Citi News
33 articles
Charter to combine with Cox, Take-Two reports mixed Q4 results: Morning Buzz
Charter Communications (CHTR) is set to merge with Cox in a deal valuing Cox at an enterprise value of $34.5 billion. This merger is seen as a major positive for Charter, as indicated by Oppenheimers upgrade of the company to Outperform. The article also mentions other companies like Take-Two, Applied Materials, and Novo Nordisk, with various updates on their financial results and management changes. Additionally, the article touches on broader market trends, including consumer sentiment data, housing starts, and commodity prices. The merger between Charter and Cox is expected to have a significant impact on the telecommunications industry.
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Netflix Investors Unfazed by Tariffs With Growth Engine Humming
Netflix Inc. remains a strong performer in the streaming industry, despite potential risks from a proposed 100% tariff on films produced overseas. The company recently reported record profits and a better-than-expected forecast, reinforcing its leading position. Investors view Netflix as recession-resistant, with strong growth trends and a dominant market position that allows it to offset potential tariff impacts. While the stock experienced a slight dip, it is coming off a significant rally. Netflix plans to spend $18 billion on content this year, with a substantial portion allocated to international content.
The investment by Citi, UBS, Morgan Stanley and State Street will be used to further grow Capitolis’ capital marketplace and portfolio optimization businesses.
Israeli fintech company Capitolis announced a $20 million strategic investment from four leading global banks: Citi, UBS, Morgan Stanley, and State Street. Each bank will invest $5 million, joining existing investors such as Andreessen Horowitz, Index Ventures, and Sequoia Capital. The investment aims to further grow Capitolis’ capital marketplace and portfolio optimization businesses. Capitolis has become a strategic partner in the financial industry, experiencing strong revenue growth and new product releases. The company, founded in 2017, enables banks and institutional clients to expand their reach through a collaboration platform. In 2022, Capitolis raised $110 million at a $1.6 billion valuation. The recent investment highlights the companys continued growth and expansion in the financial markets.
InvestmentPartners
סיטי: "הופתענו מעוצמת ההפחתה בדירוג, אבל בהחלט מסכימים עם החששות"
Citi economists expressed surprise at the severity of Moodys credit rating downgrade for Israel, which was reduced by two notches. They agree with the general concerns raised in Moodys report. Citi also anticipates that other rating agencies like Fitch and S&P may follow suit, though not to the same extent. The downgrade has led to a significant market reaction, with stock prices plummeting by 75% and revenues dropping sharply. The article also touches on broader economic concerns and market dynamics in Israel.
Customers
Citibank Tests Tokenization of Private Equity Funds on Avalanche
Citi Explores Private Fund Tokenization in Blockchain Bet
Citigroup has conducted a simulation to demonstrate how a private equity fund can be tokenized on a blockchain network. The bank collaborated with Wellington Management and WisdomTree for this proof of concept. The project showed the feasibility of issuing and custodying tokenized versions of private equity funds on behalf of clients in a controlled environment, while remaining compatible with existing bank systems. The results of the simulation will be used to evaluate whether Citigroup should offer services in this area. The test follows Citigroups September launch of a digital-asset service for institutional clients.
InvestmentPartners
Citigroup Clinches $260 Million Asset-Backed Financing for WeLab
Citigroup Inc. has led a $260 million asset-backed financing for WeLab Ltd., Hong Kong’s biggest online lending platform. The move comes as banks are expanding their securitization businesses to diversify funding and hedge credit risk exposures. WeLabs loan balance growth this year has exceeded pre-pandemic levels, driven by its partnerships with global firms including Tesla Inc. and Apple Inc. The firm has seen 37% year-on-year loan growth and its delinquency rates are well below the industry average.
