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The Zacks Analyst Blog Highlights: Morgan Stanley, Citigroup, Well Fargo, JPMorgan and Bank of America
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For Immediate Release
Chicago, IL – March 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Morgan Stanley (MS - Free Report) , Citigroup (C - Free Report) , Well Fargo (WFC - Free Report) , JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Major Banks Pause Job Cuts Amid Coronavirus Mayhem
Although banks across the globe are hit hard by coronavirus-related slowdown, they are trying to alleviate the hardships of employees. Several global banks have paused job cuts and are reassuring the workforce privately or through public statements regarding the same.
Details
In a memo sent to all its employees, Morgan Stanley’s CEO, James Gorman, said “While long term we can't be sure how this will play out, we want to commit to you that there will not be a reduction in force at Morgan Stanley in 2020.”
Other Wall Street biggies, Citigroup, Goldman Sachs and Well Fargo have also reassured their employees that there will be no planned job reductions. In a statement, Wells Fargo’s spokesperson commented, “We have paused initiating new displacements.”
However, there is no such update from the two biggest U.S. banks - JPMorgan and Bank of America.
Major foreign banks like HSBC Holdings, Credit Suisse Group AG and Lloyds Banking Group Plc are taking similar steps. In a memo sent to staff, HSBC’s CEO Noel Quinn stated, “Because of the extraordinary impact of the COVID-19 pandemic, we have decided to pause, for the time being, the vast majority of redundancies associated with this programme where notices have not already been issued.” In February, the company had announced plans to slash 35,000 jobs, with an aim of restructuring businesses and lowering annual costs by $4.5 billion.
Likewise, Deutsche Bank had announced intention of eliminating nearly 18,000 jobs by 2022-end. However, the bank will refrain from doing so due to the coronavirus outbreak. Also, Lloyds has paused the elimination of 780 job positions.
However, a few other banks like Commerzbank AG, Societe Generale SA, UniCredit SpA and Royal Bank of Scotland Group are likely to stick to their planned business streamlining initiatives.
Why Job Cuts Have Been Paused?
Banks are known for their fire and hire policy according to business needs.
However, this time, no one has any idea how long the impact of coronavirus-related slowdown will continue. Further, unlike 2008 financial crisis, banks are financially healthy with sufficient liquidity. So, banks are of opinion that once the crisis is over, they will be able to bounce back faster and this will require enough staff members to continue providing banking services.
Moreover, a sudden spurt in business activities is expected once people go back to normal life after lockdowns are lifted and the banks want to be fully ready to meet clients’ demands. Also, in case the pandemic results in staff shortage due to employees falling sick or choosing to stay at homes, then the banks should have enough backup workforces to continue normal business activities.
Conclusion
With banks receiving help from central banks and local administrations in maintaining liquidity in the financial system, job cuts will make banks appear insensitive amid the current situation.
Banks are taking several measures like deferring loan repayments, delaying payment of interests and waiving late fees, with an aim of alleviating hardships of retail and small businesses.
Also, banks have suspended share repurchases and plan to use freed-up capital for lending activities. They are even under pressure to slash dividend payouts, though such announcements haven’t been made yet.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Morgan Stanley, Citigroup, Well Fargo, JPMorgan and Bank of America
For Immediate Release
Chicago, IL – March 30, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Morgan Stanley (MS - Free Report) , Citigroup (C - Free Report) , Well Fargo (WFC - Free Report) , JPMorgan (JPM - Free Report) and Bank of America (BAC - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Major Banks Pause Job Cuts Amid Coronavirus Mayhem
Although banks across the globe are hit hard by coronavirus-related slowdown, they are trying to alleviate the hardships of employees. Several global banks have paused job cuts and are reassuring the workforce privately or through public statements regarding the same.
Details
In a memo sent to all its employees, Morgan Stanley’s CEO, James Gorman, said “While long term we can't be sure how this will play out, we want to commit to you that there will not be a reduction in force at Morgan Stanley in 2020.”
Other Wall Street biggies, Citigroup, Goldman Sachs and Well Fargo have also reassured their employees that there will be no planned job reductions. In a statement, Wells Fargo’s spokesperson commented, “We have paused initiating new displacements.”
However, there is no such update from the two biggest U.S. banks - JPMorgan and Bank of America.
Major foreign banks like HSBC Holdings, Credit Suisse Group AG and Lloyds Banking Group Plc are taking similar steps. In a memo sent to staff, HSBC’s CEO Noel Quinn stated, “Because of the extraordinary impact of the COVID-19 pandemic, we have decided to pause, for the time being, the vast majority of redundancies associated with this programme where notices have not already been issued.” In February, the company had announced plans to slash 35,000 jobs, with an aim of restructuring businesses and lowering annual costs by $4.5 billion.
Likewise, Deutsche Bank had announced intention of eliminating nearly 18,000 jobs by 2022-end. However, the bank will refrain from doing so due to the coronavirus outbreak. Also, Lloyds has paused the elimination of 780 job positions.
However, a few other banks like Commerzbank AG, Societe Generale SA, UniCredit SpA and Royal Bank of Scotland Group are likely to stick to their planned business streamlining initiatives.
Why Job Cuts Have Been Paused?
Banks are known for their fire and hire policy according to business needs.
However, this time, no one has any idea how long the impact of coronavirus-related slowdown will continue. Further, unlike 2008 financial crisis, banks are financially healthy with sufficient liquidity. So, banks are of opinion that once the crisis is over, they will be able to bounce back faster and this will require enough staff members to continue providing banking services.
Moreover, a sudden spurt in business activities is expected once people go back to normal life after lockdowns are lifted and the banks want to be fully ready to meet clients’ demands. Also, in case the pandemic results in staff shortage due to employees falling sick or choosing to stay at homes, then the banks should have enough backup workforces to continue normal business activities.
Conclusion
With banks receiving help from central banks and local administrations in maintaining liquidity in the financial system, job cuts will make banks appear insensitive amid the current situation.
Banks are taking several measures like deferring loan repayments, delaying payment of interests and waiving late fees, with an aim of alleviating hardships of retail and small businesses.
Also, banks have suspended share repurchases and plan to use freed-up capital for lending activities. They are even under pressure to slash dividend payouts, though such announcements haven’t been made yet.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.