Financial Wire - Financial News

Citigroup Beats First-Quarter Views as Revenue Surges

Citigroup's (C) first-quarter results came in stronger than Wall Street's expectations amid double-digit gains in fixed income and investment banking revenue.Earnings rose to $3.06 a share for the March quarter from $1.96 a year earlier, exceeding the FactSet-polled consensus of $2.63. Net revenue grew 14% to $24.63 billion, ahead of the Street's $23.53 billion view."We're off to an exceptionally strong start in 2026," Chief Executive Jane Fraser said in a statement Tuesday.Citigroup shares were up 3% in afternoon trade, bringing its year-to-date gains to 11%.Markets revenue surged 19% to $7.25 billion as fixed income and equity markets jumped. Revenue within the services business climbed 17% to $6.10 billion amid double-digit increases in treasury and trade solutions and in securities services.Banking revenue jumped 15% to $1.77 billion, reflecting double-digit growth in investment banking, which offset a decline in corporate lending. Wealth revenue rose 11% to $3.07 billion, while US consumer cards grew 4% to $4.76 billion.JPMorgan Chase (JPM) reported better-than-expected first-quarter results Tuesday, while Wells Fargo's (WFC) revenue missed market views. On Monday, Goldman Sachs (GS) posted first-quarter results above market estimates.For 2026, Citigroup said it continues to expect net interest income excluding markets to grow by 5% to 6% year over year, driven by sustained fee momentum in services, banking and wealth.The company remains "very much on track" to deliver its target of 10% to 11% return on tangible common equity this year, Fraser said."We've entered into the final phase of our divestitures and 90% of our transformation programs are now at or near our target state," she said.Price: $129.79, Change: $+3.51, Percent Change: +2.78%

$C$GS$JPM$WFC

Global Payments Seen Shifting Toward Tech-Driven Revenue After Worldpay Deal, UBS Says

Global Payments (GPN) is expected to have a more tech-enabled merchant mix following its Worldpay acquisition, UBS Securities said in a Monday note.UBS estimates the combined company's 2025 pro forma merchant business mix at about 64% tech-enabled and 36% relationship-led, reflecting increased exposure to integrated and embedded payments and software-driven solutions after the addition of Worldpay and divestitures of Payroll and AdvancedMD.The shift underscores greater exposure to scalable, technology-driven revenue streams, while small and medium businesses and relationship-led channels remain a meaningful part of the business, the firm said.UBS also said its pro forma model implies 2025 revenue of $12.1 billion for the combined company.UBS maintained its neutral rating and $87 price target on Global Payments.Price: $68.61, Change: $+0.47, Percent Change: +0.69%

$GPN

US Markets6d ago

Middle East Conflict to Drive Oil Demand Contraction This Year, IEA Says

The International Energy Agency on Tuesday forecast global oil demand to turn negative this year due to the Middle East conflict, penciling in the sharpest consumption decline in the second quarter since the COVID-19 pandemic.The agency now forecasts demand to drop by 80,000 barrels a day this year, compared with a 640,000-barrel rise predicted last month.Oil consumption is anticipated to shrink by 1.5 million barrels a day in the second quarter, representing the steepest plunge since COVID-19, the IEA said. Demand is expected to contract by 800,000 barrels per day year over year in March and by 2.3 million barrels this month, the IEA said."Initially, the deepest cuts in oil use have come in the Middle East and Asia Pacific, mainly for naphtha, LPG and jet fuel," according to the IEA report. "However, demand destruction will spread as scarcity and higher prices persist."Energy prices have soared in the aftermath of the US-Israel war with Iran that have curtailed shipments through the crucial Strait of Hormuz. While Washington and Tehran have agreed to a temporary ceasefire, the two sides were unable to reach a deal during negotiations in Pakistan over the weekend.Brent crude declined 4% to $95.40 a barrel in Tuesday trading, while West Texas Intermediate fell 6.7% to $92.42."Resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy," the IEA said. "The prospects for a lasting negotiated settlement to the conflict remain unclear at this stage."On Monday, the Organization of the Petroleum Exporting Countries lowered its second-quarter oil demand forecast, but maintained its full-year estimates amid expectations for a rebound in the second half.The US navy on Monday began a blockade of maritime traffic entering and exiting Iranian ports.Global oil supply plunged by 10.1 million barrels a day to 97 million barrels last month, amid Tehran's attacks on energy infrastructure in the Middle East and restrictions to tanker movements through the strait, according to the agency. In March, it forecast supply to drop by 8 million barrels for the month.Last month, the IEA agreed to release a record 400 million barrels of oil amid concerns around supply disruptions caused by the Middle East conflict.

Oil & Energy6d ago

Financial Oil Derivatives Surge in Volatile Market as Physical Supply Drops, OIES Says

Financial oil markets have expanded by the equivalent of about 1 billion barrels per day in derivatives trading volumes, even as global physical oil supply has fallen by over 10 million barrels per day since the start of the Gulf war, according to Oxford Institute for Energy Studies analyst Ilia Bouchouev in a Tuesday note.In a commentary on market dynamics during the ongoing crisis, Bouchouev said trading behavior across options, futures, and hedging flows has shifted sharply as volatility in physical crude markets intensified.He said hedge funds have at times reduced net futures exposure, with risk allocations shrinking as volatility rises. Some discretionary funds have also moved to the sidelines, citing difficulty in meeting performance targets under current conditions.As hedge funds pulled back, other participants have taken a more prominent role.Oil producers have increasingly sold longer-dated futures via swap dealers to lock in elevated prices, while participants positioning around US Strategic Petroleum Reserve releases have traded spreads between short- and long-dated contracts.Options traders, meanwhile, have also contributed to recent selling pressure by taking profits on earlier positions.Bouchouev said these flows have contributed to a growing disconnect between physical oil prices and benchmark futures such as Brent and West Texas Intermediate, with derivatives activity increasingly shaping short-term price dynamics.He added that while some financial traders remain structurally bullish, expressing directional views has become more difficult in highly volatile conditions, where small position shifts can lead to outsized portfolio impacts.However, he cautioned that sentiment could shift quickly. Any escalation in geopolitical tensions in the Middle East could trigger renewed call option buying and a fresh wave of bullish positioning.He also noted that although financial oil markets are significantly larger than physical crude markets, they remain small relative to global equity and bond markets, leaving room for spillovers from broader macro-financial conditions.The derivatives market for refined products, he added, remains structurally imbalanced and sits at the center of current pricing distortions.

Financial News

Citigroup Beats First-Quarter Views as Revenue Surges

Global Payments Seen Shifting Toward Tech-Driven Revenue After Worldpay Deal, UBS Says

Citigroup Beats First-Quarter Views as Revenue Surges

Global Payments Seen Shifting Toward Tech-Driven Revenue After Worldpay Deal, UBS Says

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Middle East Conflict to Drive Oil Demand Contraction This Year, IEA Says

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Financial Oil Derivatives Surge in Volatile Market as Physical Supply Drops, OIES Says

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