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☆ IBM cuts 3,900 jobs, misses annual cash target
▼ + stars: | 2023-01-26 | by ( Chavi Mehta | ) www.reuters.com time to read: +2 min

Jan 25 (Reuters) - IBM Corp (IBM.N) on Wednesday announced 3,900 layoffs as part of some asset divestments and missed its annual cash target, dampening cheer around beating revenue expectations in the fourth quarter. Analysts said news of the job cuts and free cash flow miss was behind the drop. read moreIBM's 2022 cash flow was $9.3 billion, below its target of $10 billion, due to higher-than-expected working capital needs. In October, IBM flagged softness in new bookings in Western Europe while peer Accenture Plc noted weakness in its consulting business. For 2022, IBM recorded revenue growth of 5.5%, its highest in a decade.

SYDNEY/SINGAPORE, Jan 26 (Reuters) - China's reopened borders and renewed focus on boosting the sagging economy have brightened the deals outlook, with bankers starting to field interest for mergers, acquisitions and fundraising involving the world's second-largest economy. Chinese companies' capital markets deals slipped 44% in the same period, according to Refinitiv data. That slump crimped the fees earned by Wall Street banks and forced some of them to cut jobs, mainly those linked to Chinese deals, in the past few months. Chinese private equity activity was worth $24.1 billion in 2022, down from $57.8 billion a year before, Pitchbook data showed. "Because of opening up, we expect an uptick in overseas disposal of private equity to Chinese buyers."

☆ Morgan Stanley reveals its 8 favorite stocks ahead of Europe's earnings season
▼ + stars: | 2023-01-25 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Morgan Stanley has named eight stocks to buy ahead of a hotly anticipated earnings season in Europe. Morgan Stanley says: "We expect the stock to rally into earnings, due in early March. Morgan Stanley says: "Teleperformance shares have been under scrutiny since November following the outbreak of negative news flow around its Content Moderation in Colombia. More importantly none of this news flow alters the fundamental growth and earnings profile of the company." Morgan Stanley says: "Elis offers resilient GDP+ growth through the cycle, which is expected to be structurally higher post COVID (driven by increased demand for hygiene, reliability, accountability and ESG)."

☆ Some Wall Street analysts are predicting a market decline. Here's when that might happen
▼ + stars: | 2023-01-25 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

In Europe, the STOXX 600 has increased by more than 15% over the same period. - Jan. 24 UBS: STOXX 600 down 8% to 410 by Dec. - Jan. 11 JP Morgan: STOXX 600 up 3% to 465 by Dec. We believe that the current market rally will start fading as we move through Q1. - Jan. 23 Barclays: STOXX 600 up 6% to 475 by Dec.

Jan 24 (Reuters) - Shareholder resolutions filed by New York City's top pension official will ask top Wall Street banks including JPMorgan Chase & Co (JPM.N) and Bank of America (BAC.N) to set stricter 2030 greenhouse gas emissions reduction targets for portfolio companies. The new resolutions ask banks including Bank of America, Goldman Sachs Group (GS.N) and JPMorgan to commit to reducing emissions in their energy lending and underwriting. Lander cited plans outlined last year by Citigroup (C.N) for emissions across its energy loan portfolio to drop 29% by 2030 from 2020. Currently the other three banks have goals to reduce the "emissions intensity" of their financing, a measure of emissions relative to output that climate activists say does not go far enough. Representatives for JPMorgan, Bank of America and Goldman Sachs declined to comment on the resolutions.

☆ Wall Street is excited about Chinese tech — and loves one mega-cap stock in particular
▼ + stars: | 2023-01-24 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

A growing number of positive analyst calls has reinforced optimism in the sector, with recent share price gains reflecting renewed interest. How is Wall Street playing the resurgence in Chinese tech? Morgan Stanley too, has named Alibaba its "top pick" in the Chinese tech sector — for the first time in three years. Cohen is reported to have told Alibaba executives that he thought the company could reach double-digit sales growth and nearly 20% free cashflow growth over the coming five years. He said he would "not be surprised" to see Alibaba's share price rise to $140 to $150 — a "significant amount of upside" from current levels.

☆ Goldman Sachs shares 4 cities that will suffer a 2008-size crash in home values — and breaks down why they believe home prices across the US will now fall further than they originally thought
▼ + stars: | 2023-01-24 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

In some cities, the damage will be as bad as it was across the US in the mid-2000s, the bank said. Attention homeowners and real-estate investors, Goldman Sachs has bad news: home prices are going to fall further in 2023 than they had previously thought. Goldman SachsWhile Karoui, Viswanathan, and Walker see national home prices falling by 10% peak-to-trough, they see prices in cities where home values have soared above average falling more. What other firms are sayingGoldman Sachs isn't the only Wall Street bank calling for further home price declines in 2023. Morgan Stanley strategist James Egan said in a January note that he sees home prices falling by 4% in 2023 thanks to stagnant demand.

