Facebook will also create a new subsidiary, Calibra, to build a digital wallet for people to store and exchange the currency using apps.Technologyread more
Experts expect Facebook's cryptocurrency venture to alleviate some security issues, while introducing new ones.Cybersecurityread more
European Central Bank President Mario Draghi defended the tools that the organization has available.Europe Newsread more
According to China's top economic planning body, some local companies are cutting back on their efforts to hire new university graduates.China Economyread more
German Chancellor Angela Merkel has presided over a tumultuous recent period, which for many, has left Europe on the brink.Commentaryread more
The chipmaker crush could persist and investors should be selective, but Nvidia looks like a clear buy, one market watcher says.Trading Nationread more
Tensions between China and the U.S. are threatening to slow global trade further, threatening some Asian economies.Asia Economyread more
U.S. President Donald Trump's former campaign chairman Paul Manafort was transferred to a detention facility in Manhattan on Monday ahead of an expected arraignment on state...White Houseread more
Airbus recorded orders and options for 123 planes, according to the aviation consulting firm IBA.iQ.Paris Air Showread more
Markets in Asia were mostly higher on Tuesday as investors awaited the start of a closely-watched meeting by the U.S. Federal Reserve, set to kick off later stateside.Asia Marketsread more
Wall Street analysts think Facebook's cryptocurrency payments project will give the company a big boost.Marketsread more
Low interest rates and concerns about future litigation are no reason to turn a blind eye to bank stocks, Rafferty Capital's Dick Bove said Tuesday.
"There's tremendous amount of value in these stocks which is simply not being recognized by the market," Rafferty's vice president of equity research said on CNBC's "Squawk Box."
Banks have had a tougher time making money on deposit-based business because the Federal Reserve has kept interest rates near zero since December 2008.
However, research by Rafferty Capital showed there is no correlation between interest rates and bank stock prices, Bove said: "It was almost impossible to see that there was a linkup between interest rates and what happened to bank stocks."
As for litigation arising from the housing and financial crises, the outlook has turned "somewhat positive," Bove said, citing a report by the Financial Times that the top 16 banks were charged about $300 billion in fines, for which Bank of America accounts for one-third.
"The fines will still be there in the next five years, but they're not going to be anywhere near what they were in the past five years," he said.
Responding to reports that delinquencies on home loans are on the rise, Bove said overall loan losses are below normal.
"To assume that they're going to go up from this point is a pretty reasonable estimation," he said. "The key reason that you want to own the bank stocks is not because you're worried about where loan losses are going to go or whether they're going to stay where they are. It's because loans are going up."
Total loan volume has reached about $8.25 trillion, led by lending to companies and commerce, and it now appears the consumer will begin borrowing again, Bove said.
"Driven by an increase in loans, you're going to see earnings probably get back to $70 billion for the industry, and the stocks don't reflect it at all," he said. "You're going to see a rotation into bank stocks, if nothing else, but the bottom line is you're going to see a rotation into a group of stocks that are selling below their normal valuation and whose earnings are going to go up for at least the next two years."
Disclosure: Bove owns shares of JPMorgan, Bank of America and Citigroup. Rafferty Capital does not own greater than a 1 percent share in the stocks, and does not provide investment banking services to the institutions.