• AUD/USD Weekly Price Forecast – Australian Dollar Has Solid Week
    FX Empire

    AUD/USD Weekly Price Forecast – Australian Dollar Has Solid Week

    The Australian dollar rallied again during the week, reaching towards the top of the same consolidation area that we have been in for over a month.

  • AUD/USD Price Forecast – Australian Dollar Continues the Grind
    FX Empire

    AUD/USD Price Forecast – Australian Dollar Continues the Grind

    The Australian dollar rallied a bit on Friday, but as it is the holiday in the United States, there would have been a bit of liquidity problems out there.

  • Deutsche Bank Cut Wirecard Ties as Its Fund Managers Went All In
    Bloomberg

    Deutsche Bank Cut Wirecard Ties as Its Fund Managers Went All In

    (Bloomberg) -- In late 2018, as Deutsche Bank AG executives mulled the future of their troubled lender, Chairman Paul Achleitner encouraged them to emulate a payments firm that had become a wunderkind of German finance: Wirecard AG.The two companies were already close. Deutsche Bank was a key lender to Wirecard and its chief executive officer, Markus Braun, who also sat on one of its regional advisory boards. Andreas Loetscher, an Ernst & Young partner who had overseen several audits of Wirecard’s results, had recently joined Deutsche Bank as chief accounting officer. DWS, the bank’s asset-management unit, was a shareholder.Yet behind the scenes, doubts were growing whether the fintech’s success was for real. Deutsche Bank’s investment bankers argued its accounts were opaque and the stock overvalued, and risk managers sought ways to cut their exposure without rattling markets. Over the course of the following year, Deutsche Bank unwound or hedged most of some $300 million it had agreed to lend to Braun and his firm -- while its asset management arm kept piling in, an analyst upgraded the stock and its bankers helped the firm raise debt.This story of Deutsche Bank’s ties to Wirecard is based on accounts of people with direct knowledge of the events who spoke on condition of anonymity. It spotlights the complicated relationship of Germany’s financial elite with a company that was belittled at first, then admired and eventually bedeviled when it imploded in a spectacular accounting scandal last month. Now Deutsche Bank is coming full circle, considering a financial lifeline for parts of the firm that only last year approached it about an all-out merger.A spokesman for Deutsche Bank declined to comment on the lender’s ties to Wirecard.Wirecard’s StoryWirecard’s allure for the world of German finance is hard to overstate. Started as a payments provider to gaming and adult entertainment websites, it was the butt of jokes at first on the executive floors of some German lenders. Yet as the country’s financial industry struggled to adapt to tighter regulations and negative interest rates after the 2008 financial crisis, the startup from the suburbs of Munich somehow bucked the trend.Suddenly here was a young company that seemed to enjoy spectacular growth by applying technology to the plumbing of payments, and shareholders loved it. The company’s market value had exploded since the financial crisis, eclipsing 150-year-old Deutsche Bank. By late 2018, Wirecard replaced Commerzbank AG in Germany’s benchmark DAX Index.Achleitner, at the meeting in Hamburg in late 2018, asked why Deutsche Bank’s transaction bank wasn’t getting the same attention as Wirecard’s. He was looking to bolster Deutsche Bank’s own payment business after naming Christian Sewing CEO earlier that year -- an executive with extensive experience in corporate banking.Shortly after that meeting, in January 2019, the Financial Times published the first in a series of articles alleging accounting irregularities at a unit of Wirecard, sending the shares into a tailspin. The payments firm -- and even regulators -- brushed it off as the work of short sellers seeking a quick profit, but the FT stood by its reporting throughout.At Deutsche Bank, some executives grew alarmed, including Garth Ritchie, the head of investment banking at the time. Ritchie’s skepticism had arisen in part from conversations with hedge-fund clients that had conducted their own research into the firm’s workings, and who had been betting against the stock. His unit oversaw a 150 million-euro loan to Braun that was secured by Wirecard shares, so if the shares fell, the bank could lose a lot of money.Risk managers led by Stuart Lewis, Deutsche Bank’s chief risk officer, were also worried. The lender had agreed to provide around 120 million euros to Wirecard as part of that firm’s revolving credit facility, but the payments company was expanding very rapidly and Deutsche Bank didn’t fully understand all the factors at play. They reduced their exposure and increased their hedge in the wake of the FT story.Kirch LawsuitLewis also shared