Investment banking giant Goldman Sachs reported impressive third-quarter results Wednesday morning. Profits nearly doubled to $3.6 billion and easily topped Wall Street’s forecasts. Revenue rose 30% from a year ago and also surpassed analysts’ estimates. The European Union put the onus on Britain on Thursday to compromise on their new economic partnership or stand ready for trade disruptions in less than 80 days, drawing a chilly reaction from the UK, which said it was "disappointed". British Prime Minister Boris Johnson will respond and set On the eve of a European Union summit which British Prime Minister Boris Johnson had set as a deadline to get a post-Brexit trade agreement between both sides, talks remained in a deep rut over fundamental differences on the issues of state aid and fisheries While things haven’t gone according to plan for every NFL team in 2020, the league is entering Week 6 with some level of normalcy. This means there will likely be a full season. It also means that we’re closing in on the trade deadline… Morgan Stanley said Thursday that profit rose 25% in the third quarter from last year, as the investment bank benefitted from a boost in trading revenue as well as higher investment banking fees.
New York (CNN Business)Investment banking giant Goldman Sachs reported impressive third-quarter results Wednesday morning. Profits nearly doubled to $3.6 billion and easily topped Wall Street’s forecasts. Revenue rose 30% from a year ago and also surpassed analysts’ estimates.
Shares of Goldman Sachs (GS) were flat on the news, however.
Goldman Sachs has benefited from the explosive rebound in the stock market since March.
Revenue for its trading unit rose solidly and Goldman Sachs also generated solid gains in sales from its asset management business as well as a healthy jump in stock underwriting fees thanks to the boom for initial public offerings.
CEO David Solomon acknowledged in a press release that the world remains in “a very uncertain environment” due to Covid-19 but added that “as our clients begin to emerge from the tough economy brought on by the pandemic, we are well positioned to help them recover and grow, particularly given market share gains we’ve achieved this year.”
Goldman Sachs is also growing more hopeful that the economy will rebound next year even as many experts worry that a more tepid recovery is in store. The company said in a slide presentation that it expects the US economy to grow 5.8% in 2021 following a 3.4% contraction this year.
The company, like most others on Wall Street, has also faced disruptions to how it conducts business because of the pandemic.
During a conference call with analysts, Solomon said that about 60% of its workers in Hong Kong and Tokyo are back in the office and about half of its employees have returned to the office in Europe.
But it’s taking longer to get back to normal in London and on Wall Street.
Solomon said only 30% of its UK workers are back in the office and that there are currently about 2,000 people working in New York’s headquarters, with about 30% of the New York staff coming to the office on a rotating weekly basis.
Goldman Sachs is the latest big financial firm to report its third quarter numbers, following strong earnings from JPMorgan Chase (JPM) and BlackRock (BLK) and mixed results from Citigroup (C) and Bank of America (BAC).
Author: Paul R. La Monica, CNN Business
EU tells Britain to give ground to secure trade deal, UK to respond Friday
By Gabriela Baczynska and Kate Holton
BRUSSELS/LONDON (Reuters) – The European Union put the onus on Britain on Thursday to compromise on their new economic partnership or stand ready for trade disruptions in less than 80 days, drawing a chilly reaction from the UK, which said it was “disappointed”.
British Prime Minister Boris Johnson will respond and set out his approach to the talks on Friday, his Brexit negotiator said.
Sporting face masks and keeping their distance amidst a fresh spike in COVID-19 infections in the EU, the bloc’s leaders meeting in Brussels granted more time for negotiations with Britain on a new trade pact before the year ends.
“We are concerned by the lack of progress. And we call on the UK to make the necessary moves,” said summit chairman, Charles Michel, adding the bloc wanted an accord but not at any price and was ready for an abrupt split from 2021 as well.
Britain’s Brexit negotiator David Frost said on Twitter he was “disappointed”. “Also surprised by suggestion that to get an agreement all future moves must come from UK,” he added.
Britain left the EU in January and, during a transition period, the estranged allies have been locked in complex negotiations to keep a trillion euros worth of annual trade free of tariffs or quotas from 2021.
Talks have narrowed gaps on issues from social welfare to transport but three contentious areas have so far prevented a deal: fair competition, dispute resolution and fisheries, which is particularly important to France.
