Finance Debt – Aisa Net http://aisa-net.com/ Fri, 28 May 2021 20:08:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://aisa-net.com/wp-content/uploads/2021/05/aisa-net-icon-150x150.png Finance Debt – Aisa Net http://aisa-net.com/ 32 32 Halt of trading by IIROC – ALCC.P https://aisa-net.com/halt-of-trading-by-iiroc-alcc-p/ https://aisa-net.com/halt-of-trading-by-iiroc-alcc-p/#respond Wed, 07 Apr 2021 23:16:33 +0000 https://aisa-net.com/halt-of-trading-by-iiroc-alcc-p/

TipRanks

Billionaire George Soros chooses these 3 “Strong Buy” actions

Some investors achieve legendary status, far surpassing their peers through a combination of luck and success. No one is perhaps more representative of it than George Soros, the Holocaust survivor who after the war earned a doctorate from the London School of Economics and went into banking to make his mark. He was very successful. The hedge fund he founded, Soros Fund Management, achieved an average annualized return of 33% from 1970 to 2020, making it the most successful hedge fund in history. Soros’ greatest success came on September 16, 1992, when he “broke the Bank of England”. He had taken a short position on the pound sterling, which rose to $ 10 billion, and when the pound fell in response to the policy shift, he personally gained $ 1 billion in a single day. Soros hasn’t always been right in his financial appeals, but he’s more often right than wrong. He is also known for his good words when it comes to trading. “It’s not whether you’re right or wrong,” Soros said, “but how much money you make when you’re right and how much you lose when you’re wrong.” With this in mind, we decided to take inspiration from the recent activity of Soros Fund Management. By managing three stocks that the fund picked up in the first quarter through the TipRanks database, we found that the analyst community was on board as well, as each carries a “Strong Buy” consensus rating. Farfetch, Ltd. (FTCH) We will start with an online retail inventory, Farfetch, a company specializing in the sale of luxury products and brands. Farfetch is a truly international company, founded in Portugal, headquartered in London with offices in New York and Los Angeles, Tokyo and Shanghai, and Brazil. Like many tech-focused companies, Farfetch operated at a loss – but in the first quarter of this year the company made a sharp turnaround in profitability. The 1Q21 earnings report showed an after-tax profit of $ 516.7 million, compared to a quarterly loss of $ 79.2 million a year ago. The company disclosed that this gross profit included a one-time non-cash benefit of $ 660 million “arising from the lower impact of the share price on items held at fair value and revaluations.” Total operating revenue was reported at $ 485 million, up 46% year-over-year, and above the $ 457 million expected by analysts. A key metric, the gross merchandise value of orders processed on the company’s platform, increased 49% year-over-year to $ 915.6 million. Farfetch’s success is built on a strong user base. The company has more than 3 million active customers and operates in 190 countries. The platform’s vendors have made available more than 1,300 luxury brands. Even after a decline in the stock’s value in the first half of 2021, the stock has still risen 234% in the past 12 months. Among the FTCH fans is Soros. In his most recent disclosure, Soros revealed that his fund had purchased 125,000 shares of FTCH, a stake now valued at more than $ 5.5 million. As for the analyst community, Credit Suisse 5-star analyst Stephen Ju credits FTCH with an outperformance (i.e. a buy) with a price target of $ 78. Investors are expected to pocket a gain of around 88% if the analyst’s thesis comes to fruition. (To view Ju’s track record, click here) “We have a positive opinion on the Company’s continued Adjusted EBITDA forecast as Farfetch will reinvest the highest revenue contributions into customer acquisition – supporting long-term adoption rates. We are modeling ~ 700,000 new customers for 2021, ~ 600,000 for 2022 and from 2023 our expectations are also unchanged at ~ 1.2 million to 1.5 million, ”Ju said. The analyst summed up: “Our investment thesis points remain: 1) the large addressable $ 300 billion market remains fragmented and underpenetrated, 2) relative protection against competition from larger cap online competitors. , 3) exposure to the growing adoption of luxury goods in the APAC region as well as emerging markets. ”Most analysts support Ju’s confident view of the online fashion company, as TipRanks analyzes present FTCH as a strong buy. Based on 8 analysts polled in the past 3 months, 6 attribute the stock to a buy, while 2 attribute it to a wait. The 12-month average price target is 60. $ 63, which is an increase of around 37% from current levels. (See FTCH market analysis on TipRanks) Coursera (COUR) The next stock we are