Tech & Science Discover plunges to decade low after warning investors of rising expenses
Lucky escape as SUV plunges several metres onto walkway at Bondi Beach
Two drivers were exchanging details after a minor traffic incident when one of the cars suddenly rolled forward and flipped over a railing, landing on its roof.No one was injured in the incident, which occurred following an earlier traffic accident on a nearby road.
- stock fell the most in more than a decade after warning it may need to boost operating expenses as much as 11% in 2020.
- The company's increased spending will drive marketing for non-card products and better technology, executives said on a call with analysts.
- The company has been utilising new analytics technology to predict which clients will fall behind or default on credit card loans.
- The practice bolsters Discover's growing troubled-debt restructuring program, but a jump in net charge-off rate through 2019 prompted fear among analysts that the company is fuelling an increasingly risky venture.
stock sank the most in more than 10 years after warning investors it may need to increase spending as much as 11% in the new year.
Severe thunderstorm warning issued for Qld regions following earlier flash flooding
A severe thunderstorm warning has been issued for parts of Queensland on Thursday, with flash flooding and heavy rains expected to sweep across the state. The Southern Darling Downs, Central Highlands and Coalfields, along with parts of the North Tropical Coast are set to be worst affected as damaging winds are predicted in the regions.The Bureau is expecting conditions to continue into Friday and the weekend.While a heavy downpour caused flash flooding in Rockhamption forcing streets to be closed in the area.
The financial services company's annual operating costs could rise as high as $US4.9 billion in 2020 compared to $US4.4 billion last year, bank executives noted in a call with analysts. The hiked costs will go toward marketing for non-card products and investment in new technology.
The company announced its fourth-quarter earnings after market close on Thursday, posting better-than-expected results for earnings per share and falling just below Wall Street's revenue estimate.
Apple is launching a new feature for the Apple Card that addresses one of its biggest drawbacks
Apple will now allow Apple Card owners to export transaction data from the Wallet app to third-party apps, making it easier to manage expenses alongside transactions from other accounts. Card holders will be able to export their expenses into any app that supports the ability to import data as a spreadsheet. It's one of several updates to the Apple Card that Apple has released since the card's August launch, following the introduction of a new iPhone upgrade program for card holders. Visit Business Insider's homepage for more stories.
The fourth quarter's net charge-off rate, which measures the debt owed to Discover that is unlikely to be paid back, rose to 3.19% from 3.08% in the year-ago period, signalling growing risk in one of the company's increasingly important troubled-debt restructuring, or TDR, unit.
Discover stock fell as much as 11.2% before paring some losses later Friday morning.first reported the decade-high stock fall.
The company has been utilising new analytics technology to predict which clients will fall behind or default on credit card loans. The practice benefits the TDR program, which allows clients to change repayment terms in times of need. Users previously needed to call the firm to qualify for the program, but Discover has since opened it to mobile and online banking users.
Receivables through the troubled-debt business surged 48% in the fourth quarter compared to the year-ago period, confirming the rapidly expanding use of the restructuring program. Some analysts questioned its quality and whether making the restructuring option easier to access would bring greater risk to the company. CEO Roger Hochschild looked to ease the concerns, and clarified Discover can maintain healthy credit while opening the program to more customers.
Australia's Woodside Petroleum signals higher output in 2020
Australia's Woodside Petroleum signals higher output in 2020The country's largest listed oil and gas explorer said it expects production between 97 million barrels of oil equivalent (mmboe) and 103 mmboe in 2020, above the 89.6 mmboe it churned out in 2019. It had forecast output of about 100 mmboe for 2020.
"What you're seeing flow through the financials is exactly what you would hope in terms of overall good credit performance and a solid book," Hochschild said. "And TDRs is an approach to work with customers and help cash flows."
Investors and analysts alike are set to watch net charge-offs and late payment rates in the coming quarters as Discover spends more on tech and its TDR business. Net charge-offs gained 10% to $US2.88 billion in 2019, on par with analyst estimates. The proportion of credit-card loans at least 90 days overdue increased to 1.32% from 1.22%.
Discover traded at $US77.76 per share as of 1:20 p.m. ET Friday, down about 8.1% year-to-date.
The company has 11 "buy" ratings, 12 "hold" ratings, and one "sell" rating from analysts, with a consensus price target of $US90.05, according to Bloomberg data.
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Webjet plunges on travel fears, downgrade .
Shares in Webjet are down more than 10 per cent after a downgrade from Morgan Stanley and fears over the coronavirus outbreak. At 1306 AEDT, Webjet shares were down 11.3 per cent to a five-week low of $12.73.Other travel-related shares were down as well, with Qantas falling 5.3 percent and Flight Centre down 3.8 percent as the death toll from the epidemic in China topped 100.But Webjet was the worst decliner among ASX200 components on Tuesday, falling the most since Webjet lost 11.6 percent of its value on November 22, 2017.
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