Ritchie’s concern about the margin loan to Braun. The debt was due for renewal at the end of 2019, but some traders wanted to get rid of it before. Yet doing so could send a message to markets that Germany’s largest lender had lost confidence in the company and might push Wirecard over the edge. Deutsche Bank itself would be at risk of another billion-dollar lawsuit like the one with the heirs of of Leo Kirch over the collapse of his media group, which dragged on for more than a decade until 2014.The allegations in the FT were weighing on Wirecard’s shares, but the company was still more valuable on the stock market than Deutsche Bank. And so, in the spring of last year, its executives were discussing an audacious step that would have given them a way out: a full-fledged merger with Deutsche Bank. They approached the Frankfurt lender, but the bank quickly ended the exploratory talks.Wirecard did score a victory around that time in efforts to restore market confidence. In April, SoftBank Group Corp., the Japanese telecommunications operator turned tech investor, agreed to put 900 million euros into the German company, giving a boost to the stock. Nooshin Nejati, an equity analyst at Deutsche Bank in Frankfurt, changed her rating on Wirecard to buy from hold the following month and predicted that its shares would soar about 40% to 200 euros within a year.Fund managers at DWS were also bullish on Wirecard. Over the course of the year, the firm increased its holding from less than 2 million shares to over 7 million. The biggest purchase came right after the Wirecard’s share price plunged more than a fifth in the span of a few days following another critical FT report. Stock pickers led by Tim Albrecht went all in.DWS and Albrecht declined to comment. The investment firm said last month it plans to file a lawsuit against Wirecard and Braun.Albrecht saw the October selloff as a chance to lock in big gains down the road, he said in a recent newspaper interview. His 4.1 billion-euro DWS Deutschland fund upped its stake by more than 3.5 million shares between September and December 2019, according to data compiled by Bloomberg and company filings. DWS Aktien Strategie Deutschland and DWS ESG Investa both more than doubled their holdings over the same period.Just as they piled in, executives in Deutsche Bank’s twin towers across the street from DWS made up their mind about Wirecard. Softbank, whose April announcement was seen as a sign of confidence in Wirecard, had since gotten cold feet and was setting up a complex transaction to sell off the investment and avoid putting up money itself.Deutsche Bank’s investment bankers had been offered, informally, a chance to help on the convertible bond Wirecard was planning to sell as part of the Softbank agreement, but they declined because they didn’t want the risk on their books. They did help Wirecard raise a separate, 500 million-euro bond in September, but that debt was sold on to other investors.By early November, Deutsche Bank’s risk managers decided that they wouldn’t renew the margin loan to Wirecard CEO Braun. They rolled over part of the debt and set up a repayment plan. Braun eventually got another loan, from Oldenburgische Landesbank, a small regional lender backed by private equity investors including Apollo Global Management, according to people familiar with the matter.When Wirecard spiraled toward insolvency this spring -- after admitting that more than $2 billion that it had claimed to have in assets probably didn’t exist -- the loan to CEO Braun was no longer on Deutsche Bank’s books. And while the firm is among a group of 15 lenders owed some 1.6 billion euros by Wirecard, its actual exposure is closer to 70 million euros, assuming the credit facility was 90% drawn down. By comparison, Commerzbank, ABN Amro Bank NV and ING Groep NV are each owed more than twice as much, Bloomberg has reported.But Deutsche Bank remains exposed on other fronts. DWS needs to explain losses from the investment to its clients. Loetscher, Deutsche Bank’s chief accountant, is the target of a criminal complaint for his role in Wirecard’s audits while he was working for E&Y.“There are many unresolved questions around Wirecard,” said Sebastian Kraemer-Bach, a spokesman for Deutsche Bank in Frankfurt. “We highly appreciate working with Andreas Loetscher,” he said, adding that the presumption of innocence applies. Loetscher declined to comment.Deutsche Bank is now considering buying Wirecard’s banking operations, which have been ringfenced from the rest of the payments company by BaFin, the German regulator. Options include taking on pieces of Wirecard Bank or the unit in its entirety, people familiar with the matter said, adding that the lender is still debating other ways to help Wirecard Bank and hasn’t made a final decision.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.