“In no case shall our fishermen be sacrificed for Brexit,” said French President Emmanuel Macron. “If the right terms can’t be found at the end of these discussions, we’re ready for a no-deal for our future relations.”
With businesses and markets increasingly jittery as the deadline nears, EU leaders stressed the unity of the 27-nation bloc in the face off.
“We want a deal, but obviously not at any price. It has to be a fair agreement that serves the interests of both sides. This is worth every effort,” said German Chancellor Angela Merkel.
Ireland, the EU member most exposed to any chaotic rupture, said smooth post-Brexit trade between the world’s sixth largest economy and biggest trading bloc was even more essential given the economic havoc of the COVID-19 crisis.
“We still can get this resolved within the timeframe available to us,” said Irish Prime Minister Micheal Martin.
The pandemic has thrust Europe into unprecedented recession and many nations are tightening restrictions again to combat a second infection wave sweeping the continent as winter looms.
The coronavirus upset the summit itself when one of the key participants, the head of the bloc’s executive, Ursula von der Leyen, left the meeting abruptly to go into precautionary self-isolation after one of her staff tested positive.
Given the economic malaise and global instability, it would be “crazy” if the two sides failed to agree a deal, said Dutch Prime Minister Mark Rutte.
Many in financial markets expect a limited deal by early November, though after several more weeks of drama.
The EU has warned it would not leave fishing rights to be settled last and stressed they must be part of a wider deal with issues like energy ties where London has a weaker hand.
The sides are also far apart on fair competition safeguards covering social, labour and environment standards, as well as state aid.
Britain wants to be able to regulate its own corporate subsidies freely in the future, while the EU seeks to lock in joint rules. Otherwise, the bloc says Britain cannot have free access to its cherished single market of 450 million consumers.
(Reporting by Marine Strauss, Jan Strupczewski, Gabriela Baczynska, John Chalmers in Brussels; Michel Rose in Paris, Sabine Siebold and Andreas Rinke in Berlin; Writing by Gabriela Baczynska; Editing by Andrew Cawthorne, Philippa Fletcher, Toby Chopra and Andrew Heavens)
Author: Gabriela Baczynska and Kate Holton
On eve of UK deadline, trade talks with EU still stalled
BRUSSELS — (AP) — On the eve of a European Union summit that British Prime Minister Boris Johnson had set as a deadline to seal a post-Brexit trade agreement, talks remained in a deep rut Wednesday over fundamental differences on the issues of state aid and fisheries.
EU nations are already looking to the end of the month, when they see the ultimate deadline for an agreement if they still want to get it through legal vetting and parliamentary approvals before the deadline of Jan. 1.
A trade deal for the EU and the recently departed U.K. has the potential to save hundreds of thousands of jobs and not exacerbate the economic crisis brought on by the coronavirus pandemic.
Still, despite having fully intertwined economies until Britain officially left the EU on Jan. 31, differences over cooperation remain substantial.
In draft summit conclusions obtained by The Associated Press, the 27 leaders will note “with concern that progress on the key issues of interest to the Union is still not sufficient for an agreement.”
Britain also feels that momentum generated two weeks ago has failed to produce sufficient results and continues to be baffled that the EU is driving what it sees as an extremely hard bargain.
Johnson held a video call Wednesday to European Commission President Ursula von der Leyen and EU Council President Charles Michel and “expressed his disappointment that more progress had not been made over the past two weeks,” the prime minister’s office said.
The EU says Britain is trying to retain the advantages of EU membership without the commitment to play by the bloc’s rules.
Johnson is set to decide after the EU summit ends Friday whether to pull the plug on the talks, but officials from both sides who are close to the negotiations point to them continuing for a few more weeks.
The EU’s chief negotiator, Michel Barnier, is hosting British counterpart David Frost in Brussels a day after EU nations complained that the talks were making far too little progress to clinch a deal in time.
Michel said in his summit invitation letter that “the coming days are decisive” as EU nations are spurring their businesses on to prepare for a no-deal finale to the Brexit transition.
