Millions of Americans who trusted Equifax with sensitive personal and financial data, including social security numbers and credit-card information, are now nervously wondering whether they will be among the unlucky minority of affected customers whose identities are successfully “repurposed” by online criminal groups. One researcher from security firm SecureWorks shared some details about today’s burgeoning marketplace for stolen data with Bloomberg, and the conclusion is clear: It is now easier – and cheaper – for criminals to access and abuse illicit data than ever before. In fact, a high-limit American express card with a high chance of working can be purchased online for less than $20. Criminals can buy files with thousands of low-limit card numbers for pennies on the dollar. According to Bloomberg, “verified” high-limit credit cards from developed countries like the US, Japan, and South Korea are selling on the dark web for the bitcoin equivalent of about $10 to $20. “Verified” means the seller has tested out transactions on the card and found it hasn’t been canceled yet. For scammers on a budget, there’s unverified stolen credit card data, which comes out to pennies a card when bought in bulk. Here’s a screengrab from one dark-web marketplace. Luckily for criminals, cards generally aren’t selling any cheaper on the dark web these days, said Alex Tilley, a researcher at Secureworks. Today’s buyers are more likely to get higher-quality cards, ones with sizable limits that can be used fraudulently with ease. It isn’t as hit-or-miss as it used to be, a welcome change for criminals, chilling news for most of us. Criminals have even set up sophisticated “rating systems” to help value the data. Business cards are preferred, Tilley said, because they don’t have a limit. Those and high-end personal cards—say, a Platinum American Express that has been verified and has an 85 percent rating (judged by the seller to have an 85 percent chance of being successfully used in a fraud)—will go for $15 to $20. A regular Mastercard that doesn’t have a high limit might go for $9. One underground hacker market inexplicably called Trump’s Dumps is selling full identities of individuals just like you for as little as $10 apiece. They’re called fullz, “dossiers that provide enough financial, geographic and biographical information on a victim to facilitate identity theft or other impersonation-based fraud.” Fullz can help a criminal get past those irritating “secret questions” that sites ask to verify your identity. Recently, Secureworks’ researchers have seen more offers of bulk pre-verified card details, along with more identifying information about the owners. In some cases, offers even include the cardholder’s mother’s maiden name. Still, they cost just $10 to $12. Below is a fullz offer with a lot of personal identification on a Korean consumer. In a massive breach like Equifax, hackers can easily walk away with hundreds of millions of dollars in profits from selling the data. Meanwhile, the identity thieves who purchased it can reap their own fortune running their scams. Congress, the FTC and Equifax customers – enraged by both the company’s reluctance to initially disclose the breach and its carelessness (some would say tight-fistedness) concerning its cybersecurity defenses – have buried the company in lawsuits and official inquiries. As USA Today revealed yesterday, hackers took advantage of an Equifax security vulnerability two months after an industry group discovered the coding flaw and shared a fix for it, raising questions about why Equifax didn't update its software successfully when the danger became known. We’re looking forward to hearing the whole story from CEO Rick Smith when he testifies before Congress early next month. Whether Smith manages to hang on to his job remains to be seen - calls for his resignation after a 12-year-long scandal-free tenure are mounting. CNBC's Jim Cramer said last night that Smith "should be fired today." But perhaps more worrying for Smith and his C-Suite companions are calls from North Dakota Sen. Heidi Heitkamp, who has demanded a criminal investigation into whether the company's executives - several of whom sold stock during the period between when the company first learned about the hack and when it disclosed it to the public - commited securities fraud. "If that happened, then somebody needs to go to jail," she said.
American Express is gradually recovering from the setback it experienced in mid-2016, when it lost out to Citi for the right to issue Costco cards. The card giant has done well to hold on to its market share of 10% over recent quarters despite facing stiff competition from JPMorgan and Citigroup.
Лето закончилось, но это не означает, что вы теперь не сможете отдохнуть. Как раз наоборот! Осень - отличное время для путешествий. В этот период, как правило, меньше народу, ниже цены, и мягче погода на самых популярных туристических направлениях.
Лето закончилось, но это не означает, что вы теперь не сможете отдохнуть. Как раз наоборот. Осень - отличное время для путешествий. В этот период, как правило, меньше народу, ниже цены и мягче погода на самых популярных туристических направлениях.
Former American Express Chair Harvey Golub on why lowering the corporate tax rate will generate the most economic growth of Trump’s tax reform plan.
Вчера, 11 сентября, аналитики Zacks Investment Research повысили рейтинг акций американского эмитента кредитных карт American Express. Так, рейтинг бумаг был пересмотрен с "держать" до покупать". Стоит отметить, что целевая цена по акциям компании была установлена на отметке $94. Примечательно, что по итогам вчерашней сессии бумаги American Express закрылись на уровне $85,69, а за последний год они принесли доходность порядка 29%.
Вчера, 11 сентября, аналитики Zacks Investment Research повысили рейтинг акций американского эмитента кредитных карт American Express. Так, рейтинг бумаг был пересмотрен с "держать" до покупать". Стоит отметить, что целевая цена по акциям компании была установлена на отметке $94. Примечательно, что по итогам вчерашней сессии бумаги American Express закрылись на уровне $85,69, а за последний год они принесли доходность порядка 29%.
NEWARK — Sen. Robert Menendez said in a 2010 email that he would reimburse his friend, Florida eye doctor Salomon Melgen, for the nearly 650,000 American Express points Melgen used to purchase a three-night stay at a hotel in Paris for the senator — as soon as Menendez accumulated enough points himself. But it would have taken Menendez about 30 years to accumulate those points at the rate he was spending then, an American Express executive testified at Menendez’s corruption trial. And three years later, when Menendez for the first time redeemed his own American Express points — more than 135,000 of them — he used them instead to purchase a high-end grill that was shipped to New Jersey, according to the witness.The testimony from American Express’ Andrew Thomas — a vice president for its membership rewards program — came during the third day of Menendez’s trial in Newark, during which prosecutors also called a Menendez staffer who detailed his efforts to secure visas for co-defendant Melgen’s foreign girlfriends to visit the United States. Prosecutors contend that Melgen’s purchase of the hotel room for Menendez, as well as flights on his private jet for the senator and other gifts — including more than $750,000 in political contributions — were exchanged for official favors Menendez did for Melgen, including securing the visas.The prosecution’s painstaking detailing of the credit card points episode fed into the narrative they introduced in opening statements: That Menendez traded his power for a lifestyle he couldn’t afford on a senator’s salary.At the time Melgen used the points to purchase the hotel room for Menendez, the senator had accumulated about 58,000 points on his card, for which he signed up in 2007.“So about ten times as many points as it took Robert Menendez three years to earn?” prosecutor Amanda Vaugh asked. “That’s correct,” Thomas said.Menendez attorney Jenny Kramer, in her cross-examination of Thomas, noted that an email that Melgen’s son-in-law sent to Menendez noted that the expensive hotel room Melgen purchased was “the only room type available for points redemption” and that there was no mention in the email of how many points Melgen spent.Thomas told Kramer that there was no way for one American Express customer to reimburse another with points, though they could make purchases on each others’ behalf with them. Of the grill — a Weber Genesis, which ranges in price from $700 to $1,500 on amazon.com — Kramer asked Thomas: “Do you know why Sen. Menendez purchased it and whether it was given to someone else?” “No,” Thomas responded.The trial then moved on to Mark Lopes, who served as Menendez’s senior policy adviser from late 2007 to mid-2010.The prosecution outlined emails Lopes exchanged with Menendez and state department officials that supported visa applications on behalf of a Brazilian law student and former actress, Juliana Lopes-Leite, and a Dominican woman and her sister who in the email exchanges were referred to as “friends” of Melgen. In the emails, it was clear Melgen had requested help for the women, who in Menendez’s indictment are revealed to be Melgen’s girlfriends. Lopes said that in his role he would work on visa applications “every month or two” but not every application brought before the office. In one email with the subject: “Dr. Melgen request” that was about the Dominican woman and her sister, Lopes told Menendez “we are preparing a general letter of support from you” and asked him “ok to send, right?”“Yes, as well as call if necessary,” Menendez responded.
