Mastercard CEO Ajay Banga to step down, insider Miebach tapped By Reuters


© Reuters. Mastercard President and CEO Banga speaks to attendees during the Department of Homeland Security’s Cybersecurity Summit in Manhattan, New York

(Reuters) – Mastercard’s chief executive officer of 10 years, Ajay Banga, will step down at the start of the next year, the company said on Tuesday, and be replaced by Chief Product Officer Michael Miebach.

Banga, who took charge of the company just after the 2008-09 financial crisis, has seen the payment processor’s revenue triple during his tenure as online shopping gained prominence around the world.

India-born Banga will take on the role of executive chairman, while Miebach will become the company’s president on March 1.

Chairman Richard Haythornthwaite will retire after more than a decade when Banga assumes his new role, the company said in a statement.

Before joining Mastercard (NYSE:) as president of Middle East and Africa in 2010, Miebach served as managing director at Barclays (LON:) Bank and general manager at Citibank.

In connection with Miebach’s appointment as president, Mastercard has entered into a new compensation agreement that adds $750,000 to his annual base salary, the payment processor said in a filing.

Miebach will also receive an equity grant with a target value of $6.25 million.

His compensation as chief executive officer will be determined later, the company added.

Mastercard on Monday warned its first-quarter net revenue would take a hit if coronavirus outbreak persists through the quarter.

Shares of the company were down nearly 2% at $319 in the premarket trade.

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Tesco completes China exit with $357 million stake sale By Reuters


© Reuters. A company logo is pictured outside a Tesco supermarket in Altrincham northern England.

LONDON (Reuters) – Britain’s biggest retailer Tesco (L:) has completed its exit from China with the 275 million pound ($357 million) sale of its joint venture stake to state-run partner China Resources Holdings ( CRH (LON:)).

Having struggled to crack the Chinese market, Tesco established the Gain Land venture with CRH in 2014, combining the British group’s 131 stores in China with its partner’s almost 3,000.

The disposal of its 20% stake allows Tesco to further simplify and focus the business on core operations, it said on Tuesday, adding that the proceeds will be used for general corporate purposes.

The deal is scheduled to complete on Feb. 28.

Shares in Tesco were up 0.7% at 0816 GMT, extending its gains over the last year to 12.4%.

“This extra 275 million pounds of ‘forgotten value’ should be accretive to most street valuations,” said Bernstein analyst Bruno Monteyne.

After costly exits from Japan and the United States and the sale of its South Korean business, Tesco signalled in December a further retreat from its once lofty global ambitions by starting a review of its operations in Thailand and Malaysia – its last remaining wholly owned businesses in Asia.

A sale of its operations in Thailand and Malaysia would mean Tesco’s only remaining overseas operations, apart from Ireland, would be its central European division, comprising stores in the Czech Republic, Hungary, Poland and Slovakia.

The Asian exit could be one of the last acts of Tesco CEO Dave Lewis, who will be succeeded by Ken Murphy in October.

Bernstein’s Monteyne expects Tesco to start a 1 billion pound share buyback programme in its 2020-21 financial year.

“With this transaction and the possible sale of Thailand and Malaysia, Tesco’s biggest short-term concern could be how to efficiently return cash to shareholders,” he said.

($1 = 0.7714 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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JPMorgan to maintain key growth targets from last year at investor day: analysts By Reuters



By Elizabeth Dilts Marshall

NEW YORK (Reuters) – JPMorgan Chase & Co (N:) executives are unlikely to provide new financial targets at the bank’s annual investor day on Tuesday, and instead will use the forum to showcase a clean-energy initiative, analysts said.

JPMorgan, the biggest U.S. bank by assets, reported record earnings last year and easily met management’s stated goals for expenses and profitability.

But its metrics are best-in-class among big U.S. banks, and JPMorgan’s sheer size presents challenges for further growth, analysts said.

“We believe the challenge is for JPM to maintain this strong operating performance while at the same time investing for growth and gaining customer wallet share,” said Wells Fargo (NYSE:) analyst Mike Mayo.

Nonetheless, Wall Street pays close attention to JPMorgan’s investor day, where Chief Executive Jamie Dimon and other senior leaders offer views about key businesses, as well as the global economy and financial markets. Those presenting include Chief Financial Officer Jennifer Piepszak, head of Consumer & Community Banking Gordon Smith, Head of Consumer Lending Marianne Lake and others. The event starts at 8 a.m. in New York.

Executives are likely to express optimism about JPMorgan’s potential, despite unsettling macroeconomic events such as concerns over the fast-spreading coronavirus, the 2020 U.S. presidential election and low interest rates, analysts said.

On Monday, global markets plunged as investors ran for safety on fears that a rise in coronavirus cases outside China could expand damage to the global economy. In the United States, the Dow () dropped more than 1,000 points for just the third time in history.

However, JPMorgan will likely keep the bank’s official outlook stable for expenses relative to revenue, and for return on tangible common equity (ROTCE), which measures how well a bank uses shareholder money to produce profit.

Last year, JPMorgan’s efficiency ratio of 55% and its full-year ROTCE of 19% met and exceeded management’s targets of 55% and 17%, respectively.

The bank’s main announcement will center on steps it is taking to reduce financing for coal mining projects and companies and to facilitate $200 billion in loans and other financing for clean-energy and sustainability initiatives by the end of 2020.

The bank detailed some of that plan on Monday, after years of pressure from environmental activists and steps taken by other major financial firms including Blackrock Inc (N:) and Goldman Sachs Group Inc (N:).

