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Shares of Morgan Stanley ( MS ) climbed after the bank announced plans for stock dividends and buybacks . Morgan Stanley shares rose over 3% after the company increased its dividend and announced a $20 billion stock buyback. Goldman Sachs, Bank of America, and Wells Fargo also boosted their dividends. Goldman had one of the largest dividend increases, with a 25% hike to $2.50 per share. Bank of America’s increase came to 5%, while Morgan Stanley raised its dividend by 20%. JPMorgan and Citigroup both held the line on their dividends, and said that increasingly stringent capital requirements forced the firms to keep them unchanged. JPMorgan did announce a new $30 billion stock buyback plan that began back in May. "It is notable that JPMorgan and Citi did not increase their dividends given that they are much more cautious about the health of U.S. consumers than other banks, and even though they have ample capital to sustain a downturn, they still think it is prudent to be … [Read more...] about Big Banks Announce Dividend Plans

If you're looking for capitulation in 2022, it's in the bond market. And that tells you that investors' confidence in the global economy is very low. Inside the stock market, it's all about defense. Defensive stocks, which include big healthcare companies and dividend-paying value stocks, have been driving the gains. An index of global defensive stocks put together by Goldman Sachs, which is heavy in healthcare giants, has climbed to more than an 18-month high relative to the MSCI AC World Index. Inside the U.S., the defensive ETF ticker DEF has been outperforming the Spider ETF SPY all last week and all year. For market watchers, this feels a whole lot like a recession trade. While investors in the capital markets are battening the hatches for a recession, money in the private markets is also drying up. The value of venture capital deals in the U.S. dropped more than 25% in the second quarter to just $1 trillion, according to Dealogic . M&A activity in the United States … [Read more...] about What the Business Cycle is Telling us About a Recession

- A + A KUALA LUMPUR (June 28): Bursa Malaysia closed higher on Tuesday (June 28), lifted by buying interest in most heavyweights and in line with improving market sentiment across the region, said an analyst. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.16% or 16.62 points to 1,454.74 from Monday's close of 1,438.12. The benchmark index, which opened 0.86 of-a-point firmer at 1,438.98, moved between 1,431.35 and 1,455.46 throughout the day. On the broader market, gainers led losers 470 to 410, while 420 counters were unchanged, 1,042 untraded, and 79 others suspended. Total turnover narrowed to 2.28 billion units valued at RM1.61 billion from 2.65 billion units worth RM1.43 billion on Monday. Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said regionally, key indices ended mostly higher as foreign funds returned to the region amid economic concerns in the United States and European Union. On the local front, he said the … [Read more...] about Bursa ends higher in line with improved market sentiment

Passengers queue inside the departures terminal of Terminal 2 at Heathrow Airport in London, Britain, June 27, 2022. - A + A LONDON (June 28): London's Heathrow Airport will have to lower landing fees over the next four years after Britain's aviation regulator responded to pressure from airlines over the cost of flying at the hub. Heathrow wanted to double the fee it charges airlines in order to provide a better service to customers while retaining the support of its owners, but the plan drew fury from the likes of British Airways and Virgin Atlantic who said the airport was already among the most expensive in the world. The dispute reflects the pressures in the aviation industry as it recovers from the pandemic, and more broadly the need to limit consumer price rises at a time of soaring inflation while still investing to modernise services. The Civil Aviation Authority (CAA) said on Tuesday that the average maximum price per passenger would fall to £26.31 … [Read more...] about UK to cut Heathrow charges after airline protests

A Sri Lanka Air Force member checks the tokens of people queueing for fuel due to fuel shortage, amid the country's economic crisis, in Colombo, Sri Lanka, June 27, 2022. - A + A COLOMBO (June 28): Sri Lanka will allow companies from oil-producing countries to import and sell fuel, the power and energy minister said on Tuesday, ending a duopoly as it tries to overcome a shortage of petrol and diesel that is exacerbating an economic crisis. The Cabinet decision came as the minister, Kanchana Wijesekera, headed to Qatar and a ministerial colleague was due to arrive in Russia on Sunday for talks on energy deals. Sri Lanka is suffering its worst economic crisis since its independence, with foreign exchange reserves at a record low of US$1.92 billion, according to the Central Bank, though analysts estimate a lower level of useable funds. The island of 22 million people is struggling to pay for essential imports of food, medicine and, most critically, fuel. Sri … [Read more...] about Cash-starved Sri Lanka to end fuel duopoly to ease shortages

