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Futures were mixed this morning. The S&P 500 on Tuesday set its first record close since September, while the Nasdaq posted its first record close since August. Roughly half of S&P stocks are still below where they were the last time the S&P set a record close. Ahead of Wednesday trading, the Dow was less than 1% away from its all-time high close from October. (CNBC)
* The Fed's key interest rate keeps climbing higher, and that could become a problem (CNBC)
Occidental Petroleum (OXY) bid $76 per share for Anadarko Petroleum(APC) today, higher than a previous offer for the company by Chevron (CVX), according to a copy of a news release viewed by CNBC.
Dow components Boeing (BA) and Caterpillar (CAT) lead this morning's parade of corporate earnings, along with AT&T (T) and Biogen (BIIB). Facebook (FB), Microsoft (MSFT), Visa (V), and Tesla (TSLA) highlight today's after-the-bell earnings. (CNBC)
* AT&T posts a surprise gain in quarterly wireless phone subscribers (Reuters)
Snap (SNAP) shares were 5% higher in premarket trading after it posted a loss of 10 cents per share for its latest quarter, smaller than the 12 cent loss expected by Wall Street analysts. The Snapchat parent's revenue also came in above estimates. (CNBC)
iRobot (IRBT) shares were falling about 14% in the premarket after the Roomba vacuum maker saw revenue fall short of forecasts. However, the company did beat on quarterly earnings and did raise its full year profit forecast. (CNBC)
There is no government economic data on today's schedule, but the Mortgage Bankers Association issues its weekly look at mortgage applications at 7 a.m. ET. The Energy Department is out with its usual Wednesday look at oil and gasoline inventories at 10:30 a.m. ET. (CNBC)
* Mortgage applications fall as the highest rates in a month are spooking spring buyers (CNBC)
IN THE NEWS TODAY
The U.S. will send a high-level delegation to Beijing next week as trade negotiations with China continue, White House Press Secretary Sarah Huckabee Sanders said. Both sides have met several times in a bid to hammer out a deal to end their trade war. (CNBC)
* UK will reportedly allow Huawei to build out parts of its 5G networks (CNBC)
* Here's why China and India will remain on Iranian oil imports (CNBC)
House Speaker Nancy Pelosi will meet with Trump next week to talk about infrastructure. Pelosi has tried to keep the focus of her comments on issues rather than increasing calls for Trump's impeachment within the Democratic caucus. (CNBC)
Kraft Heinz (KHC) is weighing the sale of its Ore-Ida frozen potato brand, maker of Tater Tots, according to people familiar with the situation who spoke to CNBC. Kraft Heinz has hired Evercore Partners to assist in the possible sale.
Kohl's (KSS) announced it will start accepting returns for items purchased on Amazon (AMZN) at all of its stores across the country, starting in July. This option is available at just 100 Kohl's stores today. (CNBC)
Rite Aid (RAD) announced plans to increase its minimum age for buying tobacco products to 21 from 18, matching a move made by rival Walgreens (WBA). CVS Health (CVS) stopped selling tobacco products in 2014. (CNBC)
Tesla (TSLA) CEO Elon Musk sent a two-line email telling employees how great the automaker's self-driving showcase event Monday went, but the plan had a lot of holes. So-called Autonomy Day served to distract from Tesla's recent operational challenges. (CNBC)
* Tesla upgrades Model S and Model X cars, brings back cheaper variants (Reuters)
STOCKS TO WATCH
CBS (CBS) suspended its search for a new Chief Executive Officer, instead extending the term of acting CEO Joe Ianniello through the end of the year. The move has reignited speculation that CBS and Viacom (VIAB) may once again explore a potential merger.
Texas Instruments (TXN) reported quarterly profit of $1.26 per share, 13 cents above estimates, with the chipmaker's revenue also coming in above Wall Street forecasts. However, the company did warn that a slowdown in microchip demand may last for a few more quarters.
STMicroelectronics (STM) cut its full year spending target, as demand for smartphone and other semiconductors shrinks.
EBay (EBAY) came in 4 cents above estimates with adjusted quarterly profit of 67 cents per share, with the online marketplace's revenue also above forecasts. EBay also raised its profit and revenue outlook for the full year, amid a rise in active buyers.
SAP (SAP) posted on operating loss for its latest quarter, largely from a restructuring charge. The German business software provider did set a goal of expanding operating margins by five percentage points by 2023.
PG&E (PCG) received court approval to pay workers up to $350 million in bonuses as incentives to help the California utility meet its safety goals.