The Zacks Analyst Blog Highlights: Green Dot, Total System Services, Western Union and Vantiv
Hurricane Irma makes landfall in the Caribbean (Reuters) Social and Economic Polarization in U.S. Worsens, Poll Finds (WSJ) Trump Risks GOP Civil War Pushing Congress for ‘Dreamer’ Bill (BBG) Michael R. Bloomberg: Trump’s DACA Failure Is Congress’s Opportunity (BBG) Array of Threats Stir Up Markets (WSJ) Draghi's Claim of QE Flexibility Is Attracting Doubters (BBG) Moon Seeks Putin’s Help, Warns of ‘Uncontrollable’ North Korea (Bloomberg) Moscow, Seoul closer on North Korea after their leaders meet: RIA cites Kremlin (Reuters) FBI Says 1MDB Stolen Funds Witnesses Are Scared to Talk (BBG) Benzene Detected in Houston After Refinery Is Damaged (WSJ) Top EU court rules eastern states must take refugees (Reuters) Poland's stance on migrants unchanged despite EU court ruling: PM (Reuters) EU threatens Hungary, Poland with fines if refuse refugees (Reuters) NYC Landlords That Can’t Find Buyers Turn to Borrowing Instead (BBG) Putin says sanctions, pressure alone won't resolve North Korea crisis (Reuters) Newspapers Find Their True Value in Real Estate, Not Publishing (BBG) Goldman Sachs wanted Boeing to bid on airplane parts maker (Post) Investment Gurus Counsel Catching Reform Tailwinds in Latin America (BBG) Over half of Japan's regional banks losing money on core businesses (Reuters) American Express Hunts Millennials With No-Fee Delta Credit Card (BBG) Overnight Media Digest WSJ - Boeing Co on Tuesday raised objections about United Technologies Corp's proposed takeover of Rockwell Collins Inc, threatening to drop some contracts with the suppliers if the merger undermines competition in the aerospace supply chain. on.wsj.com/2eD0g5C - President Donald Trump pressed harder on potential military options in North Korea, offering billions of dollars in new American military equipment to allies in Asia and saying South Korea should use bigger conventional payloads on its missiles as deterrence. on.wsj.com/2eDNX9u - Fabio Porfirio Lobo, son of former Honduran president Porfirio Lobo, was sentenced to 24 years in prison Tuesday for conspiring to import cocaine into the U.S. on.wsj.com/2eEjw2P - On Tuesday, Hurricane Irma grew to become one of the most powerful storms ever recorded over the Atlantic Ocean, raising severe threats to islands in the Caribbean while prompting evacuations in Florida and disrupting air and sea travel. on.wsj.com/2eDlL6J - Trump on Tuesday urged lawmakers to formulate broad immigration legislation by March as he would effectively end a program that protects undocumented immigrants who arrived in the U.S. as children. on.wsj.com/2eDLTy6 - U.S. Ambassador to the United Nations Nikki Haley on Tuesday laid out a path for the White House to declare that Iran isn't complying with the 2015 nuclear deal. on.wsj.com/2eDPbl0 - Senate GOP leaders signaled Tuesday they will tie an increase in the nation's borrowing limit to an aid package for victims of Tropical Storm Harvey, a move that could boost the debt-limit legislation's chances of passage ahead of a deadline this month. on.wsj.com/2eDPRXD FT * Britain will end the free movement of labour immediately after Brexit and introduce measures to drive down the number of lower-skilled EU migrants, a leaked government document published by the Guardian newspaper said on Tuesday. * Lego announced a 5-percent decline in mid-year revenue a month after abruptly removing its chief executive, suggesting it is facing its biggest test since flirting with bankruptcy in the early 2000s. * Boeing Co warned on Tuesday that it will oppose United Technologies Corp’s $30-billion plan to buy avionics maker Rockwell Collins Inc. NYT - The renegotiation of the North American Free Trade Agreement sputtered forward on Tuesday as officials from the United States, Canada and Mexico concluded their second round of talks with plenty of pleasantries but little major progress to announce. nyti.ms/2wF7AG5 - Lego, the toy company said on Tuesday that it would cut 1,400 jobs after earnings showed its revenue and profit both fell in the first half of the year. The results come as Lego faces an increasingly competitive landscape. More children use mobile devices for entertainment, leaving Lego to battle not just its traditional rivals like Mattel Inc and Hasbro Inc. nyti.ms/2wEkV3g - Europe's human rights court ruled on Tuesday that companies can monitor their employees' email if they are notified in advance, giving shape to a rapidly evolving area of the law at the intersection of technology, privacy and workers' rights. nyti.ms/2x9Ktqo - President Trump's decision to end the Deferred Action for Childhood Arrivals program, created by President Obama to allow children who entered the United States illegally to remain the country, spurred reactions through the business community — many of them opposed to the rollback of protections. nyti.ms/2eISZoC - Rovio Entertainment Ltd, the Finnish mobile games and animation studio is planning an initial public offering that could value the company at roughly $2 billion, in a test of whether investors will find favor in a single franchise and whether the business can evolve. nyti.ms/2x9zgpL Canada THE GLOBE AND MAIL The Canadian government is looking into buying second-hand fighter jets in Australia - instead of a new fleet of 18 Super Hornets - as it tries to force Boeing Co to drop its trade dispute against Bombardier Inc. tgam.ca/2w6uCnA Mexico's economy minister is vowing that the renegotiation of the North American free-trade agreement will start to show results when talks move to Ottawa at the end of this month, as the three countries work to knock off the easiest items on the agenda. tgam.ca/2w66CRi French video-game publisher Ubisoft Entertainment SA is raising its bet on Quebec, unveiling plans to invest another C$780 million ($630.15 million) and create 1,000 jobs in the province over the next decade amid persistent criticism over the tax breaks the company receives. tgam.ca/2w69fmq NATIONAL POST Under pressure to sell off assets and cut down its debt, Cenovus Energy Inc announced a C$975 million sale of a heavy oil property, but analysts say it may still be difficult for the company to hit its divestiture target. bit.ly/2w68860 Britain The Times - The North Sea oil industry must "earn its right to grow", Royal Dutch Shell PLC warned yesterday as an industry report from Oil & Gas UK, said that more capital investment was urgently needed to prevent a steep drop in production. bit.ly/2x95SzU - One of the world's most "powerful" aerospace parts companies has been formed with the $30 billion takeover of Rockwell Collins Inc by United Technologies Corp . bit.ly/2x9dH94 The Guardian - UK PR firm Bell Pottinger is facing a fight for survival as a string of clients and senior staff quit in the wake of a scandal over its secret campaign to stir up racial tensions in South Africa. bit.ly/2x99y4V - Business leaders have blamed the uncertainty created by Britain's vote to leave the European Union for the slowest pace of output growth in the services sector for almost a year. bit.ly/2x8FvtR The Telegraph - The BBC will launch a salary review of presenters and rank-and-file staff in an attempt to quell anger sparked over the corporation's gender pay gap. bit.ly/2x8AUrI - Lego is shedding 1,400 staff as a decade long-run of sales growth ends after expansion failed to deliver expected sales growth. bit.ly/2x9bES6 Sky News - The Communications Workers Union is to ballot more than 100,000 of its members working for Royal Mail PLC over industrial action. bit.ly/2x8ZLeZ - Liberal Democrat leader Vince Cable has demanded the government act to protect UK firms from foreign takeovers that are not in the public interest in the wake of the 3 billion pound ($3.91 billion) merger between Aveva Group PLC and Schneider Electric SE. bit.ly/2x8FxCa The Independent - The Bank of England has reached an agreement with its striking workers over pay. Unite, the union representing the bank's staff, said its members had voted to accept a revised offer. ind.pn/2x9nufi - Britain's economic model is "broken" and failing to generate rising prosperity for most of the UK population, according to a report by the IPPR's Commission on Economic Justice. ind.pn/2x9xmFy
