BNP.PA - BNP Paribas SA

Paris - Paris Delayed price. Currency in EUR
51.55
+0.05 (+0.10%)
At close: 5:36PM CET
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Previous close51.50
Open51.65
Bid0.00 x 0
Ask0.00 x 0
Day's range51.40 - 52.24
52-week range38.13 - 52.24
Volume3,545,780
Avg. volume4,127,283
Market cap64.273B
Beta (3Y monthly)1.37
PE ratio (TTM)8.75
EPS (TTM)5.89
Earnings date5 Feb 2020
Forward dividend & yield3.02 (5.86%)
Ex-dividend date2019-05-29
1y target est61.49
  • Reuters - UK Focus

    LIVE MARKETS-Are European banks getting naughtier?

    * Qiagen surges as it explores sale Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. ARE EUROPEAN BANKS GETTING NAUGHTIER? "While U.S. banks were particularly hit by misconduct costs in the immediate aftermath of the global financial crisis, European banks have been more exposed since 2015", a study published today by the ECB found.

  • Bond Investors Fume at Price Talk Some Call ‘Bait and Switch’
    Bloomberg

    Bond Investors Fume at Price Talk Some Call ‘Bait and Switch’

    (Bloomberg) -- It was a big day for the bond pros at BNP Paribas SA - they were selling 1 billion euros ($1.1 billion) of the bank’s own debt to a market hungry for their product. So it’s no wonder buyers piled in when the notes were offered at a substantial discount.As the morning wore on and the bids poured in, the price kept rising. By the time terms were set at noon, the discount was virtually gone.“Everyone knows the game,” said Suki Mann, former head of credit strategy at UBS Group AG and founder of the CreditMarketDaily newsletter. “Banks make deals cheap enough to get investors in, then, once they’ve got huge books, they ratchet up the price.”Times, though, are changing. Investors squeezed by ultra-low yields are getting fed up -- one fund manager complained to BNP Paribas after the June 25 issue. The data confirm their impressions: the compelling yields that pique their interest at the outset are increasingly vanishing in the marketing.“It’s gotten much, much worse,” said Matthias Muth, a bond dealer at MRM Securities near Frankfurt and a veteran with more than 35 years in the industry.It’s a sign of how central bank purchases and negative interest rates have distorted markets. Investors are fighting for every basis point they can get: In August, a record 30% of all investment-grade securities were bearing sub-zero yields, meaning if investors held them to maturity they would lose money. The clamor for anything that yields anything is driving prices up even more.For euro-denominated tier 2 notes -- the kind of mainly finance-industry debt sold that day by BNP Paribas -- the average “tightening” between so-called initial price talk and pricing has averaged 26.9 basis points this year, according to Bloomberg data. That’s more than double last year’s 11.34 -- and the tighter the spread, the higher the price of the bond. In the investment-grade universe, the average this year is 23.1 basis points, up almost 50% from 2018.Tactics aside, the whole process of selling corporate bonds is increasingly coming under scrutiny. Regulators have called for more detail on how the debt is allocated and fintech start-ups are pushing to automate parts of the process, reducing humans’ control.For their part, bankers wonder what the fuss is about. They say pricing reflects nothing more sinister than supply and demand.“The strength remains very much in the hands of issuers” as it has since the European Central Bank started adding corporate-bond purchases to its arsenal three years ago, said Tim Hall, former global head of debt capital markets at Credit Agricole SA. As years passed, the leverage “has shifted even more decisively to issuers.”Umang Vithlani, head of credit at Fideuram Asset Management in Dublin, says he’s pulled out of deals when bonds he wanted got too expensive: he recalled a July sale by EnBW Energie Baden-Wuerttemberg AG, which included multiple managers such as BNP Paribas, Barclays Plc and Citigroup Inc. and tightened more than 70 basis points from guidance to sale. He also withdrew from one by Royal KPN NV that was arranged by BNP, Barclays, Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc.On the other hand, he stayed in when French insurer La Mondiale’s spread narrowed a whopping 62.5 basis points from beginning to end in an Oct. 17 sale arranged by HSBC Holdings Plc, Morgan Stanley and Natixis. He still liked the 4.375% final coupon.“People need to be invested,” said Vithlani, who oversees 4 billion euros. “Investors have no choice but to accept the price they’re being given in the primary market to get their money to work,” saying there’s sometimes not enough supply in the secondary market.But it was BNP Paribas’ deal on June 25 that fueled a client complaint and led to an internal review. The French bank concluded that its syndicate desk in London had done nothing wrong. Alexandra Umpleby, a spokeswoman for BNP Paribas in London, declined to comment.When the bank started circulating price guidance at 8:39 a.m. at 170 basis points over the base level known as mid-swaps, the yield curve implied that the fair market spread of its 12-year tier 2 debt was 112.7 basis points, according to Bloomberg BVAL data. As investors piled in, the bank slashed the estimate to 140 basis points. Finally, they priced at 130 basis points above the mid swaps, for a yield of 1.63%. They’ve rallied since then, along with the market, showing a spread of about 118, according to Bloomberg data.From BNP Paribas’s point of view it was a great result. It saved more than 400,000 euros in payments over the life of the bonds and the deal was nearly four times covered, a stamp of approval in credit markets. While banks aren’t compensated based on a bond’s pricing, they are judged on their ability to drum up demand and get deals away cheaply.“People are so desperate to get cash invested they’re not likely to punish the cheeky initial talk,” said Gordon Shannon from TwentyFour Asset Management LLP, which oversees 15.3 billion pounds ($20 billion).Eventually, though, investors will have had enough, says Shannon. “At some point there will be a deal where enough orders drop away on the tightening that it will spoil the deal,” he said. “And the risk of that happening would scare banks from behaving that way again.”To contact the reporters on this story: Harry Wilson in London at hwilson57@bloomberg.net;Liam Vaughan in London at lvaughan6@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.netTo contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, James HertlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Goldman Sachs to Pay $20 Million in Bond-Rigging Settlement
    Bloomberg

