Bank Archives - Zxcoachoutlet

Coronavirus forces Fed to extend ban on bank stock buybacks, dividends

September 30, 2020

The Federal Reserve expects to hold interest rates near zero through 2023 to bolster U.S. economy. FOX Business’ Edward Lawrence with more.

Big banks such as JPMorgan and Wells Fargo will have their hands tied for the rest of the year when it comes to buybacks and dividend hikes as the coronavirus remains a headwind for the economy.

Ticker	Security	Last	Change	Change %
JPM	JP MORGAN CHASE & CO.	96.27	+0.92	+0.96%
WFC	WELLS FARGO & COMPANY	23.51	+0.25	+1.07%
XLF	FINANCIAL SELECT SECTOR SPDR ETF	24.07	+0.32	+1.35%

The Federal Reserve is extending its ban on both citing the pandemic, policymakers disclosed late Wednesday.

FED TO KEEP RATES NEAR ZERO THROUGH 2023 TO ASSIST ECONOMY

In recent months, Chairman Jay Powell has spoken frequently about the uncertainty COVID-19 has placed on the U.S. economy and the need for further stimulus.

GET FOX BUSINESS ON-THE-GO BY CLICKING HERE

The

Tesla competitor Nio can surge another 28% amid transformation into ‘next iconic auto brand,’ Deutsche Bank says

September 29, 2020

| No Comments

| business

© Nio
Nio

Deutsche Bank lifted its profit and sales forecasts for Chinese electric car manufacturer Nio on Tuesday, citing the company’s promising move into the premium autos sector.
In a note probing whether Nio can be “the next iconic auto brand,” analysts led by Edison Yu cited growing favorability in the expanding Chinese market.
One recent study found Nio boasts higher odds of customer referral in the country than Tesla, BMW, and Mercedes Benz.
Deutsche Bank reiterated its “buy” rating and $24 target price for Nio shares. The target implies a 28% leap from Monday’s closing level over the next 12 months.
Watch Nio trade live here.

Nio may not have the intense following enjoyed by industry leader Tesla, but Deutsche Bank thinks the electric car manufacturer can quickly dominate the expanding Chinese market.

Load Error

In a Tuesday note delving into whether the company can become “the next

Bank of England Realistic About Challenge of Sub-Zero Rates for Banks, Bailey Says | Investing News

September 29, 2020

| No Comments

| business

LONDON (Reuters) – Bank of England Governor Andrew Bailey said the central bank was realistic about the challenges negative interest rates would pose for the banking system, but repeated he was not ruling them out as a way to help Britain’s economy.

Bailey said the big share of retail deposits – which have tended to continue offering positive rates to investors even in countries which have cut rates below zero – in Britain’s banking system could reduce the effectiveness of any BoE negative rates.

“That does not mean to say that we rule out using negative interest rates for a moment,” Bailey said in an online speech given to Queen’s University Belfast on Tuesday.

“It means to say we are realistic enough, I think, to know that the transmission mechanism would be affected.”

Sterling jumped by half a cent against the U.S. dollar on Bailey’s comments before falling back.

Investors

Federal Reserve Stress Tests: Catalysts For Bank Stocks

September 29, 2020

| No Comments

| business

“Risk comes from not knowing what you’re doing.” – Warren Buffett

One upcoming catalyst for bank stocks is a second round of stress tests. Usually only one round per year is needed, but with continued uncertainty, further scenarios will be examined. After the second round, the Federal Reserve plans to publish firm-specific results, a deviation from standard policy where only aggregate performance is released, proving to be an interesting catalyst for the bank stocks.

June 2020 release

Recall the Federal Reserve released the results from the first round of stress tests in June 2020. The results indicated all banks had sufficient capital to withstand the scenarios considered at that time.

However, the possibility of large losses could not be overlooked and the Federal Reserve felt it was prudent to take actions to preserve capital. As a result, share repurchases were disallowed and bank dividends were capped at the current level.

LendingTree App Launches Connected Bank Accounts, New Features for Consolidated Money Management

September 29, 2020

| No Comments

| money

CHARLOTTE, N.C., Sept. 29, 2020 /PRNewswire/ — LendingTree®, the nation’s leading online loan marketplace, today announced the launch of a series of new features for My LendingTree users to help consumers better manage their financial lives. The LendingTree app can now connect directly with consumers’ checking and savings accounts in addition to credit cards and loans, giving users a more comprehensive overview of their financial profile.

Powered by Plaid, a data network powering the fintech tools that millions of people rely on to improve their financial lives, My LendingTree users can connect their bank accounts from over 11,000 financial institutions. By integrating checking and savings account information, My LendingTree will provide a comprehensive overview of budgets, spending habits, transaction history and cash flow analysis in the same place users can check credit scores, savings recommmendations and identity monitoring updates. This new feature consolidates the most important financial information in

Former IMF Chief Rato Acquitted In Spain Bank Trial

September 29, 2020

| No Comments

| business

Former IMF chief Rodrigo Rato and all other defendants put on trial on accusations of fraud and falsifying the books in the 2011 stock listing of Spain’s Bankia bank were acquitted on Tuesday.