Consumer credit may seem like a fairly new invention – but, as Visual Capitalist's Jeff Desjardins details below, it’s actually been around for more than 5,000 years! In fact, many millennia before the credit score became ubiquitous, there is historical evidence that cultures around the world were borrowing for various reasons. From the writings in Hammurabi’s Code to the exchanges documented by the Ancient Romans, we know that credit was used for purposes such as getting enough silver to buy a property or for agricultural loans made to farmers. CONSUMER CREDIT: 3,500 B.C. TO TODAY In today’s infographic from Equifax, we look at the long history of consumer credit – everything from the earliest writings of antiquity to the modern credit boom that started in the 20th century. Courtesy of: Visual Capitalist Consumer credit has evolved considerably from the early days. Over the course of several millennia, there have been credit booms, game-changing innovations, and even periods such as the Dark Ages when the practice of charging interest (also known as “usury”) was considered immoral by some people. A TIMELINE OF CONSUMER CREDIT Below is a timeline of the significant events that have helped lead to the modern consumer credit boom, in which Americans now have over $12.4 trillion borrowed through mortgages, credit cards, student loans, auto loans, and other types of credit. THE ANCIENTS AND CREDIT 3,500 BC – SumerSumer was the first urban civilization – with about 89% of its population living in cities. It is thought that here consumer loans, used for agricultural purposes, were first used. 1,800 BC – BabylonThe Code of Hammurabi was written, formalizing the first known laws around credit. Hammurabi established the maximum interest rates that could be used legally: 33.3% per year on loans of grain, and 20% per year on loans of silver. To be valid, loans had to be witnessed by a public official and recorded as a contract. 50 BC – The Roman RepublicAround this time, Cicero noted that his neighbor bought 625 acres of land for 11.5 million sesterces. Did this person literally carry 11.5 tons of coins through the streets of Rome? No, it was done through credit and paper. Cicero writes “nomina facit, negotium conficit” – or, “he uses credit to complete the purchase”. MORAL CONCERNS ABOUT LENDING 800 – The Dark Ages in EuropeAfter the collapse of the Western Roman Empire, economic activity grinded to a halt. The Church even banned usury, the practice of charging interest on loans, for all laymen under Charlemagne’s rule (768-814 AD). 1500 – The Age of DiscoveryAs European explorers and merchants begin trade missions to faraway lands, the need for capital and credit increases. 1545 – EnglandAfter the Reformation, the first country to establish a legal rate of interest was England in 1545 during the reign of Henry VIII. The rate was set at 10%. 1787 – EnglandPhilosopher Jeremy Bentham writes a treatise called “A Defense of Usury”, arguing that restrictions on interest rates harm the ability to raise capital for innovation. If risky, new ventures cannot be funded, then growth becomes limited. THE BIRTH OF MODERN CONSUMER CREDIT 1803 – EnglandCredit reporting itself originated in England in the early 19th century. The earliest available account is that of a group of English tailors that came together to swap information on customers who failed to settle their debts. 1826 – EnglandThe Manchester Guardian Society is formed, and later begins issuing a monthly newsletter with information about people who fail to pay their debts. 1841 – New YorkThe Mercantile Agency is founded, and starts systemizing rumors about the character and assets held by debtors through a network of correspondents. Massive ledgers in New York City are made, though these reports were heavily subjective and biased. 1864 – New YorkThe Mercantile Agency is renamed the R. G. Dun and Company on the eve of the Civil War, and finalizes an alphanumeric system for tracking creditworthiness of companies that would remain in use until the twentieth century. 1899 – AtlantaThe Retail Credit Company was founded, and begins compiling an extensive list of creditworthy customers. Later on, the company would change its name to Equifax. Today, it is the oldest of the three major credit agencies today in the United States. THE CONSUMER CREDIT BOOM 1908 – DetroitHenry Ford’s Model T makes automobiles accessible to the “great multitude” of people, but they were still too expensive to buy with cash for most families. 1919 – DetroitGM solves this problem by loaning consumers the money they need to buy a new car. General Motors Acceptance Corporation (GMAC) is founded and popularizes the idea of installment plan financing. Consumers can now get a new car with just a 35% downpayment at time of financing. 1930 – United StatesBy this time, efficient U.S. factories are pumping out cheaper consumer products and appliances. Following the lead of GM, now washing machines, furniture, refrigerators, phonographs, and radios can be bought on installment plans. It’s also worth noting that in this period, 2/3 of all autos are bought on installment plans. THE FIRST IN BIG DATA 1950 – United StatesBy 1950, typical middle-class Americans already had revolving credit accounts at different merchants. Maintaining several different cards and monthly payments was inconvenient, and created a new opportunity. At the same time, Diners Club introduces their charge card, which helps open the floodgates for other consumer credit products. 1955 – United StatesEarly credit reporters use millions of index cards, sorted in a massive filing system, to keep track of consumers around the country. To get the latest information, agencies would scour local newspapers for notices of arrests, promotions, marriages, and deaths, attaching this information to individual credit files. 1958 – United StatesBankAmericard (now Visa) is “dropped” in Fresno, California. American Express and Mastercard soon follow, offering Americans general credit for a wide range of purchases. 1960 – United StatesAt a time when the technology was limited to filing cabinets, the postage meter, and the telephone, American credit bureaus issued 60 million credit reports in a single year. 1964– United StatesThe Association of Credit Bureaus in the U.S. conducts the first studies into the application of computer technologies to credit reporting. Accuracy of data is also improved around this time by standardizing credit application forms. 1970 – United StatesThe first Fair Credit Reporting Act is passed in the United States. It establishes a standard legal framework for credit reporting agencies. 1980s – United StatesThe three biggest credit bureaus attain universal coverage across the country. 1989 – United StatesThe FICO score is introduced, and quickly becomes a standard system to measure credit scores based on objective factors and data. 2006 – United StatesVantageScore is created through a joint-venture between the top three credit scoring agencies. This new consumer credit-scoring model is used by 10% of the market, and 6 of the 10 largest banks use VantageScore. MODERN CREDIT The Information Age has enabled a new era in consumer credit and assessing risk – and today, credit reports are used to inform decisions about housing, employment, insurance, and the cost of utilities. Learn more about how data, the internet, and modern computing is changing credit in Part 2 of this series.