looking at, Coursera, is a MOOC company – a provider very open online course. C he niche is leveraging the size and reach of the Internet to make a wide range of high-level university courses available to the general public. Coursera is a leader in the field and, since its inception in 2012, it has made available over 4,000 courses from over 200 universities, in over 30 study programs, and at a lower cost than coursework. in person. Through Coursera, students can take courses at top schools such as Imperial College London, University of Illinois at Urbana-Champaign, University of Michigan, and Johns Hopkins. The company boasts that over 77 million students have used its services. Although the company is 9 years old, it is new to public procurement; Coursera held its IPO at the end of March this year. It made 15.73 million shares available on the NYSE, at an opening price of $ 33. It was the high end of the original price range, which was set between $ 30 and $ 33. Overall, the IPO raised $ 519 million, before expenses. In early May, Coursera published its first quarterly report since its IPO. The report showed total revenue of $ 88.4 million, a 64% year-over-year gain. The company’s gross profit, at $ 49.5 million, was up 71% from the quarter last year. George Soros saw an opportunity in this IPO, and his fund picked up 105,000 shares of the company. This new position is valued at ~ $ 4 million at the current share price. Among the bulls is 5-star analyst Ryan MacDonald, of Needham, who presents a clear and bullish case for Coursera shares. “Given the growing role of automation, the widening of the skills gap and the shift to e-learning, we believe that Coursera’s comprehensive platform will help it gain shares in a large TAM that we estimate between $ 47 billion and $ 50.6 billion. As the COVID-focused tailwind for the growth of enrolled learners in FY20 creates a difficult comparison for the consumer segment in FY21, we believe that Coursera’s effective GTM move and the passage higher value corporate and degree offerings can generate 25% + sustainable growth and gross margin expansion, ”MacDonald noted. To that end, MacDonald gives COUR a buy rating and his price target of $ 56 indicates confidence in a 47% hike over the next 12 months. (To view MacDonald’s track record, click here) During its short time on the stock market, COUR garnered 14 analyst reviews, with a split of 12 buys into 2 holds to support the Strong Buy consensus rating. The shares are trading at $ 38 and their average price target of $ 54.67 implies a one-year rise of 44%. (See COURT Stock Analysis on TipRanks) Sotera Health (SHC) Last on our list of new positions from George Soros is Sotera Health, a holding company whose subsidiaries offer a range of consulting, laboratory testing and sterilization services in the health sector. Sotera’s activities serve more than 5,800 healthcare customers in more than 50 countries. The company has 13 laboratories capable of performing more than 800 tests and 50 sterilization facilities. Sotera’s customer base includes 75 of the top 100 medical device manufacturers and 8 of the top 10 pharmaceutical companies. SHC’s shares went public on November 24 last year, in an IPO that sold 53.6 million shares and raised $ 1.2 billion. The capital raised was used to repay the existing debt. The company has worked diligently to reduce debt levels and, in the 1Q21 report, said it has total debt of $ 1.87 billion and free cash flow of $ 108 million. First quarter net sales were $ 212 million, up 13% from the previous year. Net income showed a strong gain, going from a loss of 1 cent per share a year ago to earnings per share of 4 cents. In the first quarter, Soros took a new position in Sotera, buying 179,274 shares of the title. At the current share price, this stake is worth over $ 4.3 million. Tycho Peterson, 5-star analyst at JPMorgan, likes SHC and rates the stock overweight (i.e. buy). Its price target of $ 35 suggests a 45% rise from current trading levels. (To see Peterson’s track record, click here) Supporting his position, Peterson writes: “First quarter results have been generally strong, and while the outlook remains unchanged, it should provide an upward path for the 2021 balance. , as we continue to be fans of the company’s diverse operating platform, rigorous multi-year contracts, effective pricing strategy and strong regulatory oversight, while supporting its broad competitive divide, with FCF to support the deleveraging… ”Overall, The Street is unanimous in its outlook on Sotera shares; the stock recently received 8 positive reviews supporting its Strong Buy analyst consensus rating. The shares are trading at $ 24.06 and their average price target of $ 31.75 implies a year-over-year rise of ~ 32%. (See SHC Stock Analysis on TipRanks) To find great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