The court said bank’s stock listing had received approvals “from all necessary institutions”.

The listing was very popular among small investors, who lost their shirts when the Spanish state had to nationalise the bank the following year and inject 22 billion euros ($25.7 billion) to keep it from collapsing.

Rato, who headed the International Monetary Fund from 2004 to 2007, led the merger in 2010 of several struggling banks into Bankia.

The image of a smiling Rato ringing the bell and sipping champagne on July 20, 2011 to mark the start of Bankia’s listing has since become a symbol of the scandal.

Former IMF head Rodrigo Rato, who was acquitted over fraud charges related to the 2011

Bank Stocks Bounce off Record Low, Helping Europe Recover Some Lost Ground | Investing News

September 29, 2020

| No Comments

| business

(Reuters) – European stocks bounced back sharply on Monday as investors snapped up beaten-down shares in the banking sector that hit a record low last week and data gave signs of pick-up in the Chinese economy.

The pan-European STOXX 600 index <.STOXX> jumped 2.2%, recording its biggest percentage gain since mid-June, after last week’s 3.6% drop.

The broader banks index <.SX7P> surged 5.6% in its first session of gain in eight days.

HSBC Holdings

surged 8.9% after Chinese insurance group Ping An <601318.SS> <2318.HK>, the biggest shareholder in the British bank, boosted its stake to 8.00% from 7.95%.

Commerzbank

rose 5.6% after it named a top manager at rival Deutsche Bank

, Manfred Knof, to lead the bank. The stock move was, however, in line with the broader sector.

Investors have shunned Europe’s banking sector hit by a cocktail of lower global borrowing costs, rising bad loans due to the

Amid Consumer Behavior During Covid-19, Congress Examines Granting Fintech Bank Charters

September 29, 2020

| No Comments

| business

On Tuesday, September 29 at 12pm, the Task Force on Financial Technology will hold a hearing entitled, “License to Bank: Examining the Legal Framework Governing Who Can Lend And Process Payments In The FinTech Age”. The hearing will be led by Chairman Stephen Lynch (D-MA) with Ranking Member Tom Emmer (R-MN).

The Financial Services Committee (FSC), of which the Task Force on Financial Technology is part of, issued a background memorandum on the hearing. Citing Covid-19 as dramatically impacting the way Americans have not been able to bank in branches, use physical currency, and receive government benefits and loans, the Memo states, “…it is unclear whether most consumers understand the difference in protections and oversight between “banks” and “technology companies” when participating in financial activities, like sending money to a friend.”

Blue medical mask on the face of Benjamin Franklin with a hundred dollar bill. The concept of the global economic crisis associated with the coronavirus quarantine COVID-19. — Blue medical mask on the face of Benjamin Franklin with a hundred dollar bill. The concept of the …

Pandemic to keep Asia’s growth at lowest since 1967, warns World Bank

September 29, 2020

| No Comments

| business

By Daniel Leussink

TOKYO (Reuters) – The coronavirus pandemic is expected to lead to the slowest growth in more than 50 years in East Asia and the Pacific as well as China, while up to 38 million people are set to be pushed back into poverty, the World Bank said in an economic update on Monday.

The bank said the region this year is projected to grow by only 0.9%, the lowest rate since 1967.

Growth in China was expected to come in at 2% this year, boosted by government spending, strong exports and a low rate of new coronavirus infections since March, but held back by slow domestic consumption.

The rest of the East Asia and Pacific region was projected to see a 3.5% contraction, the World Bank said.

The pandemic and efforts to contain its spread led to a “significant curtailment” of economic activity, the report said.

“These

US STOCKS-Tech, bank shares drive Wall Street higher

September 28, 2020

| No Comments

| business

By Devik Jain and Shreyashi Sanyal

Sept 28 (Reuters) – U.S. stocks jumped on Monday, bouncing back from the longest weekly losing streak in a year for the S&P 500 and the Dow, with technology, banks and travel-related shares leading the advance.

All 11 major S&P 500 sectors rose, with the S&P 500 financials index’s .SPSY 3% jump putting it on track for its best day in two and a half months.

Analysts said the gains could also be attributed to quarter-end rebalancing of investor portfolios as cyclical sectors including financials, industrials .SLPRCI, materials .SPLRCM and energy .SPNY added more than 2% by mid-day trading.

“There is a lack of negative news out there, we are going through a reflex rally,” said Sam Stovall, chief investment strategist at CFRA in New York.

“Traders tend to gravitate toward those groups that are most oversold because they have the greatest