Goldman Sachs and JPMorgan dissuade customers to buy bitcoin

Large banks JPMorgan and Goldman Sachs discourage their customers from investing in cryptocurrency, said Adam Pokornitsky, partner in digital asset management company Digital Asset Investment Management.

One of Pokornitsky’s clients was going to buy bitcoin, but after talking with consultants from JPMorgan and Goldman Sachs, he stated that he was no longer interested in the purchase.

The client did not tell Pokornitsky what exactly he had heard from representatives of financial giants, but asked to list the benefits of buying bitcoin now.

Pokornitsky noted that the purchase and storage of Bitcoin demonstrated profitability for 3853 days out of all 4134 days, that is, for more than 93% of the time. In addition, the value of the first cryptocurrency is not tied to the dollar, and its price is set solely on the basis of supply and demand.

“Based on modern portfolio theory and considering an optimal portfolio, any portfolio with many assets, including at least 1-10% of bitcoin, showed better absolute risk-adjusted return than portfolios without it,” He wrote.

Recall that JPMorgan and Goldman Sachs have long been exploring the possibilities of working in the cryptocurrency space themselves. Last last year reportedthat he intends to “move further than ever” in working with digital assets.

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Million dollar bonuses for Goldman bankers drive shareholder advisors onto the barricades

Boston, New York The influential voting rights advisor ISS stands against the millions of bonuses for Goldman Sachs boss David Solomon and other top managers of the bank. Goldman Sachs ISS increased the bonus for CEO Solomon sharply, although some important key figures would have deteriorated in 2019 compared to the previous year, ISS criticized in a Reuters report on the night of Friday.

Solomon earned nearly $ 25 million in 2019. ISS recommended that shareholders vote against the salary package at the Annual General Meeting next Thursday. The shareholders’ vote is only of an advisory nature and is therefore not binding. Many funds and large investors follow the recommendations of voting rights advisers such as ISS and Glass Lewis.

Solomon succeeded Lloyd Blankfein at the top of Goldman Sachs in October 2018 and was able to look forward to a substantial salary increase in 2019. He collected a total of $ 24.7 million, of which 7.65 million were bonus payments. Solomon thus received 19 percent more money than in the previous year, although the investment bank’s profit plummeted 19 percent to $ 8.47 billion.

However, the highest-paid US banker remained long-time JP Morgan boss Jamie Dimon in 2019, who received $ 31.5 million after a record profit from the bank – 1.6 percent more than in the previous year.

A Goldman Sachs spokesman defended the salaries for top managers around Solomon. Goldman rewards long-term growth and does not place undue emphasis on short-term results. Income for 2019 reflected the significant long-term success of the top management.

More: How the corona crisis will weigh on US banks’ businesses.

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Ten major banks are accused of manipulation of the corporate bond market

Deutsche Bank

The German money house is accused of years of manipulation.


(Photo: Reuters)

new York A US lawsuit accuses ten of the world’s largest banks of manipulating the corporate bond market. According to this, the money houses – including Deutsche Bank – have been asking for high prices for almost 14 years, as can be seen from court documents on Tuesday. As a result, investors were financially damaged.

The accused financial institutions include JPMorgan Chase, Bank of AmericaBarclays Citigroup, Credit SuisseDeutsche Bank Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Wells Fargo. Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and Wells Fargo declined to comment.

More: Ex-top manager of Deutsche Bank sentenced to prison.

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In the corona crisis, trading is a blessing for Deutsche Bank

Christian Sewing

Analysts fear that the corona crisis will spoil the Deutsche Bank boss’s profit targets.


(Photo: Reuters)

Frankfurt The promise is still there: Christian Sewing actually wants to deliver a small operating profit this year. He put a “black zero” Deutsche Bank boss prospects for investors for 2020 – but that was long before the outbreak of the corona crisis.

According to analysts, this goal has long been a waste. On average, the experts expect a loss before taxes of EUR 1.9 billion for 2020, according to a compilation that the bank has published on its website. The net forecasted minus amounts to over two billion euros.