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CAR calls on HUD, FHA to cut mortgage insurance premiums https://aisa-net.com/car-calls-on-hud-fha-to-cut-mortgage-insurance-premiums/ https://aisa-net.com/car-calls-on-hud-fha-to-cut-mortgage-insurance-premiums/#respond Wed, 07 Apr 2021 23:16:14 +0000 https://aisa-net.com/car-calls-on-hud-fha-to-cut-mortgage-insurance-premiums/

the California Association of Realtors issued a statement in response to the Department of Housing and Urban Developmentannouncement of the state of Federal Housing Administration Mutual Mortgage Fund.

“The CAR continues to support the actions taken by HUD and FHA during the COVID-19 crisis to help homeowners and struggling during the pandemic,” said CAR President Dave Walsh, vice president and director of the Compass office in San Jose. “Recognizing that the FHA plays a central role in providing housing opportunities for families across California, the RCA has for years called on the FHA to lower the mortgage insurance premium. This will provide greater home ownership opportunities and ensure that home buyers who use FHA loans are not. overpay their mortgages. “

“As the nation emerges from this crisis, the CAR will continue to call on HUD and FHA to lower the mortgage insurance premium so that the recovery is fair to all who want to access homeownership as rates fall. interest continue to float to historically low levels. “

On March 30, HUD Secretary Marcia L. Fudge released a declaration on the quarterly report to Congress on the programs of the FHA Mutual Single Family Mortgage Insurance Fund.

“HUD is obligated to provide a quarterly report to Congress on the FHA insurance program and to provide detailed information on the composition, credit quality and financial condition of the program. I take this opportunity to discuss the state of the FHA insurance program and the health of the mortgage mutual one year after the health and economic fallout of COVID-19, ”Fudge said in his statement.

“The health of the FHA Mortgage Mutual Insurance Fund has remained resilient despite the financial challenges facing homeowners with FHA insured mortgages in 2020. The fund stands at over $ 80 billion and remains well above the minimum 2% capital reserve required. During the pandemic, the FHA portfolio experienced increased levels of seriously delinquent loans and a high level of forbearance loans. We continue to monitor mortgage yield trends within our portfolio, particularly with respect to homeowners who are experiencing financial hardship as a result of the pandemic. “


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New Cafe Arrives at Downtown Grand Rapids Market https://aisa-net.com/new-cafe-arrives-at-downtown-grand-rapids-market/ https://aisa-net.com/new-cafe-arrives-at-downtown-grand-rapids-market/#respond Wed, 07 Apr 2021 23:16:05 +0000 https://aisa-net.com/new-cafe-arrives-at-downtown-grand-rapids-market/

GRAND RAPIDS, MI – Local cafe Squibb plans to open a location at the downtown market in June.

Squibb, owned by father-daughter team Dennis and Mallory Squibb, has locations on Wealthy and Fulton streets in Grand Rapids.

“Squibb is a local favorite, and we’re delighted that Mallory and Dennis have chosen the Downtown Market for their third location,” said Mimi Fritz, CEO of Downtown Market, in a statement. “The local businesses in our market hall are known to be some of the best, and Squibb’s passion and quality are a perfect complement to this line.

The Downtown Market is located at 435 Ionia Ave SW.

“When I was growing up we would go to coffee shops to have fun,” said Mallory Squibb. “It became a family hobby, and now it’s the family business. It is such a pleasure to work with my father and to live together this dream of creating cafes that cultivate an informed, yet accessible atmosphere, which encourages people to connect – with us, with our baristas and with each other.

Squibb’s location in the market is expected to have indoor and outdoor seating. It offers coffee, tea and espresso drinks, as well as light dishes such as toast.

Read more:

Michigan State Police Soldier Charged with Assault After Leaving K-9 on Suspect for Over 3 Minutes

Representative Dan Kildee says House will be ready once Senate passes COVID-19 relief bill

Upcoming lane closures for the construction of Broadway bridges


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Housing discrimination in Detroit is nothing new for black residents https://aisa-net.com/housing-discrimination-in-detroit-is-nothing-new-for-black-residents/ https://aisa-net.com/housing-discrimination-in-detroit-is-nothing-new-for-black-residents/#respond Wed, 07 Apr 2021 23:15:52 +0000 https://aisa-net.com/housing-discrimination-in-detroit-is-nothing-new-for-black-residents/

From the 1940s to the 1960s, there was the rapid growth of over 200 community associations that were mandatory for homebuyers, but which, as you might expect, banned people of color. The NAACP reported that 80 percent of Detroit property “outside of downtown is subject to racial pacts,” which white residents enforced through these associations. In 1945, after a black middle-class couple bought a house in one of these all-white neighborhoods, their white neighbors “took legal action to uphold the racial pact.” The Wayne County Circuit Court has ruled that the couple, Orsel and Minnie McGhee, are pact-banned from owning property in the neighborhood. (“However,” the NAACP report notes, “in a case brought by [Legal Defense and Educational Fund], the United States Supreme Court ruled in 1947 that racist restrictive covenants violated the equal protection clause. “)

In the past, Detroit had many important black neighborhoods, such as Paradise Valley and Black Bottom. In the 1950s, when Albert Cobo was mayor of the city, these neighborhoods have been destroyed. Under the guise of renewal and progress, Cobo built highways that crossed them and he pushed policies that favored white landowners. Cobo even went so far as to dismantle a streetcar system that many blacks used to get to and from work. The same period saw White Detroiters use physical violence to reinforce the racial divide.