    Goldman Sachs to Pay $20 Million in Bond-Rigging Settlement

    (Bloomberg) -- Goldman Sachs Group Inc. agreed to pay $20 million to settle an investor lawsuit accusing traders at the bank, along with 15 other financial institutions, of rigging prices for bonds issued by Fannie Mae and Freddie Mac.As part of the settlement, disclosed Friday in a court filing, Goldman Sachs will cooperate with investors in their case against the other banks. The firm also agreed to make changes to its antitrust-compliance policies related to bond trading. A federal judge in Manhattan must approve the settlement before it can take effect.Investors sued after Bloomberg reported in 2018 that the U.S. Department of Justice was investigating some of the world’s largest banks for conspiring to rig trading in unsecured government bonds.Goldman Sachs has turned over 71,000 pages of potential evidence, including four transcripts of chat-room conversations among its traders and some from Deutsche Bank AG, BNP Paribas SA, Morgan Stanley and Merrill Lynch & Co., according to court papers filed Friday. The bank agreed to provide additional help, including deposition and court testimony, documents and data related to the bond market.Goldman Sachs isn’t the first to resolve the civil claims. In September, Deutsche Bank agreed to settle for $15 million. First Tennessee Bank and FTN Financial Securities Corp. agreed to a $14.5 million settlement later in September.Among the firms remaining as defendants in the case are Credit Suisse AG, Barclays PLC and Citigroup Inc.The case is In re GSE Bonds Antitrust Litigation, 19-01704, U.S. District Court, Southern District of New York (Manhattan).To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at rvanvoris@bloomberg.netTo contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Does BNP Paribas SA's (EPA:BNP) CEO Pay Matter?
    Simply Wall St.

    Does BNP Paribas SA's (EPA:BNP) CEO Pay Matter?

    Jean-Laurent Bonnafe became the CEO of BNP Paribas SA (EPA:BNP) in 2011. This analysis aims first to contrast CEO...