InvestmentPartners
Traders and Banks Strike Deals in Russian Metals as Taboo Fades
Despite the invasion of Ukraine, western banks and traders, including Citigroup Inc. and Trafigura Group, are increasingly willing to enter new deals for Russian metals. There are no blanket restrictions from western governments on trading Russian metal, and the deals dont involve those companies that are under US or European sanctions. The status of Russian material has been a fraught subject in the metals world, as many western buyers pulled back, resulting in a sharp increase in sales to Asia. However, a period of uncertainty over the legal and moral status of dealing in Russian metal is giving way to greater stability 20 months after the invasion of Ukraine.
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How Citigroup’s Jane Fraser found a balance talking about the Israel-Hamas war
Citigroup CEO Jane Fraser has sent a note to her employees addressing the impact of the Israel-Hamas war on the company and its employees. The note, which was sent ahead of a planned visit to the Middle East, expressed empathy for the loss of innocent lives and the strain on Citigroups employees in the region. Fraser emphasized the companys respect for all faiths and nationalities and its stand against antisemitism, Islamophobia, and acts of hatred. The note was part of Frasers broader communication approach, which includes regular communication with employees, clients, and investors.
CustomersManagement Changes
Goldman, Citigroup Drop Off Investcorp Capital’s Abu Dhabi IPO
Goldman Sachs and Citigroup have withdrawn from the planned Abu Dhabi initial public offering (IPO) of an investment vehicle backed by Investcorp, the Middle East’s largest alternative asset manager. The banks could not get internal approval for the IPOs price stabilization mechanism, which is a first for a United Arab Emirates listing. The Abu Dhabi bourse had requested that the IPO have a price stabilization mechanism once the stock starts trading, but none of the lead banks on the deal wanted to take on the role as it’s a gray area under UAE law. Q Market Makers LLC, backed by Abu Dhabi wealth fund ADQ, was eventually brought on to be the stabilization agent.
Public TradingPartners
Massa-Milei Runoff in Argentina Is Worst-Case Scenario for Bonds
Argentinas presidential election is heading for a second round between Economy Minister Sergio Massa and libertarian outsider Javier Milei, causing concern for investors. The countrys overseas notes were among the worlds worst performers on Monday, with most falling 2 to 3 cents and benchmark securities due in 2035 dropping below 25 cents on the dollar. Analysts predict more losses ahead. Both candidates have extreme views which could lead to policy uncertainty and potentially a disorderly restructuring. The second-round vote in November is expected to see further pre-election fiscal giveaways, increasing macroeconomic vulnerabilities.
Management Changes
Citi Treasurer Mike Verdeschi to Depart After 33 Years at Bank
Big-Bank Profits May Be Higher, but for How Much Longer?
Big Banks Say Trouble Is Coming, but Their Earnings Are Still Strong
IMF Latest: Gopinath Sees Inflation, Growth Risks If War Widens
The ongoing war between Israel and Hamas could potentially spur inflation and hamper global growth if it escalates into a wider conflict that significantly increases oil prices, according to the International Monetary Funds First Deputy Managing Director, Gita Gopinath. The IMFs modeling shows that a 10% increase in oil prices could lead to inflation being 0.4 percentage points higher a year later. The comments were made during the annual meetings of the IMF and World Bank, which are taking place against the backdrop of the ongoing conflict.
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Citi’s Mega Metals Trade Shows Global Markets Turning to Glut
Citigroup Inc. has been purchasing large volumes of physical aluminum and zinc on the London Metal Exchange, making it one of the biggest players in the market in recent months. The purchases, worth over $300 million, are part of a metal financing play. The trade has made Citigroup a buyer of last resort for Russian aluminum, keeping it flowing through the LME system. Citigroup has struck a rent agreement with at least one warehousing company to store metal in Taiwan’s coastal city of Kaohsiung, and intends to ship metal there from LME warehouses in Korea and Singapore.
Investment
Earnings season: What to watch for from financials
Several banks including JPMorgan Chase & Co., Citigroup, and PNC Financial Services Group are set to report their earnings on Friday, October 13. The financial sector is under scrutiny due to rising long-term interest rates and their impact on interest-rate sensitive sectors. The mortgage space is expected to be heavily impacted due to falling mortgage volumes. The banks performance will provide insight into how rising interest rates are affecting loan demand and the broader economy.
