Monday, 6 Apr 2020

NY Fed accepts $25.00 bln of $39.90 bln bids at 14-day repo operation

Empire State manufacturing index hits highest level in nine months

The numbers: The New York Fed’s Empire State business conditions index rose 8.1 points to 12.9 in February, the regional Fed bank said Tuesday. This is the highest level since last May. Economists had expected a reading of 4.0, according to a survey by Econoday. Any reading above zero indicates improving conditions.

What happened: The new orders index rose 15.5 points to 22.1 in February, the highest level in over a year. The shipments index also had a strong gain, rising 10.3 points to 18.9. Labor market indicators remained soft. Delivery times lengthened and inventories increased sharply.

Optimism remained somewhat subdued. The index for future business conditions was little changed at 22.9.

Big picture: Many regional manufacturing indexes and the national ISM index registered surprising gains in January, raising hopes of a turnaround in manufacturing, which has been hit hard by trade tensions and the weak global economy. There appears to be no disruption, at least not yet, from the deadly viral outbreak in China.

Market reaction: U.S. equity benchmarks were indicated lower after Apple Inc said the viral outbreak in China would hurt its second-quarter results. The Dow Jones Industrial Average DJIA, -0.09% rose to 29,398 last week, up 859 points or 3% so far this year.

Advanced Energy Industries Q4 Profit Tops Estimates – Quick Facts

Advanced Energy Industries, Inc. (AEIS) reported fourth-quarter non-GAAP earnings per share of $0.87 compared to $0.73, prior year. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.69, for the quarter. Analysts’ estimates typically exclude special items.

Fourth-quarter sales were $338.3 million compared to $154.2 million, a year ago. Analysts expected revenue of $310.58 million for the quarter.

For the first-quarter, Advanced Energy Industries projects: non-GAAP EPS of $0.70, plus or minus $0.30; and revenues of $310 million, plus or minus $30 million. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.71 on revenue of $308.58 million.

Franklin Templeton to acquire Legg Mason in all-cash deal valued at $4.5 billion

Franklin Resources Inc. BEN, +0.62%, which operates as investment manager Franklin Templeton, said Tuesday it has agreed to acquire Legg Mason Inc. LM, -0.10% in an all-cash deal valued at $4.5 billion. Franklin Templeton will pay $50 per Legg Mason shares and take on about $2 billion of its outstanding debt. The company will finance the deal using available balance sheet cash. The deal will create an entity with a combined $1.5 trillion in assets under management and will expand Franklin’s presence in key geographies with a platform balanced between institutional and retail client AUM. The deal is expected to close no later than the third quarter of 2020 and to boost Franklin’s fiscal 2021 GAAP per-share earnings by an upper twenties percentage. It is expected to generate annual cost saving of about $200 million. Franklin Resources shares jumped 8% premarket on the news, while Legg Mason shares were halted for the news.

HSBC to Fire as Many as 35,000

After its announced rough fourth-quarter earnings, huge bank HSBC told media that it will cut as many as 35,000 jobs.

The bank’s pretax profit fell 33% to $13.4 billion, well below analyst forecasts.  It also said coronavirus could cut performance further.

In Europe, it will chop marketing costs. In the United States, it will cut its bank branch network by about a third.

Amherst Residential to acquire Front Yard Residential Corp. in deal valued at about $2.3 billion

Privately held Amherst Residential LLC said Tuesday it has reached an agreement to acquire Front Yard Residential Corp. RESI, +0.44% in a deal valued at about $2.3 billion, including debt. Front Yard shareholders will receive $12.50 per share in cash, equal to a premium of about 14.2% over the share’s closing price on may 20, 2019, the day before the company said it would start exploring its strategic alternatives. Amherst is a data-driven real estate investment firm operating in the residential and commercial real state capital markets. Amherst Residential affiliates and subsidiaries will acquire Front Yard’s operating platform and assets, including about 15,000 SFR homes, currently managed by Front Yard’s operator, HavenBrook Homes, once the deal closes. The close is expected to take place in the second quarter. Front Yard’s shares jumped 12.4% premarket on the news, but are up just 0.1% in the last 12 months through Friday, while the S&P 500 SPX, +0.18% has gained 22%.

Vessels at port of Libyan capital evacuated after attack: official

TRIPOLI (Reuters) – Vessels including fuel tankers docked at the sea port of the Libyan capital were evacuated on Tuesday after an attack, two port officials said.

Eastern Libyan forces, which have been trying to take the capital since April, said they had attacked a Turkish vessel discharging weapons, an eastern military official said.

NY Fed accepts $25.00 bln of $39.90 bln bids at 14-day repo operation

Feb 18 (Reuters) – The New York Federal Reserve on Tuesday accepted $25.00 billion of $39.90 billion in bids from primary dealers at a 14-day repurchase agreement (repo) operation. For more details, see: here (Reporting by Karen Brettell)

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