House Panels Subpoena Deutsche Bank, Others in Trump Finance Inquiry
German lender vows ‘productive dialogue’ with Democratic-led committees probing president’s businesses
WASHINGTON—Two House panels have issued subpoenas to Deutsche Bank and other financial institutions, as Democrats continued to pursue an inquiry into President Trump’s financial interests.
The subpoenas from the Democratic-led House Intelligence Committee and House Financial Services Committee came just days before the expected release of a report from special counsel Robert Mueller on Russian meddling in the 2016 election and any connection to the Trump campaign.
In a statement, Deutsche Bank said it is “engaged in a productive dialogue with the House Financial Services and Intelligence Committee.” The German company said it “remain[s] committed to providing appropriate information to all authorized investigations in a manner consistent with our legal obligations.”
A spokesperson for the White House couldn’t immediately be reached for comment. Mr. Trump has denied any wrongdoing and has called the probes launched by House Democrats earlier this year “presidential harassment.”
“The potential use of the U.S. financial system for illicit purposes is a very serious concern,“ House Financial Services Committee Chairman Maxine Waters (D., Calif.) said in a statement. ”The Financial Services Committee is exploring these matters, including as they may involve the President and his associates...and will follow the facts wherever they may lead us.”
House Intelligence Committee Chairman Adam Schiff (D., Calif.) said in a statement that his panel issued subpoenas to “multiple financial institutions” in coordination with the Financial Services Committee, “including a friendly subpoena to Deutsche Bank, which has been cooperative with the Committees.” He added: “We look forward to their continued cooperation and compliance.”
The lawmakers didn’t name the other financial institutions. Deutsche Bank’s relationship with Mr. Trump goes back decades. Since 1998, the bank has led or participated in loans of at least $2.5 billion to companies affiliated with Mr. Trump, The Wall Street Journal has reported.
Mr. Schiff said the subpoenas were issued as part of the panel’s oversight authority and investigation into “allegations of potential foreign influence on the U.S. political process.”
In 2017, Ms. Waters and House Democrats repeatedly called for Deutsche Bank to disclose details of any ties to Russia, Mr. Trump and related client accounts. Deutsche Bank rebuffed the House requests at the time, which lacked Republican support.
The subpoenas come after Ms. Waters last week pressed the heads of the largest U.S. banks—including the chief executives of JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley and Bank of America —whether the lenders had uncovered accounts tied to illicit Russian businesses or individuals. Most of the chief executives, who were all gathered in Washington to testify before Ms. Waters’ panel, said their firms had no such connections. Citi CEO Michael Corbat said he couldn’t comment on internal investigations.
In the Mueller probe, Attorney General William Barr released a four-page summary of Mr. Mueller’s findings last month, and plans to release a redacted version of the full report on Thursday.
In the summary, Mr. Barr said the Mueller probe didn’t establish that Mr. Trump or his campaign conspired with Russia to interfere in the 2016 election—but reached no conclusion on whether the president obstructed justice. With the absence of a recommendation on that matter, Mr. Barr and Deputy Attorney General Rod Rosenstein determined Mr. Trump’s actions weren’t criminal.
Stocks stalled near six-month highs in Asia Tuesday as investors weighed earnings in the U.S. and the region. Treasuries steadied and the dollar edged higher.
Shares in China and Hong Kong outperformed, drifted in Tokyo and were little changed in Seoul. U.S. and European futures rose. Earlier, the S&P 500 Index slipped from a six-month high, halting a three-day advance, as earnings season kicked into high gear. Sentiment was hit after Goldman Sachs Group Inc. missed estimates for sales and trading revenue, while Citigroup Inc. also fell after its revenue matched expectations. Treasury yields ticked lower after data showed China’s holdings rose for a third month. The yen inched higher.
