DIRS.INFO The most relevant business & tech news

☆ Analysis: Investors see trouble ahead after Europe's stellar first quarter
▼ + stars: | 2023-05-19 | by ( Joice Alves | ) www.reuters.com time to read: +5 min

Europe's largest listed company LVMH (LVMH.PA) produced stellar sales as China rebounded sharply after COVID restrictions ended. The robust corporate margins on show in the first quarter are seen coming under pressure later in the year. Based on Refinitiv I/B/E/S estimates, STOXX 600 companies are expected to report net profit margins of 11.4% in the first quarter, up from 10.2% in the last quarter of 2022. But margins are seen declining to 10.5% in the third quarter, according to Refinitiv estimates. But there has not been a wave of companies revising earnings forecasts down, providing a cushion for European equities.

☆ Investors see trouble ahead after Europe's stellar first quarter
▼ + stars: | 2023-05-19 | by ( Joice Alves | ) www.reuters.com time to read: +5 min

☆ Turkey's market rout deepens after Erdogan's strong election showing
▼ + stars: | 2023-05-16 | by ( Libgeorge Canan Sevgili | Canan Sevgili | ) www.reuters.com time to read: +4 min

Ahead of the elections, opinion polls had showed Kilicdaroglu in the lead, and investors expected him to scrap some of Erdogan's economic policies, including costly efforts to prop up the lira currency. Longer-dated, dollar-denominated government bonds saw the biggest falls in fixed income markets, although key corporate and banking sector bonds also edged lower. Credit ratings agency Fitch said the political and economic uncertainty would continue at least until after the runoff. Banking stocks, which had surged in the week ahead of the election on hopes of a policy change, tumbled another 8% (.XBANK) to take their losses since the election to nearly 20%. The overall Istanbul bourse index (.XU100), which had notched a 6.1% fall on Monday, its largest daily percentage drop since early February, was mostly flat.

☆ $3.2 Million Homes in California
▼ + stars: | 2023-05-08 | by ( Angela Serratore | ) www.nytimes.com time to read: +1 min

It is a few blocks from Lombard Street and a stretch of Union Street with an Equinox gym, coffee shops and restaurants housed in early 20th-century buildings with ornate facades. This neighborhood is about a half-hour ride on public transit from the Civic Center and Sausalito, across the Bay. San Francisco International Airport is a 40-minute drive, traffic permitting. Size: 2,400 square feetPrice per square foot: $1,331Indoors: Stairs lead up from the street to the building’s blue front door, which opens into a stair hall. It connects to a windowed kitchen with white cabinetry and stainless steel appliances, including a Wolf range.

☆ Five ways the rich save big on estate taxes, from putting houses in trusts to buying offshore life insurance
▼ + stars: | 2023-05-08 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +6 min

Thanks to tax cuts made during the Trump administration, Americans can give or hand down nearly $13 million in assets without paying federal estate tax. Currently, individuals and married couples can gift or bequeath $12.92 million and $25.84 million, respectively, before a 40% federal estate tax kicks in. Private-placement life insurance, or PPLI, can be used to pass on assets from stocks to yachts to heirs without incurring any estate tax. The assets in the trust are treated as premiums, and if structured correctly, the benefit and assets in the policy are bequeathed free of estate tax. These trusts pay a fixed annuity during the trust term, which is usually two years, and any appreciation of the assets' value is not subject to estate tax.

☆ Analysis: Icahn's mark-up of meat packager extraordinary but possible, experts say
▼ + stars: | 2023-05-05 | by ( Koh Gui Qing | ) www.reuters.com time to read: +4 min

Hindenburg said Icahn Enterprises LP (IEP) (IEP.O) valued a meat packing company in which it owns a 90% stake three times over its market value. IEP cited "the lack of material trading volume" in Viskase's stock as grounds for the valuation mark-up in the filing. Viskase's shares are traded in the over-the-counter market rather than a major exchange such as Nasdaq or the New York Stock Exchange. On Thursday, IEP said after the stock market closed that it would preserve its dividend at $2 per unit for the first quarter. IEP's stock rose 10% in afterhours trading on the announcement.

