Latest news with #Comerica
USA Today
4 hours ago
- Business
- USA Today
How Trump tariffs make American manufacturers grate, not greater
How Trump tariffs make American manufacturers grate, not greater One of the key promises behind President Donald Trump's tariff strategy was to revive U.S. manufacturing. But the policies intended to lay that foundation are currently having the opposite effect. During the past three months, as President Donald Trump and his administration have worked to finalize tariff rates across dozens of countries and product categories, U.S. manufacturing has contracted—according to the Institute for Supply Management's May report. '57% of the manufacturing sector's GDP contracted in May," Susan Spence, chair of the Institute for Supply Management's Manufacturing Business Survey Committee, said during a press briefing Monday. "That's up from 41% in April. The contraction is deepening.' Exclusive: Trump pushes countries for best offers as tariff deadline looms Manufacturing continued to contract in May The institute's Purchasing Managers Index fell to 48.5% in May, 0.2 percentage points lower than April's 48.7%. A number consistently below 50% means manufacturing is contracting. \"The headwinds from tariff increases are starting to show up in economic data," wrote Bill Adams, chief economist for Comerica. "The ISM Manufacturing PMI reports that tariffs are a drag on business, as is the uncertainty about where tariffs will settle over the longer term." As part of its monthly reports, the Institute for Supply Management includes anonymous quote from its survey panel on current business conditions. In the latest release, every comment touched on tariffs. One manufacturing manager expressed cautious optimism over the easing of tariffs in May—but remained concerned about the ongoing uncertainty. 'Tariff whiplash continues while the easing of tariff rates between the U.S. and China in May was welcome news, the question is what happens in 90 days. We are doing extensive work to make contingency plans, which is hugely distracting from strategic work." What manufacturing managers said about tariffs in May Below, managers from various industries reported how tariffs affected their organization in May, according to those quoted in the Institute for Supply Management's release: Trump administration asks for countries' best offers 'Production is frozen," Spence said Monday. "Growth can't resume until we get clarity on tariff policy.' Could some of the uncertainty surrounding tariffs be resolved soon? An exclusive report from Reuters on Monday said the Trump administration has set a deadline of June 4 for countries to give the United States their best and final tariff offers. The deadline would give the administration five weeks before its July 8 deadline, or 90-day pause, that they set on April 9. US economy is still growing While Monday's report wasn't upbeat for manufacturers, it did show that the broader economy is still growing. If the manufacturing index remains over 42.3%, it generally indicates that the economy is still expanding. "Goods-producing sectors of the economy will likely contract in 2025," Adams wrote. "However, service-providing industries, which account for most economic activity and employment, are likely to keep growing and help the economy avoid a recession."
Globe and Mail
3 days ago
- Business
- Globe and Mail
2 Large Regional Bank Stocks That Could Get Acquired During the Trump Administration
The banking industry is ripe for consolidation. Although there were more than 4,500 banks in the U.S., as of last year, four, in particular, collectively control trillions in assets: JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. While smaller banks will keep gobbling each other up and merging to obtain scale, this could also take place in the large regional banking market, among banks with $75 billion to $700 billion in assets. Regulators under President Donald Trump's administration have given the sector the green light for mergers and acquisitions, a stance that wasn't embraced under former President Joe Biden's administration. If the large regional banks truly want to compete against the big four, they're going to have to get bigger. Acquisition candidates typically can command a nice premium for shareholders. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here are two banks that could get acquired during the next four years. 1. Comerica: Tough size, attractive markets At the end of the first quarter of 2025, Comerica (NYSE: CMA) had about $78 billion in assets and operates in attractive U.S. banking markets like Texas and states in the fast-growing Southeast of the U.S. This is an awkward size for a regional bank these days, because it is too big to be a local bank, but not nearly big enough to compete with the bigger players. Furthermore, $100 billion has previously been a battleground for banking regulators under various administrations when thinking about the size threshold they consider too big to fail -- meaning they're so crucial to the financial system that regulators will bail them out if they are at risk of failing. As such, investors frequently have to reassess regulations and capital requirements for banks around this size. Last year, Comerica announced it will not be extending a banking relationship with the U.S. Treasury Department that provided it with $3 billion in noninterest-bearing deposits, which is essentially a free funding source, although the agreement will continue for the next few years before the transition, which could partly explain its low valuation relative to peers. When looking at acquisitions, it's important to look at a bank's price-to-tangible book value (TBV), which shows its price relative to its tangible equity, or what the bank might be worth if it were liquidated. The higher a bank's price-to-TBV, the more likely it is to be a buyer because its stock currency is more valuable, so it could buy banks with smaller price-to-TBVs and see less dilution in an all-stock or part-stock deal. Here is the price-to-TBV of several major U.S. regional banks. CMA Price to Tangible Book Value data by YCharts Now, just because Comerica sits at the bottom of the group doesn't mean it will automatically be acquired. However, it makes an acquisition more palatable for a buyer. At the end of the day, banks are sold and not bought, meaning Comerica is going to have to raise its hand if it wants to sell. Interestingly, though, Chief Executive Officer Curtis Farmer is 62 and has a change-in-control (CIC) agreement with the bank that would earn him a payout of more than $35 million in the event that the bank changes hands, among other potential benefits that could be lucrative. 2. KeyCorp: Recently sold minority stake KeyCorp (NYSE: KEY) is another bank that could be gone by the time the Trump administration ends. As you can see in the chart, the bank also falls lower in the pack in terms of price-to-TBV. However, KeyCorp could be attractive, due to its strong capital light, fee-based businesses, including investment banking and trust. Any bank that wants to compete with the big four needs to bulk up in investment banking, and acquiring KeyCorp would be a step in that direction. Additionally, KeyCorp last year sold a 14.9% stake to the Canadian-based lender Scotiabank for $2.8 billion in order to obtain more capital flexibility. This helped it restructure its bond portfolio, which fell underwater amid the higher-interest rate environment during the past few years. The agreement with Scotiabank only allows it to increase its stake in KeyCorp to 19.9% for the next five years, although some analysts have speculated on whether a full acquisition could be in Scotiabank's future. Still, I don't believe this prevents another bank from buying KeyCorp if the bank were to be interested in selling. KeyCorp's CEO Chris Gorman is 64 and also stands to make a lot of money if the bank is acquired, with a CIC agreement that would pay out close to $35.7 million. Should you invest $1,000 in Comerica right now? Before you buy stock in Comerica, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Comerica wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, JPMorgan Chase, PNC Financial Services, and U.S. Bancorp. The Motley Fool recommends Bank Of Nova Scotia and Regions Financial. The Motley Fool has a disclosure policy.