Lululemon (LULU) CEO Calvin McDonald told the Wall Street Journal that the apparel maker has no plans to cut prices, despite the proliferation of copycat products hitting the marketplace.
Best Buy (BBY) was upgraded to "buy" from "hold" at Jefferies, which points to optimism regarding the electronics retailer's expansion of services.
CONTRIBUTORS
Berkeley Lovelace Jr.
@BerkeleyJr
Peter Schacknow
@peterschack
$MJNA "It's predicted that the CBD market could be worth $22 billion by 2022," said Medical Marijuana, Inc. CEO Dr. Stuart Titus. "We're excited that, in addition to this great industry progress, we've experienced our own tremendous growth in 2018 and the company is positioned well for continued explosive expansion." https://www.prnewswire.com/news-releases/medical-marijuana-inc-reports-fourth-quarter-and-year-end-financial-and-operational-results-net-revenue-increase-125-year-over-year-300834324.html
Zoom begins its first day of trading at $65, surging 80%
PUBLISHED 2 HOURS AGO UPDATED MOMENTS AGO
https://www.cnbc.com/2019/04/18/zoom-ipo-stock-begins-trading-on-nasdaq.html
At its opening price, Zoom is valued at about 50 times its enterprise value, which is by far the highest multiple for U.S. software companies. Zscaler, a security software company, has an enterprise value to sales ratio of 30, according to FactSet.
$NIO in the race to dominate the auto industry of the 21st century, China is vying for the pole position with electric cars. Holly Williams reports. https://www.cbsnews.com/video/electric-cars-will-china-win-the-race-to-dominate-the-global-electric-car-industry-60-minutes
I appear to be in the same boat. You have a shot if MI makes it to the final four.
I don't think the Zags can do it.
8
SKI
*SKI's Swell Bracket
22
Duke
22
178
11
SKI
*Marine Life is Underwater
21
Michigan St.
21
175
Who were you? I don't see you on there.
As for Michigan State fans they are not familiar with their record against Duke.
http://www.espn.com/mens-college-basketball/tournament/history/_/team1/5847/team2/6637
Tom Izzo: The Big Ten Deserves Better than Michigan State Being in Duke Bracket
https://thebiglead.com/2019/03/18/tom-izzo-the-big-ten-deserves-better-than-michigan-state-being-in-duke-bracket/
Shut up and play the game.
$SYN The Sleeping Giant Has Awaken
The bond market is flashing its biggest recession sign since before the financial crisis
PUBLISHED THU, MAR 21 2019 • 1:17 PM EDT | UPDATED 18 MIN AGO
Jeff Cox
@JEFFCOXCNBCCOM
https://www.cnbc.com/2019/03/21/a-key-recession-indicator-just-did-something-that-hasnt-happened-in-12-years.html
Part of ‘yield curve’ inverts as 3-month yield tops 10-year rate
PUBLISHED 6 HOURS AGO | UPDATED 32 MIN AGO
Thomas Franck
@TOMWFRANCK
https://www.cnbc.com/2019/03/22/us-bonds-treasury-yields-move-lower-as-investors-await-economic-data.html
* * $NIO Kabbbbooomage HOD coming
$CHK Chesapeake Energy THANKS FORCHEAPIES...ADDING MORE!
$NIO Going Green ))))
NCAA March Madness Tournament Pickems
https://tournament.fantasysports.yahoo.com/t1/group/55961/invitation?key=4096c10d23b85e16&soc_trk=lnk
$NIO The Tesla of China $TSLA on Facebook
https://www.facebook.com/60minutes/videos/611707332615390/
Some information already had emerged in an ongoing court case filed by UnitedHealth Group Inc.(UNH) against one of its own former employees, who is now working for Haven.
They are trying to cut out the middle man, UNH. I bet the guy had a no compete clause in his contract.
Health Venture Unveils Name, Site -- WSJ
DOW JONES & COMPANY, INC. 2:47 AM ET 3/7/2019
Symbol Last Price Change
AMZN 1668.95down 0 (0%)
BRK/A 301375down 0 (0%)
JPM 103.72down 0 (0%)
UNH 239.07down 0 (0%)
QUOTES AS OF 04:00:00 PM ET 03/06/2019
This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (March 7, 2019).
The high-profile health-care venture launched last year by Amazon.com Inc.(AMZN), Berkshire Hathaway Inc.(BRK/A) and JPMorgan Chase & Co.(JPM) finally has a name: Haven.