Britain exited the EU on Jan. 31, but both sides agreed to a gap until the end of the year to try to find a trade deal to make the changeover smooth and make sure the U.K. and the bloc have the best commercial contacts possible.
But talks have been as slow as political relations have become acrimonious. Johnson says the EU must shift its position if it wants a deal, and insists the U.K. is quite prepared to walk away without one.
The EU is counting on the U.K. seeking the unfettered access it wants to the huge and wealthy continental market to make a belated breakthrough possible.
EU nations like France want the access of U.K. companies to the EU market to be very strict, making sure British firms won’t be able to undercut their continental rivals because of minimal regulation and excessive state subsidies.
France is viewed, especially by Britain, as one of the nations most unwilling to compromise, especially on the issue of French boats’ access to British fishing waters.
Since last month, the member states have also become ardent in demanding legal guarantees on governance of any deal after Johnson introduced legislation in September that breaches the Brexit withdrawal agreement he himself signed with the EU only last year.
It left trust in the Johnson government shattered, and the European Parliament, which must approve any deal, has vowed not to approve any trade deal if the U.K. government doesn’t withdraw this legislation. Britain says it will keep the legislation, with the option to use it if necessary.
The EU has said that any agreement will take about two months for legal ratification, translation into European languages and for approval from the European Parliament, making for an effective cutoff date of around Nov. 1.
Jill Lawless in London contributed.
© 2020 Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Author: By RAF CASERT
NFL Trade Block Big Board Entering Week 6
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Rich Schultz/Associated Press
While things haven’t gone according to plan for every NFL team in 2020, the league is entering Week 6 with some level of normalcy. This means there will likely be a full season. It also means that we’re closing in on the trade deadline.
After 4 p.m. ET on Nov. 3, the trade market will be closed until the offseason.
No one should be shocked if teams make significant moves over the next couple of weeks. Injuries to guys like Dak Prescott, Saquon Barkley, Courtland Sutton and Nick Chubb have left some of the sport’s top players on the sidelines. And supposed contenders such as the Philadelphia Eagles and San Francisco 49ers have found out that their rosters aren’t as strong as expected.
The trade market is one way to fix these issues. Of course, the question is: Which players could provide the most aid? That’s what we’ll determine here, using factors such as roster makeup, cap space and the likelihood of player movement to guide us.
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Steve Helber/Associated Press
To get our top 10, we first determined 15 likely trade candidates based on prior speculation and common sense. Losing teams like the 0-5 New York Jets, for example, could look to dump salaries and gain draft capital before the deadline.
The New England Patriots (2-2) don’t fall into the category of lost teams, so we’re removing franchise-tagged guard Joe Thuney for now. He could return to the list if New England racks up losses between now and Nov. 3, but the Patriots appear to be poised to push for a wild-card spot.
Washington Football Team quarterback Dwayne Haskins Jr. is replacing Thuney for reasons we’ll get into shortly.
Running back Le’Veon Bell is also off the list after the New York Jets announced they were releasing him. Taking his place is veteran wideout Golden Tate. The 32-year-old has two years remaining on his contract but may not be valued by the likely soon-to-rebuild 0-5 New York Giants.
The new initial list, in no particular order, is as follows:
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David Richard/Associated Press
Cleveland Browns wide receiver Odell Beckham Jr. is always going to generate some degree of trade buzz, and he’ll be on lists like this as long as his chemistry with quarterback Baker Mayfield appears to be lacking.
However, it’s becoming less likely that the Browns will want to part with him in 2020. This is because Cleveland keeps winning and is playing like a legitimate playoff contender.
Beckham is not regularly a huge piece of the offensive game plan; he had five catches and 58 yards in Week 5. So the Browns would likely entertain a can’t-refuse type of offer. If a title contender ends up losing a top receiver between now and the deadline, such an offer could come.
Beckham proved against the Dallas Cowboys in Week 4 that he can still be a game-breaker, with 81 receiving yards, 73 rushing yards and three touchdowns.
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Kamil Krzaczynski/Associated Press
Unlike the Browns, the Giants have not been winning. They’re sitting at 0-5 and most likely looking at a lost season. That could lead New York to ship off some of its expendable assets, and Tate is one of them.