We all know that the majority of people don’t know FX (Foreign Exchange) so this topic should come as no surprise. (For those who haven't already, checkout Splitting Pennies for a quick guide on this topic) However, it’s important for traders and investors to understand how the US banks are ripping off their clients, and the only reason they do it is because clients allow them, because they don’t understand how they’re being scammed. What we are talking about is the retail deliverable foreign exchange market. Deliverable currencies is FX that is ‘deliverable’ to a foreign recipient, for example if you want to pay up front for a hotel in France you’ve booked in advance for your summer vacation. It’s not only retail but for the example here it is – someone walking into a branch and asking to make a foreign payment. We’ll use Bank of America as the example, let’s look at their FX rates from their website, available here: https://www.bankofamerica.com/foreign-exchange/exchange-rates.go So here’s the first line of defense to this scam, which it can be fairly called (we will explain). Only one side of the spread is displayed – this will depend when you are ‘buying’ or ‘selling’ but they will NEVER be displayed on the same time or on the same screen (then, normally intelligent people may be able to deduce they were being fleeced like a sheep). Let’s calculate the total spread based on the above rates using simple FX math for the 2 currencies chosen for this example, Euro and Yen. FX is quoted EUR/USD that means 1 EUR = 1.1820 USD – the spot FX spread is about 1.1820 / 1.1822 according to LCG Brokers from Fortress Capital; but the market is closed now (it’s Saturday, day of rest in FX). Now if we want to calculate the inverse price, for EUR/USD using Bank of America’s tool, we need to use the 1/x (reciprocal) function seen on most common calculators. So if EUR/USD is 1.12 the inverse (reciprocal) is .89. If we use the same ‘spread’ to convert 1 USD = x Euro then we subtract 1.1820 – 1.12 = .062 or 620 pips. .062 doesn’t sound like much of a spread, but if you look in % terms it’s 5.54% of the price. If we add the same amount of pips (or percent, however you calculate) to the other side of the spread, it would be 1.244 – for a total spread of 1240 pips. Common spot trading spreads can run as high as 2 or 3 pips for the real shady FX brokers from Asia or aggressive IBs. 1240 pip spread is laughable. Now of course these customers are PAYING in foreign currency not TRADING foreign currency it would be impossible to trade over 1240 pip spreads – but this is the reality for these poor retail victims. 1240 pips is substantial if you’re sending more than $50 – so now let’s look at the shocking examples. At these prices, if you sent 100,000 to Europe, that would be about $5,540 in spread. Where does this $5k magically disappear to? The markets? No – it is booked as a profit on the bank’s balance sheet. Recently we (Elite E Services, Inc.) sent a wire payment like this for $5,000 and the banker had the audacity to say that if Bank A (not Bank of America, we won’t reveal the name) did the FX conversion we’d save $10 on the wire payment fee! We calculated that would have been $350 in payment to Bank A to save $10. Now the critical thing for US readers to understand, this is a uniquely American practice which happens only inside the borders of USA. If you are in virtually any other country, whether it be UK, New Zealand, Japan, Australia, Switzerland – you’re going to get rates on such transfers which are HIGH but probably something like 50 pips maybe 100 pips in extreme cases. If you do transfers more than 100,000 that can go down to as low as 25 pips. So how can the banks get away with it in USA? They are simply taxing people’s stupidity, because there are alternatives. Companies like Fortress Capital offer deliverable payment services by using payment processors like Commonwealth Foreign Exchange to get the same foreign rates and save customers up to 90% on transfers. But they require an application and would not open an account for a single individual customer (it’s mostly for corporates who do regular transfers). Then of course there’s Currencies Direct who has offices in USA, and a number of other companies. But the fact is that the banks have people by the short and curlies, there are not really many or any choices when you need to do a single transfer – and banks are making a small fortune from this. Could this be considered a Monopoly? Anti-trust issues? They settled huge claims and have since reduced the spread (whereas now it’s 5.5% it used to be 7% – 8% !!) and companies like American Express (AMEX) no longer charge a ‘foreign exchange fee’ – that’s right, on top of this horrendous spread many providers used to charge a 1% or 2% ‘fee’ on top of this! Outrageous! The sad thing is that most in the retail market, even small retail customers with little or no investment accounts understand stock trading. Forex is not so complex as it is sometimes presented by the banks – I’m sure they do this intentionally, they aren’t stupid.. This profit center is good for them and costs them nothing, it’s a risk-less profit that no one can complain about because ‘hey, it’s Forex.’ This is not the ONLY way the big banks are banking off people’s FX stupidity, but it’s the most petty way, and the most widespread. Millions and millions of dollars of such transactions take place on a daily basis and the banks are happy to keep things like this. For a pocket guide to make you a Forex Genius! Checkout Splitting Pennies – Understanding Forex www.splittingpennies.com
The Dow suffered gains and losses on alternate days of an eventful week.
Discover Financial Services Inc. (DFS) announced its intention to increase quarterly dividend, and buyback share following the passage of stress test.
American Express Co. (AXP) announced its intention to increase quarterly dividend by 9.4% to 35 cents per share, beginning with the third quarter.
Visa (V) has partnered with Klarna to better serve their customers for purchases made online and via mobile, across Europe.
The euro soared to the highest level in over a year while bond yields and global shares also climbed, as an ongoing barrage of coordinated hawkish comments from central banks signaled the era of easy money might be coming to an end for more than just the United States. S&P futures were fractionally in the green following the best day for US equities in two months, as banks climbed after passing the Fed's stress tests and announcing bigger than expected shareholder payouts. Asian stocks posted broad gains and European shares were little changed while oil climbed for the sixth consecutive day, with WTI trading above $45. The euro rose for a third day against the dollar as hawkish comments from Mario Draghi this week boosted bets the ECB is preparing to unwind stimulus, while the ECB's attempt to walk back Draghi's hawkishness was roundly ignored. EUR/USD rose as much as 0.4% to 1.1425, highest since June 2016. “It will take more than anonymous ECB sources to cool the desire to bet on the euro and dump the dollar,” says Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “Many investors are tantalized by the prospect of key quarterly meetings in September producing no move from the Fed but a plan to wind down quantitative easing at the ECB.” The residual sentiment from Draghi's statement meant yields across developed markets continued their upward move, with Bunds back to 0.40%, nearly doubling in the past three days. In keeping with the overall hawkish sentiment, BOE's chief economist Andrew Haldane echoed Mark Carney's comments from yesterday, when he said that the BOE should seriously look at rising rates, although he added that he is happy with where rates are now. His comment sent the pound briefly above 1.30, back to levels last seen last September, before paring some gains. The Bank of Canada went further, with two top policymakers suggesting they might tighten as early as July. "This is simply the central banks getting together and trying to arrest deflation," said Nomura's head of G10 currency trading Peter Gorra. "They are trying to be as smart as they can and agreeing that they have to act in unison. I don't think this is necessarily a dollar move and I don't think the dollar's rally is over. They are just trying to add some two-way risk to the