  • Reuters - UK Focus

    UPDATE 1-Banks, funds propose shorter trading day in Europe, bourses split

    Banks and fund managers want the European stock trading day shortened by 90 minutes in a radical move they say would improve market efficiency and staff wellbeing - but exchanges are split. The Association for Financial Markets in Europe (AFME), a banking industry body, and UK-based Investment Association (IA), which represents asset managers, said Europe had some of the longest trading hours in the world at 8-1/2 hours.

  • Wall Street and the City of London Have Rattled Berlin
    Bloomberg

    Wall Street and the City of London Have Rattled Berlin

    (Bloomberg Opinion) -- Germany’s finance minister Olaf Scholz acknowledged this week that the European Union needs to make progress on cementing a banking union. The bloc’s growing reliance on American and British banks to underwrite the bulk of its capital markets activity, combined with the prospect of Brexit putting up barriers to European lenders accessing London-based capital, helps explain his new urgency.While domestic politics is playing a part in Scholz’s newfound warmth for the project (as my colleague Leonid Bershidsky argues here) and his insistence on important red lines may hinder progress (as Ferdinando Giugliano suggests here), he described his key motivation in an article for the Financial Times succinctly:Now that the U.K., home to London's capital markets, is on the verge of withdrawing from the bloc, we must make real progress. Being dependent for financial services on either the U.S. or China is not an option. So if Europe does not want to be pushed around on the international stage, it must move forward with key banking union projects, as well as the complementary project of capital markets union.Companies in Europe, the Middle East and Africa have raised more than $78 billion in equity offerings this year. In equity underwriting, Wall Street banks are becoming more dominant as Deutsche Bank AG and BNP Paribas SA, the EU-27’s biggest players in this field, cede market share.More than 40% of that underwriting business was led by JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. Deutsche Bank’s market share has more than halved in three years.There’s a similar picture in the league tables for international bonds, where borrowers have raised more than $3.8 trillion this year. JPMorgan’s position as top lead underwriter in that category gives it a market share of almost 8% for the past three years, double that of Deutsche Bank. While BNP has increased its share to 4.4%, it remains well behind JPMorgan, Citi and Bank of America Corp. as well as London-based HSBC Holdings Plc and Barclays Plc.So Scholz is absolutely right to worry that the EU risks being starved of capital if its financial services industry continues to stumble from crisis to crisis and its markets remain fragmented. The plan earlier this year to create a national banking champion by merging Deutsche Bank with Commerzbank AG — a project endorsed by Scholz — was doomed to fail. But a cross-border European champion able to compete with Wall Street and the City of London is sorely needed.To contact the author of this story: Mark Gilbert at magilbert@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Biggest OPEC+ Producers Aren’t Pushing for Deeper Oil Cuts
    Bloomberg