Back then Brightmoor, the part of Detroit where my family now lives, still functioned as a community of low-cost homes where families could live in modest comfort. In the decades that followed, it would become one of the city’s most devastated areas. In the 1990s, the Detroit News, one conservative newspaper, describes Brightmoor as a place where “dozens of drug dealers conspicuously stroll around street corners and past abandoned houses, brazenly announcing their presence, waving and shouting at passing motorists, ‘I get it.’

What happened in Brightmoor, like what happened in Detroit, was a consequence of the tension created by Cobo’s vision and the racial violence that had existed for decades. In his State of the State address in 1964, a year after becoming Michigan governor, George Romney, who was a controversial figure in the Republican Party and the Mormon Church for his defense of civil rights, said, “The most pressing rights issue of man in Michigan is racial discrimination in housing. , public premises, education, administration of justice and employment. “


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Inspired by Detroit’s sleeping bag coat, retired coach champions efforts to help homeless people in Kalamazoo https://aisa-net.com/inspired-by-detroits-sleeping-bag-coat-retired-coach-champions-efforts-to-help-homeless-people-in-kalamazoo/ https://aisa-net.com/inspired-by-detroits-sleeping-bag-coat-retired-coach-champions-efforts-to-help-homeless-people-in-kalamazoo/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/inspired-by-detroits-sleeping-bag-coat-retired-coach-champions-efforts-to-help-homeless-people-in-kalamazoo/

KALAMAZOO, MI – Dick Shilts has trouble getting back to sleep. Over the past four months, he has spent time with the Kalamazoo homeless community. He has met people sleeping in trucks, abandoned buildings and even inside tree trunks.

In the 46 years that Shilts spent as a varsity basketball coach at Western Michigan University and Kalamazoo Valley Community College, there is no doubt that he has had sleepless nights before.

But now, when he wakes up in the middle of the night as temperatures drop into his teens, he thinks of the 200 or so people in Kalamazoo sleeping outside.

“These people we know and have spoken to have faces,” Shilts said. “It’s not just homelessness now, it’s people who have names.

“I just got into a comfy bed and covered myself up and I think, wow, these people are over there.”

Shilts, 77, was recently honored by the Michigan Community College Athletic Association with awards for student athletes being presented on her behalf – the Dick Shilts Awards for Male and Female Student Athlete of the Year.

Related: Michigan’s Best Student-Athlete JUCO Award to be named in honor of longtime hoops trainer KVCC AD

But, for Shilts, it was always about the impact off the field.

For 50 years, Shilts has been part of a book discussion group, Dawn Patrol, through the First United Methodist Church. The group of mostly older white men read “Dear White Christians,” and felt their views challenged and their opinions changed, Shilts said.

“It became a group that was trying to go from being able to say ‘we are not racist’ to a group that meant ‘we are anti-racist’,” he said.

They agreed that their conversation would be different if there were more people of color in their group. They invited people of color from different faiths, organizations and backgrounds and found that their conversations had become more in-depth, Shilts said.

Their conversations around books like “Dying of Whiteness” and “When They Call You A Terrorist” not only sparked a deeper understanding of racism, but also a deeper question for the group: “What are we doing about it?

In different church groups, Shilts met a member who had experienced homelessness after being incarcerated. Her story and personal connections to those currently homeless in Kalamazoo inspired an effort to work with the Detroit Empowerment Plan to help the local homeless population.

Empowerment Plan is a non-profit organization that employs homeless people in Detroit to help them find sustainable housing. On average, employees spend two years with the empowerment plan before moving on, according to the website.

Employees create durable winter jackets that can be folded into full-size sleeping bags. When the coat is unfolded, the back padding can be folded down and unzipped to place legs and feet inside while sleeping.

During the day, the sleeping bag can be folded into the back of the jacket or detached from the velcro and used as a bag. The back and sleeves of the coat also have loops that allow the coat to be rolled up tightly in a handbag with a shoulder strap.

Since the nonprofit was founded in 2012, no employee has relapsed into homelessness after working at Empowerment Plan, according to the organization’s website.

The 40-hour workweek for employees is divided into 60% production and 40% support programs and services that range from health and wellness education to financial literacy and management.

Inspired by the Empowerment Plan, Shilts and the Dawn Patrol used fundraising efforts to purchase 10 coats to distribute to those sleeping outside in Kalamazoo.

The positive feedback from the homeless community was immediate, Shilts said. Donations to buy more coats arrived quickly as demand for them also increased, he said.

