• FFIC vs. NYCB: Which Stock Is the Better Value Option?
    Zacks

    FFIC vs. NYCB: Which Stock Is the Better Value Option?

    FFIC vs. NYCB: Which Stock Is the Better Value Option?

  • Bloomberg

    Carnival Jumps After Saudi Arabia Fund Discloses 8.2% Stake

    (Bloomberg) -- Carnival Corp. shares jumped after Saudi Arabia’s Public Investment Fund said it acquired an 8.2% stake in the world’s biggest cruise operator.Carnival surged as much as 18% to $10.04 Monday in New York after the fund said in a filing that it holds 43.5 million shares of the cruise company. As of last week’s close, the stake was worth $369.4 million.The Saudis are getting a bargain-bin price for Carnival -- it’s down 81% this year -- as the cruise industry faces unprecedented risks. The Public Investment Fund has invested abroad previously, including stakes in Uber Technologies Inc., Tesla Inc. and SoftBank Group Corp.’s Vision Fund. But it isn’t generally known for making distressed investments.Now, it owns a slice of the dominant cruise operator, with a fleet of more than 100 ships and no customers to sail on them -- at least for now.Carnival’s operations came to an almost complete stop last month after a series of coronavirus outbreaks at sea. Carnival’s Diamond Princess had more than 700 coronavirus cases, the biggest outbreak outside of mainland China for a time.Rival operators Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. have also shut down.The cruise industry was left out of the $2.2 trillion U.S. stimulus bill, which excluded non-U.S. businesses. Although it is headquartered in Miami, Carnival is technically incorporated in Panama -- an arrangement that allows it to avoid U.S. income taxes and minimum-wage requirements.Competitors are also domiciled outside the U.S.Raising FundsSince the halt of operations, Carnival has raised $6.25 billion to help meet expenses, but it’s paying a steep price. Some $4 billion in bonds were priced with an 11.5% coupon last week. The shares were acquired before a planned stock offering by Carnival, so the percentage holding will change.In an interview Wednesday, Chief Executive Officer Arnold Donald said Carnival may turn to major shipbuilding nations such as Italy or Germany for lower-cost loans.“Yes, those are definitely potential sources,” he said. “And there are others.”(Updates shares, adds details of CEO interview in last two paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • American Airlines to Deepen NYC Flight Cuts on Coronavirus Spike
    Zacks

    American Airlines to Deepen NYC Flight Cuts on Coronavirus Spike

    Air-travel demand to New York is nearly disappearing with surge in coronavirus cases and the CDC warning, forcing American Airlines (AAL) to widen capacity cuts to the region.

  • Company News for Apr 6, 2020
    Zacks

    Company News for Apr 6, 2020

    Companies In The News Are: DIS, UAA, CMI, F.

  • Is  America Movil (AMX)  a Profitable Stock to Pick Now?
    Zacks

    Is America Movil (AMX) a Profitable Stock to Pick Now?

    Is America Movil (AMX) a great pick from the value investor's perspective right now? Read on to know more.

  • AUD/USD Price Forecast – Australian Dollar Rallies to Kickoff Week
    FX Empire

    AUD/USD Price Forecast – Australian Dollar Rallies to Kickoff Week

    The Australian dollar has rallied to kick off the week as there’s been more of a “risk on” type of attitude out there. Initially gapping higher, the market pulled back to fill that gap and then took off to the upside.

  • HSBC Outlook Downgraded by Fitch on Coronavirus Concerns
    Zacks

    HSBC Outlook Downgraded by Fitch on Coronavirus Concerns

    Strong capital and liquidity profile and earnings-generation capability keep HSBC well-poised to deal with the pandemic-led uncertainties.

  • Under Armour Issues Updates on Coronavirus & Restructuring
    Zacks

    Under Armour Issues Updates on Coronavirus & Restructuring

    Under Armour (UAA) decides to lay off teammates and temporarily cut salary to combat challenges stemming from the pandemic. Also, its restructuring plan is approved.