    Biggest OPEC+ Producers Aren’t Pushing for Deeper Oil Cuts

    (Bloomberg) -- The biggest producers in OPEC+ aren’t pushing for deeper oil-supply cuts when the group meets next month, according to delegates across the coalition.The Organization of Petroleum Exporting Countries and its allies are more likely to stick to their current output targets and encourage members to comply more fully, the delegates said, asking not to be identified because the talks are private. The producers, representing about half of global supply, meet in Vienna on Dec. 5 and 6.OPEC is anticipating a supply glut in the first half of next year and prices are already lower than most members need to balance their budgets. It could face further pressure in 2020 as U.S. shale-oil supplies boom and global demand increases slowly. Morgan Stanley, Commerzbank AG and Rystad Energy AS have said OPEC and its allies need to cut deeper in response.Last month, officials from the organization signaled they’re prepared to do this, with Saudi Energy Minister Prince Abdulaziz bin Salman -- who represents OPEC’s biggest and most influential member -- saying it was his “job” to thwart any surplus. Yet the pain of sacrificing more sales volumes, and haggling over how to divide up the burden, may rather steer the alliance to wait and see how conditions develop.OPEC+ hasn’t started work on the different scenarios to outline the range of deeper cutbacks ministers would consider when they meet in early December, the delegates said.“It will prove very difficult to formally agree new, deeper cuts,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London. “A rollover of current cuts for the rest of 2020, with an emphasis on compliance by all members, is the path of least resistance.”The group signaled this week it saw less urgency to adopt new measures, with Secretary-General Mohammad Barkindo saying the outlook for 2020 has “brightened” as economic growth holds up and trade tensions between the U.S. and China abate.A key obstacle to any new agreement is that some countries haven’t yet delivered the cutbacks they agreed to at the start of the year, when OPEC+ pledged to collectively reduce supplies by 1.2 million barrels a day. Iraq and Nigeria have mostly increased output instead of delivering their promised curbs.Another difficulty is in securing support from OPEC’s principal ally, Russia, which is under less budgetary pressure to maintain high oil prices and has sounded cautious about stronger intervention. Energy Minister Alexander Novak said on Wednesday that oil prices of $60 a barrel show the market is stable, and producers will keep monitoring the situation into early 2020. Russia has also exceeded its output curbs pledge for several months this year.Traders, analysts and refiners surveyed by Bloomberg on Wednesday said they mostly expect OPEC and its partners to simply extend the existing output caps -- which expire in March -- to the middle or end of next year. Twenty-four of 38 predicted a rollover, while the other nine forecast a deeper reduction.Case For ActionThe case for taking more vigorous action is clear. Output from OPEC’s rivals will expand twice as fast as global consumption in 2020 as the ongoing surge in U.S. shale oil is supplemented by new supplies from Brazil and the North Sea, the organization’s data show.“We see a supply tsunami next year,” said Bob McNally, president of Rapidan Energy Group and a former oil official at the White House under President George W. Bush. “If OPEC did nothing, global inventories would rise by at least 1.2 million barrels a day. We assume they’ll announce a cut in December.”Yet a new agreement may be too difficult to achieve.Saudi Arabia, the cartel’s biggest and most influential member, has already cut production more than twice as much as agreed to under the current deal. The kingdom is frustrated that others still haven’t fully implemented the cutbacks they committed to at the start of the year, according to a delegate.“The challenge of announcing deeper cuts is that some members are still not compliant, while others are over-compliant,” said Giovanni Staunovo, an analyst at UBS AG in Zurich.There’s also the risk the current strategy is backfiring, by propping up prices and encouraging investment in OPEC’s rivals. In a long-term outlook published on Tuesday, the organization slashed forecasts for the amount of oil it will need to pump over the next few years as U.S. shale oil continues to grow\--With assistance from Sharon Cho, Ann Koh, Serene Cheong, Saket Sundria, Jessica Summers and Dina Khrennikova.To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net;Salma El Wardany in Cairo at selwardany@bloomberg.netTo contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Helen Robertson, Christopher SellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    UPDATE 2-SocGen balance sheet progress lifts shares, outweighs trading weakness

    France's Societe Generale raised its capital ratio on Wednesday, giving its shares a lift despite a profit fall and some parts of its trading business lagging rival banks. SocGen shares were up 5% to 28.3 euros at 1102 GMT, making the bank's stock one of the top performers on France's CAC40 index, as investors focused on progress in areas such as the balance sheet. "We have achieved results very much in line with our objectives and priorities," Chief Executive Frederic Oudea said in a statement as SocGen said its common-equity tier-one ratio rose to 12.5% at the end of September.

