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☆ 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%.

☆ Western Alliance beats quarterly estimates on gains from interest income
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: +2 min

April 18 (Reuters) - Western Alliance Bancorp (WAL.N) beat Wall Street estimates for the first quarter on Tuesday, as the lender reaped gains from interest income on the back of a slate of rate hikes by the U.S. Federal Reserve. While higher cost of borrowing roiled several asset classes and curtailed dealmaking, it helped lenders charge higher interest from borrowers. Still, the lender reported a 5% decline in net interest income from the previous quarter due to an increase in average balances of short-term borrowings and interest bearing deposits. Regional lenders such as Western Alliance came under pressure after the closure of two smaller lenders triggered worries about deposit flight and funding costs. Shares of Western Alliance shot up 16% in extended trading to $37.97 after it closed 0.9% lower on Tuesday.

[1/2] A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. The company "had a strong Q1 as higher interest rates continued to boost its net interest margin despite rising deposit costs," David Fanger, senior vice president at Moody's Investors Service, said. Reuters GraphicsEconomists expect the U.S. economy to slow in the second half of the year as the Federal Reserve raises interest rates to tame inflation. It expects NII to fall 2% in the second quarter compared with the first three months of this year. The company's revenue, net of interest expense, increased 13% to $26.3 billion, beating estimates of $25.13 billion.

Wall Street closed lower on Friday after mixed economic data appeared to affirm another Fed interest rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. "Regional bank earnings will come in very slightly positive, while bigger banks will probably post surprisingly positive results." Other major U.S. banks including Goldman Sachs Group Inc (GS.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) will report through the week. ET, Dow e-minis were up 35 points, or 0.10%, S&P 500 e-minis were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis were down 3.75 points, or 0.03%. Prometheus Biosciences Inc (RXDX.O) rallied 69.9% after Merck & Co (MRK.N) said it will buy the biotech company for about $10.8 billion.

Dan Izzo, founder of investment management company Blackbird Capital, said that though banks have been seen as a bellwether for U.S. earnings, markets today were different. Stock futures based on the S&P , Nasdaq and Dow Jones Industrial Average were up slightly around 0.1%. Upbeat earnings news from banks and large corporations may lessen the odds of rate cuts later this year, he added. At least eight top Fed officials are speaking this week, including three governors, and could generate plenty of headlines to move the dial further. EARNINGS KEYOther big U.S. names reporting earnings this week include Johnson & Johnson (JNJ.N), Netflix (NFLX.O) and Tesla (TSLA.O).

☆ M&T Bank Corp beats profit estimates as interest income doubles
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

April 17 (Reuters) - M&T Bank Corp (MTB.N) beat Wall Street estimates for first-quarter profit on Monday, as the U.S. Federal Reserve's rapid rate hikes to tame high inflation boosted the lender's interest income. Shares of M&T Bank rose nearly 3% to $120 in premarket trading. Net interest income for the bank doubled to $1.83 billion in the first quarter ended March 31, compared with $907 million, a year earlier. Total deposits for M&T Bank fell nearly 3% to $159.1 billion, compared with $163.5 billion at the end of the previous quarter. M&T Bank reported a profit of $4.01 per share in the quarter, above analysts' average estimate of $3.99 per share, according to Refinitiv IBES data.

☆ Futures subdued as investors eye bank earnings, Fed cues
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Futures up: Dow 0.07%, S&P 0.10%, Nasdaq 0.01%April 17 (Reuters) - U.S. stock index futures were largely flat on Monday as investors awaited more bank earnings and views from Federal Reserve policymakers that could shape expectations around when the central bank will pause its monetary policy tightening. Wall Street ended lower on Friday as a barrage of mixed economic data appeared to affirm another Fed interest rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. U.S. central bank officials including New York Fed President John Williams and Cleveland Fed President Loretta Mester are scheduled to speak later this week. ET (1230 GMT) is expected to show business conditions in New York state improved in April after slumping in the previous month. ET, Dow e-minis were up 24 points, or 0.07%, S&P 500 e-minis were up 4.25 points, or 0.10%, and Nasdaq 100 e-minis were up 1 point, or 0.01%.

Wall Street closed lower on Friday after mixed economic data appeared to affirm another Fed rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. Other major U.S. banks including Goldman Sachs Group Inc (GS.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) will report through the week. "Regional bank earnings will come in very slightly positive, while bigger banks will probably post surprisingly positive results," said Sam Stovall, chief investment strategist at CFRA Research. Prometheus Biosciences Inc (RXDX.O) rallied 69.5% on Merck & Co's (MRK.N) plans to buy the biotech company for about $10.8 billion. The S&P index recorded nine new 52-week highs and one new low, while the Nasdaq recorded 29 new highs and 55 new lows.

