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☆ Blackstone is in talks to help regional banks with lending
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +4 min

NEW YORK, April 20 (Reuters) - Blackstone Inc (BX.N), the biggest manager of private equity and real estate assets, said on Thursday it was discussing partnerships with U.S. regional banks to help them with constraints in areas such as car loans and home improvement financing. "As regional banks experienced outflows of deposits, we are seeing real-time opportunities to partner with them at scale," Blackstone President Jonathan Gray said on the firm's first-quarter earnings call. "The regional banks generally play a very large role in home improvement loans, auto loans and equipment finance. He did not identify the banks Blackstone is speaking to. The firm has shifted its focus in real estate to resilient sectors such as logistics and rental housing.

AT&T (T.N) shares dropped 10.4% after the wireless carrier missed market estimates for first-quarter revenue and free cash flow. The S&P 500's rally to start the year is set to be tested by a first-quarter earnings season that investors expect to show tepid results. “The market has been overbought for the last week or two," said Anthony Saglimbene, chief market strategist at Ameriprise Financial. In other earnings news, American Express Co (AXP.N) profit missed Wall Street estimates and its shares fell 1%. Shares of Lam Research (LRCX.O) rose 7.2% after the chip-making equipment supplier's revenue topped estimates, while shares of D.R.

☆ Western Alliance stock surges as results allay deposit fears
▼ + stars: | 2023-04-19 | by ( Noel Randewich | ) www.reuters.com time to read: +3 min

April 19 (Reuters) - Shares of Western Alliance Bancorp (WAL.N) surged 24% on Wednesday after the U.S. regional bank posted stronger-than-expected earnings and said its deposits had stabilized, helping allay fears that last month's banking crisis could envelop more lenders. Wedbush Securities raised its rating on Western Alliance to "outperform" from "neutral" and added the bank to its "Best ideas list", among stocks including Apple (AAPL.O) and Microsoft (MSFT.O). Western Alliance's results soothed concerns about the stability of regional banks following worst U.S. banking crisis since 2008. The rally in Western Alliance following its report stood out among several regional banks that have posted quarterly results this week. Western Alliance's stock remains down over 40% from early March, before Silicon Valley Bank's collapse.

☆ Short positions on Canada's TD Bank rise to $6.1 billion, ORTEX data shows
▼ + stars: | 2023-04-19 | by ( Maiya Keidan | ) www.reuters.com time to read: +2 min

TORONTO, April 19 (Reuters) - Hedge fund bets against Canada's TD Bank Group (TD.TO) hit $6.1 billion on Wednesday, a 45% increase from 14 days ago, according to data provider ORTEX's calculations, one day ahead of the Canadian lender's annual general meeting. So-called 'arbitrage investors', many of which are event-driven hedge funds, bet on mergers and acquisitions by buying shares of the target and shorting the acquirer's stock. TD, which is awaiting regulatory approval of its takeover of First Horizon, is expected to address the $13.4 billion deal at its AGM on Thursday in Toronto. Hedge funds profit when they borrow a stock from an institutional investor and sell it back when the price falls, pocketing the difference, a practice known as short-selling. TD shares are down 0.1% since the U.S. regional banking crisis began, and up 3.4% this week.

☆ Japan's SMFG is first global bank to sell AT1 bonds since C.Suisse wipeout
▼ + stars: | 2023-04-19 | by ( Junko Fujita | ) www.reuters.com time to read: +2 min

AT1 bonds - the riskiest tranche of a bank's bonds also known as "contingent convertibles" or "CoCo" bonds - can be converted into equity or written off if a bank's capital level falls below a certain threshold. SMFG sold the bonds in two tranches, in 89 billion yen ($662.50 million) five-year notes, and 51 billion yen 10-year bonds. The 89 billion yen issuance carries a coupon rate of 1.879% for the initial five years and two-month period, a regulatory filing showed. "In Japan, where spreads over corporate bonds are thin, the terms for these AT1 bonds were reasonably good, provided that the banking sector is credible," said Pictet's Otsuki. Japanese banks' AT1 bonds had been configured in a way the value is secured even if the government is involved in restructuring, and SMFG's new issues are seen to have the same features, she said.

