2024-01-16 15:42
https://www.reuters.com/business/autos-transportation/hertzs-ev-sale-fan-cost-concerns-dampen-used-car-market-2024-01-16/
2024-01-16 15:41
https://www.reuters.com/markets/bridgewaters-jensen-markets-too-complacent-fed-pivot-us-china-cold-war-2024-01-16/
2024-01-16 14:59
https://www.reuters.com/markets/us/trump-linked-stocks-jump-after-former-presidents-emphatic-win-iowa-republican-2024-01-16/
2024-01-16 12:56
Jan 16 (Reuters) - Goldman Sachs' (GS.N) profit rose 51% in the fourth quarter as its equity traders capitalized on a recovery in markets and revenue from its asset and wealth management business rose, offsetting weakness in investment banking. The bank reported a profit of $2.01 billion, or $5.48 per share, for the latest quarter, compared with $1.33 billion, or $3.32 per share, a year earlier. "This was a year of execution for Goldman Sachs," CEO David Solomon said in a statement. "With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024." The bank's shares climbed 1.7% to $384.50 in trading before the bell. They were up 12.3% last year, compared with gains of 27% for JPMorgan Chase (JPM.N) and 10% for Morgan Stanley (MS.N). Stock markets have rallied as economists and investors grow more confident the U.S. will avoid a recession. Market participants are also debating when the Federal Reserve will cut interest rates, which could act as another catalyst for activity. Goldman's equity trading revenue jumped 26% in the fourth quarter. Revenue from the asset and wealth management business also jumped 23% to $4.39 billion, helped by gains from equity and debt investments. Investment banking fees fell 12% to $1.65 billion, as a decline in mergers and acquisitions (M&A) offset gains from debt and stock sales. Revenue from fixed income, currencies and commodities (FICC) trading fell 24% as weakness in interest rate products and currencies dragged down gains from mortgage products. HEADCOUNT Goldman had a headcount of 45,300 at the end of December, 1% less than in the third quarter and nearly 7% lower than in the year-earlier period. The bank laid off thousands of employees in 2023, including cuts to its workforce in January that were the largest since the 2008 financial crisis. Goldman is among the banking giants that will pay a special assessment fee to refill a government deposit insurance fund (DIF) that was drained of $16 billion by the collapse of two regional banks last year. It recognized a $529 million expense tied to the fee in the fourth quarter. PLATFORM SOLUTIONS BOOST Goldman's platform solutions unit, which houses some of its consumer operations, reported a 12% jump in revenue to $577 million. The jump was driven by higher average credit card balances, which cushioned the hit from markdowns related to the portfolio of GreenSky loans held for sale. Goldman has been slimming down its ill-fated consumer business, after a reorganization in 2022 that saw it merge its traditional mainstays of trading and investment banking. GreenSky, which facilitates home improvement loans for consumers, was sold to a consortium of investment firms led by Sixth Street Partners. Four years after introducing a credit card with Apple, the Wall Street giant also faces a costly exit from a partnership that is seen by other lenders as too risky and unprofitable. Goldman may need to reduce the value of its stake to tempt bidders to take its place in the partnership, Reuters reported last month. It also plans to scrap co-branded credit cards with General Motors (GM.N). Provision for credit losses was $577 million, compared with $972 million a year earlier, Goldman said. The bank reduced $160 million of reserves related to the transfer of the General Motors card portfolio to held for sale. https://www.reuters.com/business/finance/goldman-sachs-profit-climbs-equity-traders-ride-market-rebound-2024-01-16/
2024-01-16 12:52
Jan 16 (Reuters) - Morgan Stanley's (MS.N) profit dropped in the fourth quarter, hurt by a combined $535 million in one-time charge that offset gains from a rebound in investment banking activity. The bank, alongside rival large-cap banks, are paying a special assessment fees to the Federal Deposit Insurance Corporation to replenish a fund that was drained by almost $16 billion in March 2023 after the collapse of mid-sized U.S. lenders. It paid $286 million in special assessment fees to the regulator and $249 million as legal charge. "We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders," CEO Ted Pick said in a statement. Mergers and acquisitions activity fell to its lowest level in 10 years globally in 2023, according to data from Dealogic. High interest rates and an uncertain economic outlook have weighed on confidence, keeping companies on the sidelines. Still, several high-profile initial public offerings and merger announcements at the end of last year sparked optimism about a nascent recovery in 2024. Morgan Stanley's investment banking revenue rose 5% in the fourth quarter from a year ago. Its net income fell to $1.5 billion, or 85 cents per diluted share, in the three months ended Dec. 31, compared with $2.2 billion, or $1.26 per diluted share, a year ago. Shares in the bank rose nearly 1% in premarket trading after results. The results compare with fellow Wall Street giants that reported lower profit on Friday, clouded by special charges and job cuts. Rival Goldman Sachs' (GS.N) profit jumped 51% in the fourth quarter as its equity traders capitalized on a nascent recovery in markets. Earlier this month, Morgan Stanley agreed to pay $249.4 million to end years-long criminal and civil investigations into its handling of large stock trades for customers. https://www.reuters.com/business/finance/morgan-stanley-profit-falls-one-time-charges-2024-01-16/
2024-01-16 12:51
Jan 16 (Reuters) - Former Barclays (BARC.L) veterans Bob Diamond and Rich Ricci have agreed an all-share merger of Panmure Gordon and UK rival Liberum, the firms said on Tuesday, creating Britain's largest independent investment bank amid an extended dealmaking slump. The merger is intended to steer the enlarged group through challenging times for Europe's investment banks, with business hurt by rising geopolitical tensions and interest rate uncertainty. It comes hot on the heels of Cenkos Securities and finnCap's merger to create Cavendish, as well as Redburn and General Atlantic's formation of Redburn Atlantic and Deutsche Bank's (DBKGn.DE) swoop for Numis Securities. "It is a sign of the times," said Russ Mould, investment director at online broker AJ Bell. "Panmure Liberum will have a big client base, the biggest in London, which is a good start; and it will increase the pressure on smaller players, especially if the levels of IPO and secondary activity remain modest and the fee pool depressed." Global investment firm Atlas Merchant Capital, led by Diamond, will provide financial backing and liquidity for the enlarged group, Panmure Liberum, the companies said without disclosing the value of the deal. Diamond's relationship with Panmure began in 2017, when his firm teamed up with an investment vehicle owned by the Qatari royal family to buy the company. Panmure CEO Ricci will take the helm of the merged entity while Shane Le Prevost, founder and executive director at Liberum, will take the role of non-executive chair. The deal is expected to bring cost savings and balance sheet strength to invest in growth and diversification, the firms said. "This merger will lift the level and quality of service to mid and small-cap businesses and investors in the UK and beyond," former Barclays CEO Diamond said in a statement. Ricci served in several top roles during his 19 years at Barclays, including co-CEO of corporate and investment banking as well as chief operating officer of Barclays Global Investors. Data from consultant EY this week showed a 3% fall in European M&A deals in 2023, with 641 across the region, compared with 661 in 2022. "Over the last three years we have doubled our corporate client base, made significant investment in talent and materially increased our share of the UK market across our trading and execution capabilities," Ricci said. Panmure Liberum will have more than 250 quoted corporate clients and would be ranked No.1 by deal volume for UK initial public offerings under 1 billion pounds in market capitalisation over the past five years, the merger statement said. https://www.reuters.com/markets/deals/uk-investment-firms-panmure-gordon-liberum-merge-2024-01-16/