  • Will Deutsche Bank Come to Wirecard's Rescue? If Only
    Bloomberg

    Will Deutsche Bank Come to Wirecard's Rescue? If Only

    (Bloomberg Opinion) -- Deutsche Bank AG is lining up to buy a piece of history — a remnant of scandal-ridden Wirecard AG. It’s not the only one sniffing around. But however many expressions of interest there may be, and however credible the buyers, the proceeds from selling off even the best assets of the German payments company will be tiny relative to the losses incurred.When Wirecard was a stock market darling, investors weren’t piling into the shares because of its Wirecard Bank subsidiary, the piece that potentially interests Deutsche Bank. The lending arm was a sideshow as the rest of the operation appeared to expand. Of course, the growth reported by the group is now heavily in doubt following the admission that the accounts overstated cash balances by 1.9 billion euros ($2.1 billion).Deutsche Bank says it is considering providing financial support for Wirecard Bank should it be required. Precisely what that means is unclear. Wirecard’s bank is not subject to insolvency proceedings. If it needs assistance, there should be other avenues. It’s not Deutsche Bank’s job to be lender of last resort. But there could be some logic to a straight takeover at the right price.Extreme due diligence will be critical. Wirecard Bank has looked like a simple deposit-taking institution that’s been growing nicely. Question one is whether its 1.7 billion euros of deposits have stayed put as the parent company has unraveled. Then any buyer would need to kick the tires on the credit quality of the assets.And however much comfort Deutsche Bank got, this would be a tiny transaction. Even prior to Wirecard’s spectacular implosion, the unit’s book value was around 160 million euros. Credit quality will need to be robust to justify paying that.At least Wirecard’s creditors’ expectations are low. The group’s loans and bonds are trading at around 17% of face value, suggesting their owners expect to collectively get back around 400 million euros of the 2.3 billion euros they are owed (assuming Wirecard drew down all its revolving credit line in full). A jumbo convertible bond is being quoted even lower. That’s backed by Wirecard but issued out of a separate entity, creating doubt as to whether its holders’ claims would rank as highly as those of other creditors.It will take several years to adjudicate claims, so the expectation must be that recoveries will be slightly higher — but not much.Aside from the bank, the other asset likely to attract interest is Wirecard’s U.S. business, put up for sale earlier this week. This was acquired from Citigroup Inc. in 2017. The price wasn’t given, but Wirecard did reveal an associated $200 million foreign-exchange transaction for the purposes of the deal. It also said the acquisition would add $20 million to Ebitda. Take that as a base and assume a 10-15 times valuation multiple and an exit might raise $200-$300 million, according to Mirabaud Securities analyst Neil Campling.As for the remaining businesses, investors need to be optimistic to believe they are worth much. One explanation for the missing billions is that most of Wirecard’s operations have been loss-making for some time, and so never generated the free cash flow that was reported. Value them at, say, 100 million euros for the customer relationships and some tangible assets. Tot it all up and you can see why hopes are so faint. The one other source of compensation would be generated from claims against the company and its directors, falling back on insurance.Wirecard’s administrator says there are “numerous interested parties” in the company’s assets. Who wouldn’t want to nose around the books of this infamous fallen technology star? But beware of thinking that Deutsche Bank, or anyone else, will truly come to the rescue.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.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.

  • On-Premise & Off-Premise Trends to Decide Brown-Forman's Fate
    Zacks

    On-Premise & Off-Premise Trends to Decide Brown-Forman's Fate

    Brown-Forman (BF.B) witnesses headwinds in on-premise sales due to the closure of bars and restaurants, owing to the coronavirus pandemic. The off-premise and e-premise channels come to its rescue.

  • Is WMFAX a Strong Bond Fund Right Now?
    Zacks

    Is WMFAX a Strong Bond Fund Right Now?

    MF Bond Report for WMFAX

  • 57% of Americans plan to attend or host a 4th of July BBQ as new coronavirus cases hit daily record
    Yahoo Finance

    57% of Americans plan to attend or host a 4th of July BBQ as new coronavirus cases hit daily record

    Americans still plan to attend or host a cookout this 4th of July weekend as the U.S. reported a record-setting 53,000 new coronavirus cases.

  • NZD and AUD On The Rise
    FX Empire

    NZD and AUD On The Rise

    Summer holidays combined with Independence Day in the United States can result in very low volatility and overall a boring session on the global indices.

  • Business Wire

    Wells Fargo Announces Second Quarter 2020 Earnings Information

    Wells Fargo & Company (NYSE: WFC), as previously announced, will report its second quarter 2020 earnings results on Tuesday, July 14, 2020, at approximately 5 a.m. PT (8 a.m. ET). The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/.

