All articles tagged with #barclays
Barclays kept its $100 Brent forecast for 2026 but warned that upside risks remain as the Strait of Hormuz disruption drains U.S. and global inventories to multi‑year lows. Goldman Sachs has also flagged rapid depletion, and crude prices climbed in early trading, with Brent around $105 and WTI near $98 as markets price in a sustained supply shock.
Barclays analyst Dan Levy argues Tesla’s growth is pivoting to autonomy and robotics (Robotaxi, FSD, Optimus) rather than its traditional auto business, highlighted by Terafab and solar expansion. With Q1 earnings looming, the key question is how much more capex is needed for these ventures. Levy views Tesla’s core auto outlook as soft and believes the stock could remain detached from fundamentals, assigning TSLA an Equal Weight rating with a $360 target amid a mixed field of opinions and a Hold consensus on near-term movement.
Barclays says market resilience tied to Trump’s de-escalation signals may be fading as policy uncertainty rises; equities, oil, and rates have been volatile on shifting Iran deadlines and Middle East tensions, with the bank warning that a longer conflict and oil shock could lift inflation and weigh on growth. Its economists expect global growth near 2.9% in 2026 and inflation around 2.7% by year-end, with advanced economies slowing to about 1.7% in 2026, signaling a higher risk of stagflation.
Barclays is scaling back its asset-based lending to smaller borrowers after losses tied to the collapses of Market Financial Solutions and Tricolor Holdings, shifting its focus to loans and securitizations for larger corporates and raising pricing to reflect higher risk.
Barclays is said to have lent about $700 million to Market Financial Solutions (MFS) and provided banking services as MFS later went into administration. The bank reportedly blocked some MFS transactions before freezing accounts. Adding intrigue, Barclays employed Rihan Dewan—son-in-law of MFS founder Paresh Raja and brother of Tiba Raja—as a high‑yield credit trader (not involved in the MFS loans), with insiders noting potential conflicts of interest. While no wrongdoing is proven, the story highlights scrutiny of ties between Barclays, MFS, and related family connections as Barclays’ stock slid and it signals a strategic shift away from investment banking.
Barclays’ investment bank material risk takers earned an average £901k in bonuses for 2025 (£732m total for 1,465 MRTs), with MRTs’ average salary at £652k for a £1.6m total package. Despite a weak year for M&A and capital markets fees, the bank plans to pivot toward advisory growth and aims to raise its share of global IB fees to about 3.5% by 2028. Bonus distribution remained top-heavy: 762 staff earned over €1, 89 earned over €3.9m, and one individual was in the €17–€18m range.
Barclays analysts warn that the US economy has entered a 'stall state' with a 50% chance of recession within two years, supported by indicators like employment ratios and unemployment rates, and suggest the Federal Reserve may cut interest rates later this year.
Barclays appoints Goldman Sachs veteran Alastair Currie as co-COO amid ongoing cost-cutting efforts, while banks increasingly adopt AI tools like Morgan Stanley's DevGen.AI to automate legacy system updates, raising concerns about job reductions and industry transformation.
Jes Staley, former Barclays CEO, failed to overturn a FCA ban for misleading regulators about his links to Jeffrey Epstein, with the tribunal reducing his fine from £1.8mn to £1.1mn, citing misconduct despite his achievements.
Barclays plans to cut over 200 jobs in its investment bank to improve profitability and invest in priority areas like European rates, equity derivatives, and M&A, as part of CEO Venkatakrishnan's strategy to boost efficiency and returns.
Barclays has raised its 2025 S&P 500 target to 6,050 amid optimism on Wall Street following a decline in tariff-related uncertainty, despite ongoing trade tensions and increased tariffs on steel and aluminum. Major banks like Goldman Sachs and Deutsche Bank have also upgraded their forecasts, reflecting a positive outlook supported by expected corporate earnings growth, though risks from tariffs and economic headwinds remain.
American Airlines has chosen Citigroup as its exclusive credit card partner, ending its partnership with Barclays. The airline anticipates a 10% annual growth in payments from its co-branded credit card and other partners, having earned $5.6 billion in the past year. Following the announcement, American Airlines' shares rose over 6% in premarket trading.
Barclays has agreed to a $19.5 million settlement in a Manhattan lawsuit where shareholders accused the bank of securities fraud for selling $17.7 billion more debt than allowed by regulators. The settlement, which requires court approval, follows Barclays' admission of overissuing structured and exchange-traded notes beyond the authorized limit. Despite denying wrongdoing, Barclays had to restate its 2021 financials and set aside funds for the overissuance. The lawsuit involved investors in Barclays' American depositary receipts from February 2021 to February 2023.
The UK's Financial Conduct Authority has fined Barclays £40 million ($50.9 million) for failing to disclose arrangements with Qatari entities during the 2008 financial crisis. The fine relates to undisclosed fees paid to Qatari funds to avoid a state bailout. Although Barclays initially appealed the fine, it has now withdrawn the appeal, citing the time elapsed and the interests of its stakeholders, while maintaining there is no material financial impact from the penalty.
Court documents reveal that Jeffrey Epstein used Jes Staley's daughter, Alexa Staley, to maintain contact with the former Barclays CEO, Jes Staley, between 2016 and 2017, despite Staley's claims of severing ties with Epstein after becoming the bank's chief.