The new company, which has formally released almost no information about its plans, is also unveiling a website, which includes a letter from Chief Executive Atul Gawande, a well-known writer and surgeon. But the site appears to add little new detail on the venture's plans. Some information already had emerged in an ongoing court case filed by UnitedHealth Group Inc.(UNH) against one of its own former employees, who is now working for Haven.
Dr. Gawande's letter says that Haven "will create new solutions and work to change systems, technologies, contracts, policy and whatever else is in the way of better health care."
Haven, which was incorporated in Delaware as a limited liability company formally named Tcorp62018, will initially focus on the employees of the three founding companies, according to a screenshot from the new website, echoing company officials' earlier testimony. The site says that "in time, we intend to share our innovations and solutions to help others."
In its suit, UnitedHealth's(UNH) Optum health-services unit has argued that the venture is a potential rival, and officials from the venture have said they aren't competing with Optum.
The website reiterates that Haven isn't meant to generate profits and will "reinvest any surplus back into our work."
The company says it will focus on priorities including improved access to primary care, simplifying insurance coverage and making prescription drugs more affordable -- all issues that were previously highlighted in court testimony. In a Q&A on the site, in answer to a question about whether Haven will look to replace patients' existing doctors and insurance companies, the company says it is "interested in working with clinicians and insurance companies to improve the overall health care system."
Write to Anna Wilde Mathews at anna.mathews@wsj.com
Corrections & Amplifications An earlier version of this article misspelled JPMorgan(JPM) as JPMorgen in the headline. (March 6, 2019)
(END) Dow Jones Newswires
03-07-190247ET
Copyright (c) 2019 Dow Jones & Company, Inc.
$CHK Chesapeake Energy Corporation
7 Day Average Directional Indicator BUY
10 - 8 Day Moving Average Hilo Channel BUY
20 Day Moving Average vs Price BUY
20 - 50 Day MACD Oscillator BUY
Aon Says It's No Longer Pursuing Willis Towers Acquisition
https://finance.yahoo.com/news/aon-says-apos-no-longer-122545866.html
Insurer Aon in talks to buy rival Willis Towers Watson
https://finance.yahoo.com/news/insurer-aon-talks-buy-rival-155321875.html
Thankfully the tornadoes haven't found us yet.
My trading has always been on the conservative side having lost it all once before in a previous life.
The kid is still not in the will. lol.
I'd have to agree with most of that ----- getting to be a STOCK PICKERS market. Personally, I've cut way back on active trading ---- at a point in life where we need to spend it instead of make it.
Our kids will be shocked !!!!
Hope all that nasty weather blew by you ---- some really bad scenes coming out of Alabama and Georgia!
First-ever, 1494 book on how to succeed in business is set to go on auction block, expected to fetch up to $1.5 million
Luca Pacioli's "Summa de Arithmetica: The Birth of Modern Business," is on display at Christie's auction house Monday through March 8. The book will go on the auction block on June 12 in New York City.
The 1494 book, the first-ever practical guide on how to succeed in business, codified the mathematical foundations of our modern and technological world.
Christie's specialists claim the book could fetch as much as $1.5 million.
Barbara Booth | @bjbooth2
Published 29 Mins Ago
In 1494 Luca Pacioli, known as the Father of Modern Accounting, wrote the first practical how-to book on succeeding in business. It introduced many bookkeeping methods that are used today and is considered to have prefigured many aspects of the modern business world. Now the Italian mathematician's book is set to go on the auction block — and Christie's specialists claim it could fetch as much as $1.5 million.
Pacioli's "Summa de Arithmetica" represents the pinnacle of mathematical knowledge in the Renaissance and is an icon not just of Renaissance learning but of the history of human knowledge, claims the specialists at Christie's.
Pacioli was one of the first to recognize the study of economics as a liberal art. "Summa de Arithmetica" codifies the mathematical foundations of our modern and technological world and includes mathematics, computing and is the first published description of double-entry bookkeeping.
According to Christina Geiger, head of books and manuscripts at Christie's in New York, Pacioli's achievement is one of the great untold stories of the Renaissance. "As Leonardo and others made revolutionary strides in art and Machiavelli did for politics, so too did Pacioli for business. ... The mathematical principles of the most vital features of contemporary finance are all present in the Summa de Arithmetica," she said.
