Goldman, Citi among banks curbing Italy trips over coronavirus fears - sources
Tuesday, 25 February 2020 Goldman Sachs, Citigroup Inc, Credit Suisse and other investment banks have curbed trips to Italy amid fears that the coronavirus outbreak across the north of the country could quickly spread across Europe, sources said.
On Thursday, Goldman Sachs said the S&P 500 can hit 3,600 if markets price in the bank's "comparatively more optimistic US GDP forecast." The banks analysts say specific market conditions would yield the growth. The economy contracts by only by 5% in 2020. It would have to grow by 6.2% next year. After that real yields will rise sharply to levels of "cyclical optimism" in June 2021.
On Friday, Goldman Sachs lifted its 2020 S&P 500 earnings-per-share estimate. The move comes after better-than-expected second-quarter results. Business Insider reports that Goldman expects 2020 S&P 500 EPS of $130, from $115. That's about 21% lower than 2019. Goldman also thinks S&P 500 earnings will surge 30%, to $170 per share in 2021. The estimate is tied to Goldman's economic growth outlook.
Netflix is on the verge of reporting a blockbuster second quarter earnings report, according to Goldman Sachs. Business Insider reports that Goldman Sachs is basing their judgement on strong app download trends On Friday, Goldman raised its Netflix price target to $670, representing upside potential of 32% from Thursday's close. The firm said COVID-19 continues to accelerate the trend towards video streaming services. Goldman Sachs said Netflix is a prime beneficiary of that trend.
Reuters / Shannon Stapleton David Solomon, CEO of Goldman Sachs, says the US economy still has jobs to shed. The comments come after May unemployment figures showed a slight uptick in employment after mass layoffs due to the coronavirus. "All businesses are learning and seeing ways where there are efficiencies," he said, speaking of companies broadly and not just banks.
The S&P 500 ended lower Friday after a choppy session as investors weighed spiking cases of COVID-19 and Apple's announcement of fresh store closures against anticipated stimulus and continued economic recovery. Fred Katayama reports.
Equity benchmark indices traded lower during early hours on July 14 due to weak global cues amid persistent concerns over the record number of new coronavirus cases worldwide. At 10:15 am, the BSE S and P Sensex was down by 262 points or 0.71 per cent at 36,432 while the Nifty 50 edged lower by 81 points or 0.75 per cent at 10,721.Except for Nifty pharma and IT, all sectoral indices at the National Stock Exchange were in the red with Nifty PSU bank down by 2.1 per cent, private bank by 2 per cent, financial service by 1.7 per cent and metal by 1.4 per cent. Among stocks, Bharat Heavy Electricals Ltd (BHEL) plunged 6.4 per cent after research house Citi downgrade it to sell from neutral with a target at Rs 34 per share. Both HDFC and HDFC Bank slipped by 3.3 per cent and 2 per cent respectively after the latter conducted a probe into allegations of improper lending practices in its vehicle-financing operation.
Italy's richest family is the Ferraro family. They founded confectionery giant Ferrero Group. The company is run by Giovanni Ferrero. Under his guidance the value of assets acquired through his CTH holding company increase by 40% last year. Business Insider reports this was partly due to CTH's $300 million purchase of Danish cookie business Kelsen Group last year.
JPMorgan Chase, Citigroup and Wells Fargo collectively set aside nearly $26 billion for potential loan losses. As Fred Katayama reports, quarterly profit at JPMorgan and Citi tumbled while Wells Fargo swung to a loss.