In his little more than a year with the Giants, Tate has largely been an offensive afterthought. He did have 49 catches in 2019, but he made those on 85 targets and produced 676 yards. Through four games this year, he’s caught 18 of 23 targets, but they’ve gone for just 145 yards. His 8.1 yards-per-reception average is a career low.
Tate is set to carry a cap hit of nearly $11 million in 2021, so the Giants would likely love to part with him if possible. It would be even better for New York if it can get a team to take on the $4.7 million in guaranteed money remaining on his deal.
At the right price, a team could be intrigued by Tate’s potential as a third or fourth receiver for the stretch run. As recently as 2017, he produced more than 90 catches and 1,000 receiving yards.
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Eric Christian Smith/Associated Press
The Houston Texans fired head coach/general manager Bill O’Brien last week, and while the team picked up its first win of the season Sunday, it still feels like a significant rebuild could be on the horizon.
If the Texans don’t start ripping off some wins, they could be serious sellers at the deadline, and running back David Johnson could be one player they are willing to move.
He hasn’t been the do-it-all playmaker O’Brien hoped he was getting in the DeAndre Hopkins trade. He’s averaged a good-not-great 4.3 yards per carry and has 11 receptions on the season.
However, he did have a strong outing against the Jacksonville Jaguars. He averaged 5.7 yards per rush in Week 5 and showed that he can be an effective ball-carrier.
If a running back-needy contender comes calling, Houston might seize the opportunity to get out from under Johnson’s three-year deal worth $39 million.
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Steve Helber/Associated Press
Dwayne Haskins Jr. hasn’t even played 16 regular-season games in the NFL, and Washington may already be done with him. The Ohio State product was benched ahead of Week 5 and wasn’t the backup. When Kyle Allen went down, veteran Alex Smith took over.
According to CBS Sports’ Jason La Canfora, many around the league believe that Washington will move Haskins before the deadline.
“Some rival executives have already begun looking at film of the former Ohio State star,” Canfora wrote.
While Haskins hasn’t put a ton of good play on film and has a career passer rating of 77.8, he has just 11 starts under his belt and has had three head coaches, including interim coach Bill Callahan late in 2019. Also, he hasn’t been surrounded by premium talent.
Just as the Miami Dolphins were willing to take a flier on Josh Rosen in exchange for a second-round pick and a fifth-round selection last offseason, some team will likely want to see if it can unlock Haskins’ potential.
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Chris Szagola/Associated Press
At this point, it feels almost inevitable that the Philadelphia Eagles will try to move wide receiver Alshon Jeffery. He has yet to play a down in 2020, and he is set to carry a cap hit of $18.5 million next year.
With young wideouts like Greg Ward and Travis Fulgham starting to emerge, there’s little reason for the Eagles to continue investing in Jeffery. Convincing a team to take on his contract could be difficult, but in the past, Jeffery has been a high-end possession receiver.
He had 843 yards and six touchdowns just two seasons ago, and he could put up similar numbers as a No. 2 option in a different offense.
If a receiver-needy contender comes calling with a reasonable offer—and is willing to take on some of the dead money in Jeffery’s contract—Philadelphia will likely race to submit the trade to the league office.
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Rick Scuteri/Associated Press
The Arizona Cardinals could deal linebacker Haason Reddick in an effort to recoup some of their investment. Despite being the 13th overall pick in the 2017 draft, Reddick is merely a role player.
Through five games, he has played just 51 percent of the defensive snaps.
However, Reddick has shown the ability to play multiple positions and could provide a boost to a contender’s defense that is lacking at the second level. He’s racked up 2.0 sacks, 10 tackles and two pass breakups in his limited action this season.
Arizona declined Reddick’s fifth-year option in May, so it’s unlikely the team views him as part of its future. If another team is interested in the 26-year-old linebacker, the Cardinals will likely let him go for a reasonable return.
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Aaron Doster/Associated Press
The Cincinnati Bengals have maintained that everything is copacetic with wideout A.J. Green—even after there was speculation he asked for a trade on the sideline of Sunday’s game against the Baltimore Ravens.
“A.J. has been nothing but positive,” head coach Zac Taylor told reporters when asked if Green had expressed frustration with him.
