualized compensation for its frontline, hourly associates, starting from the first quarter of 2023.

Feb 21 (Reuters) - TJX Cos Inc (TJX.N) is likely to see a strong growth in annual sales as inflation pushes bargain-hungry but brand-conscious customers to off-price retailers offering cheaper deals and promotions. A case in point is Nordstrom Inc (JWN.N), which cut its annual profit forecast after its off-price store chain Rack failed to attract people despite heavy discounting due to inventory mismanagement. Jessica Ramirez, analyst at Jane Hali and Associates, said TJX is in tune with what the customer is shopping for and are interested. "TJX is very strong with their assortment ... they have been able to bring a lot of good names into their product offerings," she said. Reporting by Ananya Mariam Rajesh and Aatrayee Chatterjee in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

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