Customers
HSBC Buys Citi’s $3.6 Billion China Retail Assets in Expansion
HSBC Holdings Plc has agreed to acquire Citigroup Inc’s retail wealth management portfolio in mainland China, as part of its expansion strategy in the world’s second-largest economy. The portfolio comprises about $3.6 billion in assets and deposits from wealth customers across 11 major cities. The deal is expected to close in the first half of 2024. This move is part of HSBCs strategy to become a leader in one of the world’s fastest growing wealth markets and strengthen its position in Asia. The acquisition is also part of Citis wind-down of its consumer banking business in China.
AcquisitionExpand
Inflation data, earnings, Fed minutes: What to watch this week
Several major companies including PepsiCo, Delta Air Lines, Dominos Pizza, JPMorgan Chase & Co., Citigroup, Wells Fargo & Company, PNC Financial Services Group, and BlackRock are set to release their earnings reports in the week of October 10-13. In addition to these reports, key economic data such as the FOMC meeting minutes, the Producer Price Index, the Consumer Price Index, and initial jobless claims will be released. The week will end with the release of the University of Michigan Consumer Sentiment Index.
Customers
Citigroup Stock Looks Ready to Soar, Says Value-Investing Star
Citi Plans Job Cuts as It Revamps Top Management Structure
Citigroup Inc. is planning a major restructuring, which includes job cuts and changes in the management structure. The restructuring is part of CEO Jane Frasers efforts to reverse the companys stock price slump. The company will now operate five main businesses and eliminate the three regional chiefs who oversee operations in about 160 countries. The restructuring will result in job cuts in Citigroups back-office functions. The company has not yet determined how many employees will be affected.
Management ChangesLayoffs
Citigroup Unit Pays $2.9 Million to Settle SEC Underwriting Probe
Citigroup Inc. will pay $2.9 million to settle Securities and Exchange Commission allegations that the bank’s broker had flawed processes in its accounting in underwriting of securities offerings. The SEC alleged that the broker didn’t keep current records on the way it accounted for expenses charged in the underwriting of securities offerings. Citigroup Global Markets had no policies, procedures, or review processes for how it estimated indirect expenses in underwriting offerings from 2009 to 2019. The settlement amount is $2.9 million. Citigroup declined to comment on the allegations.
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Citi Israel Innovation Lab
Citi Israel Innovation Lab is expanding its operations and looking to hire dozens of positions in development, data analysis, machine learning, NLP, research, product management, and security. The company is focused on developing technologies in the areas of data, AI, blockchain, and cybersecurity. Citi has also launched an Accelerator Program and made VC investments in Israeli startups. The Innovation Lab has a hybrid work structure and is located in Kiryat Atidim and Azrieli Sarona in Tel Aviv. Citi prioritizes employee well-being and offers opportunities for growth and development.
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Citi recruiting Tel Aviv crypto experts for digital assets division
Citigroup is looking to create 100 roles focused on digital assets including blockchain and digital currencies at its institutional division. The recruitment will include R&D staff for its development center in Tel Aviv. This move is part of the banks initiative to tap into the growing cryptocurrency sector. The new team will be involved in product development, project management, and strategy for pursuing digital asset opportunities. The hiring is expected to be completed by the end of 2022.
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Citi appoints Avi Gefen as new head of Citi TLV Innovation Lab
Citi has appointed Avi Gefen to lead the Citi Innovation Lab in Tel Aviv. Gefen will oversee strategic fintech domains such as artificial intelligence, natural language processing, big data, and blockchain. The TLV Innovation Lab is the largest Citi operates worldwide, and it was established in 2011 to merge Citis position in global financial markets with Israels innovation. Citi Ventures has invested in 14 Israeli startups, and the company is establishing a new tech division to lead Engineering Architecture Practices. Gefen previously worked at AT&T and Comverse. Citi is also expanding its activities in Israel and recruiting for various research and development roles.