Yahoo
3 days ago
- Business
- Yahoo
2 Large Regional Bank Stocks That Could Get Acquired During the Trump Administration
Mergers and acquisitions (M&A) could pick up in the banking sector under the Trump administration, which plans to deregulate the sector. Large regional banks could experience consolidation. The large regional players need to scale if they want to compete with the likes of JPMorgan Chase and Bank of America. 10 stocks we like better than Comerica › The banking industry is ripe for consolidation. Although there were more than 4,500 banks in the U.S., as of last year, four, in particular, collectively control trillions in assets: JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. While smaller banks will keep gobbling each other up and merging to obtain scale, this could also take place in the large regional banking market, among banks with $75 billion to $700 billion in assets. Regulators under President Donald Trump's administration have given the sector the green light for mergers and acquisitions, a stance that wasn't embraced under former President Joe Biden's administration. If the large regional banks truly want to compete against the big four, they're going to have to get bigger. Acquisition candidates typically can command a nice premium for shareholders. Here are two banks that could get acquired during the next four years. At the end of the first quarter of 2025, Comerica (NYSE: CMA) had about $78 billion in assets and operates in attractive U.S. banking markets like Texas and states in the fast-growing Southeast of the U.S. This is an awkward size for a regional bank these days, because it is too big to be a local bank, but not nearly big enough to compete with the bigger players. Furthermore, $100 billion has previously been a battleground for banking regulators under various administrations when thinking about the size threshold they consider too big to fail -- meaning they're so crucial to the financial system that regulators will bail them out if they are at risk of failing. As such, investors frequently have to reassess regulations and capital requirements for banks around this size. Last year, Comerica announced it will not be extending a banking relationship with the U.S. Treasury Department that provided it with $3 billion in noninterest-bearing deposits, which is essentially a free funding source, although the agreement will continue for the next few years before the transition, which could partly explain its low valuation relative to peers. When looking at acquisitions, it's important to look at a bank's price-to-tangible book value (TBV), which shows its price relative to its tangible equity, or what the bank might be worth if it were liquidated. The higher a bank's price-to-TBV, the more likely it is to be a buyer because its stock currency is more valuable, so it could buy banks with smaller price-to-TBVs and see less dilution in an all-stock or part-stock deal. Here is the price-to-TBV of several major U.S. regional banks. Now, just because Comerica sits at the bottom of the group doesn't mean it will automatically be acquired. However, it makes an acquisition more palatable for a buyer. At the end of the day, banks are sold and not bought, meaning Comerica is going to have to raise its hand if it wants to sell. Interestingly, though, Chief Executive Officer Curtis Farmer is 62 and has a change-in-control (CIC) agreement with the bank that would earn him a payout of more than $35 million in the event that the bank changes hands, among other potential benefits that could be lucrative. KeyCorp (NYSE: KEY) is another bank that could be gone by the time the Trump administration ends. As you can see in the chart, the bank also falls lower in the pack in terms of price-to-TBV. However, KeyCorp could be attractive, due to its strong capital light, fee-based businesses, including investment banking and trust. Any bank that wants to compete with the big four needs to bulk up in investment banking, and acquiring KeyCorp would be a step in that direction. Additionally, KeyCorp last year sold a 14.9% stake to the Canadian-based lender Scotiabank for $2.8 billion in order to obtain more capital flexibility. This helped it restructure its bond portfolio, which fell underwater amid the higher-interest rate environment during the past few years. The agreement with Scotiabank only allows it to increase its stake in KeyCorp to 19.9% for the next five years, although some analysts have speculated on whether a full acquisition could be in Scotiabank's future. Still, I don't believe this prevents another bank from buying KeyCorp if the bank were to be interested in selling. KeyCorp's CEO Chris Gorman is 64 and also stands to make a lot of money if the bank is acquired, with a CIC agreement that would pay out close to $35.7 million. Before you buy stock in Comerica, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Comerica wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, JPMorgan Chase, PNC Financial Services, and U.S. Bancorp. The Motley Fool recommends Bank Of Nova Scotia and Regions Financial. The Motley Fool has a disclosure policy. 2 Large Regional Bank Stocks That Could Get Acquired During the Trump Administration was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Comerica to Participate in 2025 Morgan Stanley US Financials Conference; Announces Details for Conference Call to Review Second Quarter 2025 Earnings