  • StoneCo Ltd. (NASDAQ:STNE) Analysts Just Cut Their EPS Forecasts Substantially
    Simply Wall St.

    StoneCo Ltd. (NASDAQ:STNE) Analysts Just Cut Their EPS Forecasts Substantially

    Market forces rained on the parade of StoneCo Ltd. (NASDAQ:STNE) shareholders today, when the analysts downgraded...

  • Why Airlines Don't Want to Refund Your Flight Tickets
    Bloomberg

    Why Airlines Don't Want to Refund Your Flight Tickets

    (Bloomberg Opinion) -- In documents published alongside Carnival Corp.’s $6.25 billion debt and equity offering last week, the beleaguered cruise ship operator showed why it might not keep much of that cash for long.Carnival held $4.7 billion in customer deposits at the end of February for trips that passengers paid for in advance but hadn’t yet taken. Because their cruises have been cancelled amid the coronavirus outbreak, many customers will want their money back. As such, Carnival could soon find itself short of cash again.Carnival’s predicament is shared by hundreds of travel, airline, sports, education and entertainment businesses — all of which depend on advanced payment from customers to fund their operations. People probably don’t realize it, but when they pay for a ticket months in advance they’re effectively extending these companies an interest-free loan. The world’s airlines might have to repay $35 billion in customer cash during the next three months, according to industry body IATA; the largest of these companies each held close to $5 billion in customer advance payments at the end of December, corporate filings show. What happens to this customer money is a hugely important question that could determine whether businesses will remain solvent or will need a government bailout. Tour operator Tui AG, for example, secured a 1.8 billion-euro ($1.9 billion) rescue loan from the German government last month, even though it had taken in about 2.9 billion euros of advance payments from customers — it had spent much of this cash.There are sound reasons why companies should be allowed to hold onto customer money: Taxpayers would foot a rescue bill, which doesn’t seem very fair when it’s estimated that just 15% of Brits take 70% of the country’s international flights. By pulling their cash out now — rather than waiting for rescheduled holidays, flights and events, or accepting a credit voucher to book a future alternative — customers’ risk destabilizing businesses that they admire and depend upon. But it’s essential too that customer money is adequately protected and people who urgently need their money back, such as those who’ve recently lost their jobs, can get it.That’s why there’s such disagreement around the travel industry’s preferred solution to the problem: the credit voucher. Like the airlines, Carnival hopes that people will accept these to put toward a future trip in lieu of cash. So far about 45% of customers have chosen this option. But the travel industry is worried that this voluntary uptake isn’t enough. Hence it is furiously lobbying governments to allow companies to insist on making the vouchers non-optional.This would require the suspension of consumer protection laws. While governments like Germany and the Netherlands are sympathetic to their domestic companies’ plight and are encouraging the use of vouchers, the European Union and the U.S. have held firm, saying that if customers want their money back, they should get it. They worry that if a company goes bust, customers with vouchers would join a long queue of unsecured creditors.In theory, European holidaymakers’ prepayments are protected if a tour operator becomes insolvent. But when Thomas Cook collapsed last year, the Air Travel Trust Fund that’s used to repay U.K. customers was drained of most of its cash. Similarly, Thomas Cook’s insurance didn’t adequately protect German customers; German taxpayers ended up refunding those customers.  There are other ways for consumers to get their money back if a company goes bust. Some travel insurance policies will pay out for an insolvency, as will credit-card processors. Still, the safest way to protect your money is to not allow a distressed company to keep the cash in the first place.In the hope that governments will come round to their point of view, some airlines have reportedly been complicating the refund process for customers. By stonewalling, they’re able to keep the cash a bit longer but at the cost of alienating customers and travel agents. A much better approach is to offer customers an incentive to take the voucher option. Finnair Oyj customers can get vouchers worth 10% more than their cancelled booking.To make sure holidaymakers can get their money back when needed or are protected in the event of a company’s collapse, governments also need financial safety nets and insolvency guarantees. Germany has proposed something like this, without providing details. It also plans a hardship clause for customers that can’t afford to accept a voucher. As an alternative, governments might consider a travel emergency fund to cover reimbursement of flights and other services so businesses don’t immediately have to foot the bill.  By taking a voucher, customers can help prevent scores of unnecessary insolvencies. But they mustn’t be punished for showing a little love.  This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • AUD/USD Forex Technical Analysis – Trader Reaction to .6098 Could Set Tone for the Week
    FX Empire

    AUD/USD Forex Technical Analysis – Trader Reaction to .6098 Could Set Tone for the Week

    Based on the early price action and the current price at .6050, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .5990. This angle provided support earlier in the session.

