Confirming a media report, Invesco Ltd. has agreed to acquire asset manager OppenheimerFunds Inc. from MassMutual. The deal is expected to boost Invesco's total assets under management to more than $1.2 trillion. Upon the closing of the deal, MassMutual will own an approximate 15.5% stake in Invesco.
KeyCorp and BB&T Corp. reported higher earnings in the third quarter. Bank of New York Mellon Corp. and Blackstone Group LP also reported quarterly results.
A group of seven international banks, including Citigroup Inc., is forming a global digital network that seeks to make it easier for companies to obtain trade financing. The network allows companies to submit and verify purchase orders and invoices to request trade financing from the banks of their choice.
In Illinois, Byline Bancorp Inc. is acquiring Oak Park River Forest Bankshares Inc. in a cash-and-stock deal valued at about $42.0 million. The deal is expected to close in the second quarter of 2019.
Commodity Futures Trading Commission Chairman Christopher Giancarlo threatened to prevent European banks from using U.S. futures exchanges if the European Union does not amend its current plans to supervise foreign clearing houses in the wake of Brexit, the Financial Times reports. Speaking at a derivatives conference in Chicago, Giancarlo reiterated his criticism for the EU's clearing house oversight plans, saying they were "wholly unacceptable" and "completely irresponsible."
The federal court in Maryland found Dawn Bennett, a former financial adviser and the founder of Bennett Financial Group Services, guilty of defrauding investors in a $20 million Ponzi scheme, InvestmentNews reported. Dawn Bennett was convicted on all charges, including conspiracy, securities fraud, wire fraud, bank fraud, and making false statements on a loan application, according to the report. AdvisorHub and the Associated Press also carried reports on the news.
Selling trading data has been a lucrative business for three major U.S. stock exchange operators for several years. But an Oct. 16 SEC ruling that Intercontinental Exchange Inc.-owned New York Stock Exchange, Nasdaq Inc. did not justify particular fee hikes to certain proprietary trading data products has cast doubt on whether those exchange groups can continue to grow their key market data businesses.
And Alpha Innovations Ltd., a Bermuda-based asset management firm, has officially launched. Alpha's core team consists of former executives from Point72 Asset Management LP, Balyasny Asset Management LP, Goldman Sachs Group Inc., Morgan Stanley and CITIC.
In other parts of the world
Asia-Pacific: South Korea to tighten compliance rules; Dena Bank to get 41B-rupee infusion
Europe: US futures regulator warns on Brexit; Santander caught up in German fraud probe
Middle East & Africa: Qatar Islamic Bank Q3 profit rises YOY; Emirates NBD gets $2B loan
Now featured on S&P Global Market Intelligence
NIM expansion enables big banks' earnings beats in Q3: For the second quarter in a row, all four of the largest U.S. banks reported a stronger net interest margin than the previous quarter. That helped three of the Big Four banks beat their consensus earnings-per-share estimates for the third quarter, aided by a significant jump in share repurchases.
US financials dip in October sell-off, but Wells Fargo and CME Group buck trend: Last week's swoon in the markets helped push the S&P 500 Financials Index down 4.5% for the year, compared to a 4.4% gain for the S&P 500 as a whole. As of Oct. 15, 27 of the 50 largest U.S. financial companies by market capitalization were negative for the year.
New retailer relationship a driver of Citi's card growth: Concerns about the status of Citigroup Inc.'s long-standing relationship with Sears Holdings Corp. notwithstanding, the Citi Retail Services business grew strongly in the third quarter thanks in part to contributions provided by the bank's more recent agreement with another retailer.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Nikkei 225 was down 0.80% 22,658.16, while the Hang Seng fell 0.03% to 25,454.55.
In Europe, as of midday, the FTSE 100 fell 0.10% to 7,047.51, and Euronext 100 rose 0.33% to 1,004.38.
On the macro front
The jobless claims report, the Philadelphia Fed Business Outlook survey, the leading indicators report, the Energy Information Administration natural gas report, the Fed balance sheet and the money supply report are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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