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Global banks hit by new corruption allegations. Why authorities are unlikely to act this time – MarketWatch

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Shares of European banks fell sharply on Monday, after the release by BuzzFeed and the International Consortium of Investigative Journalists of thousands of documents seemingly showing that some $2,000 billion worth of illicit funds were moved and laundered through the U.S. financial system over two decades.

– The papers show that five global banks — JPMorgan
JPM,
-4.29%
,
 HSBC, Standard Chartered Bank, Deutsche Bank
DBK,
-7.96%
,
and Bank of New York Mellon — kept doing business with “oligarchs, criminals and terrorists” even after being fined by U.S. authorities for earlier failures to clamp down on dirty money. The banks themselves said they could not comment on specific transactions due to bank secrecy laws. Their statements can be found here.

– The reports are based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the U.S. Department of Treasury.

– Shares in British-Asian giant lender HSBC
HSBA,
-4.98%

 and the U.K.’s Standard Chartered
STAN,
-5.09%

 fell 6% and 5%, respectively, marking 20-year lows in London mid trading. HSBC said in a statement that “all of the information provided (…) is historical.”

The outlook: The report, based mostly on past behavior already fined and sanctioned by U.S. authorities, is unlikely to trigger new punishments by governments or regulators. Especially not in a moment in the deepest of the coronavirus recession, when authorities are trying to convince and subsidize banks so they can keep lending to businesses and households. And even if legal grounds did exist in a few cases for authorities to act, regulators everywhere are likely to decide that punishment by markets is enough for now.

Read: U.K. edges closer to second national lockdown to help contain second coronavirus wave

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Premier Eschews Media Questions in House – VOCM

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Premier Andrew Furey refused to take questions from the media today regarding two key issues facing the government.

The media was seeking clarification on the status of government’s talks surrounding the merger of Husky Energy with rival Cenovus, as well as the status of embattled MHA Perry Trimper.

The premier did take questions in the House but when the time came to face the media afterward, his office said he would not be available.

The Premier spoke with Innu Nation Grand Chief Etienne Rich earlier today after Rich called for Trimper to be removed from the Liberal caucus over controversial comments he made regarding Indigenous people in Labrador.


The premier’s office issued this written statement late this afternoon:

“I spoke with Innu Nation Grand Chief Etienne Rich this morning, and we agreed that we have a good dialogue we plan to maintain. We continued a conversation about moving forward with cultural sensitivity training throughout government.”


No reason was immediately given for the premier’s no-show, which Tory Leader Ches Crosbie called disgraceful, given the importance of the Husky merger and the highly-charged and sensitive issue of Innu relations with government.

It was left to Energy Minister Andrew Parsons to field questions regarding the Husky-Cenovus merger, noting a call with executives of the newly formed company is still planned for this week.

Trimper, meanwhile, says he has no further comment, adding he’s looking forward to continuing to assist his constituents until ‘the writ is dropped’ on the next election.

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Microsoft beats quarterly revenue estimates, shares rise – Investing.com

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© Reuters. The Microsoft store is pictured in the Manhattan borough of New York City
© Reuters. The Microsoft store is pictured in the Manhattan borough of New York City

By Stephen Nellis and Akanksha Rana

(Reuters) – Microsoft Corp (O:) beat Wall Street estimates for quarterly revenue and profit on Tuesday, powered by a slight uptick in growth in its flagship cloud computing business as the software maker continued to benefit from a global shift to working from home and online learning.

The pandemic has accelerated a move already under way toward cloud-based computing, helping companies such as Microsoft, Amazon.com Inc’s (O:) cloud unit and Alphabet Inc’s (O:) Google Cloud. For Microsoft, it has also boosted demand for its Windows operating systems for laptops and its Xbox gaming services as families work, learn and play from home, leading to profit that was about 30% above expectations.

“It was another healthy quarter, with continued demand for remote offerings continuing to power results,” Microsoft Chief Financial Officer Amy Hood told Reuters in an interview.

Revenue growth for Azure, the company’s flagship cloud computing business, was 48%, up from 47% in the previous quarter and ahead of Wall Street estimates of 43.45%, according to consensus data from Visible Alpha. Hood said the rise was driven by “an increase in larger, long-term Azure contracts.”

GRAPHIC: Microsoft Azure revenue growth – https://graphics.reuters.com/MICROSOFT-RESULTS/xegvblbbnvq/chart.png

Microsoft has shifted to selling many of its products via recurring subscriptions, which investors like because it generates stable revenue flows. The value of Microsoft’s future recurring revenue contracts with big business customers was flat from the previous quarter and its proportion of one-time deals rose slightly after two quarters of growth.

Microsoft bundles together several sets of software and services such as Office and Azure into a “commercial cloud” metric that investors watch closely to gauge the company’s progress in selling to large businesses. Microsoft’s commercial cloud gross margins – a measure of the profitability of its sales to large businesses – was 71%, compared with 66% a year earlier.

Hood said some of the rise was explained by a change in accounting rules for Microsoft’s servers, but the better margins were also driven by sales of lucrative software such as Dynamics 365, which competes with Salesforce.com (N:).

“That Dynamics 365 revenue growth of 38% was better than we thought and quite good,” Hood told Reuters.

Microsoft said 93% of commercial cloud products were sold as subscriptions, compared with 94% the quarter before. The company’s remaining performance obligations – a measure of how much revenue has been booked for the future in sales contracts but not yet formally recognized as revenue – stayed flat at $107 billion in the fiscal first quarter but was up from $86 billion a year prior.

Microsoft said revenue in its “Intelligent Cloud” segment rose 20% to $13 billion in the first quarter, with 48% growth in Azure. Analysts had expected revenue of $12.7 billion, according to IBES data from Refinitiv.

Revenue from its personal computing division, which includes Windows software and Xbox gaming consoles, rose 6% to $11.8 billion.

The company’s revenue rose 12% to $37.2 billion in the quarter ended Sept. 30, beating analysts’ estimates of $35.72 billion.

“Microsoft’s strong earnings beat shows its market share in cloud computing is expanding while its legacy software products such as Windows and Office are in great demand during the pandemic,” said Haris Anwar, senior analyst at Investing.com.

Net income rose to $13.89 billion, or $1.82 per share, from $10.68 billion, or $1.38 per share, a year earlier. Analysts had expected a profit of $1.54 per share.

Microsoft shares were down 0.2% at $212.77 in after-hours trading after the results, although trading is often relatively muted until after Microsoft executives give financial guidance. The company will hold a conference call later on Tuesday.

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New COVID-19 case reported in Nova Scotia – CBC.ca

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Nova Scotia reported one new case of COVID-19 Tuesday, giving the province six active cases.

The province said the new case is in the Central Zone and the person had travelled outside of Atlantic Canada. The person has been self-isolating, the province said. 

Nova Scotia Health Authority labs completed 610 Nova Scotia tests on Monday. So far, the province has recorded 109,462 negative test results, 1,102 positive cases and 65 deaths. No one is currently in hospital related to the virus.

The latest numbers from around the Atlantic bubble are:

  • P.E.I. reported no new cases and one active case Tuesday.
  • Newfoundland and Labrador reported no new cases and 4 active cases Tuesday.
  • New Brunswick reported 3 new cases and 60 active cases on Monday.

Anyone with one of the following symptoms should visit the COVID-19 self-assessment website or call 811:

  • Fever.
  • Cough or worsening of a previous cough.

Anyone with two or more of the following symptoms is also asked to visit the website or call 811:

  • Sore throat.
  • Headache.
  • Shortness of breath.
  • Runny nose.

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