{"id":110704,"date":"2021-03-29T05:59:19","date_gmt":"2021-03-29T05:59:19","guid":{"rendered":"https:\/\/fin2me.com\/?p=110704"},"modified":"2021-03-29T05:59:19","modified_gmt":"2021-03-29T05:59:19","slug":"nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet\/","title":{"rendered":"Nomura flags $2 billion loss, cancels bond issue; shares plummet"},"content":{"rendered":"

TOKYO (Reuters) -Nomura Holdings Inc on Monday flagged a possible $2 billion loss at a U.S. subsidiary, prompting Japan\u2019s biggest brokerage and investment bank to shelve a hefty bond issuance and sending its stock tumbling by the most in over a decade.<\/p>

FILE PHOTO: A Nomura commercial is shown on a television screen in Osaka, western Japan October 22, 2017. Picture taken October 22, 2017. REUTERS\/Thomas White <\/figcaption>

Nomura\u2019s stock was greeted by a deluge of sell orders at market open, pushing its price down as much 16% in early trade.<\/p>\n

The firm in a statement said the $2 billion hit derived from transactions with a U.S. client. It based the estimate on market prices as of March 26 and said it could change depending on the unwinding of the transactions and market fluctuation.<\/p>\n

The announcement came after a series of block trades in the United States on Friday that investors said caused drops in the stock prices of numerous companies. The trades were linked to sales of holdings by Archegos Capital Management, a person with knowledge of the matter told Reuters.<\/p>\n

Nomura\u2019s loss was related to Archegos\u2019 trades, Bloomberg reported citing people familiar with the matter, one of whom said Archegos was a prime brokerage customer of Nomura.<\/p>\n

Reuters\u2019 calls to Archegos\u2019 New York office after hours on Sunday local time went unanswered. Nomura declined to comment on any relationship with Archegos.<\/p>\n

CONFIDENCE<\/h2>\n

Nomura said it is assessing the impact of the potential loss on its consolidated earnings for the year ending March 31 -scheduled for release on April 27 – and would cancel the planned issuance of $3.25 billion in senior notes.<\/p>\n

\u201cAs long as these losses are one-off in nature, 1H FY3\/22 should be the timing of recovery, thus the impact on the longer-term outlook is relatively limited,\u201d Jefferies analysts wrote in a research memo.<\/p>\n

Just last month, Nomura expressed confidence in sustaining high earnings after booking a 23% on-year rise in April-December net profit at 308.5 billion yen ($2.82 billion), having reported its best third quarter in 15 years on solid global markets and investment banking.<\/p>\n

The recent performance has been driven by its U.S. business, which includes investment banking and equity and bond trading.<\/p>\n

\u201cNomura Holdings should be able to absorb losses of this size,\u201d one broker told Reuters, declining to be identified as they were not authorised to speak to the media.<\/p>\n

\u201cIt does raise a question of whether there are losses at other Japanese investment banks that just haven\u2019t been revealed yet, but at this point it looks like this problem only affects Nomura. This is not something that will bring down the entire equity market.\u201d<\/p>\n

Chief Cabinet Secretary Katsunobu Kato on Monday said the government would monitor the situation carefully and that the Financial Services Agency would share information on the matter with the Bank of Japan.<\/p>\n

($1 = 109.5300 yen)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

TOKYO (Reuters) -Nomura Holdings Inc on Monday flagged a possible $2 billion loss at a U.S. subsidiary, prompting Japan\u2019s biggest brokerage and investment bank to […]<\/p>\n","protected":false},"author":3,"featured_media":110703,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nNomura flags $2 billion loss, cancels bond issue; shares plummet - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nomura flags $2 billion loss, cancels bond issue; shares plummet - Fin2me\" \/>\n<meta property=\"og:description\" content=\"TOKYO (Reuters) -Nomura Holdings Inc on Monday flagged a possible $2 billion loss at a U.S. subsidiary, prompting Japan\u2019s biggest brokerage and investment bank to [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-29T05:59:19+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/03\/cnewsfotor702.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet\/\",\"url\":\"https:\/\/fin2me.com\/markets\/nomura-flags-2-billion-loss-cancels-bond-issue-shares-plummet\/\",\"name\":\"Nomura flags $2 billion loss, cancels bond issue; 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