US After Hours JBHT -5% following earnings, RCKT / JBGS lower on offering news
Nikkei +0.24% Hang Seng +0.72% CSI +2.14% Shanghai +1.83% Shenzen +1.43%
Eur$ 1.1308 CNH 6.7093 CNY 6.7089 JPY 111.92 GBP 1.3094 RUB 64.3202 CHF 1.00377 TRY 5.8090 WTI$ 63.26 -0.22%
S&P +0.17% EuroStoxx +0.09% FTSE +0.20% Dax +0.12% SMI +0.18%
Macro :
- Di Maio Sees No Risk for Italy Banks, Eurozone, Europe: CNBC
- Buy Chip Materials Stocks Before It’s Too Late, Jefferies Says
Keep an eye on :
- ADP FP : Aéroports de Paris Says March Paris Airports Traffic Rises 5.2%
- ALV GY : Allianz to Buy Madrid Office Complex for ~EU250m: Cinco Dias
- AMBEA SS : Ambea Resolved on Previously Announced Rights Issue of ~SEK1.2b
- AMUN FP : Singapore’s GIC to Hold 3.2% in Nexi Post IPO, Amundi 2%: Sole
- AAPL US : Huawei Hasn’t Talked to Apple on Chip Sales: Deputy Chairman
- ASHM LN : Ashmore Says Well-Positioned for Continued Growth; 3Q AUM $85.3b
- ATEB BB : Atenor in Pact With AG for CCN Site Project in Brussels North
- AZA SS : Avanza First Quarter Operating Income Misses Lowest Estimate
- BARC LN : Barclays Investment Bank Facing a Slower 2019, Jefferies Says
- BMW GY : BMW, Deutsche Telekom Oppose EU Plan for Connected Cars: Reuters
- BMW GY : BMW Says ’No Plan’ to Share Compact Car Platform With Daimler
- BMW GY : BMW Sees China Sales Growth Between 5% and 10% in 2019
- DAI GY : Daimler `Cautiously Optimistic' on Mercedes China
- DAI GY : Daimler Had Single-Digit 1Q Growth in China: Incoming CEO
- DSCV LN : DiscoverIE Sees Earnings in Line With Expectations
- ECK GY : Ludwig Beck Sells Wormland to WL Erwerbs GmbH, Abandons Div.
- FLO LN : Flowtech Fluidpower Sees Earnings in Line With Expectations
- GFRD LN : Galliford Try Sees FY Profit Missing Analyst Estimates (1)
- GBLB BB : GBL Spends EU13.5m Buying Back 153,316 Shares April 8 - April 12
- GFS LN : G4S Says 1Q Rev. Higher Y/y, Making Progress on Separation
- HAS LN : Hays Third Quarter Total Comparable Net Fees +6%
- KORI FP : Korian Buys Stepping Stones to Enter Dutch Market
- LHA GY : Lufthansa Group Sees 1Q Adjusted Ebit Negative EU336 Million, Lufthansa 1Q Shows ‘Much Bleaker’ Picture Than Ests.: Bernstein
- NOVN SW : Novartis Says FDA Accepts Brolucizumab BLA, Sees End-2019 Launch
- NTGY SM : Colombia May Compensate Naturgy for Electricaribe: El Economista
- PON1v FH : Ponsse First Quarter Net Sales Miss Estimates
- RNO FP : Ghosn Is Said to Improperly Charge Renault for a $3,400 Scooter
- SCR FP : CIAM Says Glass Lewis Backs Separating Scor Chairman, CEO Roles
- SKIN SW : Cassiopea Announces Positive Results For Hair Loss Treatment
- SNH GY : Steinhoff Asks for Identity of Claimants in Litigation
- TELIA SS : Telia to Buy Back Shares for SEK15b Over Three Years
- HO FP : Thales to Start Gemalto Buyout as Soon as Possible to Reach 100%
- TC1 GY : Tele Columbus Mulls Investor Participation for Network Assets
- TEF SM : Telefonica Sees Data Centers Sale Close After Easter: Expansion
- UCG IM : Italy’s UniCredit Agrees to Pay $1.3 Billion Over Iran Sanctions
- VACN SW : VAT Group Expects 2Q Net Sales CHF125m-135m, Confirms Guidance
- DG FP : Vinci Says No Talks on Ouest Concession Termination Compensation
- VIV FP : Vivendi Buyback Gets Investor Approval in Boost to Bollore Group
- VIV FP : Vivendi Board To Reexamine Mgmt Board Compensation: Statement
- VOW GY : China Getting Important Due to Urus Model Sales: Lamborghini CEO
- VOW GY : Bentley Motors Sees ‘Good Growth’ in China for 2019
- ZAL GY : Zalando Sees Positive 1Q Adjusted Ebit in Single-Digit Millions
>>> Up
* Draegerwerk Upgraded to Hold at HSBC; PT 44 Euros
* LVMH Upgraded to Add at AlphaValue
* MTG Upgraded to Buy at Kepler Cheuvreux; PT 140 Kronor