The reality, though, is that if the Bengals aren’t shopping their franchise-tagged receiver, they should be. Green has been woefully ineffective, catching just 14 of 34 targets for 119 yards through the first five weeks.
It would make sense for the Bengals to free up reps for younger receivers like Tee Higgins while getting something in return for a 32-year-old player not likely part of the franchise’s future.
Green’s trade value certainly isn’t at an all-time high. He exited Sunday’s game with what the team called a hamstring injury and only played nine games last season. However, a change of scenery might help Green recapture some of his Pro Bowl form.
Cincinnati should be willing to let him go on the cheap, and at the right price, he could be a tremendous value for a receiver-needy team.
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Daniel Kucin Jr./Associated Press
Washington Football Team edge-rusher Ryan Kerrigan is in the final year of his contract, and he could be one of the biggest trade chips at the deadline.
While Washington is treading water at 1-4 in a weak NFC East, it isn’t likely to move defensive building blocks like Jonathan Allen, Montez Sweat and Chase Young. However, moving the 32-year-old Kerrigan would make a good deal of sense.
And Kerrigan would likely bring something of value in return. While he’s firmly in the back half of his career, he can still be an effective situational pass-rusher. He’s played just 41 percent of the defensive snaps this season and has two sacks to go with four pressures and five tackles.
It would be a shock if multiple teams didn’t at least kick the tires on Kerrigan over the next couple of weeks.
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AJ Mast/Associated Press
In terms of pure value, Indianapolis Colts quarterback Jacoby Brissett is at the top of the list—and he was at the top of last week’s big board.
He plays the game’s most important position and has 32 career starts. Should another team lose its starting quarterback for the season, Indianapolis will likely be one of the first franchises it calls.
With Brissett in the last year of his contract, Indianapolis might be happy to get something in return while it can.
However, Brissett got bumped down a couple of spots because the Colts might not be as eager to move him as they were a week ago. Starter Philip Rivers made several key mistakes against Cleveland that contributed to his team’s 32-23 loss, including a pick-six and an intentional-grounding safety.
If Rivers continues to make mistakes, the Colts might want to hang on to Brissett as insurance.
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Matt Patterson/Associated Press
As previously mentioned, the Texans could be headed toward a fire sale. If this happens, wideout Kenny Stills could be one of the first players on the trade block.
In Romeo Crennel’s first game as interim head coach after the firing of O’Brien, Stills was targeted just once. He has a mere eight receptions for 104 yards and a touchdown through five weeks, and he’s in the final year of his contract.
It’s fairly safe to assume that Stills, 28, is not going to be a long-term building block in Houston.
However, this doesn’t mean that he cannot be valuable to another franchise. He has already proved that he can be a productive complementary receiver. He served as the No. 3 option behind DeAndre Hopkins and Will Fuller V last season and finished with 40 catches, 561 yards and four touchdowns.
Author: Kristopher Knox
Morgan Stanley 3Q profit rises 25%, helped by trading
CHARLOTTE, North Carolina (AP) – Morgan Stanley said Thursday that profit rose 25% in the third quarter from last year, as the investment bank benefitted from a boost in trading revenue as well as higher investment banking fees.
The New York-based firm posted a profit in the third quarter of $2.72 billion, or $1.66 per share, up from $2.2 billion, or $1.27 per share, in the same period a year earlier. The results beat analysts’ expectations. The results included a one-time tax benefit of $113 million.
Like other investment banks, Morgan Stanley benefitted from markets that generally moved higher through the summer. Morgan Stanley’s stock trading division – the firm’s specialty – saw next revenues increase to $2.26 billion from $1.99 billion a year earlier. The bond trading division, smaller than the stock trading operation, saw a bigger jump in revenues in the quarter to $1.92 billion.
Investment banking fees increased modestly. While the fees Morgan Stanley earned from advising companies to do deals declined, fees from underwriting stock offerings more than doubled over the summer.
The firm reported a return on tangible common equity – a measurement of profitability of investment banks that gauges how much they earn on the assets the bank holds – was 15% in the quarter. Typically banks like Morgan Stanley aim for a return on equity above 10%.
Copyright © 2020 The Washington Times, LLC.
Author: The Washington Times http://www.washingtontimes.com