USA TODAY Network journalists across the country documented protests denouncing police brutality and racial bias in response to the death of George Floyd at the hands of Minneapolis police.
Citigroup shares rise after bank reports better-than-expected earnings on strong trading results – CNBC
Citigroup reported second-quarter results that surpassed analyst expectations thanks in part to a massive surge in trading revenue.
Citigroup reported on Tuesday second-quarter results that surpassed analyst expectations thanks in part to a massive surge in trading revenue that helped offset a slowdown in the company’s consumer banking business.
Here’s how the company’s results compared to analyst estimates:
- Earnings: 50 cents per share vs 28 cents per share expected by Refinitiv
- Revenue: $19.77 billion vs $19.12 billion forecast
- Fixed income, currency and commodities trading revenue: $5.6 billion vs $4.86 billion forecast by FactSet
The bank’s stock rose more than 1% in the premarket.
Citigroup’s fixed income trading revenue represents a 68% year over-year surge and accounted for most of the company’s Markets and Securities Services revenues, which rose 48% to $6.9 billion.
Those elevated trading numbers come amid heightened market volatility during the coronavirus pandemic. They also come on the heels of massive monetary stimulus from the Federal Reserve. Equity trading revenue dipped 3% to $770 million, however.
Citigroup’s global consumer banking division struggled during the second quarter, with revenues falling 10% to $7.34 billion on a year-over-year basis. Net credit losses, meanwhile, jumped 12% year over year to $2.2 billion. Ultimately, the company posted net income of $1.32 billion, which represents a 73% drop from the second quarter of 2019.
“While credit costs weighed down our net income, our overall business performance was strong during the quarter, and we have been able to navigate the COVID-19 pandemic reasonably well. The Institutional Clients Group had an exceptional quarter, marked by an increase in Fixed Income of 68%,” CEO Michael Corbat said in a statement.
“With a sharp emphasis on risk management, we are prepared for a variety of scenarios and will continue to operate our institution prudently given this unprecedented situation,” Corbat added.
Citigroup shares are up nearly 12% the last three months through Monday’s close, outperforming peers such as JPMorgan Chase, Wells Fargo and Bank of America. JPMorgan and Bank of America were roughly flat in that time and Wells lost 19.2%.
The bank announced in late June it would maintain its quarterly dividend after passing the Federal Reserve’s annual stress test.
Citigroup’s results Tuesday come in what is expected to be the one of the worst earnings season on Wall Street. Analysts polled by Refinitiv expect S&P 500 earnings to have fallen by 44% on a year-over-year basis.
Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
3M partners with MIT researchers to develop U.S.-backed rapid coronavirus antigen test – CNBC
The device, which is in the early stages of development, would function much like a pregnancy test, said Cathy Tarnowski, senior technical manager at 3M.
3M and researchers from the Massachusetts Institute of Technology announced Tuesday a partnership to develop a rapid coronavirus antigen test they say will be widely available in the U.S.
With new cases of Covid-19 surging across much of the country, major test manufacturers and laboratories have warned of delays in processing. Delivering quick testing results is crucial to the U.S. response to ensure that infected individuals can be quickly isolated and local public health workers can find potentially exposed people early in their infection, health officials say.
Antigen tests are a relatively new for Covid-19. They work by scanning for proteins that can be found on or inside a virus. The Food and Drug Administration has touted the tests as an important tool for combating the pandemic because they can be produced quickly, at relatively low costs, and test patients in a variety of settings.
3M and MIT’s testing device, which is in the early stages of development, would function “like a pregnancy test,” 3M senior technical manager Cathy Tarnowski told CNBC. It will be a paper-based point-of-care testing device, which will help reduce the cost, the company said.
If development goes well, Tarnowski said, 3M is looking to manufacture millions per day, allowing for frequent and affordable diagnostic testing.
The device has received phase one approval from the National Institutes of Health’s Rapid Acceleration of Diagnostics Tech program, which comes with $500,000 in funding to accelerate development, Tarnowski said.
“We’re really looking forward to understanding whether we can create a low-cost, high-accuracy device to be able to detect the antigen,” she said. “Our focus right now really is understanding and demonstrating that we have a device that has the accuracy that we’re looking for.”
3M has been partnered for years with the MIT team, which is led by Hadley Sikes, associate professor in the department of chemical engineering, Tarnowski said. Seeing the testing shortage amid the pandemic, the partnership pivoted to develop an effective diagnostic test.
The partnership will help to ramp up manufacturing of the testing devices if and when they prove effective and receive FDA authorization, Sikes told CNBC. The newly announced partnership with NIH provides some financial as well as technical support, she added, and the NIH program helps to coordinate national research efforts to eliminate redundancies.
“One of the problems that we’re having is that the RNA tests that are there, people take them, but they typically take them only once,” Sikes said. “But if you’re able to do more tests and take more time points, then you have a better chance of getting the right answer.”
A major emphasis will be making the test accessible to the general public, she said, which means making it affordable and manufacturing enough that they can be widely distributed to rural and as well as urban communities across the country.
While so-called PCR diagnostic tests are typically the most accurate kind of screening that detects current Covid-19 infections, antigen tests can be processed much more rapidly, according to the FDA. However, the agency says antigen tests are typically less sensitive than PCR tests, which means they can result in false negatives that misdiagnose someone who actually has an active infection.