  • Deutsche Bank Considers Financial Support for Wirecard Bank Subsidiary
    Bloomberg

    Deutsche Bank Considers Financial Support for Wirecard Bank Subsidiary

    (Bloomberg) -- Deutsche Bank AG is weighing the acquisition of all or part of disgraced Wirecard AG’s bank, potentially throwing the business a lifeline after one of the biggest corporate scandals in recent years.The Frankfurt-based lender is in touch with regulator BaFin, Wirecard Bank’s management board and administrators on possible further steps to help Wirecard’s finance unit, a Deutsche Bank spokesman said by e-mail, without elaborating. Options include taking on pieces of Wirecard Bank or the unit in its entirety, people familiar with the matter said, adding that the lender is still debating other ways to help Wirecard Bank and hasn’t made a final decision.Deutsche Bank had informal tie-up talks with the scandal-hit fintech last Spring, though it quickly broke off the preliminary discussions. Wirecard Bank -- which sat at the heart of the firm -- could be valuable to a potential acquirer because of its relationship with credit card companies Visa Inc., Mastercard Inc. and JCB International, which are also key to other parts of Wirecard.Deutsche Bank may also be hit if Wirecard Bank were to file for insolvency. Germany’s deposit insurance scheme for private banks would have to make depositors whole if the lender didn’t have enough funds of its own to repay them. That could lead to higher contributions from the scheme members, of which Deutsche Bank is the biggest and highest paying.Wirecard filed for insolvency last week after saying that almost 2 billion euros ($2.25 billion) it previously reported as cash probably never existed, throwing the future of its banking and others businesses into doubt. The company faces a potential avalanche of lawsuits and former Chief Executive Officer Markus Braun was arrested, though he is now out on bail.While Wirecard Bank isn’t part of the bankruptcy proceedings, the parent ceded control of funds last week after the financial regulator stepped in to prevent the money from being deployed elsewhere.“We are currently reviewing the possibility of providing Wirecard Bank AG with financial support,” Deutsche Bank said. “We are in principle prepared to provide this support in the context of a continuation of business operations, if such assistance should become necessary.”Insolvency administrator Michael Jaffe said on Wednesday that the assets he’s trying to sell are attracting interest from numerous investors. He didn’t say whether he intends to sell Wirecard Bank as well, though said the lender remains solvent.To fuel its growth, Wirecard had been paying depositors attractive interest at a time when traditional banks increasingly started to pass on negative rates. This year, it began offering a 0.75% interest rate via its Boon app, betting that more deposits will translate into more payments via its systems and lucrative contracts with stores and online merchants.In addition to the earlier talks on a possible tie-up, the two financial firms had others links. Deutsche Bank is part of a lending group of 15 banks that together are owed about 1.6 billion euros, Bloomberg has reported. CEO Christian Sewing has been trying to shift the lender away from its reliance on trading income toward a focus on processing payments for companies, and he’s made the division responsible for the business -- known as Corporate Bank -- the centerpiece of his large restructuring plan.Sewing has focused tech investment on the Corporate Bank but he has also said that the division is being challenged by the low interest-rate environment it’s operating in.The collapse of Wirecard has prompted criticism of regulators and soul-searching among Germany’s elite grappling for answers over the failure of what was once one of its most lauded companies. BaFin President Felix Hufeld has acknowledged that his institution is among those to blame for not catching the irregularities, which he referred to as “massive fraud” on Thursday in Frankfurt.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.

  • Why Kimberly-Clark (KMB) Could Beat Earnings Estimates Again
    Zacks

    Why Kimberly-Clark (KMB) Could Beat Earnings Estimates Again

    Kimberly-Clark (KMB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

  • Thomson Reuters StreetEvents

    Edited Transcript of BF.B earnings conference call or presentation 9-Jun-20 2:00pm GMT

    Q4 2020 Brown-Forman Corp Earnings Call

  • Deutsche Bank eyes payment systems, including Wirecard - Handelsblatt
    Reuters

    Deutsche Bank eyes payment systems, including Wirecard - Handelsblatt

    Deutsche Bank is on the lookout for expansion opportunities in the area of payments systems, the lender's strategy director said in response to a question about the lender's interest in Wirecard's assets. "We are one of the largest banks in payment transactions worldwide ... So if there are opportunities here to strengthen ourselves, we will look into them," Deutsche's Fabrizio Campelli told Handelsblatt newspaper in an interview published on Friday.

  • Were Hedge Funds Right About Piling Into Mastercard Incorporated (MA)?
    Insider Monkey

    Were Hedge Funds Right About Piling Into Mastercard Incorporated (MA)?

    We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]

  • Were Hedge Funds Right About Souring On Wells Fargo & Company (WFC)?
    Insider Monkey

    Were Hedge Funds Right About Souring On Wells Fargo & Company (WFC)?

