Thursday, April 15

Month: September 2019

RBI move on LVB has no impact on merger proposal: Indiabulls

RBI move on LVB has no impact on merger proposal: Indiabulls

Finance
MUMBAI: Indiabulls Housing Finance on Monday said the Reserve Bank of India's restriction on Lakshmi Vilas Bank will not have any impact on its merger process with the lender. On September 28, the RBI had initiated prompt corrective action on Lakshmi Bank. In April this year, Indiabulls Housing Finance (IBHF) had announced the proposed merger in April and applied for the RBI nod in May. "The fact is that the LVB has been put under PCA. But, in my view, it is an opportunity for us and it is also going to give some time for RBI to continue with the due diligence, consolidate all the feedbacks from various regulatory agencies and take a final view on whether to give go-ahead or to do something else with LVB," vice-chairman, managing director Gagan Banga told investors in a concall. This is n...
Apple shares to rise on better than expected iPhone sales

Apple shares to rise on better than expected iPhone sales

investment
iPhone 11, iPhone 11 Pro, iPhone 11 Pro MaxTodd Haselton | CNBCJ.P. Morgan raised its price target on Apple's stock Monday, expecting the company's shares will rise 21% as sales of its new line of iPhone are "stronger than muted expectations.""We are modestly raising our iPhone volume forecasts and expect investor sentiment on AAPL shares to improve materially given the firm's ability to drive upward revision to volume expectations despite the 2019 product cycle largely considered to be a muted one," J.P. Morgan analyst Samik Chatterjee said in a note to investors.J.P. Morgan raised its price target on Apple to $265 a share from $243 a share. The firm has an overweight rating on the stock.Apple shares rose 2.4% in trading to close at $223.97 a share.J.P. Morgan forecasts 1 million more iP...
Forever 21 closing stores in bankruptcy filing shows limits to fast fashion

Forever 21 closing stores in bankruptcy filing shows limits to fast fashion

business
(Reuters) - Fast-fashion retailer Forever 21 filed for bankruptcy late on Sunday, joining a growing list of brick-and-mortar companies that have seen sales hit by the rise of competition from online sellers like Amazon.com Inc (AMZN.O) and the changing fashion trends dictated by millennial shoppers. Forever 21 Inc, the privately held company that helped popularize trendy and cheap clothing, has fallen out of favor with shoppers, in part due to other retailers like Sweden’ H&M and Spain’s Zara that churn out affordable styles similar to those recently seen on designer runways. Younger and more environmentally conscious shoppers are also choosing brands that ethically source garments instead of retailers that use cheap fabrics to make T-shirts that are snapped up for $5. Resale site
SIPs: A way to keep emotions away

SIPs: A way to keep emotions away

Finance
Investor Psychology Cycle In the world of investments, there is a well-researched theory of how human emotions play strongly at the wrong time. We all know that the markets are cyclical in nature. When the markets are cheap, typically there is a whole lot of negative news. Forecasts of the economy and the stock earnings are estimated to be on their downward slope. No one wants to invest in the stock markets when people anticipate negative news. Driven by emotions, investors tend to extrapolate the good and bad markets. No condition prevails in perpetuity. Individual investors in the past have exhibited investment behaviour driven a lot primarily by two emotions, greed and fear. The equity market rally witnessed during 2004 to early 2008 is a case in point. What appeared a healthy stoc...
Forever 21 files for bankruptcy

Forever 21 files for bankruptcy

business
People walk by the clothing retailer Forever 21 in New York City, U.S., September 12, 2019. REUTERS/Shannon Stapleton(Reuters) - Fashion retailer Forever 21 Inc said on Sunday it has filed for Chapter 11 bankruptcy protection to restructure its business, joining a growing list of brick-and-mortar players who have taken a hit from fierce e-commerce competition . The company said it plans to exit most of its international locations in Asia and Europe, but will continue operations in Mexico and Latin America. The retailer said it received $275 million in financing from its existing lenders with JPMorgan Chase Bank, N.A. as agent, and $75 million in new capital from TPG Sixth Street Partners, and certain of its affiliated funds. It lists both assets and liabilities in the range of $1 billio...
At Wells Fargo, a Jamie Dimon protege finally takes over a big US bank