The idea inspired others from the Early Presbyterian Church and St. Catherine’s Catholic Church to order coats to distribute themselves.

To date, 85 coats have been distributed to those sleeping outdoors in Kalamazoo. Shilts often carries a couple of them in his car, so he’s ready to hand them out anytime.

The initiative worked with the Kalamazoo Public Security Department to help improve relations between the police and the homeless community.

On December 23, police accompanied Shilts to the camp near the Kalamazoo River to distribute 18 coats.

Collaborative efforts are also underway between HOPE Thru Navigation, Urban alliance and the Kalamazoo County Continuum of Care to strengthen efforts to end homelessness in Kalamazoo.

“We’re finding that there are a lot of people out there who want to help,” Shilts said.

This holiday season, Shilts’ grandchildren pooled their Christmas money to donate a family sleeping bag coat. Shilts was stifled by this feeling, calling it the best Christmas present he had ever received.

Those who want to donate to the Kalamazoo effort can contact Shilts at dcshilts@hotmail.com. Coats cost $ 131 including shipping. Donations can be made in any amount and combined to purchase a coat, Shilts said.

Learn more about MLive:

United Way commits $ 110,000 to help shelter Kalamazoo’s growing homeless population

‘I need a house,’ woman says as Grand Rapids clears homeless settlement

Emotions run high as Grand Rapids crackdown on homeless settlements


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The fascinating and mysterious science of combining farms and solar panels https://aisa-net.com/the-fascinating-and-mysterious-science-of-combining-farms-and-solar-panels/ https://aisa-net.com/the-fascinating-and-mysterious-science-of-combining-farms-and-solar-panels/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/the-fascinating-and-mysterious-science-of-combining-farms-and-solar-panels/

Other challenges are more difficult. In a survey conducted by Michigan University of Technology, farmers expressed concern over what the crop or livestock markets might look like in the years to come. A farmer who invests in agrivoltaics must look 10, 20, 30 years into the future to project his income, and the calculation of profit margins is always a speculative exercise. Additionally, some farmers interviewed wondered how concrete and beams can change the soil over time, with an influx of large, permanent structures that can cause problems for crops or livestock.

Perhaps more importantly, the upfront costs of agrivoltaics are enormous. They will need to be defrayed by a combination of policies, tax incentives, advantageous loans and / or integration into power grids, where farmers can profit from the sale of the sunlight they grow. Ultimately, the balance of the initial capital costs for installation, solar power sales, and agricultural sales must exceed the sales of a traditional farm.

These new challenges have led to unusual partnerships and approaches. Solar grazing, for example, typically means bringing in livestock from outside farms and ranches to help maintain a solar site.

“With solar… animals have plenty of shade,” said Lexie Hain, executive director of the American Solar Grazing Association, which solar grazes with sheep in upstate New York. “If I visit my sheep at lunchtime, under the panels they sleep, they bite each other, they are not stressed. And they drink less water than they would if I had them at home here on the farm.

Like many solar grazers, Hahn transports his sheep to solar farms to graze. Homeowners need the vegetation trimmed so that it doesn’t block or damage the panels – so, for a price and food for their animals, solar grazers step in. “I can do this for about half of what landscapers do,” said Richard Cocke, a shepherd who takes his sheep to two solar sites in southern Arizona, having stopped visiting a third because of of coyote problems. “I’m not breaking the signs. And it’s green.

Another sub-category is sites favorable to pollinators. According to Yale Research, this approach – which involves growing beneficial non-food plants like perennial wildflowers and native grasses under solar cells – can increase groundwater recharge, curb soil erosion, and increase solar efficiency by creating a cooler microclimate for the panels. It can also increase crop yields on neighboring farms of crops requiring pollination. But widespread adoption, write the study authors, “will justify political intervention.” In the absence of a crop to sell, pollinator-focused solar farmers would likely need lawmakers and business leaders to recognize the ecosystem services they provide, ultimately developing systems of financial incentives to make the problem further. worth it.




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HSBC announces bad debt tsunami as banks set aside $ 34 billion https://aisa-net.com/hsbc-announces-bad-debt-tsunami-as-banks-set-aside-34-billion/ https://aisa-net.com/hsbc-announces-bad-debt-tsunami-as-banks-set-aside-34-billion/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/hsbc-announces-bad-debt-tsunami-as-banks-set-aside-34-billion/

When JPMorgan kicked off the banking results season in mid-July it sent a strong signal to market watchers that the rest of the year would be bleak.

America’s largest bank has set aside a record $ 10.5 billion to prepare for looming defaults, and chief executive Jamie Dimon has warned the growth path will be uncertain for quarters to come as the american economy suffers from the deepest recession in history.

