TOP 5 STOCKS TO WATCHOUT:-
1. JP MORGAN :-JPMorgan Chase & Co head of asset and wealth management Mary Callahan Erdoes said on Wednesday her division of the bank is looking into possible opportunities for add-on acquisitions.
“I wouldn’t assume we haven’t done anything,” Erdoes said when asked why her unit has not announced an acquisition deal. “You’ve got to kiss a lot of frogs … (to know) what’s out there.”
Erdoes, whose division manages institutional client investments and private banking, said there has been a significant increase in deal activity across the industry. While JPMorgan has looked at a number of possible deals, the bar for an acquisition is high, she said.
“I don’t think it’s a good idea to be sitting still,” Erdoes said at a virtual conference hosted by Deutsche Bank AG .
In the wide-ranging discussion, Erdoes also said lending at the private bank has risen 17% so far this year from 2020.
JPMorgan’s asset, wealth management division exploring acquisitions – executive
2.Deloitte –Malaysia on Thursday said it had received $80 million from audit firm Deloitte PLT, as part of a settlement deal related to a multi-billion dollar scandal at 1Malaysia Development Berhad (1MDB).
Malaysia’s finance ministry said in a statement it is also negotiating a settlement with another auditor, KPMG, related to 1MDB. About 16.4 billion ringgit ($3.98 billion) in seized and repatriated 1MDB funds have been returned to Malaysia to date, the ministry said.
3. BLACK ROCK:BlackRock Inc. Chief Executive Officer Larry Fink said that investors may be underestimating the potential for a spike in inflation.
“Most people haven’t had a forty-plus year career, and they’ve only seen declining inflation over the last 30-plus years,” Fink said at a virtual event hosted by Deutsche Bank AG on Wednesday. “So this is going to be a pretty big shock.”
Concern about higher inflation has already seeped into U.S. markets with the cost of goods including lumber and steel rising this year. Fink began his career at First Boston Corp. in 1976, in a period of elevated inflation. The U.S. Consumer Price Index touched a high of 14.8% in March 1980.
Fink, who now runs the world’s biggest asset manager, added that central banks may have to reassess their policies if higher prices become a concern. The Federal Reserve has committed to keep rates near zero in the near term and has indicated it will tolerate inflation above its 2% target to make up for the period where it dipped below that level.
If the Fed were to reconsider that, it could seem discordant with separate fiscal stimulus, Fink said. President Joe Biden has proposed additional measures to stimulate the U.S. economy, including a $1.7 trillion infrastructure spending plan.
“That would be pretty odd, raising interest rates at the same time we do this giant fiscal stimulus,” Fink said.
Prices may also rise as companies adapt to the realities of climate change, he said. New York-based BlackRock has advocated for companies disclosing how they plan to adapt to a net zero greenhouse gas emissions economy by 2050.
4.EXXON MOBIL CORP:-Exxon Mobil Corp Director Ursula Burns called environmental pressures and the successful activist campaign to gain board seats at the biggest U.S. oil producer a “tidal wave” in a speech on Wednesday.
“The timing was perfect,” said Burns, who spoke at a Federal Reserve Bank of Dallas virtual event.
Exxon shareholders elected three directors nominated by hedge fund Engine No. 1 to the company’s board.
Exxon director calls activist campaign, ESG pressures a ‘tidal wave’ – speech
5. DROPBOX – -Activist investor Elliott Management owns a large stake in Dropbox and has been holding private discussions with the file-sharing service provider for some time, a source familiar with the matter said on Wednesday.
The hedge fund owns a stake of more than 10% which is valued at more than $800 million, the person said, declining to reveal the exact size of the investment.
Dropbox, which was co-founded by Drew Houston who is currently the company’s chief executive officer, is valued at roughly $11 billion. The company, which allows users to store documents, videos and photos online, listed its shares in March 2018 at $21 a share.
A representative for Dropbox did not immediately respond to a request for comment.
On Wednesday Dropbox was trading at $28.11, having jumped as much as 7% on news that Elliott has a stake and is holding discussions with management.
The Wall Street Journal first reported the stake.
Elliott has previously worked with companies that were being lead by founders, including Twitter and SoftBank Group.
The hedge fund invests roughly $40 billion and currently owns stakes in Duke Energy , where it has urged the company to consider splitting into three companies, and drugmaker GlaxoSmithKline