On April 29, investors will get the first important clues as to how bad 2020 will really be for Deutsche Bank. Then the largest domestic bank presents its first quarter results, usually the strongest in banking. On average, analysts anticipate a comparatively small loss of EUR 35 million for the first three months of this year. However, the experts predict a net loss of 437 million euros. For comparison: In the previous year, the bank still had a bottom line profit of 97 million euros.

The quarterly figures of the large US banks have shown how painful the consequences of the crisis can be. For industry leader JP Morgan, earnings fell in the first three months compared to the previous year by around two thirds to at least $ 2.9 billion. The main reason for the slump was the drastically higher provision for impending credit losses. $ 6.8 billion JP Morgan for that back. With the competitor Wells Fargo there were still 3.2 billion.

Opportunities from the crisis

“Because of the poor profitability, the major German banks cannot afford provisions of this size,” warns a top banker. But that may not be necessary. Stefan Hoops, head of corporate business at Deutsche Bank, hopes that Europe’s banks will come through the corona crisis without major injuries. He also blames structural differences between the United States and Europe for this.

For example, European financial institutions are much less involved in the credit card business, which creates high provisions at the US institutions. For Hoops area, the analysts predict a pre-tax profit of 195 million euros for the first quarter. For the retail customer bank, the earnings forecast is 117 million euros and for asset management 125 million euros.

The area that Sewing cut back significantly in the course of the new strategy has proven to be an opportunity for Deutsche Bank: trading, because the dramatic price fluctuations ensure brisk operation in the trading rooms. As part of the new strategy, Deutsche Bank has largely stepped out of its equity business with large customers.

However, the bank is still one of the market leaders in the business of bonds, foreign exchange and derivatives, their traditional strength. Business with the major investment banks has recently been excellent, especially in currencies. In the Citigroup bond, currency and commodity trading revenues rose 39 percent in the first quarter Goldman Sachs by 33 percent. But there has also been a real boom in the placement of corporate bonds in recent weeks.

In retail, the analysts expect revenues of 1.6 billion euros for the first quarter. For the entire investment bank, the experts expect revenues of 1.9 billion euros and a profit before taxes of 225 million euros after 247 million in the previous year. The investment bank is expected to make the largest contribution to Deutsche Bank’s profit – and to become a stabilizing anchor in the pandemic.

More: In the corona crisis, the KfW boss becomes Germany’s most important banker

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Encouraging news supports US stock markets – Dow closes in plus

Dusseldorf The prospect of an end to the economic coma to combat the corona virus gives US investors hope at the end of the week. The aircraft manufacturer’s announcement BoeingStarting production again and President Donald Trump’s plans to gradually start the economy aroused the buying mood.

The Dow Jones gained 3.0 percent to 24,242 points. The technology-heavy Nasdaq advanced 1.4 percent to 8,650 jobs and the broad S&P 500 rose 2.7 percent to 2,875 points. Over the course of the week, the Dow rose 2.2 percent, the S&P by three and the Nasdaq 6.1 percent. Had in Europe the Dax previously 3.1 percent and the EuroStoxx50 2.4 percent.

“The news of a possible remedy on the same day that Trump presented its opening plans gave investors reason to be optimistic that something like normal will return sometime soon,” said Joshua Mahony, market analyst at broker house IG.

US President Donald Trump presented his exit strategy from the corona crisis on Thursday. The White House plan provides for specific parameters according to which individual states can gradually loosen their restrictions. Germany would also benefit from a plan with clearly defined milestones, comments Handelsblatt author Christian Rickens.

Hope for corona drug

The biggest issue on the markets today, however, was hope for one Corona drugthat the US pharmaceutical company Gilead is currently testing. In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.

At the end of the month, the group plans to present more comprehensive results from its phase 3 study. It was still too early to draw general conclusions from the success of the treatment. The pharmaceutical company’s papers grew by around eight percent.

However, they act as mood dampers Economic data from China: Economic growth there shrank by 6.8 percent in the first quarter of 2020 compared to the same period in the previous year. Even if China is slowly starting up its economy again after the pandemic, the country will probably not be able to lead the rest of the world economy to recovery, China correspondent Dana Heide analyzes.

