Lloyds Banking Share Discussion Threads

[alphorn] 24/7/2020 08:32

gbh - you assume that it is temporary?

[gbh2] 24/7/2020 08:27

China's Strike against the Western Economies has been so disastrous it'll take Years, possibly Decades for us to recover from.

[alphorn] 24/7/2020 08:21

"I am not in a panic about current levels of debt. All the time interest rates are kept so low this is affordable. It is a one off cost which can be repaid gradually in years ahead".

So says Redwood from the planet Zog.

[xxxxxy] 24/7/2020 07:50

Mountains of debtBy JOHNREDWOOD | Published: JULY 24, 2020As we count the cost of the response to the virus, it is time to sketch out what future plans for public spending might look like.As one who thought the government had to spend whatever it took to combat the virus and to keep jobs and companies afloat once the government decided on a national lock down I am not in a panic about current levels of debt. All the time interest rates are kept so low this is affordable. It is a one off cost which can be repaid gradually in years ahead.It has, however, to be a one off, with a substantial reduction in new borrowing next year and beyond as a result of the ending of the expensive special measures and the restoration of more normal levels of revenue and employment.Over the next few days I want to explore how the government might bring its budget back into a better balance. So far interest rates have been kept low thanks to official action by the Bank of England. They have both lowered interest rates and bought large quantities of UK state debt up to keep its price high and the interest rates low as a result. Last month debt interest fell owing to lower inflation and the cost of index linked debt, despite the large increase in total borrowings. Again this is feasible for a period dealing with a one off collapse in demand brought on by regulations to stop activity for health reasons. It is not a policy for the future that can be sustained indefinitely, as it would then lead to higher inflation and the need for higher interest rates.One thing the authorities can do today is to borrow longer. The UK debt management team have done a better job than many countries, so the average maturity of our debt is a lot longer than continental countries on average. Given how low rates are, why not issue some debt with no repayment date, and  more ultra long debt at these tiny rates?The best way to bring the deficit down and start to limit the debt is to get a good recovery underway. State debt is rarely repaid. It is usually rolled over or extended. As growth returns the aim must be to reduce the debt as a proportion of a growing economy. There are some easy and obvious reductions in spending that can be made which I will discuss again in future posts. Let's start by ending EU contributions, which went up again in June.

[utrickytrees] 24/7/2020 07:39

Do we really have to endure this nonsense?

Good to see the Jocks getting behind soft power proper, for barnet & guaranteeing their overdraft, we must have 'suggested' run down your education standards OR run up the biggest debt/GDP ratio in the world. Cant fault em theyve done both! EU un all weve obviously said to them.... take this £350M/ per week & send us all your charity bag deliverers OR your hand car washers, fkin top lads!

[freddie01] 24/7/2020 07:33

Lloyds Banking gets upgrade ahead of interims, while NatWest get downgraded


Analysts at Credit Suisse also upgraded Standard Chartered but left their rating unchanged for Barclays


Lloyds Banking Group PLC (LON:LLOY) has been upgraded and newly renamed NatWest Group PLC (LON:NWG) was downgraded by Credit Suisse ahead of half-year results next week that will show how the coronavirus pandemic is affecting lending.

In a preview of the sector ahead of a busy results season week, including four of the FTSE 100’s banks, there was also an upgrade for Standard Chartered PLC (LON:STAN) but Barclays PLC (LON:BARC) was left untouched.

Second-quarter results from the US banks are likely to have set the tone for the London-listed lenders, with lower loan margins, a strong investment banking performance and higher provisions for loan losses after the main street banks took an additional US$33bn in charges to cover possible bad loans in the past quarter, the highest number since the wake of the (previous) financial crisis.

Credit Suisse analyst Jon Peace lifted his recommendation for Lloyds to ‘outperform217; from ‘neutral’; with the share price target remaining at 40p potentially offering more than 30% upside from the previous close price of 30.32p.

Lloyds will publish half-year results next Thursday, having revealed earlier this month that chief executive António Horta-Osório plans to depart the lender next year.

Britain’s biggest lender was in the news last month after being hit with a £64mln fine last month for the way it dealt with customers falling behind on mortgage payments, while there were also reports that it was eyeing further expansion into the private client sector.

In April’s first-quarter results, Lloyds profits plummeted 95% to £74mln after it took a £1.4bn write-down in preparation for bad loans resulting from the coronavirus crisis along, plus other charges relating to existing restructuring plans and negative insurance volatility from falling equity markets and widening corporate bond credit spreads.

StanChart, which also reports interims on Thursday was also upgraded by Credit Suisse to ‘neutral' from ‘underperform’, with its target price upped to 480p from 395p.

The Asia focused bank, which was one of the first in the sector to warn of the effects of the virus back in September, saw profits fall a relatively benign 12% in the first quarter, as income increased on higher volumes in financial markets and offset lower interest income.

Chief executive Bill Winters’ future may be more assured now that the bank is one of the better performers in the sector, after doubts surfaced early in the year.

Looking at NatWest, the analyst downgraded the shares to ‘neutral' from ‘outperform217;, with the target price trimmed to 140 from 175p.

Friday will see the results under the new name for RBS and newish chief executive Alison Rose will not want to blot her copybook too early.

Analysts expect a significant increase in corporate borrowing, driven by government initiatives to help smaller businesses, with a likely fall in consumer lending.

With investors also concerned about defaults, NatWest will be one of those in focus as it has a relatively large number of small business customers.

For Barclays PLC (LON:BARC), the Credit Suisse rating was kept at ‘neutral’; with the price target upped to 130p from 125p.

The consensus forecast for Barclays is for a quarterly pre-tax profit of £491mln, down from £1.5bn a year ago.

Profits in the first quarter of 2020 for the blue-eagle bank were £913mln as £2.1bn of charges were taken for potential loan losses.

[...]

[grahamite2] 24/7/2020 07:14

Sainsburys, Asda, Co-op and Costa Coffee are among retailers saying they have no intention of policing the laws, which carry a penalty of a £100 fine.

I can see Sainsbury's and Asda gaining customers at the cost of Tesco and Morrisons.

[maxk] 23/7/2020 23:52

Min


Foreign Aid can be a form of Soft Power


But not the way it's being dished out by first division club.

[grahamite2] 23/7/2020 22:43

Quite true jl but no Parliament can bind a successor. Boris was wrong to end the great foreign aid giveaway by the back door - he should have done it to a fanfare. It is, obviously, one of the most popular things any government could do.

[buywell3] 23/7/2020 21:02

At talking heads

And reading tele-prompters

20p

[maxk] 23/7/2020 20:42

I thought the government were experts?

[alphorn] 23/7/2020 20:02

The International Trade Secretary defended seven-year gagging clauses for experts advising the government on its negotiations.

No surprise there - that is the estimated time for the negotiations. Lol

[davius] 23/7/2020 19:15

Doubt this will make much difference...

CREDIT SUISSE RAISES LLOYDS BANKING TO 'OUTPERFORM' ('NEUTRAL') - PRICE TARGET 40 PENCE

[geckotheglorious] 23/7/2020 18:01

Better yet nondeplume, abolish twitter..
It's partisan bias. And censored for such as well

[portside1] 23/7/2020 18:00

They did not take much stopping , but the directors lost nothing Their were rewarded more free shares

[nomdeplume] 23/7/2020 17:42

There is a lot to be said for Twitter's 140 character limit. Abolish verbal diarrhoea.