Now, HSBC’s results have hammered the message to the rest of the world. For the first half of 2020, which saw the lender suffer an 82% drop in profits, HSBC added an additional $ 3.8 billion to its provisions – the largest of all European banks. He warned that figure could increase to $ 13 billion for the year.

The HSBC figures follow the trend of what Nicholas Hyett, equity analyst at Hargreaves Lansdown, called “massive provisions for future bad debts” which to date total around $ 34 billion among major US and European lenders.

“There’s probably more of that to come… the annual profits won’t look good,” he said. KBW analyst Edward Firth said HSBC management took a “somber tone” in his earnings call, while RBC Capital Markets analyst Benjamin Toms said the results showed a “Dark perspective”.


The United Nations in may said that the pandemic will cause global GDP to decline by 3.2% this year. Some 90% of the world economy has undergone some form of foreclosure, disrupting supply chains, crushing demand and leading to soaring unemployment.

The damage is evident in government emergency lending initiatives. In the UK, tens of billions of pounds have been loaned to distressed businesses under programs that provide lenders with 80% and 100% guarantees.

But warnings of a looming debt crisis persist. August 2, Time reported that British bankers planning to meet to discuss an impending flood of bad debt and how to get money back without damaging their reputation.

Banks are seen as canaries in the economic coal mine – their ailing retail and consumer units are a sign of wider economic suffering, as people and businesses cannot make ends meet to repay their loans. HSBC is based in the UK but makes the majority of its profits in Asia.

After HSBC, Barclays provisioned the second largest amount of the quarter, with just over $ 2 billion in loan loss reserves.

Neil Wilson of Markets.com wondered when defaults would impact the economy weeks ago, when JPMorgan reported its billions of dollars set aside.

Wilson said FN at the time: “This begs the question of when bad debt credit losses from businesses and individuals start to catch up with the larger market.


To contact the authors of this story with comments or news, email Ryan Weeks and Paul Clarke


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SBA Part Forty-Two: Important Restaurant Revitalization Grant Program Information – Finance & Banking https://aisa-net.com/sba-part-forty-two-important-restaurant-revitalization-grant-program-information-finance-banking/ https://aisa-net.com/sba-part-forty-two-important-restaurant-revitalization-grant-program-information-finance-banking/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/sba-part-forty-two-important-restaurant-revitalization-grant-program-information-finance-banking/

With the Small Business Administration (SBA) ad At the end of last week, during a Senate hearing on the plan to roll out the Restaurant Revitalization Grant (RRG) program, under the American Rescue Plan Act of 2021 (Act), from the start April, potential applicants should start preparing for the application process.

I. Summary of the RRG program

As we discussed in our previous article, this $ 28.6 billion RRG program will provide much-needed economic relief to restaurateurs who have been hit hard by government shutdown orders, social distancing requirements, and operating limitations. and hours due to the COVID-19 pandemic. To recap: “eligible entities” can search grant for their “pandemic revenue loss,” up to a total of $ 10 million (including a cap of $ 5 million per physical location for entities with more than one location). The amount of the grant is equal to the applicant’s 2019 gross receipts minus (a) the applicant’s 2020 gross receipts and (b) the amounts, if any, received for loans from the first and second draws of the Protection Program. paychecks (PPP).

For example, suppose a restaurant’s gross revenue in 2019 was $ 12 million. Gross receipts for 2020 were $ 3 million and the two PPP loans were $ 2 million and $ 2.5 million. The candidate would be eligible for a grant of $ 4.5 million (12 – 3 – 2 – 2.5 = 4.5).

Most restaurants, food trucks, brasseries, caterers and bars will be considered “qualifying entities” as long as they (and their affiliates) have no more than 20 locations, are not listed on the stock exchange, and have not received from closed place. Exchange for operators.

Also note, unlike the PPP loan program, RRG grants currently contain no restrictions on how funds are to be spent – meaning there is no 60% payroll requirement. This is a huge benefit for many restaurants who have found it difficult to pay rent and other costs under the P3 loan due to the requirement of salary expenses. The SBA can change this once the regulation begins, as it did with P3s, but since the objectives of the programs are different, one would hope that this is not the case.

II. Distribution of funds

There has been some confusion about how the program money will be allocated.

First, according to the law, $ 5 billion is reserved for small candidates (those with incomes in 2019 of less than $ 500,000) for 60 days from the date the law is signed (which brings us to May 10). 2021), or until a later date, the SBA sets its rules. We anticipate that the SBA will also impose a 60-day limit on this pool of funds from the date it opens applications. In other words, if the SBA opens applications on April 15, 2021, we anticipate that these funds will be set aside until June 14, 2021. If there is any money left in that $ 5 billion pool after that. May 10, 2021 (or the latest date set by the ASB), it will be added to the general pool for use by other applicants.

