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Standard Chartered chief says bank’s share price too influenced by ‘downside concerns’

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Standard Chartered chief says bank’s share price too influenced by ‘downside concerns’

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Standard Chartered unveiled a $1bn share buyback on Friday as chief executive Bill Winters said the bank’s struggling share price does not reflect its value.

The UK-based lender said statutory pre-tax profits for the final three months of 2023 rose to $1.1bn, in line with analysts’ expectations. The figure for the full year was up 19 per cent to $5.1bn.

Winters said the emerging markets-focused bank aims to return at least $5bn to shareholders over the next three years and would take “action to deliver sustainably higher returns”. The bank also announced a 21 cents per share dividend.

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“Our share price reflects little of our optimism about prospects and seems heavily influenced by . . . downside concerns,” said Winters.

The bank, which trades below its net asset value, has been under pressure to boost its share price performance and return cash to investors. StanChart’s shares have fallen 32 per cent since Winters took the helm in June 2015.

“The concerns are real, and we take them seriously,” Winters said, adding that “the value of our franchise will become increasingly clear to the broader market”.

The bank unveiled a cost-saving plan which it said would save around $1.5bn of expenses over the next three years.

Winters voiced confidence about the outlook for Asia despite the bank having taken impairment charges on the value of its stake in China Bohai Bank, a mainland lender.

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It reported a $153mn charge on its Bohai stake in the fourth quarter, in addition to a $700mn charge in October. The bank also reported $282mn in impairments related to Chinese commercial real estate for 2023, accounting for more than half of its total credit impairments for the year.

The bank’s profits in Asia, its biggest market, rose 18 per cent year-on-year in the fourth quarter to $928mn. It reported a $229mn quarterly loss in Europe and the Americas, where it lost $56mn in the same period a year earlier.

“Asia is likely to be the fastest-growing region continuing to drive global growth, expanding by 4.9 per cent,” he said. He added, however, that “a sluggish housing market in China” posed a risk.

Winters’ total pay package for the year rose to £7.8mn, up 22 per cent from last year, largely because of payouts from a long-term incentive plan.

The lender’s Ventures unit, which it launched in 2018 with a plan to invest in fintech businesses, made a loss of $133mn in the fourth quarter, compared with a $127mn loss a year earlier. The unit reported an $85mn charge which it said was partly down to higher bankruptcy-related write-offs in Mox, its digital bank.

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The bank’s return on tangible equity, a key measure of profitability, was 10.1 per cent for 2023, up two percentage points from a year earlier and beating analysts’ expectations of 9.5 per cent. StanChart said it was targeting an increase to 12 per cent by 2026. 

StanChart’s wealth management unit, which has been a priority for the lender’s growth plans, increased revenues to $412mn in the fourth quarter, up 15 per cent from the previous year.

Net interest income rose 6 per cent to $2.4bn for the fourth quarter, in line with analysts’ forecasts, as the bank benefited from higher interest rates. The bank said it expected the figure to rise in 2024.

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

Trump says US stockpiles mean “wars can be fought ‘forever’”

In a late night post on Truth Social, Donald Trump said that the US munitions stockpiles “at the medium and upper medium grade, never been higher or better”.

He added that the US has a “virtually unlimited supply of these weapons”, meaning that “wars can be fought ‘forever’”.

This comes after Trump said that the US-Israel war on Iran could go beyond the four-five weeks that the administration initially predicted. The president also did not rule out the possibility of US boots on the ground in Iran during an interview with the New York Post on Monday.

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“I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!!,” he wrote.

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Key events

During his opening remarks, Senate judicicary committee chairman, Chuck Grassley, blamed Democrats for the ongoing shutdown Department of Homeland Security (DHS) but highlighted four agencies: the Secret Service, Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

Democrats are demanding tighter guardrails for federal immigration enforcement, but a sweeping tax bill signed into law last year conferred $75bn for Immigration and Customs Enforcement (ICE), which means the agency is still functional amid the wider department shuttering.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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