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☆ Investors must assess banks' net interest margins in wake of SVB fallout, says investment director
▼ + stars: | 2023-03-13 | 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 EmailInvestors must assess banks' net interest margins in wake of SVB fallout, says investment directorRuss Mould, investment director at AJ Bell, weighs in on the unravelling of Silicon Valley Bank.

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.

☆ The implosion of Silicon Valley's largest bank has investors worried worse is to come: 'There might be some kind of crack in the financial system'
▼ + stars: | 2023-03-10 | by ( Hasan Chowdhury | James Dean | ) www.businessinsider.com time to read: +5 min

The implosion of the California lenders Silicon Valley Bank and Silvergate has investors worried. Christopher Whalen, the chairman of Whalen Global Advisors, a financial consultancy, said Silicon Valley Bank was "just the tip of the iceberg." He added that the situation at Silicon Valley Bank was "a reminder that many institutions are sitting on large unrealized losses" on bond holdings. Mould said the "fire sale" of Silicon Valley Bank's bond portfolio raised broader concerns. Silicon Valley Bank CEO Greg Becker on Thursday implored customers to "stay calm" in an apparent bid to stave off further mass withdrawals and avert collapse.

Europe’s benchmark Stoxx Europe 600 index fell 1.5% in early trading, while London’s bank-heavy FTSE 100 (UKX) index slid 1.8%. Meanwhile, Japan’s Nikkei ended Friday down 1.7% as the country’s central bank decided to keep its ultra-low interest rates unchanged. Futures on the benchmark S&P 500 (DVS) index fell 0.43%, while futures on the tech-heavy Nasdaq Composite (COMP) dropped 0.2%. Wall Street wipeoutThe losses come after US bank stocks logged the largest falls in nearly three years on Thursday. The KBW Bank Index, which tracks 24 leading US banks, fell 7.7%, its biggest drop in almost three years.

☆ Elon Musk's 'Master Plan' for Tesla fails to charge up investors
▼ + stars: | 2023-03-02 | by ( ) www.reuters.com time to read: +2 min

March 2 (Reuters) - Tesla Inc's (TSLA.O) shares fell 6% premarket on Thursday, after Chief Executive Elon Musk and team's four-hour presentation failed to impress investors waiting for an affordable electric vehicle and a plan with a concrete timeline. However, the event, where Musk revealed the EV maker's 'Master Plan 3', was short on details about the timeline or any new Tesla products. "The timeline and cost details were limited, and the event lacked a Tesla-like surprise," Wells Fargo analyst Colin Langan said. The reduction plan was "bad news for the whole silicon carbide production chain and in particular for STMicro," Brokerage Equita said. It estimates that Tesla accounted for 70% of 2022 semiconductor sales at STMicro.

☆ Companies are latching onto the hot new AI trend. The feds are warning they're watching for false claims.
▼ + stars: | 2023-03-02 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

The FTC warned companies to avoid overselling their AI products in a blog post on Monday. It called AI a "hot marketing" term that some companies won't be able to stop themselves from "abusing." The craze has caused an AI arms race between Big Tech companies like Microsoft and Google. News organizations like Buzzfeed and CNET have also begun using AI. "Is it any wonder that we can be primed to accept what marketers say about new tools and devices that supposedly reflect the abilities and benefits of artificial intelligence (AI)?"

☆ European shares kicks off week on solid footing, all sectors rise
▼ + stars: | 2023-02-27 | by ( Shreyashi Sanyal | ) www.reuters.com time to read: +3 min

The blue-chip index (.STOXX) added 0.9%. It fell 1.4% last week after hotter-than-expected U.S. inflation data fuelled bets that the Federal Reserve would continue to raise rates. European retailers (.SXRP) rose 1.1%, led by a 3.1% increase in shares of Hennes & Mauritz (HMb.ST). Mould highlighted that consumer spending has been buttressed by gas prices coming down and help from government-support schemes across the single-currency bloc. Dechra Pharmaceuticals (DPH.L) tumbled 15.5%, to the bottom of the STOXX 600, as the veterinary drugs maker warned its full-year operating profit would be at the lower end of analysts' expectations.

☆ Cineworld shares dive on reports of no bidders for UK, U.S. assets
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +2 min

Feb 22 (Reuters) - Shares of Cineworld (CINE.L) slumped as much as 22% on Wednesday after media reports said the world's second-largest cinema operator had received 40 non-binding bids, but none for its UK and U.S. assets or nearing its $6 billion secured debt load. When requested by Reuters, Cineworld did not immediately confirm details of the update it provided to the court. The reports also said the company was proposing an April 10 deadline for final bids, with an auction, if necessary, to follow on April 17. A vote on restructuring has been set for May 21, with a court confirmation hearing tentatively set for May 30. Last month, Bloomberg News reported that Cineworld has shuttered 23 theatre sites since filing for bankruptcy protection and was planning more closures.