☆ Western Alliance deposits stabilize, profits beat, shares rise after hours
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +2 min

April 18 (Reuters) - Western Alliance Bancorp (WAL.N) on Tuesday posted profits that surpassed estimates and said its deposits stabilized after the March banking crisis, news that sent its shares soaring 15% in after-hours trading and also lifted shares of other U.S. regional banks. The company said some 73% of its deposits were insured and immediately available liquidity exceeds uninsured deposits, it said. Its proportion of insured deposits was well above industry norms among the 50 largest U.S. banks. Western Alliance and other regional lenders came under pressure recently, with consumers moving money into bigger banks after the failure of two U.S. lenders triggered worries about a broader crisis and funding costs. Last month, Western Alliance affirmed its full-year deposit growth forecast of 13% to 17%.

☆ Factbox: Deposit flight from U.S. regional banks raise questions about funding costs
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

[1/2] The company logo for financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/File PhotoApril 17 (Reuters) - Regional banks in the United States on Monday reported deposit outflows between 3% and 11% from the prior quarter after customers sought the refuge of bigger banks in the aftermath of one of the worst banking crises. The closure of two regional banks in March shook investor confidence and set off fears over deposit safety after small banks shed $177.5 billion in deposits in March from the previous month, according to data from the U.S. Federal Reserve. These lenders will be compelled to lift deposit rates to lure customers, analysts worry, raising costs of one of the cheapest sources of funding. Compiled by Mehnaz Yasmin in Bengaluru; Edited by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Markets hope China chooses to surprise on the upside
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +3 min

April 17 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole. It's been a careful start to the week in Asia with stocks and bonds little changed and the dollar holding most of Friday's bounce. The caution is understandable given the week holds updates on Chinese economic growth and global PMIs, along with the Fed's Beige book and at least eight Fed speakers. Analysts are generally optimistic for the China data given the stunning strength of recent trade figures. Goldman Sachs (GS.N) and Morgan Stanley (MS.N) had both been expected to report a drop in profit, though that might not be inevitable given last Friday's upside surprises on earnings.

☆ How moving food from farm to table puts global supply chain logistics to extreme tests
▼ + stars: | 2023-04-17 | by ( Sponsor Post | Created Cargill With Insider Studios | ) www.businessinsider.com time to read: +4 min

Regional conflicts like the invasion of Ukraine have had far-reaching global consequences, impacting global food supply and food security. Prior to the war, Ukraine could produce enough food to feed 400 million people per year. To keep food growing and moving in the region, operators like Cargill must rely on critical data, partnerships, and dedicated employees. Farmer livelihoods and the rebuilding of Ukraine's agriculture economy are also critical to ensure ongoing global food systems and security. Click here for more information about Cargill's efforts to address needs of the food supply chain in Ukraine and around the world.

☆ U.S. regional banks hit by deposit flight as clients seek higher returns
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

[1/2] A view of the Charles Schwab office location in Manhattan, New York, U.S., November 15, 2021. Deposits at State Street Corp (STT.N) and M&T Bank Corp (MTB.N) fell 3% each, while those at Charles Schwab Corp (SCHW.N) shrank 11% from the prior quarter. Both Schwab and M&T Bank rode a surge in interest income to beat profit expectations, but custodian bank State Street fell short after an outflow of client funds hurt its fees. Its Chief Executive Officer Walter Bettinger addressed commentary about portfolios of debt securities held by banks, including Schwab, which are disclosed as unrealized losses in their earnings. M&T Bank shares were up nearly 6% at $123.70 while State Street stock plunged 11% to $70.98, dragging down peers Northern Trust Corp (NTRS.O) and Bank of New York Mellon Corp (BK.N).

☆ Should investors buy regional bank stocks? A bull and a bear weigh in — and share 3 top picks
▼ + stars: | 2023-04-17 | by ( Weizhen Tan | ) www.cnbc.com time to read: +5 min

A bull and a bear on U.S. regional banks faced off on CNBC's " Street Signs Asia " on Thursday and shared their stock picks. 'Not the environment' for regional banks It's "not the environment" for regional banks right now, said Brian Stutland, portfolio manager at Equity Armor Investments. Stock picks For investors still keen on regional bank stocks, Marinac said his top two picks are Fifth Third Bancorp and First Citizens . First Citizens announced in late March that it will buy over Silicon Valley Bank's deposits and loans. He highlighted "the fact that [regional bank] stocks are down 40% when you've had earnings down about 5%.