  • Dividend Halt Puts HSBC at Risk of Losing Core Investors
    Bloomberg

    Dividend Halt Puts HSBC at Risk of Losing Core Investors

    (Bloomberg) -- HSBC Holdings Plc’s dividend suspension threatens to cost the lender some of its core investor appeal in Hong Kong.Payouts have been an important reason to own HSBC shares in the city. Its stock price has lagged the Hang Seng Index by more than 600 percentage points since 1986, the earliest available Bloomberg-compiled data from when a unified Hong Kong exchange commenced. But including dividends, HSBC’s total return is more than double the Hong Kong benchmark’s in the period.Shareholders have started mobilizing. A group on Facebook Inc., called the HSBC Shareholders Alliance was recently established to call for legal action against the halted payouts. The group has contacted more than 3,000, or about 2%, of the lender’s shareholders and is demanding a scrip dividend in place of the canceled cash distribution, it said Monday afternoon. A scrip gives investors the option to receive dividends in the form of equity.The stock was a market darling as recently as 2017, thanks to prospects for higher borrowing costs from the U.S. to Asia that makes lending a more profitable business. The monetary-policy environment has flipped, with central banks around the world slashing key lending rates to cushion the economic shocks triggered by the coronavirus.HSBC’s yield has been constantly higher than Hang Seng members as a whole. But it will be zero this year after the bank and peers said they won’t make dividend payments in the face of U.K. regulatory pressure. HSBC Chief Executive Noel Quinn expressed regret last week to shareholders about the suspension. Shares closed 2.8% higher Monday in Hong Kong, rebounding from an 11-year low.Here are some charts further illustrating how views have changed on HSBC.Options marketEven after a 17% slump last week, the most since 2009, investors want to protect against further losses. Bearish HSBC options remain near their most expensive level in a decade versus bullish ones.Analyst recommendationAnalysts’ average rating on HSBC shares was lowered by the most last week since 2009. The stock has 11 sell ratings from analysts tracked by Bloomberg, easily the most among the 50 members of the Hang Seng.Sliding down the tableHSBC ended 2019 with the Hang Seng’s sixth-highest market value. But with the stock’s 36% slump to start this year, the bank is now worth less than HK$800 billion ($103 billion), below Bank of China Ltd., PetroChina Co. and AIA Group Ltd.Mainland supportTo be sure, HSBC shares are still favored by mainland-based investors. As the stock posted its biggest daily drop in Hong Kong since 2009 at 9.5% on April 1, mainland traders bought a net HK$434 million of shares through exchange links between the city and Shanghai. The connection has been closed since then due to a holiday and will reopen Tuesday. Sizable purchases last month pushed mainland investors’ ownership of HSBC shares to the highest in at least three years, according to data compiled by Bloomberg.(Updates stock price and adds CEO comment in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Financial Times

    BT, Verizon and Virgin Media raise pay for frontline workers 

    Telecom groups including BT, Verizon and Virgin Media are raising salaries and in some cases expanding their workforces against a backdrop of pay cuts and heavy job losses ripping through the global economy. Verizon has said that its engineers and retail staff in shops that have not closed at the US group will receive “significantly enhanced” compensation for performing essential services without specifying details. Hans Vestberg, chief executive of Verizon, told the Financial Times that staff who have continued to work in the field to support customers — be they engineers or shopworkers — deserved credit.