  • The Green Short: Funds Target Laggards in Sustainable Shift
    Bloomberg

    The Green Short: Funds Target Laggards in Sustainable Shift

    (Bloomberg) -- A new breed of environmentally conscious investor is starting to bet against losers in the race to save the planet.From boutique money managers to French behemoth BNP Paribas SA, financial firms are setting up sustainability-focused mutual funds that mimic hedge-fund tactics. In an unusual move, they’re not only buying stakes in the companies favored by green investors, but also shorting firms that are failing to make the shift to sustainability.Short-selling is the newest trade evolving in a sustainable investment market that’s reshaping the asset management landscape. With the proliferation of more than 1,900 funds worldwide chasing a relatively narrow universe of ethical investments, some investors say that betting against laggards may present a wider array of opportunities.“There are a lot fewer companies that have good solutions than don’t,” Joe Mares, a former natural resources analyst for hedge fund manager Greg Coffey, said in an interview. “There are plenty of companies out there that we think could be interesting on the short side.”While assets in sustainable investment strategies rose to $30.7 trillion in Europe, U.S., Japan, Canada, Australia and New Zealand, the most popular approach is still negative screening, which means excluding so-called offenders from funds. Short selling those companies takes that idea to another level, allowing some funds to actively profit from betting against companies on the exclusions list and also drive down demand for unsustainable stocks.Clean EnergyMares started a $25 million mutual fund at Trium Capital in late September to make long and short bets in high-emitting sectors like energy and transport. It will buy stakes in firms that stand to benefit from the transition to cleaner energy and short those that are getting left behind.The asset management arm of BNP Paribas plans to launch a similar long/short strategy early next year. Ulrik Fugmann and Edward Lees will run the BNP Paribas Environmental Absolute Return Thematic Fund, which will short companies with “unsustainable or technologically inferior business models vulnerable to transition risk,” a spokesman said by email.Chad Slater, who runs an ESG fund at Morphic Asset Management Pty Ltd., excludes investment in companies involved in environmental destruction, and allows betting against them.The Morphic fund is similar in some ways to a traditional hedge fund, but incorporates its clients’ ethical principles into the process, Slater said in an interview. Short-selling may additionally increase these companies’ costs and draw attention to their failings, he said.Read more: Here’s How ‘Green Finance’ Aims to Save the Planet: QuickTakeAmong the fund’s short bets is Huadian Power International Corp. Ltd., a Chinese electricity firm. “As a coal-fired power producer, we couldn’t own that on the long side, but under our mandate we can short those stocks and profit from that,” he said.Morphic is short Coca-Cola Amatil Ltd., the Australia-based bottler of the famous soft drink. The asset manager has publicly questioned Coca-Cola Amatil’s commitment to sustainability, and has said it isn’t doing enough to alleviate the effects of sugar on obesity, particularly in the poorer parts of the Asia-Pacific region, according to fund filings.A spokesman for Coca-Cola Amatil refuted that claim. The firm takes its “responsibilities on wellbeing and obesity very seriously,” according to an emailed statement.The fund also added a bearish position in Qantas Airways Ltd. last year, a bet driven by slower global growth fears and growing pressure on carbon emissions, according to filings.Strong returns posted by ESG strategies may be a factor in spurring more funds to look at sustainable investments. Funds that take ESG factors into account in their investment decisions perform better than those that don’t, according data compiled by Morningstar Inc. The research firm said that 73% of its ESG indexes outstripped their non-ESG equivalents since their inception.The performance of energy companies shows a similar trend. A broad measure of energy stocks, the iShares Global Energy ETF, has returned almost 5.5% this year compared with almost 30% for a narrower index of clean energy companies.Hedge funds themselves have been slow to jump on the ethical-investing bandwagon, but that’s now changing: 30% now say ESG informs their investment decisions, according to Preqin research earlier this year.“The hedge fund industry has traditionally seen itself like swashbuckling pirates sailing the oceans of alpha, not constrained like long-only managers,” Slater said. “The idea of excluding sectors or stocks goes against their ethos.”(Updates with comment from Coca-Cola Amatil in paragraph 12)To contact the reporter on this story: Lucca de Paoli in London at gdepaoli1@bloomberg.netTo contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick HenryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    BNP's $300 Billion Hedge Fund Gamble