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.

[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.

☆ Is AI coming for Hollywood? A Wall Street investor breaks down why he's bullish about a growing class of startups harnessing data to identify the next big blockbuster.
▼ + stars: | 2023-03-30 | by ( Reed Alexander | ) www.businessinsider.com time to read: +5 min

A private credit investor explains why Wall Street sees the potential for big returns from the tech. "What we're interested in right now are companies that are creating a more automated way of identifying valuable IP," Aria Vossoughi of Serengeti Asset Management told Insider. To be sure, Hollywood has been taking steps toward fusing data, algorithms, and creative content for years. Michael Blank, head of consumer investing at CAA, previously told Insider that investments in this arena are "blowing up right now." It supplements it more than replacing it," he told Insider of AI tech.

☆ Europe’s Big Polluters Win Carbon-Credit Windfall
▼ + stars: | 2023-03-27 | by ( Shane Shifflett | ) www.wsj.com time to read: 1 min

Some of Europe’s largest polluters are earning windfalls from the sale of carbon credits. Their profits are an unintended consequence of generous subsidies that make up a crucial element of the region’s carbon market. A Spanish oil and gas company, a Romanian aluminum producer and two Finnish industrial businesses together sold nearly €120 million—equivalent to more than $129 million—of credits last year, according to an analysis of company disclosures. A wave of additional sales potentially worth tens of millions of euros are expected to be disclosed in the coming months.

☆ A 'boxed-in' Fed will tank stocks from dot-com-level valuations after it raises rates, warns Morgan Stanley Wealth Management's CIO. She shares 5 areas of the market to find safety in.
▼ + stars: | 2023-03-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

With returns bound to be muted, Shalett likes investments outside of US stocks. "Market psychology has been shaken, setting off a dynamic that likely raises the odds of an imminent recession. Morgan Stanley Wealth ManagementShalett doesn't expect the size of decline her Morgan Stanley colleague Mike Wilson sees. However, with spreads widening and long-term rates reflecting a more reasonable terminal value, bonds are a decent relative portfolio hedge," Shalett said. And finally, active money managers like hedge funds should outperform in an environment where index returns are muted, Shalett said.

☆ Big Oil’s old profligacy lives on Down Under
▼ + stars: | 2023-03-15 | by ( Antony Currie | ) www.reuters.com time to read: +4 min

Throw in dividends and Santos shareholders have received a measly 6% total return during that period. Santos’ 15% return on capital employed last year puts it at the bottom of the class; BP delivered almost 25%. It looks slated to stay in the basement, with analysts projecting a sub-8% return for 2025, per Refinitiv data. The bonus is mostly tied to successful “growth projects”, which arguably encourages him to overinvest. If that happens again at next month’s annual meeting, it would, under Australian rules, allow investors to boot the entire board.

☆ Best Buy, Walmart, other major US retailers tout health services
▼ + stars: | 2023-03-03 | by ( Katherine Masters | ) www.reuters.com time to read: +4 min

Electronics retailer Best Buy recently kicked off a partnership with Atrium Health, part of Advocate Health, one of the country’s largest nonprofit hospital systems, Best Buy Chief Executive Officer Corie Sue Barry announced Thursday on a call with analysts. The partnership combines Atrium's hospital-at-home program with Best Buy’s technological services, she said. Best Buy Chief Financial Officer Matthew Bilunas, however, predicted continued growth of the company's health services would contribute to gross profit rate expansion even as it anticipates cooling demand throughout 2023. "The role of technology within health care is becoming more important than ever, and our strategy is to enable care at home for everyone," Barry said. New sign-ups for Best Buy's health services are expected to help drive a 40 to 70 basis point improvement in gross margins this year, despite lower sales.

☆ Meta has massively revamped its ads division. Here are the 21 most powerful execs tasked with saving the company's biggest revenue stream.
▼ + stars: | 2023-02-28 | by ( Ryan Joe | Lara O'Reilly | Lauren Johnson | ) www.businessinsider.com time to read: +1 min

Nicola Mendelsohn and Justin Osofsky are Meta's top ad execs after Marne Levine stepped down. After Meta's ad revenue took a series of hits, the company banking on an overhauled ad offering powered by AI. Insider identified Meta's 21 top ad execs tasked with reviving its most crucial revenue stream. Here are the 21 most powerful and important advertising execs still at the company, listed alphabetically. Their roles span ad sales, strategy, marketing and product across Meta's portfolio.

