ECONOMIC NEWS UPDATE: Calvert Investments, Inc. and George Serafeim, Jakurski Family Associate Professor of Business Management at Harvard Business School, recently issued the first research report in a new planned partnership:
“Through this new partnership, we aim to expand upon public and academic dialogue about corporate responsibility and provide investors with actionable insights,�? said John Streur, CEO of Calvert Investments. “Responsible business practices and firm alignment with moral imperatives are requirements of competitiveness in today’s economic reality. Our research supports this idea of shared value and demonstrates how awareness of responsible business practices can empower investors to do more.�?
“The public has formed social expectations that have guided the corporate sector’s raised involvement in contributing to social and environmental solutions,�? writes George Serafeim in the report’s executive summary. “By understanding corporations’ environmental and social activities and integrating this understanding in investment decisions, investors can advance and benefit from companies’ creation of long-term value.�?
The report offers a framework to understand how investments by companies in more responsible business practices can translate to real benefits, both for businesses and investors. The authors also summarize previous Calvert research that shows valuations of firms with better Environmental, Social, and Governance (ESG) performance reflect higher predictable growth and lower cost of capital. These firms also trade at higher valuation multiples in equity markets and have lower credit default swap spreads, a measure of credit risk.
Calvert Investments is a global leader in responsible investing. Our mission is to deliver superior long-term performance to our clients and enable them to achieve positive impact. Calvert Investments had more than $12.6 billion in assets under administration as of August 31, 2015.
Calvert Investments is a registered trade name representing Calvert Investments, Inc. and its auxiliaries, counting Calvert Investment Administration, Inc., an SEC-registered investment advisor, and Calvert Investments Distributors, Inc., a FINRA member broker/dealer and distributor of the Calvert mutual funds.
U.S. STOCKS NEWS: On Friday, Shares of General Motors Company (NYSE:GM), lost -2.56% to $30.51, after the company declared that it will pay $900 million to settle its ignition-switch proceedings with the Department of Justice.
The ignition switch issue has been linked to at least 169 deaths and forced the company to recall millions of vehicles.
The $900 million payout allows GM to escape criminal prosecution despite evidence that the companys legal and engineering staffs concealed the deadly issue for nearly a decade, according to Reuters.
An independent monitor will oversee the future handling of GMs safety issues as part of the settlement.
General Motors Company designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide. It operates through GM North America, GM Europe, GM International Operations, GM South America, and GM Financial segments. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, in addition to under the Alpheon, Baojun, Jiefang, and Wuling brand names.
Shares of MetLife, Inc. (NYSE:MET), declined -2.64% to $46.52, during its last trading session, after the company declared that it will take a $792 million charge against its third quarter earnings.
The updated outlook stems from federal tax charges from the past few years that it said it may be liable for.
The company said that while it stands by its previous accounting numbers, recent changes by the U.S Court of Appeals regarding the discontinuation of foreign tax credits could result in the extra charges.
There has been no change in the companys position on the disallowance of its foreign tax credits. MetLife continues to contest the disallowance of these foreign tax credits by the IRS as administration believes the facts strongly support the companys position, the company said.
MetLife is planned to report its third quarter results on October 28.
MetLife, Inc. provides life insurance, annuities, employee benefits, and asset administration products in the United States, Japan, Latin America, Asia, Europe, and the Middle East. It operates in six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; Latin America; Asia; and Europe, the Middle East and Africa.
Shares of Huntington Bancshares Incorporated (NASDAQ:HBAN), declined -3.09% to $10.36, during its last trading session.
Shares of Huntington Bancshares Incorporated have been given a consensus rating of “Hold�? by the twenty-four brokerages that are presently covering the stock, ARN reports. Three investment analysts have rated the stock with a sell recommendation, eleven have issued a hold recommendation and seven have given a buy recommendation to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $11.92.
Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services.
Finally, Shares of Banco Santander, S.A. (NYSE:SAN), ended its last trade with -4.06% loss, and closed at $5.67.
In the year since she became chairman, Banco Santander SA’s Ana Botin has cut the dividend, tapped shareholders for funds and replaced administration in the U.S., Brazil and the bank’s home market of Spain, according to Bloomberg.
The stock price has foundered. Ahead of a two-day meeting with Botin and her team this week, some of Santander’s biggest investors say they’re concerned that profit pressures in key markets mean Spain’s largest bank will struggle to build capital ratios to match peers and meet regulators’ escalating demands. Bloomberg Reports
“Banco Santander needs to cope with two main issues: the current capital ratio and profitability,�? said Christian Sole, senior equity analyst at Candriam Investors Group in Brussels, which oversees about 90 billion euros ($102 billion) in assets and holds Santander shares. The bank’s 2015 target for a 10 percent common equity Tier 1 ratio “was considered a huge number years ago but is not enough for a bank like Santander that has a large exposure to emerging markets.�?
Banco Santander, S.A. provides various banking products and services for individuals and companies. The company offers various deposit products, such as demand and time deposits; mortgages, auto finance, and personal credits; consumer finance; and mobile banking and electronic banking services. It is also engaged in corporate banking, treasury, and investment banking activities; designs and manages mutual and pension funds; invests in companies; and offers cash administration, trade finance and basic financing, and custody services.
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