On Monday through March 8, "Summa de Arithmetica: The Birth of Modern Business" will be on display at Christie's auction house in New York City before heading to San Francisco next month, then Hong Kong in May. The book will be returned to New York City to be auctioned off at Christie's on June 12.
In writing the "Summa de Arithmetica," Pacioli sought to include all the mathematical knowledge available at the close of the 15th century, which saw the European adoption of Hindu-Arabic mathematics and its synthesis with rediscovered ancient Greek knowledge.
Pacioli was also collaborator and friend of the famed artist and inventor Leonardo da Vinci. The two shared a home in Milan for five years, where they worked together on mathematics and perspective for several productive years that included Leonardo's creation of "The Last Supper," until both were forced to flee following the French invasion.
In 2018 Christie's had global auction, private and digital sales that totaled $7 billion.
https://www.cnbc.com/2019/03/04/paciolis-1494-book-on-how-to-succeed-in-business-could-fetch-1point5m.html
Former bond king Gross says chances of beating the market 'much less' now
Bill Gross, once known as the "bond king," said in a Bloomberg interview that beating the market is getting harder to do.
Alpha generation is constrained by low volatility and has "much less" of a probability now, the Pimco founder said.
Jeff Cox | @JeffCoxCNBCcom
Published 17 Mins Ago
Former bond king Bill Gross thinks he might be one of the last of his kind as it gets increasingly tougher to beat the market.
A month after announcing his retirement, Gross looked back on his career and took a peek forward at a market that he said is stacked against managers trying to generate alpha.
"I think there are things to look at that still exist in the market that can generate alpha," the Pimco founder and, later, Janus Henderson fund manager told Bloomberg. "The probabilities of generating historical alpha in the same way are much less than they were."
Easy central bank monetary policy that is tamping down market volatility makes it difficult for active management. The Federal Reserve and its global counterparts responded to the financial crisis with massive runs of asset purchases while keeping interest rates anchored near zero.
The result has been years of underperformance by stock pickers as well as fixed income fund managers like Gross.
"The opportunities are diminished," he said in an interview.
However, as central banks have begun to normalize policy active managers have fared a little better. In 2018, about 43 percent beat their benchmarks, according to Bank of America Merrill Lynch.
Gross, though, saw his unconstrained fund lag behind its competitors since he joined Janus Henderson following a 40-year run at Pimco. The fund has since been renamed the Janus Henderson Absolute Return Income Opportunities Fund and has seen its assets slump to $914.5 million.
One of the problems with finding alpha is the lack of new products, Gross said. He also cited high-speed trading and its use of algorithms. He figures the market probably has gone as far as it can in finding innovative new investment vehicles.
"Markets have gone about as far as they're going to go from the standpoint of technological promise or new products, which is always dangerous," he said. "One of the reasons Pimco did so well wasn't necessarily from the genius of Bill Gross or the investment committee" but was "from our recognition of new products and our willingness to jump on board the train when we had the confidence new products were credit-worthy."
Read the full Bloomberg report here.
https://www.cnbc.com/2019/03/04/former-bond-king-gross-says-chances-of-beating-the-market-much-less-now.html
The numbers didn't surprise me since I've seen this play out over the years regarding people who don't take advantage of free money.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146973915&txt2find=boeing
I think I'm ahead of the curve but I have a buddy who lives in MA who is retired and says nope not enough.
Now there are 2 companies that have been totally mismanaged. I have no idea what F is doing except selling F-150s and Mustangs.
Wow, at every age group level ---- I'm pretty shocked!
First, I know salary and wages have risen fairly significantly
since I left the workforce in 2000. And, at the same time,
the change(s) in conventional pension plans contributes even
more to the critical need to utilize 401-K more effectively.
Most of these look like the proverbial 201-K (at best) !!
But, I know you know ---- HOW to be much better prepared.
Carpe` Retirement !!
VW to Invest Nearly $2 Billion In Ford Self-Driving Car Venture -Sources
DOW JONES & COMPANY, INC. 7:49 AM ET 2/26/2019
Symbol Last Price Change
VLKAF 176.62up 0 (0%)
F 8.76up 0 (0%)
QUOTES AS OF 02:44:39 PM ET 02/25/2019
BERLIN -- Volkswagen AG(VLKAF) is planning to invest around $1.7 billion in a self-driving car venture with Ford Motor Co.'s(F) Argo subsidiary, according to people familiar with the matter.
After months of talks, the German and U.S. car makers have agreed to make Argo the nucleus of an equally held joint venture that could receive additional assets from Volkswagen(VLKAF) over time.