The US oil prices broke in on Friday. The price of the US variety WTI temporarily lost almost twelve percent to $ 17.50 a barrel and was thus as low as it was last more than 18 years ago. US inventories were rapidly filling as refineries demand less and less crude oil, says Bjornar Tonhaugen, head of the oil business at Rystad brokerage. Nothing will change for the time being despite the planned relaxation of the virus restrictions.

Focus on individual values

Gilead: The new hope for corona therapy rose on Friday: the shares closed 9.7 percent higher.

Boeing: After a drop of eight percent on Thursday, Boeing papers were also among the winners on Friday. They gained 14.7 percent. Of the airbus-Rivale announced that it would start production again next week.

Titles like were on the sales list Amazon, Netflix or Blue apron with a minus of up to 3.7 percent: The online retailer, the streaming service and the cookbox provider had recently benefited from the exit restrictions. The prospect of easing now moved investors to take profits. Amazon and Netflix both climbed to an all-time high on Thursday.

Apple: Apple was one of the losers with a drop of almost 1.4 percent. The iPhone manufacturer’s share was downgraded by Goldman Sachs analysts from “neutral” to “sell”. The group is likely to suffer primarily from the lower demand for iPhones. The stock loses more than two percent.

With agency material.

More: Here you can find out how the German stock market developed on Friday.

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US investors have hope – Dow is up

Wall Street

The White House’s clear exit strategy creates a better mood on Wall Street.

(Photo: AP)

Dusseldorf The US markets started trading significantly more on Friday, but have since moved more sideways. The Dow Jones index of standard values ​​is 1.64 percent firmer at 24,006 points. At the start of trading, it was still up over 2.3 percent.

The broader S&P 500 is listed at 1.6 percent on 2851 points. Since its low in March, the S&P has made up about 30 percent of the ground. The index of the technology exchange Nasdaq slightly slightly in the minus – it started the trading day with a plus of 1.5 percent.

“The news of a possible remedy on the same day that Trump presented his opening plans gives reason to be optimistic that something like normal will return sometime soon,” said Joshua Mahony, market analyst at broker house IG.

US President Donald Trump presented his exit strategy from the corona crisis on Thursday. The White House plan provides for specific parameters according to which individual states can gradually loosen their restrictions. Germany would also benefit from a plan with clearly defined milestones, comments Handelsblatt author Christian Rickens.

Hope for corona drug

The biggest issue on the markets today, however, is hope for one Corona drugthat the US pharmaceutical company Gilead is currently testing. In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.

At the end of the month, the group plans to present more comprehensive results from its phase 3 study. It was still too early to draw general conclusions from the success of the treatment. The pharmaceutical company’s papers grew by around eight percent.

However, they act as mood dampers Economic data from China: Economic growth there shrank by 6.8 percent in the first quarter of 2020 compared to the same period in the previous year. Even if China is slowly starting up its economy again after the pandemic, the country will probably not be able to lead the rest of the world economy to recovery, China correspondent Dana Heide analyzes.

The US oil prices broke in on Friday. The price of the US variety WTI temporarily lost almost twelve percent to $ 17.50 a barrel and was thus as low as it was last more than 18 years ago. US inventories were rapidly filling as refineries demand less and less crude oil, says Bjornar Tonhaugen, head of the oil business at Rystad brokerage. Nothing will change for the time being despite the planned relaxation of the virus restrictions.

Focus on individual values

Gilead: The new hope for corona therapy increased on Friday: The papers shot up about eight percent.

Procter + Gamble: The US consumer goods giant has seen the corona pandemic grow its business. The group benefited particularly from strong inventory purchases in the drugstore sector. In the three months to the end of March, revenues increased five percent year-on-year to $ 17.2 billion, the company said on Friday. Profits rose seven percent to $ 3.0 billion. The share was up 1.3 percent on Friday evening.

Boeing: The aircraft manufacturer plans to start production again on Monday. Because of the corona pandemic, production stopped there for three weeks. At the start of trading, the share rose by more than 13 percent.

Apple: Goldman Sachs analysts downgraded iPhone manufacturer’s stock from “neutral” to “sell”. Apple is likely to suffer primarily from the lower demand for iPhones. The stock loses more than two percent.

With agency material.

More: Here you can find out how the German stock market developed on Friday.