* Ontex Upgraded to Buy at Kepler Cheuvreux; PT 25 Euros
* Rational Upgraded to Buy at Berenberg
* TomTom Upgraded to Buy at Kepler Cheuvreux; PT 9 Euros
* Vontobel Upgraded to Buy at Citi
>>> Down
* Anglo American Downgraded to Hold at HSBC; PT 23.40 Pounds
* BP Downgraded to Outperform at RBC; Price Target 6.25 Pounds
* GEA Group Cut to Sell at Baader Helvea; Price Target 21 Euros
* Kongsberg Downgraded to Hold at SEB Equities; PT 135 Kroner
* VIB Vermoegen Downgraded to Hold at Bankhaus Lampe
* Worldline Downgraded to Hold at HSBC; PT 55 Euros
>>> Initiation
* Adevinta Rated New Outperform at Macquarie; PT 99 Kroner
* Arcure Rated New Buy at Oddo BHF; PT 9.10 Euros
* Datagroup Rated New Buy at Quirin Privatbank AG; PT 46 Euros
* InterContinental Hotels Rated New Outperform at MainFirst
* LondonMetric Rated New Sector Perform at RBC; PT 2.05 Pounds
* Melia Hotels Rated New Outperform at MainFirst; PT 9.50 Euros
* Micron Rated New Neutral at Nomura Instinet; PT $45
* Publicis Resumed at BofAML With Underperform; PT 48 Euros
>>> Call
After Hours Summary: JBHT -5% following earnings, RCKT / JBGS lower on offering newsAfter Hours Gainers:
Companies trading higher in after hours in reaction to news: JMIA +4.1% (recent IPO that closed up another 25% higher on the day today), APHA +1.7% (modestly rebounding from today's 15% earnings related decline), LPI +1.6% (settled its previously disclosed litigation with Shell Trading)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: JBHT -4.9%, HIVE -2.6%, CRM -0.6% (acquires independent nonprofit social enterprise salesforce.org for $300 mln in cash and updates guidance)
Companies trading lower in after hours in reaction to news: RCKT -3.5% (announces proposed public offering of common stock), JBGS -1.9% (commences public offering of 9 mln common shares), WERN -0.8% (following JBHT earnings), ODFL -0.3% (announced general rate increase of 4.9% applicable to rates established under the existing ODFL 559, 670, and 550 tariffs effective May 1, 2019)
Closing Stock Market SummaryThe S&P 500 declined 0.1% on Monday, as shares of financial stocks pulled back following another round of bank earnings. Despite the modest decline, the S&P 500 managed to close above the 2900 level in front of several key earnings reports tomorrow.
The Dow Jones Industrial Average (-0.1%) and the Nasdaq Composite (-0.1%) also lost 0.1%. The Russell 2000 underperformed with a loss of 0.4%.
Goldman Sachs (GS 199.91, -7.93, -3.8%) and Citigroup (C 67.38, -0.04, -0.1%) beat earnings expectations, but first quarter revenue for both companies declined on a year-over-year basis. Goldman's revenue also came in slightly below expectations, and the quality of its EPS beat was questioned due to lower tax and compensation rates. The S&P 500 financial sector lost 0.6%.
The two stocks had climbed alongside the broader financial space on Friday in response to a strong earnings report from JPMorgan Chase (JPM 109.94, -1.27, -1.1%). The prior move higher coupled with underwhelming results fostered some profit taking, although shares of Citigroup managed to recoup most of their losses.
The market's overall decline was kept in check following a turnaround in shares of widely-held stocks within the communication services (+0.2%) and consumer discretionary (+0.2%) sectors. Relative strength from the consumer staples (+0.7%) and health care (+0.4%) sectors was an added measure of support for the broader market.
Shares of UnitedHealth (UNH 230.20, +6.98, +3.1%) gave the health care sector a boost after the stock fell 10.3% last week on industry concerns. On a related note, UnitedHealth and Johnson & Johnson (JNJ 136.52, +0.54, +0.4%) will release their earnings reports prior to Tuesday's open.