☆ Crypto trading could take a breather after ‘Shanghai’ rally, as investors refocus on banks and economy
▼ + stars: | 2023-04-16 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +5 min

While ether climbed throughout the week, bitcoin – the outperformer this year – was trading more choppily. Or will it be an event where people are losing money broadly and economic concerns spill over into the crypto space." "I think it could go either way, but so far what we see in the crypto space is encouraging," he added. "Investors could continue to be picky and look for perceived quality, even in the crypto space," she said. "That's helped bitcoin this year since it's seen as a risk asset outside of crypto, but a store of value within crypto.

Wells Fargo fared less favorably, down 0.3%, and regional banks including Zions (ZION.O) and First Republic (FRC.N) fell. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts. More banking results are due over the coming week, including Bank of America (BAC.N) and Goldman Sachs (GS.N) on Tuesday and Morgan Stanley (MS.N) on Wednesday.

The largest U.S. lender gained $50 billion in deposits at the end of March, its first-quarter earnings report showed. That compares to Citigroup Inc (C.N), where deposits were largely flat, and a decline at Wells Fargo & Co (WFC.N). Investors have closely scrutinized deposits after the collapses of Silicon Valley Bank and Signature Bank last month rattled markets, prompting regulators to step in to guarantee their customers' deposits. JPMorgan reported a 2% rise in deposits to $2.38 trillion at the end of the quarter compared with the end of 2022. Deposits at Wells Fargo slid 2% to $1.36 trillion as customers moved their money to higher-yielding accounts and products.

Wells Fargo executives detailed the bank's exposure to CRE at length during a conference call with analysts. Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year. "Both Wells Fargo and JP Morgan delivered very, very solid results, blowing past the expected earnings. Reuters GraphicsAverage loans in the bank's commercial banking division rose 15%, while commercial loans rose roughly 7% from a year earlier. Wells Fargo is also still working to contain the fallout from a scandal over its sales practices that led to hefty fines and an asset cap imposed by the Fed.

[1/2] The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. First-quarter 2023 earnings from JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) beat Wall Street expectations on Friday as consumer and corporate spending held up in the face of rate rises, although all three saw signs of a slowdown and made provisions accordingly. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts.

☆ Wells Fargo profit rises 32% as higher rates bolster interest income
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +3 min

April 14 (Reuters) - Wells Fargo & Co's (WFC.N) profit jumped 32% in the first quarter as it earned more from interest rate payments, helped by the U.S. Federal Reserve's tighter monetary policy, the lender reported Friday. The bank, however, set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. The collapse of Silicon Valley Bank and Signature Bank last month prompted a rout in bank stocks as investors fretted over broader weaknesses in the industry. Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year. Overall, non-interest expenses fell to $13.68 billion from $13.85 billion a year earlier, mainly driven by lower operating losses.

Exchange operators' shares have outperformed in the past few weeks, with traders and analysts pointing to signs of investors rotating into exchanges, partly at the expense of banks. "Exchange operators are data and technology businesses with defensive utility-like features, while banks are highly cyclical and exposed to idiosyncratic business model risks". Average daily value traded at the London Stock Exchange (LSEG) (LSEG.L) rose 12.9% month-over-month in March. "Investors tend to look at the exchanges as defensive names. "We continue to like exchange stocks."