☆ These 2 charts show that investors are more scared of Jerome Powell than they are of Vladimir Putin
▼ + stars: | 2023-02-22 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Stocks plummeted Tuesday – as Vladimir Putin promised to escalate Russia's war in Ukraine. Check out these two charts that show what investors are worried about right now. Two ongoing sagas have rattled markets over the past year: the Federal Reserve's aggressive interest-rate hikes and Russia's war in Ukraine. When the cost of borrowing is higher, stocks struggle because their future cash flows take a hit, chipping away at their overall valuations. That suggests that they're more scared of Jerome Powell than they are of Vladimir Putin.

☆ Futures inch higher ahead of Powell speech
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures: S&P up 0.13%, Nasdaq up 0.27%, Dow flatFeb 7 (Reuters) - U.S. stock index futures edged higher on Tuesday, ahead of a speech by Federal Reserve Chair Jerome Powell later in the day that will be parsed for further clues on how long the central bank will keep interest rates higher. Nasdaq 100 e-minis rose the most among futures tracking Wall Street's three main indexes. Expectations of high rates for a protracted period dragged Wall Street's main indexes down on Monday. So far, 254 companies on the S&P 500 have reported quarterly earnings, with 69.3% of them beating expectations, according to Refinitiv. ET, Dow e-minis were up 4 points, or 0.01%, S&P 500 e-minis were up 5.25 points, or 0.13%, and Nasdaq 100 e-minis were up 34 points, or 0.27%.

☆ Meta surges on cost cut, buyback plans; lifts mega-cap stocks
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +2 min

Feb 2 (Reuters) - Shares of Meta Platforms Inc (META.O) soared nearly 20% in premarket trading on Thursday as the Facebook parent wooed investors with plans to rein on costs and a new $40 billion share buyback. Meta plans to cut costs in 2023 by $5 billion to between $89 billion and $95 billion compared with its earlier outlook of $94 billion to $100 billion, with CEO Mark Zuckerberg calling 2023 the "Year of Efficiency." If premarket gains hold, the company would add nearly $76 billion to its $401.51 billion market value. Meta results also sparked a rally in shares of other mega-cap firms that are set to report quarterly results later in the day. Amazon.com Inc (AMZN.O) and Google owner Alphabet Inc (GOOGL.O) rose about 4% each, while Apple Inc (AAPL.O) firmed 1.1%.

☆ Instant View: India's Adani calls off $2.5 bln share sale
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

NEW DELHI, Feb 1 (Reuters) - India's Adani Enterprises (ADEL.NS) on Wednesday called off its $2.5 billion share sale, citing market conditions, a week after a U.S. short-seller's critical report unleashed a rout in the wider Adani Group's stocks. COMMENTARYDEVEN CHOKSEY, MANAGING DIRECTOR, KR CHOKSEY SHARES AND SECURITIES"In the given situation, when the entire environment has become negative, it is good that the share sale is withdrawn. GURMEET CHADHA, CHIEF INVESTMENT OFFICER AND MANAGEMENT PARTNER OF COMPLETE CIRCLE WEALTH"It was the right thing to do. It must have been a hard decision but it was the right thing to do. To go through this exercise of a share sale and to call it off raises more questions."

☆ Costcutter owner Bestway buys Sainsbury's stake
▼ + stars: | 2023-01-27 | by ( James Davey | ) www.reuters.com time to read: +4 min

Sainsbury's shares were up 4.5% on Friday, hitting their highest since April and leading gainers on the FTSE 100 (.FTSE) index. The 3.45% stake makes Bestway Sainsbury's sixth largest investor, Refinitiv Eikon data showed. Asda was purchased by brothers Mohsin and Zuber Issa and private equity company TDR Capital for an enterprise value of 6.8 billion pounds, while Morrisons was bought by U.S. private equity firm Clayton, Dubilier & Rice for 7 billion pounds. Sainsbury's proposed 7.3 billion pounds takeover of Asda was blocked by Britain's competition regulator in 2019. Shares in Sainsbury's closed on Thursday at 239.4 pence, valuing the business at 5.6 billion pounds.