☆ Maryland Gov. Wes Moore Gives Democrats Full Control Over State’s Government
▼ + stars: | 2023-01-19 | by ( Scott Calvert | ) www.wsj.com time to read: +1 min

Maryland Gov. Wes Moore will preside over a new Democratic trifecta—control of the state’s House of Delegates, Senate and governor’s office. BALTIMORE— Wes Moore , the new governor of Maryland, said he wants to fast-track a minimum-wage increase, replenish the ranks of short-handed state agencies and boost education funding in the heavily Democratic state, which for the past eight years was led by a highly popular Republican. Mr. Moore, a 44-year-old Democrat, has been a Rhodes scholar, an Army officer deployed to Afghanistan, a Wall Street banker, a bestselling author and the chief executive of an antipoverty foundation. Mr. Hogan left office with a 77% approval rating and the backing of 81% of Democratic voters, which Maryland pollster Patrick Gonzales, a Democrat, attributed at least in part to Mr. Hogan’s relatively moderate political profile and personal connection with voters.

☆ For the first time in a long time, CFOs can say no to some tech spending
▼ + stars: | 2023-01-19 | by ( Kaitlin Balasaygun | ) www.cnbc.com time to read: +2 min

To many executives, including Wall Street bank chiefs, even the ones who say a recession is in the cards, it isn't looking like a Fed-induced disaster scenario. In one particular way, the positioning this year is giving CFOs an even bigger role than they've had over the past decade of economic growth. "[Companies] are not imaging a draconian outcome for their own spending, their own budgets, and in that context," Arora told CNBC's Sara Eisen at Davos 2023. For many years in this hyper-growth environment, people were spending quickly to drive growth and CFOs were having to call them and say 'why are you spending so much money?' The Citi CIO Survey released on January 12, forecasts a slower growth rate for tech spending — well below the Covid peak and below the historical average, and down from Citi's last forecast in the Fall — but still representing a modest rate of growth.

SHANGHAI/HONG KONG, Jan 19 (Reuters) - Chinese brokerages are in a race to raise billions of dollars in capital to meet regulatory requirements, jumping on a market upturn to bolster operations as they brace for tougher competition from Wall Street banks on their home turf. The brokerages need fresh capital to meet Chinese risk management rules, and finance capital-intensive businesses such as margin financing and market-making, having weathered volatile markets in the last couple of years. Chinese brokerages raised just 77 billion yuan via follow-up share sales last year, Refinitiv data showed. "Securities firms need capital to transform their business model by reducing reliance on traditional businesses." Chinese brokerages face stiffer competition after Beijing allowed Western banks, including Morgan Stanley (MS.N), Goldman Sachs (GS.N) and Credit Suisse (CSGN.S), to take full control of their China brokerage units.

☆ Wayfair prepares to cut more than 1,000 jobs - WSJ
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: 1 min

Jan 19 (Reuters) - Online furniture retailer Wayfair Inc (W.N) is preparing to lay off over 1,000 workers, or more than 5% of its workforce, the Wall Street Journal reported on Thursday, citing people familiar with the matter. Wayfair joins a growing list of U.S. companies - ranging from tech giants and Wall Street banks to food delivery firms - which are shedding their workforce amid worries of an economic downturn. Wayfair did not immediately respond to a Reuters request for comment. The company said in August it was cutting about 870 jobs, or about 5% of its global workforce at that time, in a bid to trim operating costs amid waning demand for furniture and home decor from pandemic highs. Reporting by Deborah Sophia in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Morgan Stanley CEO says the bank's push for more stable revenue streams has worked. It's a key reason we own the stock
▼ + stars: | 2023-01-19 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +7 min

Acquisitions were a big part of how Morgan Stanley maneuvered its way into the middle of that money flow. Morgan Stanley CEO James Gorman Economic outlook Gorman was also asked about his thoughts on the global economy, inflation and the Federal Reserve. The Club's take Despite widespread recession fears since last year, the Club has maintained its belief in Morgan Stanley. As of right now, we've got a 2 rating on Morgan Stanley, meaning we'd wait for a pullback before buying more shares. Morgan Stanley shares carry a roughly 3.3% dividend yield, and it bought back $1.7 billion worth of stock in the fourth quarter.