Second, under the Act, the remaining $ 23.6 billion will be made available to all applicants. at once once the program is open. Any candidate whose turnover exceeds $ 500,000 in 2019 will compete in this pool.

In addition, the law provided for a “preference period” for small businesses owned by women, veterans and disadvantaged during the first 21 days when the pool of applicants opens. It is currently unclear whether this will exclude other applicants from receiving funds during this 21-day period, but the legislation does not appear to indicate that will be the case.

III. Preparation of the application

Industry contacts were concerned that the grant application would require registration in SAM.gov, which is time consuming. However, on March 30, 2021, the SBA tweeted that would be to abandon this normal process. This is great news, as it will save restaurateurs hours that already need a break.

Before launching the application, you can start gathering the documents proving your difference in income (i.e. tax returns, financial statements, etc.), as well as any loan documentation on PPP loans that you have received. In addition, you will likely need organizational documents (organization statutes / incorporation, operating agreements, etc.) to prove your date of establishment. Having these documents on hand can facilitate a request.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought on your particular situation.




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Major banks set aside 109 billion shillings for loan losses https://aisa-net.com/major-banks-set-aside-109-billion-shillings-for-loan-losses/ https://aisa-net.com/major-banks-set-aside-109-billion-shillings-for-loan-losses/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/major-banks-set-aside-109-billion-shillings-for-loan-losses/

Capital markets

Major banks set aside 109 billion shillings for loan losses


A customer in a banking room. FILE PHOTO | NMG

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summary

  • Higher provisions have the effect of affecting the bottom line while eroding the capital base and have led to dividend payments from listed banks down 43.6% to 19 billion shillings.
  • The economic disruption caused by the Covid-19 pandemic is the main driver of the increase in provisions, with most sectors such as tourism, transport, real estate and households affected by the fallout.

Kenya’s nine top-rated banks increased their allowance for NPLs by a record 77.3 billion shillings in the year ended December, reducing their combined net profit by 25.5 percent to 81, 2 billion shillings.

KCB, Equity, Co-op Bank, I&M #ticker: IMH, Absa Bank Kenya #ticker: ABSA, NCBA, Standard Chartered Bank Kenya, DTB #ticker: DTB and Stanbic Holdings #ticker: SBIC has provisioned 109.7 billion shillings during the review period, compared to 32.3 billion shillings the previous year.

This happened when gross defaults rose from 255 billion shillings to 366 billion shillings, an increase of 110.9 billion shillings.

Higher provisions have the effect of affecting the bottom line while eroding the capital base and have led to dividend payments from listed banks down 43.6% to 19 billion shillings.

Part of the provisions represent estimates of potential losses due to payment defaults expected in the near future due to general economic weakness or specific problems with certain sectors and customers.

As of January 1, 2018, banks were required to provision for expected loan losses rather than those already incurred following the adoption of the more conservative International Financial Reporting Standards (IFRS 9).

The economic disruption caused by the Covid-19 pandemic is the main driver of the increase in provisions, with most sectors such as tourism, transport, real estate and households affected by the fallout.

According to the International Monetary Fund (IMF), banks have taken action amid a gloomy economy, real GDP growth for 2020 is only expected to reach one percent.

The latest partial lockdown of Nairobi, Kajiado, Machakos, Nakuru and Kiambu counties amid an increase in coronavirus infections and deaths is again hurting the economy which had started to recover from the removal of earlier restrictions in August from last year.

The Central Bank of Kenya (CBK) expects banks to continue increasing their provisions to deal with the lingering difficulties as customers default on loans worth Sh 432 billion across the sector at from February.

“The ratio of non-performing loans (NPLs) to gross loans stood at 14.5% in February compared to 14.1% in December. Increases in NPLs have been noted in the real estate, agriculture, personal and household, and manufacturing sectors, ”CBK said in a statement.

“The increases in NPLs are attributable to a gloomy business environment, and banks continue to fund NPLs.”

The reopening of the economy, coupled with mass vaccinations, could brighten the business outlook in the coming months. Prior to the new lockdown, this year’s economic performance was projected to improve significantly with real GDP growth of 4.7 percent, according to the IMF.

“The improved outlook for Covid-19 vaccines should allow the economy to return to growth until 2021,” Kariuki Ngari, SCBK chief executive, said in a recent statement.

If the economy improves faster than expected, banks will slow down their provisions.

Uncertainty has prompted the nine banks to seek refuge in government bonds and treasury bills, which offer guaranteed income and do not add to their capital base by requiring large provisions.