☆ The banking crisis is having a slow-burn impact on the economy
▼ + stars: | 2023-04-25 | by ( Jeff Cox | ) www.cnbc.com time to read: +6 min

That's a credit hit on Middle America, on Main Street," said Steven Blitz, chief U.S. economist at TS Lombard. Watching growth aheadIn the immediate future, the reading on first-quarter economic growth is expected to be largely positive despite the banking problems. In fact, the most recent recession was just two years ago in the early days of the Covid crisis. Consumer spending has seemed to hold up fairly well in the face of the banking crisis, with Citigroup estimating excess savings of about $1 trillion still available. [The banking situation] is a headwind, but it's not a gale-force headwind, it's just kind of a nuisance."

Persons: Spencer Platt, Steven Blitz, Stocks, Robert Sockin, it's, Dow Jones, isn't, It's, Moody's, Mark Zandi, headwind, Covid, Jim Baird, Plante, Baird Organizations: New York Stock Exchange, Getty, JPMorgan Chase, Bank of America, TS Lombard, First, Bank, P Bank ETF, Citigroup, Commerce Department, Silicon Valley Bank, Signature Bank, Moody's, Financial Advisors Locations: New York City, U.S, America, First Republic, Atlanta

Low and stable inflation is good for markets and the economy, so central banks had to show their seriousness on inflation, Tannenbaum added. Central banks softened rate rises with communication that was mindful of instability risks, showing reassuring "humility", said Perkins. "The bank resolution framework created after the great financial crisis," said Francesco Papadia, senior fellow at Bruegel and former ECB director general for market operations, "is proving difficult to implement." Reuters Graphics4/ UNITED WE STANDAfter CS's rescue, the Fed and other big central banks supported market liquidity with dollar swap lines. Amundi's Pradhan said the "case by case" central bank responses to individual lenders failing in March exposed the lack of a coordinated bank resolution system.

LONDON, April 19 (Reuters) - If a mega Western recession is coming down the pike in the second half of this year, someone should point it out to the junk bond market. The investment herd seems more convinced than ever that recession is on the way amid tightening bank credit after the March bank stress - even if not all the incoming evidence supports that take. More than a third now see the biggest risk ahead as a bank credit crunch and global recession. And that's with junk spreads more than three times higher than quality corporates. U.S. and European junk bond spreads historicallyBank of America survey on investment grade bonds vs junkCOURAGE AND DECOMPRESSIONThere's little doubt than many investors want to steer well clear, for now at least.

☆ The cap on Russian oil is unlikely to change soon — despite opposing views on whether it’s working
▼ + stars: | 2023-04-13 | by ( Silvia Amaro | ) www.cnbc.com time to read: +4 min

G-7 nations have so far decided not to revise their cap on Russian oil. She called for policymakers to lower the level of the price cap to continue to pressure the Kremlin's finances. Is the price cap working? Ultimately, Kirkegaard said there was no explicit way to determine whether the oil cap is effective or not. India, China snap up Russian oil

☆ Explainer: Why European money market funds inflows are lagging behind the U.S. torrent?
▼ + stars: | 2023-04-11 | by ( Harry Robertson | ) www.reuters.com time to read: +6 min

[1/2] U.S. dollar and Euro bank notes are photographed in Frankfurt, Germany, in this illustration picture taken May 7, 2017. In Europe, investors put 17.7 billion euros ($19.35 billion) into euro-denominated money market funds in March, Refinitiv Lipper data shows, when the Credit Suisse crisis rocked markets. Other analysts said it was due to the fact that euro money market funds are underdeveloped relative to U.S. funds and are focused more on private sector, particularly bank, debt. WHAT IS A MONEY MARKET FUND? The European money market fund sector is far smaller than in the United States.

LONDON, April 6 (Reuters) - Banking sector turmoil has not dented demand for equities, with MSCI's world stock index up 7% so far this year. But under the surface, bad omens for world stocks are building. Central bank surveys show U.S. and European banks are already tightening lending standards, historically a predictor of dismal stock market performance. Credit tightening predicts poor stock market returns2/ MANUFACTURING SLOWDOWNRecessions starting in the United States tend to flow to the rest of the world and consequently global stocks. Seven mega-cap tech stocks were responsible for 92% of the S&P 500's first-quarter rise, Citi notes.