☆ Marketmind: Banks to test soft landing thesis
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanWorld markets have surged this week on renewed hopes of disinflation, peak interest rates and a soft economic landing - and earnings from Wall Street's biggest banks now test the thesis. Markets will be most focussed on bank guidance on how much the March bank failure will crimp lending going forward. Next month's expected interest rate rise from the Federal Reserve is now expected to be the last and futures see up to 70 basis points of cuts from that point to year-end. And with China's booming trade numbers for last month also suggesting the world economy at large will comfortably skirt recession this year, "soft landing" hopes are back in vogue. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ As earnings season begins, S&P 500 forecast looks less weak
▼ + stars: | 2023-04-14 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +2 min

That compares with their week-ago forecast for a 5.2% year-over-year decline in the quarter. S&P 500 earnings fell 3.2% year-over-year in the fourth quarter of 2022, based on Refinitiv data, which means the first quarter still would mark a second straight quarterly decline in U.S. earnings, or a profit recession. Investors have been eagerly awaiting quarterly results from banks following the collapse of two U.S. regional banks in March. A slew of other regional banks are still due to report in the coming weeks, including Zions Bancorp (ZION.O) on Wednesday. Quarterly results are also expected next week from Goldman Sachs Group (GS.N) and Netflix (NFLX.O).

☆ Canadian ETF slipup could have spillover effect
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +1 min

TORONTO, April 14 (Reuters Breakingviews) - Canadian regulators have halted trading in 11 exchange-traded funds after their sponsor, Emerge Canada, failed to file audited financial statements by a deadline of March 31, the Financial Times reported. Toronto-based Emerge Canada, which distributes Cathie Wood’s Ark Invest ETFs among other products, failed to find a replacement auditor after announcing in December that it ended its relationship with the previous auditor, BDO Canada. Emerge Canada has been looking for a new auditor ever since. Some investors flocked to invest in Canadian ETFs during the U.S. regional bank turmoil. If Canada wants to build on its new-found safe haven status, it will have to make sure the problems at Emerge Canada are short-lived.

☆ Fed's Goolsbee says mild U.S. recession feasible
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +2 min

April 14 (Reuters) - A U.S. recession is certainly feasible as the Federal Reserve's steep rate-hikes over the past year filters fully through the economy, Chicago Fed President Austan Goolsbee said on Friday, as he again urged the central bank to be prudent on policy. "There is no way you can look at current conditions around the world and in the US and not think that some mild recession is definitely on the table as a possibility," Goolsbee said in an interview with CNBC. He was responding to a question about a forecast from Fed staff that banking sector stress would tip the economy into recession later this year. "The data show that and we've raised rates almost 500 basis points in a year," he added. Atlanta Fed President Raphael Bostic told Reuters in an interview, also on Friday, the Fed could "hit the mark and hold" with one more rate hike.

☆ The 'energy crisis is solved' and the German economy is safe, Bundesbank's Nagel says
▼ + stars: | 2023-04-13 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

"The German economy proved a lot over the past couple of weeks and months, so the adaptation capacity of the German industry is pretty high, the energy crisis is more or less solved. But core inflation — which strips away volatile food, energy, alcohol and tobacco prices — increased to an all-time high of 5.7%. Nagel said the persistence of high core inflation showed the ECB Governing Council, in which he is considered one of the more hawkish members, has further to go in tightening monetary policy. He expects core inflation to eventually follow the headline figure downwards, but reiterated that policymakers have to "stay really alerted when it comes to the inflation story." "There is no contradiction between what we have to do on the price stability side and on the financial stability side," he said.

☆ Morgan Stanley's Slimmon names 'attractively priced' stocks to beat the economic uncertainty
▼ + stars: | 2023-04-13 | by ( Weizhen Tan | ) www.cnbc.com time to read: +3 min

Morgan Stanley's Andrew Slimmon expects an economic slowdown in the U.S. will happen later than many have predicted. And I think that's when we will hit a slowdown and I suspect it's coming later than what many people have been predicting," said the senior portfolio manager at Morgan Stanley Investment Management. Here's what investors can buy and avoid in the face of that uncertainty, according to Slimmon. Be wary of 'very large' stocks He said he would be particularly cautious on "very large" stocks right now, referring to FAANG — Facebook (now Meta ), Amazon , Apple , Netflix and Google (now Alphabet ). "It's not a cheap stock, but to me, that's a defensive stock that you want to own in this environment as well."

☆ Germany's energy crisis is 'more or less solved' and its economy is safe, Bundesbank's Nagel says
▼ + stars: | 2023-04-13 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

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