  • AUD/USD and NZD/USD Fundamental Weekly Forecast – Conditions Going to Get Worse Before They Get Better
    FX Empire

    AUD/USD and NZD/USD Fundamental Weekly Forecast – Conditions Going to Get Worse Before They Get Better

    Given the massive fiscal and policy moves by their respective governments and central banks , there is likely to be enough stimulus in the system when the coronavirus pandemic ends, but no officials are able to tell businesses when that will be.

  • Asia-Pacific Currencies Pressured by Demand for Highly Liquid U.S. Dollar
    FX Empire

    Asia-Pacific Currencies Pressured by Demand for Highly Liquid U.S. Dollar

    The rout in the financial markets and near-certain global recession caused by the coronavirus pandemic, fueled a run on demand for the highly liquid U.S. Dollar.

  • A Sliding Share Price Has Us Looking At Globant S.A.'s (NYSE:GLOB) P/E Ratio
    Simply Wall St.

    A Sliding Share Price Has Us Looking At Globant S.A.'s (NYSE:GLOB) P/E Ratio

    Unfortunately for some shareholders, the Globant (NYSE:GLOB) share price has dived 34% in the last thirty days. Even...

  • The Week Ahead – COVID-19 and OPEC in Focus, with Economic Data on the Lighter Side
    FX Empire

    The Week Ahead – COVID-19 and OPEC in Focus, with Economic Data on the Lighter Side

    While it is a shortened week, with economic data on the lighter side, there is still plenty for the markets to focus on and OPEC and COVID-19 in particular.

  • Financial Times

    Hong Kong investors warn of action over HSBC dividends

    Retail investors in Hong Kong have threatened legal action against HSBC and will attempt to force the bank to hold an extraordinary general meeting, after it was pressured by UK regulators to cancel its dividend due to the coronavirus crisis. The controversy surrounding the suspension of HSBC’s annual payout to shareholders for the first time in nearly 75 years has again highlighted the lender’s complicated situation in Hong Kong, where it derives most of its profits before tax. Individual HSBC shareholders in the Asian financial hub — ranging from wealthy business people to low-income earners — have banded together in an attempt to reach the threshold of 5 per cent of outstanding shares required to secure an EGM.

