All articles tagged with #barclays
Barclays analysts warn that the US economy has entered a 'stall state' with a 50% chance of recession within two years, supported by indicators like employment ratios and unemployment rates, and suggest the Federal Reserve may cut interest rates later this year.
Barclays appoints Goldman Sachs veteran Alastair Currie as co-COO amid ongoing cost-cutting efforts, while banks increasingly adopt AI tools like Morgan Stanley's DevGen.AI to automate legacy system updates, raising concerns about job reductions and industry transformation.
Jes Staley, former Barclays CEO, failed to overturn a FCA ban for misleading regulators about his links to Jeffrey Epstein, with the tribunal reducing his fine from £1.8mn to £1.1mn, citing misconduct despite his achievements.
Barclays plans to cut over 200 jobs in its investment bank to improve profitability and invest in priority areas like European rates, equity derivatives, and M&A, as part of CEO Venkatakrishnan's strategy to boost efficiency and returns.
Barclays has raised its 2025 S&P 500 target to 6,050 amid optimism on Wall Street following a decline in tariff-related uncertainty, despite ongoing trade tensions and increased tariffs on steel and aluminum. Major banks like Goldman Sachs and Deutsche Bank have also upgraded their forecasts, reflecting a positive outlook supported by expected corporate earnings growth, though risks from tariffs and economic headwinds remain.
American Airlines has chosen Citigroup as its exclusive credit card partner, ending its partnership with Barclays. The airline anticipates a 10% annual growth in payments from its co-branded credit card and other partners, having earned $5.6 billion in the past year. Following the announcement, American Airlines' shares rose over 6% in premarket trading.
Barclays has agreed to a $19.5 million settlement in a Manhattan lawsuit where shareholders accused the bank of securities fraud for selling $17.7 billion more debt than allowed by regulators. The settlement, which requires court approval, follows Barclays' admission of overissuing structured and exchange-traded notes beyond the authorized limit. Despite denying wrongdoing, Barclays had to restate its 2021 financials and set aside funds for the overissuance. The lawsuit involved investors in Barclays' American depositary receipts from February 2021 to February 2023.
The UK's Financial Conduct Authority has fined Barclays £40 million ($50.9 million) for failing to disclose arrangements with Qatari entities during the 2008 financial crisis. The fine relates to undisclosed fees paid to Qatari funds to avoid a state bailout. Although Barclays initially appealed the fine, it has now withdrawn the appeal, citing the time elapsed and the interests of its stakeholders, while maintaining there is no material financial impact from the penalty.
Court documents reveal that Jeffrey Epstein used Jes Staley's daughter, Alexa Staley, to maintain contact with the former Barclays CEO, Jes Staley, between 2016 and 2017, despite Staley's claims of severing ties with Epstein after becoming the bank's chief.
Barclays and other Wall Street firms are considering requiring employees to return to the office five days a week due to new US brokerage regulations by Finra. These rules, which include listing home offices in regulatory records and periodic inspections, are prompting some firms to rethink remote work policies. While some, like Deutsche Bank, may find ways to comply with minimal changes, others like Truist Financial Corp. have already mandated full-time office attendance for certain staff.
Microsoft has officially launched the Xbox Mastercard in the US, a no annual fee credit card issued by Barclays that allows users to earn points for purchases, which can be redeemed for Xbox games and add-ons.
Citigroup is set to complete the first phase of its 20,000 job cuts this week, with CEO Jane Fraser announcing the largest round of cuts yet. Meanwhile, Barclays' top trader, Carl Scott, has left after complaints about bonuses, raising concerns about potential departures of other recent hires. Additionally, other news in the financial industry includes HSBC's investment banking team leader leaving, the FCA's controversial hiring decision, and Bridgewater's response to discrimination accusations.
Disney's stock reached 52-week highs after an upgrade from Barclays, with cost-cutting initiatives leading to the reinstatement of its dividend. Investor sentiment has been positive, with the stock outperforming its industry peers. Barclays raised its price target for Disney, citing positive earnings revisions, and the company's earnings estimates have seen upward revisions. Disney's long-term debt has decreased, and its P/E valuation is below its decade-long high. The company has reinstated a higher dividend, and while the stock has rallied extensively, there may be better buying opportunities ahead.
Barclays analyst upgraded Disney stock to Overweight from Equal Weight, citing better-than-expected free cash flow and earnings guidance, along with "tactical tailwinds" such as Hollywood strikes, Hulu's consolidation, and cost cuts. The stock has outperformed broader markets this year, rising over 30%, and the analyst believes Disney's next phase may be more impactful, with potential streaming profitability and other narrative surprises. However, challenges such as declining non-sports TV viewership and slow subscriber growth in streaming could pose risks.
Barclays is set to cut several hundred jobs within its investment bank division, including in global markets, research, and investment banking, as part of a long-term effort to reduce costs and increase profits, with the cuts expected to target low performers in the coming months.