☆ Netflix stock jumps 6% after co-CEO Reed Hastings steps down and subscriber numbers soar
▼ + stars: | 2023-01-20 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Netflix shares rallied 6% ahead of Friday's opening bell after the company released its fourth-quarter results. Also, Co-CEO Reed Hastings announced he would be quitting his current role. The firm also announced that co-CEO Reed Hastings would be stepping down to become Netflix's executive chairman. Hastings co-founded Netflix in 1997 and oversaw its transition from DVD delivery service to a streaming behemoth and onetime Wall Street darling. Read more: Reed Hastings is stepping down as co-CEO of Netflix

☆ Futures fall as weak data fuel recession worries, Fed comments on tap
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures down: Dow 0.52%, S&P 0.54%, Nasdaq 0.61%Jan 19 (Reuters) - U.S. stock index futures fell on Thursday after weak economic data fueled recession worries, while investors await comments from more Federal Reserve officials for clues on the central bank's path of monetary tightening. "For once bad news really was bad news because of the implications it might have for interest rates. Weak retail sales suggested consumers' resilience may have been pushed beyond breaking point," said Russ Mould, investment director at AJ Bell. Analysts now expect year-over-year earnings from S&P 500 companies to decline 2.6% for the quarter, according to Refinitiv data, compared with a 1.6% decline in the beginning of the year. ET, Dow e-minis were down 173 points, or 0.52%, S&P 500 e-minis were down 21.25 points, or 0.54%, and Nasdaq 100 e-minis were down 69.5 points, or 0.61%.

☆ Futures rise on China reopening optimism, easing rate hike worries
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +3 min

A key inflation report due on Thursday will provide further cues on the state of price pressures and the outlook for interest rates. The U.S. Labor Department's consumer prices index (CPI) report is expected to show prices increased by 6.5% year-on-year in December, moderating from a 7.1% rise in November. "Sentiment still feels as fragile as a teacup and U.S. inflation numbers on Thursday could provide a key test for investor confidence." ET, Dow e-minis were up 89 points, or 0.26%, S&P 500 e-minis were up 12.5 points, or 0.32%, and Nasdaq 100 e-minis were up 30.25 points, or 0.27%. Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: UK housebuilders may cut dividends as surging rates deter buyers
▼ + stars: | 2023-01-09 | by ( Ajose Koilparambil | ) www.reuters.com time to read: +5 min

The big, listed UK housebuilders have paid dividends worth 2.2 billion pounds ($2.6 billion) for their respective last financial years. Potential cuts in dividends would weigh down on shares of housebuilders, after the sector index (.FTNMX402020) slumped more than 44% in 2022. Among the FTSE 100 builders, analysts are now forecasting dividend cuts from many firms, particularly those whose payouts are linked to earnings growth. High-end housebuilder Berkeley (BKGH.L) stuck to its cash-return plans, but cut its earnings estimates for the 2024 and 2025 fiscal years. Barratt, Persimmon and Berkeley have said they would be more cautious with land purchases, in a bid to reduce outgoings as falling property prices squeeze margins.

☆ Amazon layoff signals more pain for tech sector as recession fears mount
▼ + stars: | 2023-01-05 | by ( ) www.reuters.com time to read: +2 min

Jan 5 (Reuters) - The massive job cuts by Amazon.com Inc (AMZN.O), one of the biggest private employers in the United States, show the wave of layoff sweeping through the tech sector could stretch into 2023 as companies rush to cut costs, analysts said on Thursday. The drop in demand amid a steep rise in borrowing costs has led several executives from the sector to admit they hired in excess during the COVID-19 crisis. "Some of us will remember 2000 to 2003 after a massive bubble fed by cheap money, high investor expectations and plentiful cash," said Mould. "Whether we see a repetition or not will be very interesting as there is a danger of that." Reporting by Nivedita Balu, Yuvraj Malik and Bansari Mayur Kamdar in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks edge higher as darker forecasts loom
▼ + stars: | 2023-01-02 | by ( Nell Mackenzie | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.04%, just short of an index of global shares, which climbed 0.21%. "Europe is taking the latest round of PMIs well enough, as the final readings help to confirm the view (hope?) DOLLAR STRUGGLING TO MAINTAIN STRENGTHElsewhere, the dollar edged almost 0.1% higher against a basket of major currencies, while the pound and euro fell 0.4% and 0.3% respectively. Germany's 10-year bond yield fell 13 bps to 2.43%, after hitting its highest since 2011 at 2.57% on Friday. Reporting by Nell Mackenzie Additional reporting Dhara Ranasinghe Editing by Mark Potter and Barbara LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Futures muted after Wall St rally, economic data on tap
▼ + stars: | 2022-12-22 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures down: Dow 0.10%, S&P 0.07%, Nasdaq 0.07%Dec 22 (Reuters) - U.S. stock futures were subdued on Thursday after Wall Street's main indexes staged a rally in the previous session, with investors awaiting jobs data to assess the strength of the labor market. It is expected to show gross domestic product increased at a 2.9% annualized rate, in line with the previous estimate. ET, Dow e-minis were down 32 points, or 0.1%, S&P 500 e-minis were down 2.75 points, or 0.07%, and Nasdaq 100 e-minis were down 7.75 points, or 0.07%. Micron Technology Inc (MU.O) slipped 3% in premarket trading after the chipmaker forecast a bigger-than-expected second-quarter loss. Reporting by Shubham Batra and Amruta Khandekar in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Futures higher after two-week selloff, Tesla jumps on Musk poll
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: +2 min