  • Bloomberg

    What I Learned From Trying to Cut My Own Hair

    (Bloomberg Opinion) -- Writing to shareholders this week, BlackRock Inc.s chief executive officer Larry Fink ruminated on how business and society will be reshaped by the searing experience of the new coronavirus:“People worldwide are fundamentally rethinking the way we work, shop, travel and gather. When we exit this crisis, the world will be different. Investors’ psychology will change. Business will change. Consumption will change. And we will be more deeply reliant on our families and each other to stay safe.”I had a similar epiphany this week while trying to cut my own hair — it turns out my regular $30 haircut isn’t as essential as I’d thought. Preparing a meal for my family later that evening made me think that eating out or getting dinner delivered isn’t as rewarding as home cooking. Right now the do-it-yourself version also feels a whole lot safer, and probably will do for a while.Compared to the courage shown by medical workers and those in other essential functions, and the devastation wrought by coronavirus on already vulnerable communities, many of us in the western world have it easy. We’re asked to do no more than stay home. But in between worrying about our jobs, our parents and how to entertain or home-school children, we’re reevaluating priorities. What will we do differently when this is over? What will we prize more and what will we give up? Once the immediate battle to protect employees and remain solvent has passed, the business world will have to confront these questions too. Two themes stand out: Instead of visiting far-flung places and seeking out mass entertainment, I’m sure there will be a bias toward more modest, local activities. And where the coronavirus has exposed dependency or vulnerability, as with the business world’s complex cross-border supply chains, we’ll seek more security and resilience.Looming above all of this is the damage that the lockdowns are inflicting on people’s incomes. The longer the economic shutdown lasts, the more reluctant the world’s consumers will be to spend, period. With more than 10 million Americans filing new unemployment claims in the past fortnight, the omens aren’t good.In the worst-affected sectors such as travel, hospitality and leisure, businesses are already facing a bleaker future. Increased consumer awareness about the negative environmental and social impact of mass tourism has now been compounded by the realization that people on planes and pleasure boats carried the virus around the globe. Lufthansa AG’s boss, Carsten Spohr, thinks the German airline will have to shrink because the economy will be smaller than before. Easyjet Plc’s founder, Stelios Haji-Ioannou, said similar this week when calling on the carrier to cancel a big order from Airbus SE.Even once travel restrictions are lifted, demand for cruises may remain weak for a “significant length of time,” Carnival Corp. warned. The beleaguered company had to offer bond-buyers an 11.5% interest rate to get them to back a $4 billion debt offering. That’s a bad sign.Fitness is another industry that relies on cramming people into confined spaces. Until recently it was booming but customers are discovering much cheaper ways to work out. Having sampled online classes and the time-saving benefit of exercising at, or close to, home, some memberships won’t be renewed. Good news for Peloton Interactive Inc.’s indoor cycling business, perhaps not for Planet Fitness Inc. or The Gym Group Plc. Until coronavirus came along, the tech world seemed hell-bent on taking agency away from individuals and consigning ownership to the dustbin. Why learn to cook when you can have food delivered in 30 minutes? Why own a car when you can take an Uber? Why look after your gadgets, when those nice people at Apple will fix them for you. But as my colleague Adam Minter pointed out this week, it’s only in a crisis that you discover the drawbacks of not being able to repair your own phone.There will be winners from this realignment too. Right now, auto sales are collapsing in Europe because you can’t go to a showroom and you’re not meant to drive far, but the freedom and security of owning a vehicle might cause sales to rebound more quickly than other discretionary purchases (provided of course that governments can curb unemployment). In China, emerging from the first virus wave, cautious consumers have begun returning to car dealers. Home improvement stores saw a brisk trade from customers wanting to fix up their homes, balconies and allotments whilst on lockdown, and some hardware stores remain open. Once the housing market reopens, urbanites may decide they’ve had enough of crowded cities and tiny apartments. The countryside is suddenly more appealing — the more so if employers become more trusting of those who want to work from home. Coronavirus has exposed our vulnerability and it won’t be the last crisis. Our planet-warming emissions mean more pain is preordained. Faced with uncertainty or disaster, humans respond by trying to strengthen their communities. We’ll also seek more control over our lives. For societies, that means equipping our health services, paying key workers properly and securing supplies. As individuals, it means out-sourcing fewer decisions and mastering things for ourselves. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    JPMorgan Among Banks Delaying Internships or Moving Them Online

    (Bloomberg) -- Firms including JPMorgan Chase & Co., HSBC Holdings Plc and Nasdaq Inc. are making changes to their summer internship programs, including delaying their start, making them shorter or moving them online, as the coronavirus pandemic shifts work arrangements across the finance industry.JPMorgan pushed back the start date of its internship program to July 6, and is exploring a virtual format if necessary for safety reasons. The incoming class of more than 3,000 interns globally will still be paid for full nine-to-10-week internships despite the program being shorter than planned, a company representative said.Finance internships typically last nine to 12 weeks and include orientations, guest-speaker events and group projects -- collaboration limited by stay-at-home orders in cities around the world aimed at combating the virus’s spread. Companies are grappling with how to handle interns and post-graduate recruits who are generally given summer offers months in advance.Nasdaq said Friday that its summer program would be fully virtual, following Capital One Financial Corp., which was the first major U.S. bank to move its program online. Capital One said earlier this week that it will still pay its 1,000 interns the full amount outlined in their offer letters, including housing stipends.HSBC pushed the start date of its internship and post-graduate programs, which were set to begin in June and July, respectively, to later in the year. The London-based bank offers internships and graduate programs in locations including Singapore, China, the Middle East, the U.S. and the U.K., according to its website.“We understand that prospective candidates may be disappointed,” the company said in an emailed statement. “However, we’ve made this decision to safeguard our current and future workforce.”Bank of America Corp. said this week that its 2,000 summer interns and 1,000 campus recruits will start as scheduled in June and July, respectively. The lender didn’t specify whether the new hires would work remotely, saying it would finalize plans for bringing them on board later.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.