market." As the Euro surged, the dollar tumbled, touching its lowest since October - before Trump was elected U.S. president - against its broad index, as investors shifted to the view that the U.S. Federal Reserve might not be the only game in town when it comes to higher interest rates. For those who may have missed the fireworks over the past few days, here is a concise and accurate summary from SocGen's Kit Juckes: Apparently, ECB President Mario Draghi's comments about reflationary forces replacing deflationary ones were mis-interpreted by markets and were intended to be more balanced. A case of ham-fisted communication that argues for less forward guidance by policy-makers? Maybe, though I think the strategy on both sides of the Atlantic, which is to only change policy settings after ensuring markets won't be surprised, has merit. And more importantly, will continue. What I don't think, is that you can 'unsay' things by expressing surprise at the market reactions, any more than the king's soldiers could put Humpty-Dumpty back together again. The ECB isn't going to hike rates soon. And how fast they move to reduce the pace of bond purchases probably does depend on how much the euro rallies. But the turn in the economy is pretty plain for us all to see. This week it has been the IFO survey and money supply data that show a continued acceleration in underlying loan growth. So of course the lifespan of extraordinarily easy policy settings (particularly asset purchases) is shortening. The lack of inflation, which is going to be highlighted today by Germany CPI figures that are likely to be as low as the Italian ones yesterday, ought to anchor bond yields and affect expectations about what removing extraordinary accommodation means, but they don't change the fact that policy, like the economy, has reached a turn in the road. And that turn is positive for the euro, if only because it has been kept at a very low valuation by the combination of negative rates and bondbuying, despite a large current account surplus. The ECB can't normalise monetary policy without sacrificing the extreme cheapness of the currency, but maybe the ECB President thinks he can avoid a disorderly currency correction if he managers to guide market expectations. From here, we still think we're a heading, erratically, towards EUR/USD 1.20 and above EUR/JPY 130. Helping market sentiment this morning was the result from the latest Stress Test, which saw all banks pass, and which would see banks return the most capital on record. JPMorgan, Citigroup and Bank of America Corp. led U.S. firms in unveiling plans to boost dividends and stock buybacks more than analysts had projected, after every lender passed annual stress tests for the first time since the Fed began the reviews in the wake of the 2008 financial crisis. Bank shares rallied in late trading. Boosted by the US stress test, banks led gains in Europe and Asia, after the S&P 500 Index rebounded from the biggest selloff in six weeks. European equity markets opened higher with initial strength in the banking sector after U.S. lenders’ share buyback announcement, only to give way to declines led by utilities after UBS cuts the sector. The S&P rose 0.9 percent on Wednesday, bouncing back from a loss of 0.8 percent. It’s on pace for a seventh straight quarterly advance. The Nasdaq Composite Index jumped 1.4 percent on Wednesday. Technology shares climbed while miners jumped with commodity prices. The biggest banks climbed after clearing stress tests and then announcing shareholder payouts. JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. added 2 percent or more in premarket trading. Bund futures dipped after German regional CPI releases, all coming in strong, sliding to session lows. The Saxony CPI, which has a strong correlation to headline German inflation; rose +1.7% y/y compared with prior +1.6%; Bloomberg estimates show the headline German print is forecast to fall from 1.5% to 1.4% y/y, creating some upside risk. German 10y yields rose as much as 5bps at 0.42%, wider by over 3bps vs Treasuries. The euro advanced for a third day against the dollar as comments from President Mario Draghi this week bolstered bets the European Central Bank is preparing to unwind stimulus, despite the ECB's failed attempt on the next day to walk back Draghi's hawkishness. EUR/USD rises 0.4% to 1.1425, highest since June 2016. Boosting the Euro was Draghi himself, who when speaking in Portugal on Tuesday, said reflation of the euro-area economy creates room to reduce stimulus; he didn’t retract those comments when he spoke again Wednesday, even as unidentified officials say the market reaction was hypersensitive. In Asia, the Aussie pushed to three-month highs amid rising yields and commodities rebound. Australian 3-year yield rises to highest since early May as red and green bank bills extend sell off. Asian stock indexes closed firmly green with Korea's Kospi rising to a new record high, Nikkei gains 0.5% while ASX 200 is one percent higher. Yuan rallies to seven-month high against dollar as PBOC strengthens daily fixing to two-week high and official journal flags a stronger bias for rest of the year. The composite was up 0.5%. As Bloomberg notes, Global stocks are poised for the best first half of a year since 1998, gaining 11% to a record on the back of constant central bank liquidity injections. Investors are putting their faith in the robustness of earnings as the economy continues its recovery, shrugging off a host of worries from oil’s slump into a bear market to political wrangling in Washington. But risks remain: markets swung this week as the debate on normalizing central bank policy intensified after nine years of stimulus.The euro surged 1.4 percent on Tuesday in the wake of comments from European Central Bank President Mario Draghi that investors took to be hawkish. A tumultuous Wednesday session followed as officials said the market had misjudged his message. The latest moment of euphoria may not last long, however. "Central banks will be very cautious in their approach," said Martin Whetton, a senior rates strategist at ANZ. "But once they start tightening in concert, and their bloated balance sheets start unwinding, it is fair to say that bonds, equities, house prices and other asset markets will face stiffer headwinds than they have for a long time." In commodities, the big mover was oil which rose for a sixth session, with Brent near $47.50/bbl, WTI ~$45. Benchmarks both rise for 6th consecutive session, longest run of gains since early April. Continued short-covering and a weaker dollar seen as helping push prices higher. “There’s probably still short-covering going on,” says Giovanni Staunovo, commodity analyst at UBS. “A weaker dollar and risk-on environment is helping too” Also on the topic of oil, there was a quick statement by the UAE energy minister Suhail Mazrouei, who said that there are no talks about deeper OPEC cuts, and added that "we are not worried about the market recovery” and there is “no plan or talks” for further production cuts, Mazrouei tells reporters in Paris. “Of course, additional production coming from several producers is prolonging the recovery, but I think it’s a rather short term, and we hope to see more recovery in the third and fourth quarter. There is a drawdown from the inventories, there has been a correction. Yes, the correction is a bit slower than expected. The second quarter is always a low demand quarter. Third quarter and fourth quarter, we will have a pickup on the demand, and hopefully we will reach a more balanced market.” Gold fell 0.3 percent to $1,245.82 an ounce despite the weaker dollar. Copper futures jumped 0.8 percent, advancing for a seventh day. In currencies, the Bloomberg Dollar Spot Index slipped 0.1 percent as of 9:29 a.m. in London, dropping for a third day to the lowest since October. The euro increased 0.4 percent to $1.1424, the highest level since last year’s Brexit vote. The pound climbed 0.5 percent to $1.2984, heading for a seventh straight day of gains, the longest winning streak since April 2015. The Canadian dollar rose 0.1 percent after jumping 1.2 percent on Wednesday as Bank of Canada Governor Stephen Poloz reiterated he’s considering tighter policy. In rates, the yield on 10-year Treasuries rose two basis points to 2.25 percent, after gaining two basis points on Wednesday