☆ Swiss Miss: Why UBS's deal with Credit Suisse will threaten its hold on rich clients
▼ + stars: | 2023-03-22 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted. For one Irish billionaire and Credit Suisse client, this is what matters most.

☆ UBS will become a Swiss wealth behemoth after buying Credit Suisse, but blending the two rivals could get awkward and messy
▼ + stars: | 2023-03-21 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already a giant in wealth management before it agreed to buy doomed rival Credit Suisse. UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted.

☆ Analysis: Market turmoil is doing central bankers' jobs for them
▼ + stars: | 2023-03-21 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +5 min

European Central Bank President Christine Lagarde reckons market turmoil may do some of the ECB's tightening for it if it dampens demand and inflation. Financial conditions reflect the availability of funding in an economy, so they dictate spending, saving and investment plans of businesses and households. Central banks have been trying to tighten them by raising rates to slow rising prices. Signs of tightening financial conditions were plentiful. "Central banks no longer have a good idea about the true tightness of monetary policy," he said.

SummarySummary Companies Credit Suisse rebounds on lifeline from Swiss central bankHousing starts, jobless claims data due 8:30 am ETAdobe rises on upbeat profit forecastMeta, Snap climb as U.S. threatens TikTok banFutures mixed: Dow down 0.29%, S&P down 0.19%, Nasdaq up 0.16%March 16 (Reuters) - U.S. stock index futures were mixed on Thursday as the Swiss central bank's lifeline for embattled Credit Suisse did little to boost investor sentiment as they awaited economic data for clues on the outlook for U.S. interest rates. U.S.-listed shares of Credit Suisse rose 8.8% in premarket trading after the bank secured a credit line of up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence, which had nosedived after the lender's shares slumped on Wednesday. Troubles at Credit Suisse, coming on the heels of the collapse of SVB Financial (SIVB.O) and peer Signature Bank (SBNY.O) have sparked fresh worries about stress in the banking sector, dwarfing relief on expectations of less aggressive moves by the Federal Reserve. "Central banks are in a bit of a bind because they need to make sure that inflation is brought back under control. Shares of Adobe Inc (ADBE.O) supported Nasdaq futures, rising 5.8% in premarket trade after the Photoshop maker raised its 2023 profit target.

March 15 (Reuters) - Swiss regulators pledged a liquidity lifeline to Credit Suisse (CSGN.S) in an unprecedented move by a central bank after the flagship Swiss lender's shares tumbled as much as 30% on Wednesday. They said the bank could access liquidity from the central bank if needed. Credit Suisse said it welcomed the statement of support from the Swiss National Bank and FINMA. Hoping to quell concerns, FINMA and the Swiss central bank said there were no indications of a direct risk of contagion for Swiss institutions from U.S. banking market turmoil. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022.

☆ Cautious calm returns to bank stocks as focus shifts to regulation
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

Focus is also shifting to the possibility of tighter regulation in the U.S. banking sector, particularly for mid-tier banks like SVB (SIVB.O) and New York-based Signature Bank, whose collapses last week roiled financial markets. Investors had been particularly concerned about the huge bond holdings, particularly in U.S. Treasuries, of Japanese lenders. However, Japanese finance minister Shunichi Suzuki said on Wednesday differences in the structure of bank deposits, meant local banks wouldn't face incidents similar to SVB's collapse. In an attempt to avert a similar crisis down the line, the Federal Reserve is also considering tougher rules and oversight for midsize banks similar in size to SVB. "A year after starting to raise interest rates, the Federal Reserve is still chasing evidence that higher borrowing costs are slowing the U.S.

☆ Buy large cap US bank stocks as there's no evidence of a systemic banking crisis, research firm says
▼ + stars: | 2023-03-15 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Investors should treat the collapse of Silicon Valley Bank as an opportunity to buy large cap US bank stocks, according to TS Lombard. The SPDR S&P Banking ETF, which mostly owns large cap US banks, has dropped 23% since the start of March, representing one of its swiftest declines on record. "The SVB crisis has meant a significant tightening in financial conditions, which, in effect, is having a similar impact to that of another Fed hike... However, the market reaction in the short term looks to be overdone; we tactically buy US large cap banks," Montgomery said. And the valuations on large cap bank stocks are not stretched.