☆ EY expects 'massive approval' in vote to split up company
▼ + stars: | 2023-02-14 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 14 (Reuters) - Partners in EY are expected to give approval for spinning off the company's consulting arm and listing it on the stock market by the end of the year, a senior EY official said on Tuesday. "We expect a massive approval, but it's not to say there is still not a lot of work to do," Delarue told Reuters. Just over half of EY's 145 country networks will vote on splitting each national network into separate auditing and consultancy units. It is a move which does not make sense for all networks, Delarue said. The "Newco" will account for $25 billion of revenue and 7,000 partners, with what's left of EY representing $20 billion and 6,000 partners.

☆ EY’s Split Faces ‘No Tremendous Hurdles,’ CEO Says
▼ + stars: | 2023-02-08 | by ( Jean Eaglesham | ) www.wsj.com time to read: +3 min

A proposed public sale of a 15% stake in the consulting company, raising about $11 billion, is scheduled for later this year. “I do see potential [further] delays because the deal is complicated,” Mr. Di Sibio said. Mr. Di Sibio is due to head the new consulting company, which needs everything from a new brand to an auditor. PREVIEWEY is hiring rival accounting firm BDO to check the books of the planned public consulting company, Mr. Di Sibio said. So the new EY consulting company name will have to be a made-up word, or a combination of two or three words, he added.

☆ Big Oil made $200 billion in profit last year. Shareholders won big, clean energy missed out
▼ + stars: | 2023-02-08 | by ( Hanna Ziady | ) edition.cnn.com time to read: +6 min

But the flood of cash has not delivered a commensurate boom in renewable energy investments, despite clear evidence that the world needs to move much faster with efforts to address the climate crisis. The record-setting results mark a dramatic turnaround for a sector that suffered brutal losses and slashed shareholder payouts in 2020, when pandemic lockdowns sharply reduced demand for energy and oil prices collapsed. An aerial view of the BP oil refinery in Whiting, Indiana on August 29, 2019. Tannen Maury/EPA-EFE/ShutterstockJust three years ago, BP unveiled a plan to slash oil and gas production by 40% from 2019 levels by 2030. It is also now aiming to cut carbon emissions from its oil and gas production by 20%-30% by 2030, down from the previous goal of 35%-40%.

"When you think about traditional drug and vaccine development and longevity of sales, it's usually much more spread out," Morningstar analyst Damien Conover said. The sudden inflow of revenue should prod companies to strike deals and link up with new partners, he said. Vaccine maker Moderna also expects 2023 revenue to fall sharply. The company's only product - its messenger RNA COVID vaccine - pulled in around $18.4 billion in 2022. Eli Lilly and Co (LLY.N) made $2 billion in 2022 from monoclonal antibody COVID treatments and is not expecting any revenue from the business in 2023.

☆ The average tax refund was over $3,000 last year—here are the best ways to use yours at every age
▼ + stars: | 2023-01-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +4 min

While getting a large tax refund may mean you should reconsider your withholdings, in general there's nothing wrong with preferring to take the refund route. Anyone receiving a significant refund check, however, may want to use that cash strategically to work toward various money goals. A few hundred dollars from your tax refund can give your emergency fund, 401(k) or other retirement account a nice boost. Many people also become parents in their 30s, which can drastically change your financial goals. Your tax refund may not be large enough to completely tackle a big money goal, but small steps can still make an impact.

During the pandemic, 300,000 public school teachers and staff left the profession, The Wall Street Journal reports. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

In January 2021, my net worth was -$15,000. Despite this, my net worth increased from -$15,000 to $15,000 since January 2021. Together, these accounted for an increase of $12,000 in my net worth. In the end, these different sources accounted for an additional $5,000+ that I invested over the last six months — which has allowed me to surpass my original net worth goal for this time period. Three years ago, I made the first deposit into my Roth IRA and today that account makes up a substantial portion of my net worth.

[1/2] A Brazilian flag is seen through broken glass following the anti-democratic riots, at Planalto Palace, in Brasilia, Brazil, January 10, 2023. What many banks point to is the assumed risk premium already built in to Brazilian real interest rates. But beyond Brazilian markets, the wide global markets calm surrounding the weekend events was equally curious. After all, Brazil is the 12th largest economy in the world and one of the biggest food and raw materials exporters. Among the 10 biggest risks it lists by likelihood is emerging markets political risks that threaten political institutions.

☆ Ron DeSantis Heads Off a Taxpayer Insurance Bailout
▼ + stars: | 2022-12-30 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Ron DeSantis and Florida Republicans have managed a rare policy feat: Constructive insurance reform. This month the Florida Governor signed legislation to prevent the state’s property insurance market from collapsing under a tidal wave of lawsuits that could blow a hole in the state budget. Democrats call the reform a bailout for insurers that will raise homeowner premiums. The truth is that it fixes a legal racket that allowed windfalls for trial lawyers that have caused homeowner insurance premiums to spike and caused numerous insurers to become insolvent and exit the market.

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