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Wall Street opened in plus

Wall Street

The White House’s clear exit strategy creates a better mood on Wall Street.

(Photo: AP)

Dusseldorf The US markets started trading significantly more on Friday. The Dow Jones index of standard values ​​opened 2.3 percent firmer at 24,080 points.

The broader S&P 500 gained 2.1 percent to 2,857 points. The Nasdaq technology exchange index gained 1.5 percent to 8658 points.

“The news of a possible remedy on the same day that Trump presented his opening plans gives reason to be optimistic that something like normal will return sometime soon,” said Joshua Mahony, market analyst at broker house IG.

US President Donald Trump may also have caused optimism. He presented his exit strategy from the corona crisis on Thursday. The White House plan provides for specific parameters according to which individual states can gradually loosen their restrictions. Germany would also benefit from a plan with clearly defined milestones, comments Handelsblatt author Christian Rickens.

Hope for corona drug

The biggest issue on the markets today is the hope of a Corona drugthat the US pharmaceutical company Gilead is currently testing. In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.

At the end of the month, the group plans to present more comprehensive results from its phase 3 study. It was still too early to draw general conclusions from the success of the treatment.

However, they act as mood dampers Economic data from China: Economic growth there shrank by 6.8 percent in the first quarter of 2020 compared to the same period in the previous year. Even if China is slowly starting up its economy again after the pandemic, the country will probably not be able to lead the rest of the world economy to recovery, China correspondent Dana Heide analyzes.

The US oil prices broke in on Friday. The price of the US variety WTI temporarily lost almost twelve percent to $ 17.50 a barrel and was thus as low as it was last more than 18 years ago. US inventories were rapidly filling as refineries demand less and less crude oil, says Bjornar Tonhaugen, head of the oil business at Rystad brokerage. Nothing will change for the time being despite the planned relaxation of the virus restrictions.

Focus on individual values

Gilead: The new hope for corona therapy increased vigorously on Friday: The papers shot up to $ 85.17, or just under twelve percent, upwards.

Procter + Gamble: The US consumer goods giant has seen the corona pandemic grow its business. The group benefited particularly from strong inventory purchases in the drugstore sector. In the three months to the end of March, revenues increased five percent year-on-year to $ 17.2 billion, the company said on Friday. Profits climbed seven percent to $ 3.0 billion. The share was up one percent on Friday afternoon.

Boeing: The aircraft manufacturer plans to start production again on Monday. Because of the corona pandemic, production stopped there for three weeks. At the start of trading, the share rose by more than 10 percent.

Apple: Goldman-Sachs analysts downgraded the iPhone manufacturer’s stock from “neutral” to “sell”. Apple is likely to suffer primarily from the lower demand for iPhones. The stock loses more than one percent.

With agency material.

More: Here you can find out how the German stock market developed on Friday.

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Alternative Investments: Return in Corona Times: How to Make Money Now

Fluctuations on the stock exchanges are extreme due to the Covid 19 pandemic. But there is a way out: alternative investments. The Handelsblatt presents them. .

Gold, hedge funds, real estate: Yield in Corona times: With which investments you can now earn money

Fluctuations on the stock exchanges are extreme due to the Covid 19 pandemic. But there is a way out: alternative investments. The Handelsblatt presents them. .

Wall Street closes in plus – Amazon and Netflix are growing significantly

Dusseldorf Wall Street rose on Thursday. The Dow Jones index closed 0.1 percent lower at 23,537 points. The S&P 500 gained 0.6 percent to 2799 points. The technology index Nasdaq Composite benefited from new ones Record levels on Amazon and Netflix and rose 1.7 percent to 8,532 points.

Both the shares of the e-commerce group and those of the streaming service are currently the winners of the corona crisis. Both stocks hit new all-time highs on Thursday. Amazon skyrocketed at times by more than six percent to a value of up to $ 2456 and closed more than four percent higher. Netflix peaked at more than five percent to just under $ 450 and ended the day up nearly three percent.

Poor US economic data yesterday caused Wall Street to fall. The Dow Jones index closed the trading day with a minus of almost two percent at 23,504 points, the S&P 500 also closed about two percent lower at 2783 points and the Nasdaq slipped about one percent to 8393 points.