[1/2] A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 14, 2022. REUTERS/Andrew KellySummarySummary Companies Futures up: Dow 0.31%, S&P 0.40%, Nasdaq 0.49%Dec 19 (Reuters) - U.S. stock index futures edged higher on Monday after equities suffered two straight weeks of losses, while Tesla shares rose after CEO Elon Musk launched a poll asking if he should quit as Twitter's boss. However, money market participants still place a 73.5% chance of a 25 basis points rate hike in February to 4.5%-4.75%, with a terminal rate of 4.84% in May 2023. ET, Dow e-minis were up 102 points, or 0.31%, S&P 500 e-minis were up 15.5 points, or 0.4%, and Nasdaq 100 e-minis were up 55.5 points, or 0.49%. Moderna Inc (MRNA.O) advanced 4.2% after Jefferies upgraded the biotechnology firm's stock to "buy" from "hold", citing cancer therapy opportunities.

☆ European shares fall on caution ahead of key rate hike decisions
▼ + stars: | 2022-12-12 | by ( Amruta Khandekar | ) www.reuters.com time to read: +2 min

The continent-wide STOXX 600 index (.STOXX) was down 0.7% at 0857 GMT, deepening losses from earlier in the session. With recent signs of easing inflationary pressures in the euro zone, the European Central Bank is expected to deliver a dialled-down 50 basis points (bps) rate hike on Dec. 15, a day after the Federal Reserve's interest rate announcement. "The markets are still relying on this narrative that inflation will cool, the central banks will be able to slow down, pause interest rate increases," said Russ Mould, investment director at AJ Bell. "But the numbers remain mixed, so it's perhaps not quite as clear cut as the markets would like it to be." Sanofi SA (SASY.PA) rose 0.7% after the French drugmaker on Sunday said it pulled out of talks to buy Horizon Therapeutics (HZNP.O).

☆ UK's FTSE boosted higher by healthcare sector
▼ + stars: | 2022-12-07 | by ( Johann M Cherian | ) www.reuters.com time to read: +2 min

SummarySummary Companies FTSE 100 rose 0.1%, FTSE 250 falls 0.2%GSK escapes U.S. lawsuit on Zantac allegationsMoonpig drops to bottom of FTMCDec 7 (Reuters) - UK's export-oriented FTSE 100 climbed on Wednesday as the healthcare sector was boosted by shares of GSK after the drugmaker escaped U.S. lawsuits over its heartburn drug Zantac. The blue-chip FTSE 100 (.FTSE) edged 0.1% higher by 0930 GMT. The pharmaceutical sector (.FTNMX201030) rose 3.3% in its biggest one-day percentage gain since late February. A nearly 10% jump in shares of GSK Plc (GSK.L) boosted the index after the drugmaker was spared thousands of U.S. lawsuits claiming that Zantac caused cancer. The real estate sector (.FTUB3510) fell 0.2% and is down 34% year-to-date and is heading towards its biggest fall since 2008.

☆ Futures subdued after sharp Wall St selloff on Fed worries
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +2 min

Concerns about steeper increase in borrowing costs have boosted dollar, while weighing on equities and bond markets this year, with the S&P 500 down 16.1% and the widely followed part of the Treasury yield curve deeply inverted - a harbinger of recession. As of Dec. 2, analysts expect S&P 500 companies to report a drop of 0.6% in fourth-quarter earnings after posting a 4.4% rise in the third quarter, according to Refinitiv IBES data. ET, Dow e-minis were down 37 points, or 0.11%, S&P 500 e-minis were down 3.5 points, or 0.09%, and Nasdaq 100 e-minis were down 2.25 points, or 0.02%. Among individual stocks, General Electric (GE.N) rose 1.5% in premarket trading after Oppenheimer upgraded the industrial conglomerate's stock to "outperform". Reporting by Devik Jain in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Futures slip ahead of November jobs report
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures off: Dow 0.07%, S&P 0.02%, Nasdaq 0.07%Dec 2 (Reuters) - U.S. stock index futures edged lower on Friday as investors await the monthly jobs report for November, which would provide more clues on the Federal Reserve's path of monetary tightening. The Labor Department's jobs report due at 8:30 a.m. Investors now see a 91% chance that the U.S. central bank will increase interest rates by 50 basis points in December, with the rates peaking under 5% in May 2023. "The market is looking for the Goldilocks scenario for U.S. jobs numbers on Friday," said Russ Mould, investment director at AJ Bell. Benchmark 10-year Treasury yields fell to 10-week lows and the two-year note , which often indicates interest rate expectations, slipped to early October lows.

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