As the industry begins to transition away from polluting combustion engines and traditional models of car ownership, global auto makers have been exploring alliances and joint ventures to share the enormous investments needed to develop future fleets of electric and self-driving vehicles.
A VW-Ford deal would create allies of the world's biggest car maker by sales and the second-largest auto maker in the U.S. with combined global reach of about a fifth of new vehicle sales world-wide.
The agreement to create a self-driving vehicle joint venture is part of broader cooperation talks that have been under way since last year, beginning with an agreement to cooperate in manufacturing light commercial vehicles, such as utility vans and midsize pickup trucks.
The talks are complicated, but making good progress, the people said, adding that a final deal could still fail to materialize.
Under the structure as currently envisaged, Volkswagen(VLKAF) would provide nearly $600 million as an equity investment in Ford's Argo venture, about half of what Ford initially sought from its future partner. Volkswagen(VLKAF) will provide around $ 1.1 billion in working capital for the venture's research and development. The two companies will both own half of the entity.
Volkswagen (VLKAF) could also link additional assets to the venture such as Audi AG's Munich-based technology group Autonomous Intelligent Driving and Moia, VW's Berlin-based mobility-services business. But initially AID and Moia won't be fully integrated into Argo.
"It's my opinion that you can't do this alone," Ford Chief Executive Jim Hackett said last month when detailing the company's VW alliance, which he described as a "foundational framework."
Ford has said it's spending $11 billion to develop electric vehicles over a seven-year stretch ending in 2022. The company also said it would spend an average of around $800 million through 2023 on self-driving-car technology.
The No. 2 U.S. auto maker by sales has been seeking an infusion of capital to help fund its autonomous vehicle efforts. Last summer, it carved out its self-driving car division as a separate entity to attract outside funding. Rival General Motors Co. last year received commitments for more than $5 billion total for its autonomous business, Cruise, in separate deals with Honda Motor Co. and Japan's SoftBank Group Corp.
Volkswagen (VLKAF) has embarked on an ambitious drive to invest as much as $150 billion over the next five years to develop electric cars and self-driving car technology. The company is planning to expand its Chattanooga, Tenn. manufacturing plant to build electric cars in the U.S., one of 16 electric car plants that the company plans to build world-wide in the next few years.
Ford and VW are discussing licensing VW's new electric-vehicle technology, a standardized system of building-block technology called MEB that allows VW to build a variety of fully electric models across its passenger car brands VW, Audi, Skoda and Seat.
Under the initial agreement that Ford and VW announced in January, Ford will produce light commercial vehicles and medium-size pickup trucks for both companies, expecting to launch the first vehicles by early 2022. VW will in turn produce city vans for the venture.
"Over the course of negotiations we constantly broadened the scope of discussions," Mr. Diess told reporters at the time. "We believe we can explore further collaboration opportunities in exactly those fields that will be pivotal for future success in the auto industry."
Write to William Boston at william.boston@wsj.com and Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
02-26-190749ET
Copyright (c) 2019 Dow Jones & Company, Inc.
The Average 401(k) Balance by Age
It's fun to rubberneck at 401(k) balance averages, but they won't tell you much about your own retirement readiness.
ARIELLE O'SHEA
JANUARY 24, 2019
https://www.nerdwallet.com/article/the-average-401k-balance-by-age
4q2018 was a train wreck to take down the weak kneed.
Stocks Were Down, but Berkshire Hathaway Didn't Buy Much -- Barrons.com
DOW JONES & COMPANY, INC. 11:19 AM ET 2/15/2019
Symbol Last Price Change
BRK/A 307292.04down +3402.04 (+1.12%)
JPM 105.2052down +2.7852 (+2.72%)
GM 38.95up +0.06 (+0.15%)
BAC 29.0667up +0.6767 (+2.38%)
AAPL 169.95down -0.85 (-0.5%)
WFC 49.29down +0.77 (+1.59%)
BK 52.71down +0.94 (+1.82%)
USB 51.2down +0.74 (+1.47%)
QUOTES AS OF 11:15:51 AM ET 02/15/2019
Berkshire Hathaway (BRK/A) added a surprisingly small amount of stocks to its huge equity portfolio during the fourth-quarter market decline.
Based on a Berkshire securities filing Thursday, Barron's calculates the company's net purchases of stock during the quarter were less than $1 billion, compared with net buys of more than $12 billion in the third quarter. The Berkshire equity portfolio totaled $183 billion at the end of the year.