In M&A news, Waste Management (WM 104.26, +2.47, +2.4%) agreed to acquire Advanced Disposal (ADSW 31.99, +4.85, +17.9%) for $33.15/share, representing a 22% premium versus Friday's closing price and a total enterprise value of $4.9 billion. French-based Publicis Groupe (PUBGY) agreed to acquire Alliance Data's (ADS 164.04, -16.89, -9.3%) Epsilon business for $4.4 billion in cash.
U.S. Treasuries traded in a tight range on Monday. The 2-yr yield finished flat at 2.39%, and the 10-yr yield decreased one basis point to 2.55%. The U.S. Dollar Index finished flat at 96.94. WTI crude lost 0.7% to $63.45/bbl after Russia floated the possibility that it might boost production with OPEC to increase their market share.
Reviewing Monday's economic data, which included the Empire State Manufacturing Survey for April:
- The Empire State Manufacturing Survey for April increased to 10.1 (consensus 9.0) from 3.7 in March with a pickup in new orders helping to drive things. The dividing line between expansion and contraction for this regional manufacturing survey is 0.0.
Looking ahead, investors will receive Industrial Production and Capacity Utilization for March and the NAHB Housing Market Index for April on Tuesday.
- Nasdaq Composite +20.2% YTD
- Russell 2000 +17.1% YTD
- S&P 500 +15.9% YTD
- Dow Jones Industrial Average +13.1% YTD
Notre Dame Fire: Cathedral Ablaze in Paris
Firefighters battle massive blaze at landmark Gothic church in French capital
PARIS—Firefighters were scrambling to control a fire that brought down a spire of Notre Dame Cathedral on Monday and caused part of the legendary Gothic church’s roof to collapse.
A column of fire from the more than 850-year-old landmark sent plumes of smoke over the city skyline.
“A terrible fire is under way at Notre Dame of Paris Cathedral,” Mayor Anne Hidalgo wrote in a Twitter posting, calling on residents to steer clear of the area.
It was unclear what started the fire. Images of the blaze on TV showed the flames rising from a section of the cathedral’s roof surrounded by scaffolding. One police official said the location of the fire suggested the flames stemmed from renovations that were under way at the church.
Notre Dame, with its gargoyles and flying buttresses, is a symbol of Paris and an annual pilgrimage site for Roman Catholics and millions of tourists. Its monumental stone walls and vaulted ceilings have withstood centuries of tumult, including the desecrations of the French Revolution when much of the religious imagery inside the church was destroyed.
Among the holy relics inside are objects believed to include the crown of thorns worn by Jesus during his passion and a piece of the cross on which he was crucified.
Construction of the Catholic cathedral, located on the Ile de la Cité in the Seine River, began in the 12th century and didn’t end until about 300 years later. Joan of Arc was beatified there by Pope Pius X in 1909. the cathedral is also known for the legend of the hunchback of Notre Dame, the fictional bell-ringer of the cathedral immortalized by Victor Hugo’s 1831 novel.
In the wake of the 2015 terrorist attacks on Paris, authorities created a security perimeter around the cathedral and its facing square, where visitors are subject to bag checks.
“Like all of our compatriots, I am sad this evening to see this piece of us burning,” President Emmanuel Macron tweeted, after canceling a major policy speech and going to the scene of the fire.
“So horrible to watch the massive fire at Notre Dame Cathedral in Paris. Perhaps flying water tankers could be used to put it out. Must act quickly!” President Donald Trump wrote on Twitter.
Hundreds of people gathered at the Paris’s city hall, the Hotel de Ville, just across the Seine River from the cathedral, to watch helplessly as the blaze consumed the roof and other pieces of Notre Dame.
“It’s unbelievable to think how centuries are going up in smoke,” said Hugh Dutton, a British architect who has lived in Paris since 1982 and was among the several hundred people gathered in front of Paris’s city hall to watch the blaze in horror. “It really hurts to see this. I’m in shock.”
Margaret Van Steenlandt also there, watching the flames silently, her hand squeezing the shoulder of her partner. She said a cry rang out from the crown in front of city hall as the spire fell to the side and disappeared inside the building.
“There was a sense of disbelief,” she said. “Seeing it burn down like this is devastating.”