The FDA has authorized two antigen tests since May 8. The first one granted an emergency use authorization is produced by Quidel and the second, which was authorized for emergency use last week, is produced by Becton Dickinson. Becton Dickinson said its test can be administered at the point of care and produce results within 15 minutes.
“The biggest challenge in the outbreak is identifying who is infectious,” Sikes said. “Trying to figure out who is infectious and having them isolate. That’s really what we need.”
Google Is in Advanced Talks to Invest $4 Billion in Jio Platforms – Yahoo Finance
(Bloomberg) — Google is in advanced talks to buy a $4 billion stake in Indian billionaire Mukesh Ambani’s technology venture, people familiar with the matter said, seeking to join rival Facebook Inc. in chasing growth in a promising internet and e-commerce m…
(Bloomberg) — Google is in advanced talks to buy a $4 billion stake in Indian billionaire Mukesh Ambanis technology venture, people familiar with the matter said, seeking to join rival Facebook Inc. in chasing growth in a promising internet and e-commerce market.
The Mountain View, California-based company has been discussing the investment in Jio Platforms Ltd., the digital arm of Ambanis Reliance Industries Ltd., the people said, asking not to be identified because the information is private. An announcement could come as soon as the next few weeks, according to the people.
Jio is at the center of the Indian tycoons ambition to transform his energy conglomerate into a homegrown technology behemoth akin to Chinas Alibaba Group Holding Ltd. The venture has turned into a magnet for Silicon Valley investors, attracting almost $16 billion from Facebook to KKR & Co. in the past three months.
Should the talks with Google result in a deal, that would further burnish Jios credentials in its push to upend online retail, content streaming, digital payments, education and health care in a market of more than a billion people.
Global technology leaders from Facebook to Intel Corp. are looking for multiple ways to grab a slice of the Indian market, where millions of first-time internet users are added every month. Jio Platforms, which boasts almost 400 million customers through its wireless network, offers the largest base of such users who are increasingly buying consumer goods online and downloading music and video, using cheap smartphones and Jios own cut-price data services.
Read more: Facebook Helps Asias Richest Man Shed Dependence on Oil
An arm of Qualcomm Inc. is the latest in Jios growing list of high-profile investors, which also includes Intel Capital, Silver Lake Partners and Mubadala Investment Co. As of July 12, Reliance had sold 25.2% of Jio, valuing the venture at $65 billion.
Heres a list of confirmed investors in Jio Platforms:
Details of the potential deal with Google could change, and negotiations could still be delayed or fall apart, the people said. A spokeswoman for Google in Delhi said the company was unable to comment, while Reliances representatives didnt immediately respond.
The string of investments in Jio has spurred a rally in the shares of parent Reliance. The stock has more than doubled from its March 23 low, rewarding investors who will get to hear Ambani, 63, lay out his road map for the future of the group at the conglomerates annual shareholders meeting on Wednesday.
The stock surge has also helped Ambani, Asias richest man, to break into the exclusive club of the worlds 10 wealthiest people. With a net worth of $72.4 billion, according to the Bloomberg Billionaires Index, the titan has rocketed past Elon Musk, Google co-founders Larry Page and Sergey Brin, as well as legendary investor Warren Buffett in the past few days to become sixth on the list.
Just like Facebook, Google is expanding its presence in the Indian market. On Monday, the company said it plans to spend $10 billion over the next five to seven years to help accelerate the adoption of digital technologies in the country. The amount could be put into partnerships and equity investments among others, it said.
Sundar Pichai, who was born in the country and is now chief executive officer of Googles parent Alphabet Inc., said the coronavirus outbreak has made clear the importance of technology for conducting business and for connecting with friends and family.
Founded in 1998 in Silicon Valley, Google entered India six years later with offices in Bangalore and Hyderabad. The India business has since grown into one of the companys most important. The country now has more than 500 million internet users, second only to China, with growth that has proved a lure to a raft of American technology giants.
In the last decade, Google has successfully launched several products in India, including a Google Internet Saathi service to bring women in rural areas online and its popular Google Pay service.
(Updates with Google unable to comment in seventh paragraph.)
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Health3 weeks ago
Jump in number of new COVID-19 cases in Pierce County stirs concern – KOMO News
Health3 weeks ago
Coronavirus In Minnesota: 461 New COVID-19 Cases And 8 Deaths; Over 500,000 Tests Completed In State So Far – CBS Minnesota
Business3 weeks ago
One Weird Trick Could Transform Entire Global Offshore Wind Industry – CleanTechnica
Health3 weeks ago
Two doses of Oxford University Covid-19 vaccine produces stronger immune response than one – Daily Mail
Health3 weeks ago
Dane County health officials report highest number of COVID-19 cases ever – Channel3000.com – WISC-TV3
Entertainment3 weeks ago
Castle employees play house — and clean toilets — in grand estate closed to visitors – CNN
Business3 weeks ago
Olympus throws in the towel and exits the camera business – The Next Web
Health3 weeks ago
Indiana coronavirus: Why some counties are and are not requiring masks – Journal & Courier