Berkshire's equity purchases are closely watched as an indication of CEO Warren Buffett's views about the stock market and individual stocks.
The S&P 500 was down 14% in the fourth quarter.
Two longtime Berkshire investors told Barron's that they expected bigger equity purchases given the company's huge cash balance of more than $100 billion and its continued inability to land a major acquisition that would put that money to work.
Berkshire bought more than $13 billion of bank stocks in the third quarter.
The relatively light stock purchases in the context of a weak market backdrop have spurred talk that Berkshire could have aggressively bought back its own shares. It repurchased about $900 million in stock during the third quarter -- the first quarter of its buyback program.
The scale of the buybacks will be clear when Berkshire reports its earnings. The results are expected on Feb. 23.
Berkshire's largest equity purchases in the fourth quarter were JPMorgan Chase(JPM) , at about $1.5 billion; General Motors(GM) , at $700 million; and Bank of America(BAC) , at $500 million.
Berkshire trimmed its Apple(AAPL) holding, its largest equity position, by nearly three million shares to 249.6 million shares. Buffett remains a big Apple(AAPL) fan and Berkshire holds about 5% of the company -- a stake worth $39 billion.
Berkshire sold a $2.1 billion stake in Oracle (ORCL) in the quarter and trimmed its holding in Wells Fargo(WFC) by about $750 million. The Wells Fargo(WFC) sale appears to have reflected a continuing effort by Berkshire to keep its holding under a 10% regulatory cap as Wells Fargo(WFC) continues to buy back stock. Berkshire holds about 9% of Wells Fargo(WFC) and Bank of America(BAC) and has 8% stakes in Bank of New York Mellon(BK) and U.S. Bancorp(USB) .
Financials represent the largest sector weighting in the Berkshire portfolio at more than 40%.
Class A stock in Berkshire was up $2,745 at $307,500, for a 0.9% gain on Friday morning.
Write to Andrew Bary at andrew.bary@barrons.com
(END) Dow Jones Newswires
02-15-191119ET
Copyright (c) 2019 Dow Jones & Company, Inc.
The Feds will approve the merger since BB&T is the one buying SunTrust and King is a very conservative banker.
BB&T did not need Tarp money but was forced to take it.
Here's what must happen before Charlotte can land new HQ in BB&T, SunTrust deal
KNIGHT RIDDER/TRIBUNE 12:01 AM ET 2/13/2019
Symbol Last Price Change
BBT 50.82up 0 (0%)
STI 65.56up 0 (0%)
BAC 28.69up 0 (0%)
WFC 49.05up 0 (0%)
MCO 163.15up 0 (0%)
QUOTES AS OF 04:01:00 PM ET 02/12/2019
Feb. 13--A proposed $66-billion merger between BB&T(BBT) and SunTrust Banks(STI), which would put a new bank headquarters in Charlotte, turned heads last week as the largest U.S. bank merger since the financial crisis about a decade ago.
The combination of Winston-Salem's BB&T(BBT) and Atlanta's SunTrust would form the sixth-largest U.S. bank, holding approximately $442 billion in assets and $324 billion in deposits, both companies said in announcing their plans last Thursday.
Industry experts largely expect regulators to approve the transaction this year. But the proposal is triggering outcry from some Democrats in Congress, who say they worry it will raise banking costs for consumers and create another large U.S. bank that might hurt the economy if it were to fail.
At stake for Charlotte are high-paying jobs and the luster of another bank headquarters. Right now it is headquarters only to Bank of America(BAC). Years of industry consolidation has cost the city the headquarters of other banks, making it tougher for Charlotte to hold onto its title of second-largest banking center in the U.S.
Among members of Congress criticizing the deal, California's Rep. Maxine Waters, chair of the House Financial Services Committee, and Massachusetts Sen. Elizabeth Warren, a prominent Senate Banking Committee member, have been the most vocal so far.
In a statement, Waters said the merger raises many questions and deserves "serious scrutiny" from Congress and regulators to determine whether it would benefit consumers. In a letter to Federal Reserve Chairman Jerome Powell, Warren said the deal "creates a new too big to fail bank and has the potential to hurt consumers."
BB&T (BBT), which will buy SunTrust in the deal, declined to comment. But in discussing the merger last week, SunTrust CEO Bill Rogers said the combination will benefit customers in various ways, including by allowing investments in better technology to serve them.
Charlotte is also expected to gain more jobs from the deal.