DALLAS, May 28, 2025 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) announced it will participate in the 2025 Morgan Stanley US Financials Conference on Wednesday, June 11, 2025. Comerica Incorporated also provided details for its second quarter 2025 earnings call on Friday, July 18, 2025. Interested parties may access additional information through the following details: 2025 MORGAN STANLEY US FINANCIALS CONFERENCE Date: Wednesday, June 11, 2025 Time: 8 a.m. CT / 9 a.m. ET Participating: James Herzog, Chief Financial Officer Peter Sefzik, Chief Banking Officer Allysun Fleming, Executive Vice President, Payments Kelly Gage, Director of Investor Relations Webcast/Presentation: The live audio webcast and presentation slides will be available on the Investor Relations Presentations and Events page Comerica's presentation may include forward looking statements. Replay Information: A replay (accessible for at least 10 days) of the call is expected to be available approximately one hour after the live webcast on the Investor Relations Presentations and Events page on SECOND QUARTER 2025 EARNINGS CONFERENCE CALL Date: Friday, July 18, 2025 Time: 7 a.m. CT / 8 a.m. ET Participant Dial-In: (877) 484-6065 or (201) 689-8846 Webcast/Presentation: The live audio webcast and presentation slides will be available on the Investor Relations Presentations and Events page on Comerica's presentation may include forward looking statements. Replay Information: A replay (accessible for at least 10 days) of the call is expected to be available approximately one hour after the live webcast on the Investor Relations Presentations and Events page on In addition, the conference presentation, financial results and earnings presentation will be furnished on Form 8-K filings that will be available on the Securities and Exchange Commission website at On each webcast, Comerica may discuss or disclose material business, financial or other information not contained in the conference presentation, financial results, earnings presentation, or in other prior disclosure. Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank and Wealth Management. Comerica, one of the 25 largest commercial U.S. financial holding companies, focuses on building relationships and helping people and businesses be successful. Comerica provides banking centers across the country with locations in Arizona, California, Florida, Michigan and Texas. Founded on Aug. 17, 1849, in Detroit, Michigan, Comerica continues to expand into new regions, including its Southeast Market, based in North Carolina, and Mountain West Market in Colorado. Comerica has offices in 15 states and services 13 of the 15 largest U.S. metropolitan areas, as well as Canada and Mexico. Comerica reported total assets of $77.6 billion at March 31, 2025. Learn more about how Comerica is raising expectations of what a bank can be by visiting and follow us on Facebook, X, Instagram and LinkedIn. View original content to download multimedia: SOURCE Comerica Incorporated Sign in to access your portfolio
Washington Post
02-05-2025
- Business
- Washington Post
Markets erase April losses as jobs report fuels stock gains
The stock market rallied Friday after a stronger-than-expected jobs report eased concerns that President Donald Trump's sweeping tariffs could tank the U.S. economy, with both the S&P 500 and Dow Jones Industrial Average extending their winning streaks to nine days. The S&P 500 closed at 5,686.87 — up about 1.5 percent for the day — and has now recovered all the ground it had lost since April 2, when Trump announced plans for sweeping tariffs. The Dow jumped more than 500 points to close 1.4 percent higher. The tech-heavy Nasdaq composite index gained 1.5 percent. Friday's strong jobs report boosted Wall Street's confidence in the U.S. economy and eased recession fears, which have surged as Trump has adjusted his tariff policies. U.S. employers added 177,000 jobs in April and the unemployment rate held steady at 4.2 percent. The jobs report was 'reassuringly normal' and mitigates fears of an immediate employment downturn from tariff uncertainty, Comerica chief economist Bill Adams said. Still, more current surveys reflect widespread concern about how Trump's tariffs will impact business hiring and spending, he said. The S&P 500 has closed higher for nine consecutive days. The index remains well below its February peak and is still down about 3.3 percent since the start of the year. Stocks had suffered repeated sell-offs since the White House introduced its controversial tariff policies earlier this year, which has wiped out last year's post-election rally. At one point, the Cboe Volatility Index, known as Wall Street's 'fear gauge,' briefly reached its worst level since 2020. But markets breathed a sigh of relief on Friday, said Chris Zaccarelli, chief investment officer for Charlotte-based Northlight Asset Management. If the administration unveils more targeted tariffs when its 90-pause duties for most countries ends in July, markets will 'take it in stride,' Zaccarelli said, although stocks 'aren't out of the woods yet,' he added. 'If the labor market holds up and the Trump administration walks back the most egregious tariffs, the economy could skirt a deep recession,' added Jeffrey Roach, chief economist for LPL Financial.