LONDON, March 15 (Reuters) - Central banks juggling inflation and financial stability mandates are prompting the wildest swings in bedrock government bonds for over a decade and a surge in volatility that may end up causing problems of its own. "The Fed and other central bankers have lost the luxury of focusing singularly on the fight against inflation," said Manulife Investment Management's Frances Donald. If the history of banking crashes and related credit crunches show them to be deflationary anyway, then many argue a central bank pause now may be the wisest choice. "The Fed is now fighting inflation as well as potential financial contagion," Lombard Odier Chief Investment Officer Stéphane Monier said. The first sign of regional bank stock calm on Tuesday, alongside the sticky core inflation readings for February, prompted a build-back of some bets for one last hike from each central bank.

☆ Quotes: Global banks under pressure as SVB triggers contagion worries
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +8 min

LONDON, March 14 (Reuters) - The health of the global banking sector as interest rates rise remained in the spotlight on Tuesday in the wake of the collapse of Silicon Valley Bank (SVB). But days of wild swings in global markets and hefty losses in bank shares, left the outlook for the sector in focus. Banks are now faced with the classic problem that has threatened banks throughout history: a mismatch in terms between assets and liabilities." Hopefully we'll go over the next few days, whether or not the financial system is going to calm down or not. "It’s been an indiscriminate sell off in banking stocks, the financial sector repriced everywhere.

SummarySummary Companies Tech bank's troubles panic marketsFears spread over fallout from rising interest ratesBanks vulnerable as bond values dropLONDON, March 10 (Reuters) - For months, investors had shrugged off the threat of rising interest rates. In SVB's case, venture capital clients, unable to raise cash elsewhere, pulled money from the bank, forcing its hasty sale of bonds at a loss. In February, U.S. regulators said U.S. banks had unrealised losses of more than $620 billion on securities, underscoring the scale of the risks. Jason Benowitz, senior portfolio manager at CI Roosevelt, said SVB's risks were not unique with many banks sitting on such unrealised losses because rates have moved so rapidly. "The SVB situation is a reminder that many institutions are sitting on large unrealised losses," said AJ Bell investment research director Russ Mould.

☆ Fed funds rate to hit 6.5% without mid-year recession, economist says
▼ + stars: | 2023-03-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed funds rate to hit 6.5% without mid-year recession, economist saysSteven Blitz, chief U.S. economist at TS Lombard, shares his projections for the Federal Reserve's monetary policy trajectory after Chairman Jerome Powell's testimony on Capitol Hill rocked markets.

☆ No exit ramp for Fed's Powell until he creates a recession, economist says
▼ + stars: | 2023-03-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Federal Reserve Chair Jerome H. Powell testifies before a U.S. Senate Banking, Housing, and Urban Affairs Committee hearing on "The Semiannual Monetary Policy Report to the Congress" on Capitol Hill in Washington, March 7, 2023. The U.S. Federal Reserve cannot disrupt its cycle of interest rate increases until the nation enters a recession, according to TS Lombard Chief U.S. He stressed that the Fed lacks clarity on the ceiling of interest rate increases in the absence of such an economic slowdown. Market expectations for the terminal Fed funds rate were around 5.1% in December, but have risen steadily. Goldman Sachs lifted its terminal rate target range forecast to 5.5-5.75% on Tuesday in light of Powell's testimony, in line with current market pricing according to CME Group data.

☆ Warren Buffett's Berkshire Hathaway has quietly stashed $90 billion into investments over the last 3 years
▼ + stars: | 2023-03-06 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Berkshire Hathaway's latest annual report illustrates that the company has deployed nearly $90 billion in investments since 2020. In 2020, Buffett and co. had spent a then-unprecedented $25 billion on stock buybacks, and set a new record of $27 billion in 2021. But even after all that, Berkshire still ended last year with $129 billion in cash and short-term investments. Fundstrat expects the stock market to see its strongest rally of the year soon. Avoiding a recession would actually be bad news for the stock market.

Search resuls for: "Lombard"

25 mentions found