and jumping seven basis points in the previous session. The yield on U.K. gilts advanced four basis points to 1.20 percent. French 10-year yields also added four basis points, as did those on 10-year German bunds. Economic data includes initial jobless claims and 1Q GDP. Constellation Brands, Walgreens, Micron and Nike are among companies reporting earnings. Bloomberg Dollar Spot Index -0.1%, industrial metals rise. Bulletin Headline Summary From RanSquawk GBP/USD extended on gains and EUR/USD rose above 1.1400, as the USD-index languished below 96.00 Asian equity markets sustained the momentum from US, where the S&P 500 posted its best day in 2 months Looking ahead, highlights National German CPI, US GDP, BoE's Carney and Fed's Bullard Market Snapshot S&P 500 futures up 0.1% to 2,441.5 STOXX Europe 600 down 0.05% to 385.62 MXAP up 0.6% to 155.77 MXAPJ up 0.9% to 509.52 Nikkei up 0.5% to 20,220.30 Topix up 0.6% to 1,624.07 Hang Seng Index up 1.1% to 25,965.42 Shanghai Composite up 0.5% to 3,188.06 Sensex up 0.3% to 30,938.89 Australia S&P/ASX 200 up 1.1% to 5,818.10 Kospi up 0.6% to 2,395.66 Gold spot down 0.3% to $1,245.72 U.S. Dollar Index down 0.3% to 95.77 German 10Y yield rose 4.7 bps to 0.415% Euro up 0.4% to 1.1425 per US$ Italian 10Y yield fell 2.8 bps to 1.74% Spanish 10Y yield rose 3.2 bps to 1.461% Top Overnight News Banks Unleash Surprisingly Big Payouts After Fed’s Stress Tests Merkel Slaps at Trump and Brexit in Combative Speech Before G-20 Trump Travel Ban Said to Start Thursday Evening U.S. Time Staples to Be Acquired by Sycamore Partners for $6.9 Billion Siemens, Bombardier Said to Explore Two Rail Joint Ventures Pound on Hot Streak as Carney Hints at Higher Interest Rates Euro-Area Economic Confidence Hits Decade High as ECB Mulls Exit Money Markets Dragged From Slumber as Central Banks Turn Hawkish Activist Crystal Amber Pushes Northgate Executives to Sell Shenhua Said to Mull GD Power Takeover Amid Guodian Merger French Privacy Watchdog Closes Probe Into Microsoft Windows 10 Morgan Stanley Hires Barclays’s Mak to Head Malaysia Dealmaking Santander Hires Morgan Stanley for Popular Asset Plan: Vozpopuli Wood Group 1H Weaker Than Anticipated, Cautious on 2017 Outlook BHP’s Nasser Says Activism Rising as Counter to Passive Funds Asian equity markets sustained the momentum from US, where the S&P 500 posted its best day in 2 months as financials rallied ahead of Fed stress tests results and buyback announcements. This also inspired optimism for financials in ASX 200 (+1.1%) and Nikkei 225 (+0.4%), with the former further bolstered by commodity names after advances in crude and with iron ore prices higher by around 10% this week. Shanghai Comp. (+0.3%) and Hang Seng (+0.7%) adhered to the rising tide, although the mainland somewhat lagged after the PBoC refrained from liquidity operations for a 5th consecutive day citing relatively high liquidity amid month-end fiscal spending. Finally, demand for 10yr JGBs was dampened amid the widespread increased risk-appetite and as the BoJ refrained from a Rinban announcement, while the curve slightly flattened on underperformance in the short-end. PBoC refrained from open market operations for a 5th consecutive day, due to high liquidity levels from month-end fiscal spending. Top Asian News Inside the Red-Hot HSBC Fund That’s Turning Away New Money Japan Stocks to Watch: Hitachi, Honda, Kusuri no Aoki, Nikon India’s Modi Says Killing in Name of Cow Protection Unacceptable Japan Currency Chief Asakawa Is Said to Stay On for a Third Year ‘You Wouldn’t Do It’: BHP Chair Regrets $20 Billion Shale Spree Macau Hotel With 30 Rolls-Royces And No Guests Seeks Funds Activist Murakami Claims Rare Victory in Japan Shareholder Vote Japan Shares Rally, Led by Banks on Optimism for Global Growth In Europe, since the open, the initial gains in stocks have somewhat petered out, with Euro Stoxx 50 -0.07%, with the exception of the FTSE 100 amid a 4% rise in index heavyweight HSBC after MS upgrade. Financials have been outperforming after the Federal Reserve cleared buyback and dividend plans from the United States largest banks, including local units of Germany's Deutsche Bank and Spain's Santander. Additionally, support has been provided by hawkish signals from central bankers, most notably Carney and Draghi. Bunds have fallen off some 60+ ticks as yields steepening across the curve, post firmer regional CPI data, with the German 10yr benchmark now at a 5-week high (2Y +2.6bps, 5Y +4.5bps, 10Y 6.1bps, 30Y 6.9bps). Ahead of today's German all too important, inflation print German Reginal CPIs for June all came in better than expected, suggesting Draghi amy have been right that the drop in inflation may have been transitoory. German Baden Wurttemburg CPI (Jun) M/M 0.10% (Prey. -0.10%) German Baden Wurttemburg CPI (Jun) Y/Y 1.60% (Prey. 1.50%) German Hesse CPI (Jun) Y/Y 1.90% (Prey. 1.70%) German Hesse CPI (Jun) M/M 0.10% (Prey. 0.00%) German Bavaria CPI (Jun) M/M 0.10% (Prey. -0.10%) German Bavaria CPI (Jun) Y/Y 1.40% (Prey. 1.40%) German Brandenburg CPI (Jun) M/M 0.20% (Prey. -0.10%) German Brandenburg CPI (Jun) Y/Y 1.50% (Prey. 1.40%) Top European News U.K. May Consumer Credit Surges, Showing Why BOE Took Action Raiffeisen Says ‘Unjustified’ Losses Could Halt Polish IPO Bond Investors’ Love for Russia Dispels Gloom of Crude Rout U.K. Regulator Opens Probe Into PwC Audits of BT’s Books Pound on Best Winning Run Since 2015 as Carney Changes Tune European Miners Jump as Iron Ore Gains for a Fifth Day JD Sports Falls After Bloated Expectations, Margin Pressure Seen In currencies, the USD index is has more selling pressure through the European morning, but with the caveat that USD/JPY continues higher amid rising US Treasury yields. As such, narrowing differentials with Europe and the UK drive trade at the present time, with the backdrop of this week's comments from the ECB's Draghi on reflationary pressures and the BoE Camey's reported considerations over rate hikes driving trade — a little too aggressively perhaps. A broader continuation of the themes seen over the last few days, as stronger central bank speak from the ECB and BoE continue to push the EUR and GBP higher against the USD, JPY and CHF. Focusing on the spot rates, EUR/USD resistance ahead of 1.1450 has contained the resurgence from midweek, and we should see some consolidation closer to 1.1400 ahead of the US data this afternoon. Core PCE and the last reading of the Q1 GDP stats are due out later today. Cable has continued higher to test the upper level of the 1.2900-1.3000 resistance zone we have been highlighting, pushing just past the figure level by some 6-7 ticks as traders hunt for stops. The highs seen ahead of 1.3050 have been held intact as yet. EUR/GBP is looking resilient to the downside also, and we have some of the familiar month end demand out of Europe filtering through here also. In commodities, commodity currencies (USDCAD -0.06%, AUDUSD +0.37%, NZDUSD +0.10%) supported by positive crude prices, while a 3% rise in iron ore has also buoyed AUD strength. The fall in the USD index has led to broad based gains seen across the commodity spectrum, but noticeable is the lack of traction in Gold as the risk parameters have counteracted this. The yellow metal is back under USD1250.00, while Silver continues to trade a modest range up and down the USD 16's, but we have seen a stronger impact on base metals and Oil. Copper is now testing USD 2.70, showing a near 1% gain on the day, only outpaced by Tin which is 1.75% up today. Nickel is also around 1.0% higher today. For WTI, USD 45.00 continues to hinder progress, but with production levels having decreased in the US in the DoE report, upside relief has naturally followed. The spread with Brent has widened out a little, but enough to see USD 48.00 tested here. Looking at the day ahead, we’ll get the third and final revisions to Q1 GDP (no change from +1.2% qoq expected) and Core PCE. The latest weekly initial jobless claims data rounds out the releases. Away from the data, the BoJ’s Hararda is scheduled to speak shortly after this hits your emails while the Fed’s Bullard is scheduled to speak on monetary policy this evening in London at 6pm BST. The recently elected South Korea President Moon Jae-in is also due to meet with President Trump in Washington today. The other big event for markets today is the House of