JPMorgan shares closed at $132.14 on Monday, near a record high, leaving the bank as the most valuable by market value globally.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. still eyeing ways to curb sales to Huawei after Trump’s chipmaker comments: sources By Reuters


© Reuters. U.S. President Trump talks to reporters as he receives a Hurricane Dorian update at the White House in Washington

By Karen Freifeld and Mike Stone

(Reuters) – U.S. government officials are still considering ways to further curb sales to China’s Huawei Technologies [HWT.UL], despite President Donald Trump’s tweets and comments last week in support of sales to China, according to people familiar with the matter.

An interagency meeting was held on Thursday to discuss national security and China export issues, including proposals to restrict sales of chips to Huawei, the world’s second-largest smartphone maker, and a plan to block the sale of jet engines for China’s new passenger airplane.

While blocking General Electric Co (N:) from supplying jet engines appeared to be off the table after Trump opposed efforts to stop their sale, sources told Reuters on Monday new restrictions aimed at cutting Huawei off further from its suppliers were still under discussion.

Trump told reporters last week he wanted U.S. companies “to be allowed to do business.”

“I mean, things are put on my desk that have nothing to do with national security, including with chipmakers and various others,” he said.

He said he had been “very tough” on Huawei, but did not provide further details, and added that national security concerns should not be used as an excuse to make it difficult for foreign countries to buy U.S. products.

His comments contrasted with the sharp restrictions his administration has placed on U.S. companies trading with Huawei over national security concerns and foreign policy interests.

The United States alleges the Chinese government could use Huawei equipment to spy, an accusation Huawei has rejected.

DIVISIONS

Policymakers have been sharply divided over Huawei and China ahead of a possible cabinet-level meeting, which had been scheduled for Feb. 28 but has now been pushed to a later date. Some officials have favored a tougher line while others are more focused on trading with the world’s second largest economy.

Officials from various government agencies are trying to come to a consensus ahead of the cabinet meeting, one person familiar with the matter said.

  In their meeting on Thursday, officials discussed possible changes to what is known as the de minimis rule, which dictates how much U.S. content can be in a foreign-made product before the United States has authority to regulate its sale, the sources said.

    Under current regulations, the United States can require a license or block the export of many high-tech products shipped to China from other countries if U.S.-made components make up more than 25% of the value.

    But the U.S. Department of Commerce drafted a rule that would lower the threshold only on exports to Huawei to 10% and expand the purview to include non-technical goods like consumer electronics including non-sensitive chips.

Officials discussed lowering that threshold at Thursday’s meeting, a second source said.

    The government agencies also have been considering changing the Foreign Direct Product Rule, which subjects foreign-made goods based on U.S. technology or software to U.S. oversight.

    One proposed change would force foreign companies that use U.S. chipmaking equipment to seek licenses before supplying Huawei.

    Huawei was placed on a U.S. trade blacklist last May that allows the United States to restrict the export of American-made goods to companies believed to be involved in activities contrary to the U.S. national security or foreign policy interests.

But many foreign supply chains remained beyond the reach of U.S. authorities, frustrating China hawks and spurring the proposals to expand controls.

    Reuters exclusively reported in November that the United States was considering altering the two rules to expand its power to restrict the foreign shipment of products with U.S. technology to Huawei.





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Shake Shack sees delivery disruption thru 2020 with Grubhub partnership By Reuters



By Hilary Russ

NEW YORK (Reuters) – Shake Shack Inc (N:) expects its delivery sales to be volatile throughout 2020 after its move last year to an exclusive partnership with third-party platform Grubhub Inc (N:), it said on Monday.

The New York City-based fast-casual chain expects “potentially significant volatility in the delivery channel throughout much of 2020,” Chief Financial Officer Tara Comonte said during an earnings call on Monday.

Shake Shack shares were down more than 12% in after-market trading on disappointing results, with revenues this year forecast between $712 million and $720 million, well below average analyst estimates. Sales in stores open at least a year missed expectations.

The company, known for its “roadside” style milkshakes and burgers, is also facing “potentially significant headwinds” due to the coronavirus outbreak in China, where it has seven stores, and concerns throughout the rest of Asia.

Shake Shack’s locations in China, Japan, Korea and other Asian markets are licensed, not company owned, but they have all experienced “acute sales impact over the last five weeks,” Comonte said, and new openings in the region for the rest of the year will be delayed.

The company went public in 2015 and is investing in aggressive expansion – a strategy that has pressured financial results in the short term.

In the fourth quarter that ended Dec. 25, same store sales dropped 3.6%, with a 1.8% increase in ticket prices offset by a 5.4% decline in traffic.

Losing delivery customers was also a drag.

Shake Shack originally planned to roll out its exclusive partnership quickly after it was announced in August.

Instead, it decided to “transition on a market-by-market basis” as it tests different marketing strategies to move its 185 U.S. locations to Grubhub from other delivery platforms, Comonte said on Monday. Nearly half of those locations are now using Grubhub exclusively.

In the deal, Grubhub agreed to give Shake Shack its customer ordering data – a benefit most restaurants do not usually get from third-party delivery marketplaces.

Shake Shack can use the data to market personalized offers to customers as it focuses on building out its digital ordering options and its own website and mobile app.

Since the deal was announced, other delivery platforms have pushed Shake Shack lower in their listings or even removed the restaurant altogether, Comonte said.

Grubhub competes in most markets with DoorDash Inc, Uber Technologies Inc’s (N:) Uber Eats and Postmates Inc.

Grubhub did not immediately reply to a request for comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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