At Wells Fargo, a Jamie Dimon protege finally takes over a big US bank

investment
Charles ScharfQilai Shen | Bloomberg | Getty ImagesThree decades before Charlie Scharf was named CEO of Wells Fargo, he got his start by mailing his resume to an up-and-coming banker named Jamie Dimon.Scharf was a senior at Johns Hopkins University when Dimon hired him at Baltimore lender Commercial Credit. That move proved pivotal for Scharf: He quickly became Dimon's right hand man and followed him for the next 25 years in a series of roles at institutions that reshaped the U.S. banking landscape."I was younger than almost everybody else by 20 years," Scharf, 54, told the alumni magazine of NYU Stern's business school. "That helped me mature in business faster."Now, Scharf becomes the first of Dimon's proteges to take over a direct competitor to J.P. Morgan Chase, the U.S. financial ser...
Punjab and Maharashtra Cooperative Bank administrator to move EoW against ex-management soon

Punjab and Maharashtra Cooperative Bank administrator to move EoW against ex-management soon

Finance
MUMBAI: The Reserve Bank of India-appointed administrator of the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank is likely to file an FIR against the former management for financial irregularities at the lender shortly, a source has said. The FIRs will be filed at the Economic Offence Wing (EOW) of the Mumbai police. In an alleged confession to the RBI, the bank's suspended managing director Joy Thomas had accepted giving loans to realty developer HDIL and its related entity to the tune of Rs 6,500 crore without informing all the former board members. He also reportedly accepted not classifying loans given to the group as non-performing even when there was default on repayments for years altogether. At a press conference held Friday, Thomas has claimed of sanctioning loans of ...
Vape product concerns weigh on Canadian cannabis companies looking for sales boost

Vape product concerns weigh on Canadian cannabis companies looking for sales boost

business
TORONTO (Reuters) - A U.S. recommendation that consumers avoid vaping products containing the active ingredient in marijuana ahead of their legalization in Canada next month could be a blow to Canadian cannabis companies’ hopes that the higher-margin products will help propel them to profitability. FILE PHOTO: An employee prepares an order for a customer at the Fire and Flower store as the first legal cannabis stores open in the province of Ontario, in Ottawa, Ontario, Canada, April 1, 2019. REUTERS/Chris Wattie/File PhotoThe U.S. Centers for Disease Control and Prevention (CDC) said on Friday that an investigation into 805 confirmed or probable cases of vaping-related respiratory illnesses suggested that products containing THC, the psychoactive element in cannabis, likely played a role.
Recent problems changing perceptions of ‘disruptor’ companies

Recent problems changing perceptions of ‘disruptor’ companies

investment
Recent highly publicized flops by supposedly disruptive companies could be painting an unpleasant picture ahead for innovation, at least in how it's viewed in the financial markets.Investors have turned thumbs-down on high-profile companies including WeWork, Uber and Tesla. Industries including marijuana, vaping and bitcoin all have seen big price drops after a spate of bad headlines. Even Netflix is under pressure, with competition rising and the company's moat no longer so deep.Multiple initial public offerings have gotten trashed, most recently exercise bike maker Peloton, which tumbled 11% in its opening day on the market Thursday and fell another 4.3% on Friday.It either could be a temporary blip ahead of some industry shakeouts, signs that deeper distress is ahead as investors deman...
U.S. Treasury says no plans to block Chinese listings ‘at this time’: Bloomberg

U.S. Treasury says no plans to block Chinese listings ‘at this time’: Bloomberg

business
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., August 6, 2019. REUTERS/Brendan McDermid/File Photo(Reuters) - The United States does not currently plan to stop Chinese companies from listing on U.S. exchanges, Bloomberg reported on Saturday, citing a U.S. Treasury official. "The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time," Bloomberg quoted bloom.bg/2obHkDb Treasury spokeswoman Monica Crowley as saying. Reuters reported on Friday that President Donald Trump’s administration is considering delisting Chinese companies from U.S. stock exchanges in a move that would be part of a broader effort to limit U.S. investment in Chinese companies. The Treasury did not immediatel