    We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]

  • WFC ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of August 3, 2020 in the Class Action Filed on Behalf of Wells Fargo & Company Limited Shareholders
    Newsfile

    WFC ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of August 3, 2020 in the Class Action Filed on Behalf of Wells Fargo & Company Limited Shareholders

    New York, New York--(Newsfile Corp. - July 2, 2020) - The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Wells Fargo & Company (NYSE: WFC) alleging that the Company violated federal securities laws.Class Period: April 5, 2020 and May 5, 2020Lead Plaintiff Deadline: August 3, 2020Learn more about your recoverable losses in DNK:http://www.kleinstocklaw.com/pslra-1/wells-fargo-company-loss-submission-form?id=7750&from=5The filed complaint alleges that Wells Fargo & Company made materially false and/or ...

  • AUD/USD Forecast: Holding On To The Upper End Of The Weekly Range, Downside Limited
    Benzinga

    AUD/USD Forecast: Holding On To The Upper End Of The Weekly Range, Downside Limited

    AUD/USD Current Price: 0.6923 * Australian trade surplus rose 2% to $8.03 billion in May, missing the market's expectations. * China Caixin Services PMI seen back to contraction territory in June. * AUD/USD holding on to the upper end of the weekly range, downside limited.The AUD/USD pair surpassed its previous weekly high by a couple of pips, reaching 0.6951 before retreating to end the day unchanged at around 0.6920. Australia released its May Trade Balance this Thursday, which showed that the country's trade surplus rose 2% to $8.03 billion in the month, as imports fell faster than exports. It was below the market's expectations of $9 billion, but still positive. The pair followed equities for intraday direction.This Friday, Australia will publish May Retail Sales, anticipated to be up by 16.3%. The country will also publish the AIG Performance of Construction Index for June, previously at 24.9, and the Commonwealth Bank Services PMI expected unchanged at 53.2. China, in the meantime, will publish the June Caixin Services PMI foreseen at 49.9, down from 55 in May.AUD/USD short-term technical outlook The AUD/USD pair retains its neutral-to-bullish stance. In the 4-hour chart, the price is hovering around a flat 20 SMA and still above the larger ones, which lack directional strength. Technical indicators, in the meantime, lack directional strength but hold above their mid-lines. The risk is skewed to the upside, but the pair needs a good catalyst to finally be able to gather bullish momentum and challenge the 0.7000 level.Support levels: 0.6895 0.6850 0.6810 Resistance levels: 0.6950 0.6990 0.7015View Live Chart for the AUD/USDSee more from Benzinga * EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week * AUD/USD Forecast: Struggling To Rally Beyond The 0.6900 Threshold * EUR/USD Forecast: Pressuring The Upper End Of The Range(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GuruFocus.com

    Uncertainty Yields Opportunity

    Wells Fargo and Citibank are undervalued Continue reading...

  • As coronavirus cancels July Fourth vacation plans, should you cancel your travel credit card — or redeem air miles for cash?
    MarketWatch

    As coronavirus cancels July Fourth vacation plans, should you cancel your travel credit card — or redeem air miles for cash?

    Before the coronavirus pandemic swept the globe, the Amtrak Guest Rewards World Mastercard was a great deal for David White. White, who lives in Baltimore and works for a software firm, used to ride the train frequently — and with the credit card, he was able to rack up points that he could convert into free tickets. Adding to White’s frustration: The card comes with a $79 annual fee, and there aren’t many competitive options to redeem the rewards points for non-travel-related uses, he said.

  • Wells Fargo Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Wells Fargo & Company To Contact The Firm
    Newsfile

    Wells Fargo Deadline Alert: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 Investing In Wells Fargo & Company To Contact The Firm

    New York, New York--(Newsfile Corp. - July 2, 2020) -  Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Wells Fargo & Company ("Wells Fargo" or the "Company") (NYSE: WFC) of the August 3, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.If you invested in Wells Fargo stock or options between April 5, 2020 and May ...

  • WFC Shareholder Update: Bronstein, Gewirtz & Grossman, LLC Reminds Wells Fargo & Company Investors of Class Action and Encourages Investors to Contact the Firm
    Newsfile

    WFC Shareholder Update: Bronstein, Gewirtz & Grossman, LLC Reminds Wells Fargo & Company Investors of Class Action and Encourages Investors to Contact the Firm

    New York, New York--(Newsfile Corp. - July 2, 2020) - Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Wells Fargo & Company (NYSE: WFC) ("Wells Fargo" or "the Company") on behalf of shareholders who purchased Wells Fargo securities between April 5, 2020, and May 5, 2020, inclusive (the ''Class Period''). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/wfc. ...