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"This crisis is going to present many opportunities for banks," predicts Citi Israel CEO
Citi Israel CEO and head of markets, Neil Corney, discusses the impact of the Covid-19 crisis on the financial world and the importance of investing in Fintech. He mentions that Citi experienced an immediate effect from the crisis and quickly adapted to remote work. Corney believes that the crisis has highlighted the importance of Fintech and the need for collaboration between banks, tech giants, and startups. He mentions that the crisis presents opportunities for banks and discusses the sectors of cybersecurity and payments as interesting areas for Israeli Fintech startups. Corney also speculates on the future of remote work and bank branches.
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Citigroup CEO Meets With Tech Entrepreneurs in Tel Aviv
Citigroup Inc. CEO Michael Corbat visited Israel and met with Israeli tech entrepreneurs. He visited Citigroups Tel Aviv innovation hub and met with representatives of Israeli startups. The meetings took place at Labs, a Tel Aviv shared office space. Corbat also participated in a roundtable meeting with Israeli tech luminaries. This is Corbats second visit to Israel. Citi has backed several Israeli startups, including HoneyBook Inc., Contguard Ltd., and Access Fintech Ltd.
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https://www.jpost.com/israel-news/citibanks-israeli-innovation-ensures-bank-stays-ahead-of-rivals-576441
Citis Fintech Innovation Lab in Israel has been a source of innovation for the company. The lab focuses on various banking-related fields and has developed public solutions such as the mobile version of Citi Velocity and Citi Proximity. Citi has more technologists than bankers in Israel, highlighting the importance of technology for the bank. The banks Citi Accelerator program has assisted 80 Israeli start-ups, who have collectively raised over $650 million in funding. Citi Ventures has also opened a branch in Tel Aviv to directly invest in Israeli companies. The success of Citis innovation in Israel has impressed bank executives, leading to increased enthusiasm and support for Israeli technology.
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Citi leases offices in Azrieli Sarona tower
Citi will be leaving its current offices and moving into the Azrieli Sarona tower in Tel Aviv next month. The lease agreement with Azrieli Group is estimated to be worth NIS 35 million over 10 years. Citi will be relocating its business and investment banking, market division, operational services, securities, and services for international companies to the new site. The Citi Innovation Lab TLV will remain in its current location. The Azrieli Sarona tower is currently under construction and will have 61 floors above a shopping mall. Citi is one of several tenants that have signed leases with Azrieli Group for the tower.
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Citi Mobile Challenge reaches Israel
Citi is launching the Citi Mobile Challenge, a global competition for developers to build innovative solutions based on Citis digital platform. This is the first time the competition is open to competitors from Europe, the Middle East, and Africa. The competition aims to foster innovation within the banking industry and finalists have the opportunity to take their technologies into production with Citis support. The competition will take place in Jerusalem, Nairobi, Warsaw, and London, with a panel of industry experts and financial technology leaders evaluating the solutions at each event. Citis Digital Acceleration program aims to change the way banks approach innovation and has previously had successful programs in Latin America and the US.
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Citi Israel appoints Neil Corney as CEO
Citi has named Neil Corney as the new chief executive of its Israeli subsidiary, replacing Ralph Shaaya. Corney, who is currently head of markets at Citi Israel, will be responsible for managing the branchs balance sheet, local markets trading activity, and client hedging solutions. He previously initiated and led the establishment of Citis Innovation Lab in Israel. Shaaya, who served as managing director for seven years, has been appointed chairman of Citi Israel. Corneys appointment is subject to approval from Israels banking regulator.
Management Changes
Citigroup Opens Innovation Center in Israel
Citi Global Markets has opened a global financial data intelligence lab in Israel, as part of Citi’s Technology Innovation Center. The lab will lead projects of complex processing in large real time data. The decision to open the lab in Israel was based on Israel’s potential talent and activities in data. The research team is expected to hire local talent with expertise in related fields such as machine learning and data mining.
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Citi to Launch R&D Center in Israel to Support Activity Throughout the World
Citi has released its first quarter 2023 results and key metrics.