Akash Ambani (right) and his wife Shloka Mehta - A + A (June 28): Mukesh Ambani’s first-born will succeed him as chairman of the conglomerate’s telecom unit, kickstarting a leadership transition in one of Asia’s wealthiest families. Akash Ambani, who is a non-executive director at India’s No.1 wireless carrier Reliance Jio, was appointed as chairman of the board of directors. Mukesh Ambani resigned from the board of Reliance Jio, the company said in an exchange filing Tuesday. Last year, Ambani said that his kids were taking more responsibilities as part of the leadership shift. He said he could see in his children the same spark and potential of his father Dhirubhai Ambani — Reliance’s founder — for contributing to India’s growth. … [Read more...] about Mukesh Ambani’s son named Reliance Jio chair in succession shift

Foreign Minister Datuk Seri Saifuddin Abdullah (right) shakes hands with Australian Foreign Minister Senator Penny Wong after holding a press conference at Wisma Putra on Tuesday, June 28, 2022. (Bernamapix) - A + A PUTRAJAYA (June 28): Malaysia and Australia reaffirmed their commitment to enhance cooperation in multifaceted areas of mutual interest, driven by Comprehensive Strategic Partnership (CSP) that both countries will build on. Foreign Minister Datuk Seri Saifuddin Abdullah said he and his Australian counterpart Penny Wong had discussed in depth the various positive growth areas under the CSP. The areas of growth include economy, people-to-people relations, technology as well on stability and security in the region, especially in the post Covid-19 pandemic period and beyond. “We expressed our delight and satisfaction towards the positive growth of our multifaceted cooperation, especially in the post Covid-19 pandemic period. “Malaysia is confident … [Read more...] about Malaysia, Australia reaffirm commitment to strengthen strategic partnership

- A + A KUALA LUMPUR (June 28): Inari Amertron Bhd is forming a joint venture (JV) with China Fortune-Tech Capital Co Ltd (CFTC) to carry out outsourced semiconductor assembly and test (OSAT) services in China. In a filing with Bursa Malaysia, Inari said its wholly-owned subsidiary Amertron International Ltd has entered into a JV contract with CFTC (Yiwu) Equity Investment Fund Partnership (Limited Partnership) and CFTC Equity Investment Management (Beijing) Co Ltd. CFTC (Yiwu) is a private equity fund administered by CFTC, while CFTC Equity is wholly owned by CFTC. Inari said Amertron International will take up 54.4648% interest in the JV company, called Yiwu Semiconductor International Corporation, while CFTC (Yiwu) will own the remaining 45.5352% stake. Amertron International will have to contribute RM283.33 million cash into the JV company while CFTC (Yiwu) will inject RM131.78 million of new cash investment, said Inari. The group said it will fund the … [Read more...] about Inari investing RM283 mil in JV with CFTC to carry out OSAT services in China

Fred Hu, chairman of Primavera Capital Group, poses for a photograph following a Bloomberg Television interview in Hong Kong, China on Monday, Sept 16, 2019. (Bloomberg filepix) - A + A (June 28): The founder of one of China’s biggest private equity investors said the nation’s tech firms are turning a corner after a recent rout wiped out nearly US$2 trillion in market value at its peak. Fred Hu, the former Goldman Sachs Group Inc rainmaker who started the US$17 billion Chinese private equity firm Primavera Capital, said reassuring messages concerning regulation, resilient earnings and beaten-down valuations now make the sector interesting for investors. “This could be the beginning of a new era for China tech,” Hu, the firm’s chairman, said in a recent interview. “There’s a lot of value to be discovered,” he said, adding that investors still need to be selective given the high risk profile of such companies. The private equity mogul’s views are one of the … [Read more...] about One of China’s top tech investors sees crackdown turning point

- A + A SINTRA/FRANKFURT (June 27): The European Central Bank (ECB) will activate the bond-purchasing firepower it has earmarked as a first line of defence against a possible debt-market crisis on Friday (July 1), according to President Christine Lagarde. Applying "flexibility" to how reinvestments from the ECB's €1.7 trillion (US$1.8 trillion) pandemic bond-buying portfolio are allocated is aimed at curbing unwarranted turmoil in government bonds as interest rates are lifted from record lows to curb unprecedented inflation. Net buying under a separate asset-purchase programme is also set to end on Friday — potentially exposing some of the eurozone's more-indebted nations to speculative attacks by investors. "We have decided to apply this flexibility in reinvesting redemptions coming due in the PEPP portfolio as of July 1," Lagarde said on Tuesday in a speech in Sintra, Portugal, where the ECB is holding its annual retreat. "We will ensure that the orderly … [Read more...] about ECB to activate first line of defence in bond market on July 1