The world's largest economy risks defaulting on its debt for the first time in modern history this summer as politicians wrangle over raising the country's debt limit, currently capped at $31.4 trillion. The U.S. is expected to reach its debt limit Thursday, Treasury Secretary Janet Yellen said last week. But coming to a deal to increase the U.S. debt limit won't be easy in a political environment that's grown even more polarized in the past decade. While conservative members of his caucus insist they do not want the country to default on its debt, McCarthy is under pressure to demand deep spending cuts. Another top Wall Street CEO said he planned to push lawmakers at Davos to focus more on spending cuts rather than the debt ceiling.

☆ Citi's Jane Fraser is bringing underperforming staff back into the office
▼ + stars: | 2023-01-18 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

Although Fraser sees no need to return to the old ways, Citi’s experiment has shown not all workers can hack it working remotely. A tool in the war for talentFraser became the first woman to run a major Wall Street bank when she took the Citi CEO role in March 2021. As part of her mission to cast Citi as the bank “with a soul,” Fraser saw an opportunity to embrace rather than resist a hybrid work schedule that allowed staff flexibility. It’s simply not sustainable,” she wrote in a memo to Citi’s more than 200,000 global staff. Most roles at Citi would become hybrid, with three days in the office and up to two at home, she said in the memo.

Persons: Jane Fraser, Fraser, “, ”, ” Fraser, It’s, “ We’re, … Organizations: New, New York CNN, Citigroup, Wall Street, Bloomberg News, Economic, Citi Locations: New York, Davos, Switzerland

☆ Citi's Jane Fraser, Wall Street's WFH champion, now has some doubts
▼ + stars: | 2023-01-18 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

New York CNN —When Jane Fraser became CEO of Citigroup nearly two years ago, in the middle of the pandemic, she established the kind of flexible hybrid work culture that’s mostly unheard of among elite Wall Street bankers. Although Fraser sees no need to return to the old ways, Citi’s experiment has shown not all workers can hack it working remotely. “Apprenticeship is really important,” she added, recalling her own “eccentric and wonderful” mentors from her time as a young banker. A tool in the war for talentFraser became the first woman to run a major Wall Street bank when she took the Citi CEO role in March 2021. As part of her mission to cast Citi as the bank “with a soul,” Fraser saw an opportunity to embrace rather than resist a hybrid work schedule that allowed staff flexibility.

☆ Wall Street is feeling bearish, but a rare stock market pattern is hinting at a bull rally to kick off 2023.
▼ + stars: | 2023-01-18 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Traders gather on the floor of the New York Stock Exchange, Friday, March 18, 2016. There is little optimism for stocks among Wall Street's foot soldiers, according to the latest fund manager survey from Bank of America. As BofA pointed out, that means the so-called "pain trade" in the stock market is higher, and any sudden rally would catch investors off-guard. But Wall Street survey be damned, stocks seem to be on the brink of a rare, bullish trifecta. The surge has pushed the world's most largest crypto token to levels not seen since before the fall of FTX.

☆ Morgan Stanley says cheaper electric vehicles are coming — and names the global stocks set to benefit
▼ + stars: | 2023-01-18 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

As electric cars become increasingly popular, a new manufacturing technique that could make them more affordable is garnering interest, according to Morgan Stanley. Asian automakers are outsourcing this process which could benefit three leading parts suppliers, according to Morgan Stanley: The investment bank is overweight on Wencan, which it says has taken the lead in this sector. As a result, Morgan Stanley expects the Shanghai-listed buy-rated stock to rise by 18% to 78 Chinese Yuan ($11.5) over the next 12 months. Another Zhejiang-based car parts maker, Tuopu, is expected to "aggressively" expand into unibody manufacturing, the bank said. Morgan Stanley is similarly "equal-weight" on Xusheng , which recently won orders from BYD and has extensive know-how in aluminum casting.

☆ Just 40% of people say their lives will be 'better off' in the next 5 years, a new global survey finds, with trust in business growing and trust in government falling
▼ + stars: | 2023-01-17 | by ( Reed Alexander | Read More | Read Less | ) www.businessinsider.com time to read: +4 min

Just 40% of respondents in a new global survey believe they'll be "better off" in the next five years. The annual Edelman Trust Barometer also found growing trust in business versus the public sector. Just four in 10 respondents who participated in the Edelman Trust Barometer for 2023 predicted that they and their families will be "better off" in five years — a dramatic 10-point reduction from last year. Edelman published its 2023 Trust Barometer this weekend, coinciding with a constellation of other warning signs that further economic pain may be on the way. The Edelman Trust Barometer, which this year polled more than 32,000 respondents in 28 countries, found that trust is tilting away from the public sector.