Of a bleak report of last week’s US unemployment rate, which was published shortly before the start of the Washington stock exchange, investors are rather unimpressed this Thursday. According to this, 5.245 million Americans have applied for unemployment benefits in the past seven days.

Initial applications are considered a “real-time indicator” of the economic situation, as they are published with a delay of only one week. Analysts interviewed by Reuters had previously forecasted 5.1 million. Influenced by the corona crisis, more than 20 million US citizens have registered as unemployed within four weeks.

“The decline in economic activity is breathtaking,” said chief economist Joel Naroff from Naroff Economics. Economists estimate that the world’s largest economic power may have shrunk by up to 10.8 percent in the first quarter. That would be the sharpest decline since 1947. As of today, US President Donald Trump wants to present a plan for the exit from the “Great Lockdown” for the domestic economy.

Company figures from the United States show the serious consequences of the corona measures. For example, the stock market fluctuations of the past few weeks have caused a sharp drop in profits for asset manager giant Blackrock.

Net income fell 23 percent year-over-year to $ 806 million in the first quarter, the world’s largest asset manager said on Thursday. Assets under management declined nearly $ 1 trillion to $ 6.47 trillion by the end of March compared to the end of 2019.

The US bank Morgan Stanley also released its quarterly figures this Thursday. Accordingly, profits plummeted by almost a third to $ 1.7 billion. Nevertheless, the financial institution scores well compared to the competition.

At Goldman Sachs, Bank of America and Citi had halved its profit in the first quarter. With the industry leader JP Morgan he shrank by a good two thirds Wells Fargo by almost 90 percent.

Look at other asset classes

Opec announced on Thursday in its monthly report that it was facing the economic consequences of the corona crisis expect a drastic drop in oil consumption by 6.8 million barrels a dayt. The oil cartel predicts the weakest demand for Opec oil in about 30 years in the second quarter.

Accordingly, a little less than 20 million barrels a day are likely to be in demand from April to June. For March, experts expect an Opec production volume of 28 million barrels per day with a possible capacity of around 34 million barrels per day.

The development is thus viewed less pessimistically than by experts from the International Energy Agency (IEA). The interest group of industrialized countries announced on Wednesday that it expects demand to collapse this year by 9.3 million barrels a day for the current year.

However, the two major oil producers Saudi Arabia and Russia have expressed their willingness to intervene in the market in a joint declaration. If necessary, this could be done together with the other states of the Opec + group, according to a phone call between Russia’s Energy Minister Alexander Nowak and his Saudi colleague Prince Abdulasis bin Salman. After a previous dispute between Russia and Saudi Arabia, the large oil producers had agreed on a joint cut in production in order to stabilize the oil price.

The US variety WTI returned to its 18-year low in March and fell 1.5 percent to $ 19.58 a barrel (159 liters). The announced reduction in production by the major exporting countries appears massive, said Carlo Alberto De Casa, chief analyst of the brokerage firm ActivTrades. “In view of the collapsed demand, it just isn’t enough.”

Against this background, the papers of shale oil producers like Marathon, Occidental or Apache slipped between five and ten percent. They suffer particularly badly from the current oil spill because, according to experts, they only work profitably from an oil price of around $ 50.

United Airlines titles lost 11.5 percent. The airline warned that the number of bookings was practically zero, and there was no rapid improvement in sight.

However, there were price increases in the health sector. At the top of the leading index, the papers of the health care provider and health insurer UnitedHealth were up almost six percent on their previous day’s strength. Abbott Laboratories’ quarterly numbers in the S&P 500 rose by more than five and a half percent. They were clearly better than expected, JPMorgan analyst Robbie Marcus said. He continues to see the pharmaceutical company as one of those companies better positioned to face both the Covid 19 crisis and a possible recession.

After a slump of just over 17 percent the previous day, Bed Bath & Beyond has now risen by 18 percent. The retailer, which specializes in kitchen, bathroom and living equipment, presented its quarterly report the day before the market closed. The numbers were better than feared.

With agency material.

More: Here you can find out how the German stock market developed on Thursday.

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