Executives from BB&T(BBT) and SunTrust said they currently have more than 2,000 workers combined in the Charlotte region and that that figure will grow, though they did not give estimates.
The headquarters for the new bank, whose name and location have not been announced, is also expected to bring to Charlotte an innovation and technology center where new products would be developed.
'Intensely concerned'
Consumer advocates say they continue to scrutinize the merger and are worried about its impact.
Bart Naylor, financial policy advocate for Washington, D.C.,-based consumer advocacy group Public Citizen, said his organization has begun asking regulators and Congress to investigate the merger's merits. His group is also speaking with members of Congressional banking and finance committees to get them to question the Fed's Powell about the deal when he appears before both panels this month.
"We are intensely concerned about this merger, both for what it means for consumers and the Southeast, and what it portends for the future in bank consolidation," Naylor said. "It will consolidate banking in the Southeast, leading to the closure of hundreds of branches, escalation of consumer costs and termination of thousands of employees."
Executives for BB&T(BBT) and SunTrust indicated that jobs could be cut as duplicate functions are eliminated and branches are closed. Approximately 740 combined branches for both banks are within 2 miles of each other, executives said.
BB&T (BBT) and SunTrust also said the new bank will serve more than 10 million households. According to an analysis for the Observer by the Federal Deposit Insurance Corporation, it is the largest bank merger in the U.S. since San Francisco'sWells Fargo(WFC) agreed to buy Charlotte-based Wachovia in 2008.
In the Charlotte metro area, one potential side effect of the deal is to further concentrate deposits in the hands of three big banks.
BB&T (BBT), Bank of America(BAC) and Wells Fargo(WFC) already hold more than 92 percent of the region's deposits, according to the latest FDIC data from June. Bank of America(BAC) holds the most, 74.5 percent, followed by Wells Fargo's(WFC) 14.6 percent and BB&T's(BBT) 2.9 percent. SunTrust is sixth with less than 1 percent.
Al Ripley, director of the N.C. Justice Center's consumer and housing project, said his group is examining the merger for any impact on competition. The nonprofit advocates on behalf of low- and middle-income people in North Carolina.
"We have to make sure that there is still ample competition in the marketplace that serves consumer interests and that consumers overall benefit from the merger," Ripley said.
Executives for both banks emphasized last week that their new bank will make substantial investments in technology, benefiting customers. BB&T(BBT) also said the combination will give customers access to more branches and an expanded network of automated teller machines.
Regulators must approve
Regulators and shareholders must still approve the purchase, which BB&T(BBT) and SunTrust said is expected to close in the last three months of the year.
Approvals will be needed from the North Carolina Commissioner of Banks and the Federal Reserve's full board, according to spokespeople for both agencies.
The FDIC also might have to authorize the deal depending on how the business combination is structured, according to a spokesman. BB&T(BBT) said state banking regulators in Georgia must also sign off.
Bert Ely, an Alexandria, Va.-based banking consultant, said there will be "lots of noise" from the deal's critics. But he said he expects regulators to approve it by the end of the year.
"You've got two strong companies, well-managed," he said. "They're going to get this deal approved."
Jaret Seiberg, a Washington, D.C., bank analyst with Cowen and Company, wrote in a report Monday that he also expects regulators to OK the merger. But Warren's and Waters' criticisms are likely to increase, which will make it tough for other Democrats to support it, he said.
Waters will probably hold at least one hearing to the deal, Seiberg wrote, adding that it's not clear whether the Senate Banking Committee will hold one. That body is chaired by Idaho Republican Mike Crapo.
In expressing concerns about the merger, Waters and Warren said it reflects a relaxing of federal banking regulations under President Donald Trump's administration.
In her letter to the Fed chairman, Warren cited a law Trump signed last year, saying that it reduced federal oversight of banks with $50 billion to $250 billion in assets, a group that includes BB&T(BBT) and SunTrust.
"Industry analysts correctly predicted that these changes will result in an increase in (merger and acquisition) activity among banks," Warren wrote. A rise in bank mergers has the potential to hurt consumer choice and competition, she wrote.
Wild card?
In 2017, the Federal Reserve issued an order against BB&T(BBT) that remains in effect, and industry experts say the impact of that action on the merger remains unknown.
In its order, the Fed told BB&T(BBT) it needed to fix deficiencies in how it complies with federal anti-money laundering law. In issuing the order, the Fed said it had found "significant" deficiencies at BB&T(BBT) during a Fed inspection of the bank.