Commons vote on PM May’s government program. The vote is due this afternoon. US Event Calendar 8:30am: GDP Annualized QoQ, est. 1.2%, prior 1.2% Personal Consumption, est. 0.6%, prior 0.6% GDP Price Index, est. 2.2%, prior 2.2% Core PCE QoQ, est. 2.1%, prior 2.1% 8:30am: Initial Jobless Claims, est. 240,000, prior 241,000; Continuing Claims, est. 1.94m, prior 1.94m 9:45am: Bloomberg Consumer Comfort, prior 49.4 DB's Jim Reid concludes the overnight wrap: This week has been a busy one for central bank speak too with the steady chorus of voices certainly keeping markets on their toes. After rates had been hit for the biggest sell-off in many months on Tuesday following Draghi’s speech, yesterday appeared to be all about damage control at the ECB. The backtrack started as Europe walked into the office yesterday with ECB Vice-President Constancio telling CNBC that persistence in stimulus is fully justified given the slack that is still in the economy. While markets appeared to largely shrug off the comments it did seem to set the table for headlines to then hit the screens a few hours later. Specifically it was the Bloomberg story saying that the market had “misjudged” Draghi’s speech and that it was instead intended to strike a more balanced tone that put the wheels in motion. A separate Reuters article also quoted ECB “sources” as saying that Draghi had intended to signal tolerance for a period of soft inflation rather than imminent policy tightening. In fairness Draghi’s tone changes on Tuesday were fairly subtle and didn’t suggest that a rate hike was around the corner anyway, rather a steadily improving economy will see policy normalise. While not to the same extent as Tuesday, markets were quick to re-price however. After 10y Bund yields had edged up another 4bps early the morning, the direction quickly changed after the headlines hit with Bunds rallying as much as 7bps off the highs. That said they did however still finish the day unchanged at 0.366% which means that they are still some 12.5bps higher in yield over the past two days. The periphery did a better job of stemming some of the previous day losses however with 10y yields in Italy, Spain and Portugal finishing 3.0bps, 6.9bps and 8.8bps lower respectively yesterday. Across the pond 10y Treasury yields touched a one-month high of 2.256% intraday below settling to close at 2.228%, albeit sill over 2bps higher on the day. The headlines left its mark on the Euro too. The single currency built on Tuesday’s rally early on, only to then crash -0.77% as the headlines hit. That proved short lived however with the currency swiftly recovering all of that move and more, breaking through $1.140 this morning for a new 1y high. On this subject it’s worth highlighting that yesterday DB’s George Saravelos made a big change to his EUR/USD call for the rest of the year. While Draghi’s speech was not the fundamental driver behind the change of view, in George’s mind it aptly marks the culmination of a number of developments that have caused him to alter his forecasts. He now expects the pair to rise to 1.160 or above by the end of the year (previous year end forecast was 1.030). He also highlights that – unless an existential Eurozone crisis returns – conditions have fallen into place for this year’s 1.030 low to mark the bottom in the medium term EUR/USD bear market. Staying with central banks, it wasn’t just the ECB which stole the limelight yesterday. In contrast to his cautious Mansion House speech, BoE Governor Mark Carney said yesterday in Sintra that “some removal of monetary stimulus is likely to become necessary if the trade-off facing the MPC continues to lessen and the policy decision accordingly become more conventional”. He added that this will be contingent on the extent to which weaker consumption growth is offset by other demand components and also how the UK economy reacts to tighter financial conditions and Brexit negotiations. Those comments sent Sterling surging up +0.87% to $1.2926 and testing the upper bound of the YTD range again. 10y Gilts also finished 6.4bps higher at 1.152% and are now 14.3bps higher in the past two days. Not to be outdone, the BoC’s Poloz also said that recent rate cuts “have done their job” and that the Bank is considering options “now that the excess capacity is being used up steadily”. The BoJ’s Kuroda was the probably the only central banker not to hint at a more hawkish tone citing caution still about domestic spending and investment. All of those central bank comments almost overshadowed what was a fairly positive day for risk. While the Stoxx 600 closed a smidgen lower (-0.06%) it had traded as low as -1.04% at one stage prior to all the comments hitting. Boosted by a big rally for Banks (+1.93%) the S&P 500 returned +0.88% and in doing so completely reversed Wednesday’s sell off. The Nasdaq finished up +1.43% while credit indices saw similar strong performance. Another decent day for the commodity complex – which is flying under the radar a bit – certainly helped too. WTI Oil (+1.13%) has quietly gone about rising for the last four days and is approaching $45/bbl again. Gold (+0.17%) also edged higher for the fifth time in the last six sessions while Iron Ore (+4.41%) is now up nearly +17% from the June lows. That rally for Banks yesterday also came prior to what was a fairly upbeat result from the second round of the Fed’s stress tests. The Fed gave the green light to approve capital plans for all 34 firms with Capital One Financial the lone institution to be singled out for conditional approval based on “material weakness” in planning. After the close JP Morgan, Bank of America, American Express, Citi and Morgan Stanley were among those to announce either buybacks or dividend boosts which saw shares prices for those names rise between 1% and 2%. Those moves have helped US equity index futures creep up +0.22% in the early going while the rest of Asia is also off to a decent start. The Nikkei (+0.54%), Hang Seng (+0.88%), Shanghai Comp (+0.32%), Kospi (+0.66%) and ASX (+1.11%) are all higher as we go to print led by Banks. Moving on. With central banks being the obvious focus the macro data that was released yesterday was again largely reserved as an afterthought. In fairness there wasn’t any huge surprises to come out of the US data. The advance goods trade balance for May revealed a deficit of $65.9bn which more or less matched expectations. Wholesale inventories rose +0.3% mom in May which was a tenth more than expected while pending home sales for May declined -0.8% mom which was the third consecutive monthly decline. Closer to home the ECB’s money and credit aggregates data revealed that M3 growth pushed up one-tenth to +5.0% in May. The data also revealed that loans to households rose one-tenth to +2.7% yoy and a new cyclical high. Growth in credit to non-financial corporates held steady at +2.2% yoy. Perhaps the most standout data however was out of France where consumer confidence rose 5pts to 108 (vs. 103 expected), matching the highest level since 2007 with the surge this month coming in the first month of Macron taking office. The other data out yesterday included a bigger than expected jump in the UK Nationwide house price index for June (+1.1% mom vs +0.1% expected) and a softer than expected CPI print from Italy for this month (-0.1% mom vs. +0.1% expected). Looking at the day ahead, this morning in Europe we’re kicking off in Germany where we’ll receive the July consumer confidence print before attention turns over to the UK with the May money and credit aggregates data. Shortly after that we’ll receive June confidence indicators for the Euro area before we then get the flash CPI report out of Germany(0.0% mom headline print expected). In the US this afternoon we’ll get the third and final revisions to Q1 GDP (no change from +1.2% qoq expected) and Core PCE. The latest weekly initial jobless claims data rounds out the releases. Away from the data, the BoJ’s Hararda is scheduled to speak shortly after this hits your emails while the Fed’s Bullard is scheduled to speak on monetary policy this evening in London at 6pm BST. The recently elected South Korea President Moon Jae-in is also due to meet with President Trump in Washington today. The other big event for markets today is the House of Commons vote on PM May’s government program. The vote is due this afternoon.