Jan 17 (Reuters) - Goldman Sachs Group Inc (GS.N) on Tuesday reported a bigger-than-expected 69% drop in fourth-quarter profit as it struggled with a slump in dealmaking and weakness in its wealth management business. Goldman is also curbing its consumer banking ambitions as Chief Executive Officer David Solomon refocuses the bank's resources to strengthen its core businesses such as investment banking and trading. Goldman's investment banking fees fell 48% in the latest quarter, while revenue from its asset and wealth management unit dropped 27% due to lower revenue from equity and debt investments. The bank reported a profit of $1.19 billion, or $3.32 per share, for the three months ended Dec. 31, missing the Street estimate of $5.48, according to Refinitiv IBES data. Fixed income, currency and commodities trading revenue was up 44%, while revenue from equities trading fell 5%.

Rising interest rates roiled markets last year and global investment banking revenue sank more than 50% from a year-earlier quarter, according to data from analytics firm Dealogic. SHARPLY LOWERAcross the board, investment banking fees were sharply lower. Morgan Stanley's revenue from investment banking business fell 49% in the fourth quarter while Goldman Sachs's investment banking fees fell 48%. JPMorgan's investment banking unit saw its revenue down 57%, Citigroup Inc's (C.N) investment banking revenue plunged 58% while Bank of America Corp (BAC.N) investment banking fees more than halved. Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income.

☆ There could be more job cuts at Wall Street banks in coming weeks: Banking analyst
▼ + stars: | 2023-01-16 | 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 EmailThere could be more job cuts at Wall Street banks in coming weeks: Banking analystThe efforts to replenish loan loss reserves show that the U.S. banks are "fairly worried about the future" due to rising credit costs, says banking analyst Daniel Tabbush of the Tabbush Report.

☆ Morgan Stanley cuts year-end dollar forecast
▼ + stars: | 2023-01-16 | by ( ) www.reuters.com time to read: +1 min

Jan 16 (Reuters) - Morgan Stanley cut its 2023 year-end forecast for the dollar index to 98, and expects the greenback's weakness to be more pronounced against the euro this year as worries about the severity of an economic downturn start to ease. They previously saw the index , which weighs the U.S. currency against a basket of six major rivals, ending 2023 at 104. The dollar index was trading at 102.4 around 1330 GMT on Monday. The Wall Street bank now sees the euro strengthening against the dollar to 1.15 by year-end versus a previous forecast of 1.08. The bank's previous year-end forecast for the yuan was 6.80.

☆ Wall Street banks stockpile funds for possible recession, show resilience
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Jeenah Moon/File Photo/File PhotoNEW YORK, Jan 13 (Reuters) - Wall Street's biggest banks stockpiled more rainy-day funds to prepare for a possible recession ahead and reported weak investment banking results, but said consumers remained healthy and higher rates boosted profits. Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income. However, Citigroup Inc (C.N) reported a 21% fall in profits with investment banking taking a hit. Global investment banking revenue sank to $15.3 billion in the fourth quarter, down more than 50% from a year-earlier quarter, according to data from Dealogic. Bank of America's investment banking fees more than halved in the quarter.

☆ Goldman Sachs no longer expects recession in euro zone in 2023
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +2 min

[1/2] The euro sign is photographed in front of the former head quarter of the European Central Bank in Frankfurt, Germany, April 9, 2019. REUTERS/Kai PfaffenbachJan 10 (Reuters) - Goldman Sachs said on Tuesday it expects the euro zone economy to grow by 0.6% this year, compared with its previous forecast of a contraction, thanks to a fall in natural gas prices and the reopening of China's borders. Euro zone inflation is expected to be around 3.25% at the end of 2023 compared with 4.50% forecast earlier, the economists said. In December, consumer price growth across euro zone slowed to 9.2% from 10.1% a month earlier, Eurostat data showed last week. For the UK, Goldman sees a smaller contraction of 0.7% in GDP, compared with an earlier expectation for it to shrink by 1%, helped by lower wholesale gas prices.

☆ China’s reopening has gotten Wall Street excited. Here’s how the pros are playing it
▼ + stars: | 2023-01-10 | by ( Zavier Ong | ) www.cnbc.com time to read: +5 min

Over the past week, a host of Wall Street banks have turned increasingly bullish on the world's second-largest economy and have upgraded their outlook on Chinese stocks. Morgan Stanley expects China's GDP to grow by an "above-consensus" 5.4% in 2023, on the back of a "fast-tracked" reopening and more proactive policy easing. Meanwhile, UBS says Chinese stocks look increasingly attractive. How to play the reopening Against this backdrop, analysts have named a slew of both Chinese and global stocks they think will benefit most from China's reopening. Bank of America's domestic reopening beneficiaries include consumer stocks such as alcoholic beverage makers Kweichow Moutai and Tsingtao Brew , airline stocks including China Southern Airlines , as well as online travel platform Trip.com .

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