Similar issues helped create years-long delays in approvals for a deal announced in 2012 in which M&T Bank Corp. of New York agreed to buy New Jersey'sHudson City Bancorp. The Fed finally approved the deal in 2015.
Last week, BB&T(BBT) CEO Kelly King said he did not expect the Fed's order to stand in the way of regulators approving the merger. He also noted that BB&T(BBT) has already been released from similar orders with the FDIC and North Carolina Commissioner of Banks.
"We are, we believe, in the very final stages of having that lifted with the Fed," King said. "We have done everything that they have asked us to do. ... I believe we're on the five-yard line, maybe the three-yard line, in terms of this being resolved."
Seiberg, the bank analyst, said in his report that the money laundering issue remains one of the deal's biggest risks.
"There are no indications of trouble in this area," he wrote. "But if the deal takes longer than the rest of 2019, we suspect it will be trouble with a compliance issue like the money laundering rules."
Another key question on analysts' minds is how successful BB&T(BBT) and SunTrust, two large regional banks, will be at integrating their cultures and processes if the deal is approved.
A report Monday from New York-based Moody's Corporation(MCO) said though BB&T(BBT) and SunTrust are both healthy institutions that have been involved in previous mergers, in general the credit-rating agency does not have a favorable view of large U.S. bank acquisitions.
"As seen in recent decades, bank combinations are often the source of significant integration challenges and due diligence missteps do not always become clear until well after the deals are completed."
The Financial Crisis Put a Chill on Big Bank Deals. That Ended Thursday.
If approved, the merger of BB&T and SunTrust would create the sixth-biggest bank in the U.S., large enough to compete against the country’s largest lenders.
1d ago
By MICHAEL J. DE LA MERCED and EMILY FLITTER
https://www.nytimes.com/2019/02/07/business/dealbook/bbt-suntrust-bank-mergers.html
Past his prime. He should have retired gracefully from Pimco.
https://www.msn.com/en-us/money/companies/bill-gross-retires-after-storied-four-decade-career-in-bonds/ar-BBT9ByX
Gross, 74, has run the Janus Henderson Global Unconstrained Bond Fund since late 2014, shortly after he suddenly left Pimco in the midst of a management clash. His annualized returns of less than 1 percent at Janus failed to live up to his stellar long-term record from the Pimco era.
And the Puppy Bowl was a better game.
Bill Gross Retiring From Janus
Bond market legend co-founded Pimco in 1971
By Allison Prang
Feb. 4, 2019 8:35 a.m. ET
William “Bill” Gross, co-founder of Pacific Investment Management Co. and most recently a portfolio manager at Janus Henderson Group PLC, is retiring from Janus, the firm said Monday.
Mr. Gross has been at Janus since 2014. The 74-year-old co-founded Pimco in 1971.
more @ http://wsj.com
Loving RLBD , be on for 12 months, and coffee today was good
$CLDC Next leg $1.12
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LMAO. Reach out to this poster. I don't do pennies.
https://investorshub.advfn.com/boards/profilea.aspx?user=5147
$OCLN .0012 -0.0002 (-14.29%) #Crypto
$HMNY Direct Holders (Forms 3 and 4) Helios and Matheson Analytics Inc
Name Shares Date Reported
FARNSWORTH THEODORE 4,543,255 Dec 9, 2017
GADIYARAM MURALIKRISHNA 750,000 Oct 26, 2017
BENSON STUART M 1,000,000 Jan 17, 2018
KRISHNAN PARTHASARATHY 288,312 Jan 21, 2017
https://finance.yahoo.com/quote/HMNY/holders?p=HMNY
$NIO China's top electric car startup is using Apple's playbook in China to take on Tesla https://www.businessinsider.com/chinas-electric-car-startup-apples-playbook-tesla-nio-2018-5
$HEMP Hemp, Inc. Strategic Hemp Growing Partner "Veteran Village Kins Community Arizona, Inc." Receives Coverage by The Kingman Daily Miner for Veteran-Focused Cultivation Plan
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Kandi Technologies Group Inc (NASDAQ:KNDI): China’s Tesla For A Fraction Of The Price http://streetregister.com/2016/08/10/kandi-technologies-group-inc-nasdaqkndi-chinas-tesla-for-a-fraction-of-the-price/
$HMNY MoviePass parent company to acquire Emmett Furla Oasis and launch new film division https://finance.yahoo.com/news/moviepass-parent-company-acquire-emmett-154420306.html
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