Banks Rush To Announce Dividend, Buyback Plans After All Pass Fed's Stress Test, COF Needs To Resubmit Plan
One week after the Fed found that all 33 US major banks have passed the stress test and would survive even a surge in the VIX to 70, moments ago the Fed released the details of the second part of the stress test - the capital distribution to shareholders - where as expected, it also had no complaints to any bank's capital plans except to advise Capital One, the troubled credit card lender with the rising bad loan problem, to resubmit its plan. Discussing Capital On, the Fed said "the firm’s capital plan did not appropriately take into account the potential impact of the risks in one of its most material businesses. Further, the firm’s internal controls functions, including independent risk management, did not identify these material weaknesses in the firm’s capital planning practices. Therefore, senior management was not in a position to provide the firm’s board of directors with a reliable assessment upon which to determine the reasonableness of the capital plan." The Fed also said if Capital One doesn’t satisfactorily address these weaknesses by Dec. 28, then the Fed expects to object to Capital One’s resubmitted capital plan and it may restrict the firm’s capital distributions. COF stock is sliding as a result: Analysts estimated before Wednesday’s results that the tests would open the way for banks to boost dividends and share buybacks by as much as half. That would translate to about $30 billion more cash in shareholders’ pockets according to Bloomberg. The lenders typically start announcing their next dividends and total potential payouts within minutes after the central bank’s report. Still, as Bloomberg adds, Wednesday’s results show that banks across the industry have more room to raise dividends after stockpiling capital in the wake of 2008’s financial crisis - but also after the Fed softened how aggressively it measures their ability to withstand severe shocks. This year, authorities dropped one of the toughest components, the so-called qualitative review, for all but the biggest banks. The industry is counting on a further relaxation of rules as President Donald Trump appoints more business-friendly board members to the Fed, shifting the balance of power from regulators to shareholders. Earlier this month, Treasury Secretary Steven Mnuchin recommended that stress tests be performed every other year and that banks maintaining a sufficiently high level of capital be exempt from exams. Broadly, “the Fed is going easy on the banks this time around when it comes to capital,” Nejat Seyhun, a finance professor at the University of Michigan in Ann Arbor, said before results were posted. “There is a new administration in town and Chairperson Janet Yellen is trying her best to get along with President Trump and push back on interference from the politicians against the Fed’s independence.” Also of note: Deutsche Bank's New York-based trust bank and Banco Santander SA’s U.S. business, which had both failed two years in a row on qualitative standards, passed this year after being exempted from the qualitative exam. All of Frankfurt-based Deutsche Bank’s operations in the U.S. will be tested next year after the Fed required the largest foreign lenders to consolidate assets in the country under an umbrella structure starting last July. That will bring the German firm’s broker-dealer in the country under scrutiny for the first time in the tests. So as one after another bank announces their capital return plans, here are the details on their various buybacks and dividend plans as they trickle in. Here are the buyback announcements: ALLY TO BUY BACK UP TO $760M OF SHARES AMERICAN EXPRESS TO BUY BACK UP TO $4.4B OF SHRS BANK OF AMERICA PLANS TO BUY BACK SHARES UP TO $12B CAPITAL ONE SEES BUYING BACK UP TO $1.80B SHRS CIT TO BUY BACK UP TO $225M IN SHARES CITIGROUP TO BUY BACK UP TO $15.6B SHARES, BOOST DIV TO 32C/SHR CITIZENS PROPOSES COMMON SHARE REPURCHASES OF UP TO $850M COMERICA PROPOSES COMMON SHARE BUYBACK UP TO $605M BB&T: RECOMMENDATION OF UP TO $1.88B IN SHARE BUYBACK BANK OF NEW YORK MELLON TO BUY BACK UP TO $2.6B SHRS DISCOVER PLANS TO BUY BACK UP TO $2.23B OF STOCK FIFTH THIRD TO BUY BACK UP TO $1.16BN OF SHARES JPMORGAN TO BUY BACK UP TO $19.4B SHRS KEYCORP TO BUY BACK UP TO $800M OF SHARES MORGAN STANLEY REPORTS SHARE BUYBACK OF UP TO $5B M&T BANK SETS $900M BUYBACK PNC TO BUY BACK SHARES UP TO $2.7B REGIONAL FINANCIAL PLANS UP TO 1.47BN SHARE BUYBACK STATE STREET TO BUY BACK SHARES UP TO $1.4B WELLS FARGO PLAN INCL UP TO $11.5B SHARE BUYBACK FOR 4 QTRS ZIONS PLANS UP TO $465M IN COMMON STOCK REDEMPTIONS THROUGH JUNE 30, 2018 And divdends: ALLY BOOSTS QTR DIV TO 12C-SHR FROM 8C, EST. 10C AMERICAN EXPRESS TO BOOST QTR DIV TO 35C/SHR FROM 32C, EST. 35C BK PLANS BOOSTS OF QTR DIV TO 24C/SHR FROM 19C, EST. 22C CITIZENS TO BOOST QTR DIV TO 18C/SHR, UP 29% CIT PLANS TO BOOST QTR DIV TO 16C/SHR STARTING IN Q3 COMERICA PLANS TO BOOST QTR DIV BY 15% DISCOVER PLANS TO BOOST QTR DIV TO 35C/SHR FROM 30C, EST. 34C FIFTH THIRD BOOSTS QTR DIV TO 16C FROM 14C, AND TO 18X IN Q2 2018 JPMORGAN BOOSTS DIV TO 56C/SHR FROM 50C/SHR KEYCORP TO CONSIDER DIV BOOST UP TO 12C/SHR FOR 2Q OF 2018 M&T BANK BOOSTS QTR DIV TO 80C/SHR FROM 75C PNC BOOSTS QTR DIV TO 75C/SHR, UP 36% REGIONAL FINANCIAL BOOSTS QTR DIV TO 9C/SHR FROM 7C/SHR STATE STREET BOOSTS QTR DIV TO 42C/SHR FROM 38C, EST. 40C WELLS FARGO SEES BOOST TO 3Q DIV TO 39C/SHR FROM 38C, EST. 38C ZIONS PLANS TO INCREASE DIVIDEND BY 4C EACH QUARTER TO 24C/SHR BY Q2 2018, STARTING AT 12C IN Q3 FROM CURRRENT 8C And this is how the banks are responding:
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Клиенты American Express в течение нескольких часов не могли получить доступ к своим онлайн-счетам, пишет The New York Times. В финансовой компании изданию подтвердили, что ее веб-сайт подвергся кибератаке. Агентство ИТАР-ТАСС со ссылкой на местные СМИ сообщает, что хакеры атаковали также сайт Bank of America. Сейчас веб-ресурсы работают в нормальном режиме. По данным NYT, мощные атаки на финансовые компании США начались в сентябре прошлого года и стоили корпорациям миллионы долларов. От действий хакеров уже пострадали JPMorgan Chase и Wells Fargo. Ответственность за эти нападения взяла на себя группа Izz ad-Din al-Qassam Cyber Fighters. Эксперты отмечают, что ранее кибератаки были направлены на финансовое мошенничество или экономический шпионаж, а теперь целью хакеров стало нарушение работы сайтов.
http://ru.euronews.com/ American Express уволит 5400 сотрудников или 8,5% персонала в США и других странах. Американская платежная система адоптируется к ухудшению экономической ситуации в мире и цифровой революции - по мере развития интернет-сервисов компания может снижать затраты на рабочую силу. American Express уже вычел издержки, связанные с увольнениями, в результате прибыль за четвертый квартал прошлого года сократилась вдвое до 637 млн. долларов. Ñ�Ð¾Ñ†Ð¸Ð°Ð»ÑŒÐ½Ñ‹Ðµ Ñ�ÐµÑ‚Ð¸ : YouTube: http://bit.ly/zqVL10 Facebook: http://www.facebook.com/euronewsru Twitter: http://twitter.com/euronewsru