Their holdings of government securities increased from 234.2 billion shillings to 1.2 trillion shillings while loans increased from under 219.7 billion shillings to 2.4 trillion shillings.

Most institutions, with the exception of Co-op Bank #ticker: COOP and NCBA #ticker: NCBA, have also reduced or suspended their dividends to build capital or hold funds for expansion.

Equity, for example, skipped dividends in 2019 and 2020, saving it a total of 15 billion shillings. He reported the smallest drop in profits among the big banks at 11.6% to 19.7 billion shillings in the year ended December, helped by a large deferred tax of 8.2 billion shillings.

Deferred taxes are obligations arising during the period under review but will be paid in the future.

#Ticker of Equity: EQTY’s heightened conservatism stems from the economic fallout from the pandemic in addition to the acquisitions it is pursuing.

The bank spent 95 million dollars (10.4 billion shillings) last year to buy a 66.5% stake in the Commercial Bank of Congo in the DRC.

KCB #ticker: KCB cut its dividend payout by 7.8 billion shillings and offered a payout of 3.2 billion shillings or 1 shillings per share, compared to 11 billion or 3.5 shillings per share the previous year .

Like Equity, KCB cut its dividends in part to build up a war chest to fund its impending acquisitions.

KCB is expected to spend 4.4 billion shillings to buy two banks in Tanzania and Rwanda from Atlas Mara, with deals to be completed by June.


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Hong Kong’s online banks to spread wings, offering business lending and wealth management https://aisa-net.com/hong-kongs-online-banks-to-spread-wings-offering-business-lending-and-wealth-management/ https://aisa-net.com/hong-kongs-online-banks-to-spread-wings-offering-business-lending-and-wealth-management/#respond Wed, 07 Apr 2021 23:14:54 +0000 https://aisa-net.com/hong-kongs-online-banks-to-spread-wings-offering-business-lending-and-wealth-management/

HONG KONG (Reuters) – Hong Kong’s new online banks are planning to branch out into business lending and wealth management, seeking more lucrative avenues beyond basic savings accounts and transfer services, executives said.

FILE PHOTO: The headquarters of HSBC and Standard Chartered Bank can be seen in the central financial district of Hong Kong, China August 4, 2020. REUTERS / Tyrone Siu

Eight such banks have sprung up this year and by November they had taken more than $ 1 billion in deposits and attracted nearly 300,000 customers.

Whether these banks can take a significant part of Hong Kong mainstays such as HSBC and Standard Chartered and become profitable is closely watched in other Asian markets where regulators are also encouraging new challengers.

ZA Bank, managed by a unit of ZhongAn Online P&C Insurance Co Ltd, has set itself the goal of reaching breakeven point in five years. It aims to diversify beyond personal loans to lend to small and medium businesses next year, as larger loans are more profitable, and will also offer insurance and investment services to retail clients.

“I have four years left, and personal loans by themselves just won’t fly because the market is so big,” CEO Rockson Hsu told Reuters.

Mox Bank, whose backers include Standard Chartered and local telecommunications company PCCW, has announced plans to add credit card, personal loan and wealth management services by mid-2022.

“Hong Kong is still a very large market for wealth management offerings,” said Samir Subberwal, director of Mox and StanChart retail banking manager for Greater China and North Asia.

He added that the city’s current IPO boom, which has seen companies raise more than $ 50 billion this year, is likely to drive continued demand for investment advice and fees.

New banks are betting they can woo customers with more attractive interest rates on savings and loans – which they are able to offer in the absence of expensive branch networks – as well as with more user-friendly client applications and other benefits developed by their funders.

Livi Bank, which plans to offer personal loan and wealth management services next year, is one example.

Its mobile app was developed in part by shareholder JD Digits, JD.Com’s fintech unit in China, CEO David Sun said.

The bank has also become a partner of a loyalty program that will offer its customers cashbacks and points and which is operated by the distribution and restaurant chain Dairy Farm, a unit of the Jardine Matheson group, another shareholder of Livi.

Traditional banks have responded by cutting fees and investing heavily in upgrading and launching new digital platforms. HSBC has announced that it will spend $ 5.8 billion on technology globally this year, while this month Citi launched new digital-only banking services in Hong Kong.

In other markets such as Great Britain and Australia, new digital banks have been launched with mixed success. Australian bank Xinja said this month that as a result of the pandemic and after surveying the market, it would cease being a bank and return customers’ deposits.

In Asia, however, new banks tend to benefit from the backing of large companies, which improves their prospects. Singapore issued four digital banking licenses this month, and Malaysia is expected to accept applications next year.

Reporting by Alun John; Sumeet Chatterjee Supplementary Reports; Editing by Anshuman Daga and Edwina Gibbs


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