Fortune) -- If the worst is over for the financial sector, you'd never know it to listen to Goldman Sachs.
The New York-based investment firm posted a $1.8 billion first-quarter profit Monday evening, then capitalized on those gains by selling $5 billion in stock Tuesday morning.
The developments put Goldman (GS, Fortune 500) on track to become the first big bank to repay the funds it received from Treasury last fall in the Troubled Asset Relief Program.
Once regulators complete their stress test of Goldman and sign off on the repayment plan, the firm will again be free to manage its affairs as it pleases, without fears that details on its pay practices will provoke outrage in Congress.
Despite this, Goldman chief financial officer David Viniar was hardly celebratory on a conference call with analysts and investors Tuesday morning.
Viniar said Goldman remains cautious about the economy and suggested that the firm expects the prices of assets such as real estate to continue to fall.
While further declines may not hammer Goldman, given its reduced exposure to troubled asset classes like real estate and corporate buyout loans, they could weigh on the results of other banks in coming months. Regional banks in particular hold large amounts of commercial real estate on their books.
"There are headwinds still with values, asset values," Viniar said in response to one question Tuesday. "I think those headwinds are less for us because we don't have that many anymore ... but there are still headwinds and that makes us cautious."
Goldman shares, which have surged during the bank stock rally of the past month, dropped 5% Tuesday to about $123, in line with the price of the $5 billion offering.
The drop in Goldman's stock helped lead the KBW Bank index, which has nearly doubled off its multidecade low over the past month, lower in midday trading.
Shares of beaten down bank Citigroup (C, Fortune 500) were rising, however, while those of seemingly healthier firms such as JPMorgan Chase (JPM, Fortune 500) edged lower.
Chase and Citi are both scheduled to report their first-quarter results later this week. The stronger-than-expected earnings from Goldman and Wells Fargo last week have spurred hopes that Chase and Citi will post similarly strong results.
Barclays Capital analyst Jason Goldberg raised his earnings estimates for both banks Tuesday, saying he expects them to benefit from better capital markets results and strong mortgage revenue. He now expects Citi to post its first profit in six quarters.
Read more at Fortune
Wednesday, April 15, 2009
Tuesday, April 14, 2009
Yen Climbs to Two-Week High on Concern U.S. Recession Deepening
(Bloomberg) -- The yen advanced to a two-week high against the dollar before U.S. reports that may show industrial output and manufacturing contracted, adding to evidence the recession in the world’s largest economy is deepening.
Japan’s currency also climbed to the strongest in two weeks against the euro as Asian stocks fell, prompting investors to reduce holdings of higher-yielding assets. The euro may weaken for a second day versus the dollar on concern a German report today will show wholesale prices dropped for a fifth month, supporting the case for the European Central Bank to cut interest rates.
“Sooner rather than later pessimism will return to the market,” said Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital, the world’s third-largest foreign-exchange trader. “The yen will be the beneficiary.”
The yen rose to 98.50 against the dollar at 12:20 p.m. in Tokyo from 98.98 in New York yesterday. It earlier reached 98.41, the strongest level since April 2. Japan’s currency gained to 130.48 per euro from 131.25, and advanced to 70.57 per Australian dollar from 71.63.
Read more at Bloomberg
Japan’s currency also climbed to the strongest in two weeks against the euro as Asian stocks fell, prompting investors to reduce holdings of higher-yielding assets. The euro may weaken for a second day versus the dollar on concern a German report today will show wholesale prices dropped for a fifth month, supporting the case for the European Central Bank to cut interest rates.
“Sooner rather than later pessimism will return to the market,” said Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital, the world’s third-largest foreign-exchange trader. “The yen will be the beneficiary.”
The yen rose to 98.50 against the dollar at 12:20 p.m. in Tokyo from 98.98 in New York yesterday. It earlier reached 98.41, the strongest level since April 2. Japan’s currency gained to 130.48 per euro from 131.25, and advanced to 70.57 per Australian dollar from 71.63.
Read more at Bloomberg
Thursday, March 27, 2008
Asian stocks fall with Wall Street as data revives slowdown fears UPDATE
... Financial) - (Updates with closing figures throughout) Stock markets across Asia ended mostly lower Thursday, tracking ... by the stress in the housing market. China led the decline, with the Shanghai Composite down 5.42 percent at 3,411.49. Petrochina, ...
Oil prices jump close to 103 dollars
... as investors also seek shelter from choppy stock markets. The price of oil has doubled since ... oil producing countries such as Iran and Nigeria. ...
Asian economic and business calendar -- to April 11
... expected to April 11 Friday March 28 -Japan Feb CPI, Tokyo March CPI -Japan Feb unemployment rate -Japan ... inflows -Malaysias Feb external trade -Taiwan end-March forex reserves -Bank Indonesia policy meeting -Indonesias Bank ...
Ithmaar Bank Chairman appointed Co-Chair of the World Economic Forum on the Middle East 2008
... will be held in Sharm El Sheikh, Egypt from May 18 to 20. The annual ... of Bahrain and listed on the Bahrain Stock Exchange ("ITHMR"). It has a paid-up capital of ...
Wednesday, March 26, 2008
USAID program in Iraq tops $150m in micro-loans
... today that its private-sector development program in Iraq, known as Izdihar (prosperity in Arabic), ... ... March 2008 (Voices of Iraq) -- Iraqs Stock Exchange (ISX) index decreased by 0.661 % to ...
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