    (Bloomberg Opinion) -- It’s rare for a European bank to be adding businesses nowadays, as capital constraints curtail dealmaking. The takeover of Deutsche Bank AG’s hedge fund activities by France’s BNP Paribas SA is an exception.There’s no mistaking what’s driving BNP: Absorbing a larger competitor with a chunky client base is one way to try to salvage its own ailing hedge fund division, and to stop its rivals from snapping up Deutsche’s clients themselves. Yet the French bank’s struggles in this business beg the question as to how easily the two units can be combined, let alone expanded.Income from BNP’s equity arm and its operations servicing hedge funds (which sit together in one division of the bank) declined for the fourth consecutive quarter in the three months to September — a fall of 15% this time. A drop in equity derivatives revenue was offset partially by a slight increase in hedge fund business. That’s no doubt a signal from BNP that its gradual absorption of Deutsche’s unit is already encouraging more hedge funds to start using the French bank.BNP is taking over Deutsche Bank’s electronic trading platforms and wants to snag as many as possible of the German lender’s customers. It aims within a year to become one of the world’s top-four prime brokerages (which service hedge funds), Bloomberg News has reported. Ultimately it’s seeking to hold about $300 billion in hedge fund money, or “balances” in industry parlance. That compares with the $500 billion that JPMorgan Chase & Co. already oversees as one of the market leaders. The U.S. bank is eyeing $1 trillion.For the French lender, the long slog is just starting. While the takeover will be completed at the end of 2019, it will take another two years for as many as 1,000 Deutsche employees to move over to BNP. You need to tread carefully when hedge funds have the option of shifting their money to the big Wall Street prime brokerages. Deutsche’s clients have already been defecting and it’s uncertain how much of the $80 billion or so of balances it held in September will transfer across to BNP ultimately.After buying Bank of America Corp.’s prime broking activities in 2008, BNP has stayed focused on U.S. clients. Deutsche should bring more exposure to Asian and European clients, and its trading technology should let BNP go after big quant fund customers.The biggest difficulty is avoiding a culture clash. This deal will mean a sharp rise in the number of products the French bank offers to hedge funds, and its volume of work. Before now, its prime brokerage has been cautious when deciding the type of business (and client) it’s prepared to take on. Deutsche’s has been more adventurous. Melding these different approaches on how much leverage and risk to allow will be critical.There’s about $450 million of extra annual revenue up for grabs here, but BNP has more than $47 billion of yearly sales so it’s hardly game-changing. Venturing into the uncharted territory of a much bigger derivatives business will see BNP edging higher up the danger curve.To contact the authors of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netMarcus Ashworth at mashworth4@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Inflation Potholes Ahead for Turkey After Cutting Rate by Record
    Bloomberg

    Inflation Potholes Ahead for Turkey After Cutting Rate by Record

    (Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.Turkish inflation is in for a bumpy ride before interest-rate cuts might resume in earnest.After touching a multi-year low this month, prices are set to pick up again, a period of acceleration that will continue through the first quarter, central bank Governor Murat Uysal said on Thursday in Istanbul.Policy makers lowered their inflation estimate for the end of 2019 to 12%, from 13.9%, in their quarterly report. But further easing at this year’s final meeting in December could be in question after three rounds of cuts brought Turkey’s key rate to 14%.Turkey has already used up “an important part” of its room to ease monetary policy, Uysal said. “We’re going to shape our decisions based on developments in inflation going ahead.”The governor needs to make good on his pledge to preserve “a reasonable rate of real return” for investors as he proceeds with what BNP Paribas SA expects to be the most ambitious easing cycle in emerging markets. Uysal has delivered a bigger-than-forecast cut all three times that he’s reduced rates since President Recep Tayyip Erdogan appointed him in July, bringing the cumulative easing under his watch to 10 percentage points -- including a record move in his first month on the job. Turkish assets could be at risk if rate cuts start to erode their appeal in real terms just as inflation quickens. Adjusted for prices, Turkish rates are still among the highest in emerging markets.The lira was little changed as Uysal spoke and traded 0.2% weaker against the dollar as of 4:56 p.m. in Istanbul. It’s this year’s worst performer among its peers in developing nations after Argentina’s peso.“The main trend of core inflation is below our year-end estimates,” Uysal said. “We believe it will move toward single digits starting from the second quarter.”Below is a summary of Uysal’s comments and revisions to the inflation outlook:The end-2020 inflation forecast remains unchanged at 8.2%; price growth is expected to end 2021 at 5.4% and then stabilize around 5% over the medium termThis year’s food inflation estimate lowered to 10% from 15%; for 2020, the projection is kept at 11%The average estimate for oil prices in 2020 lowered to $57.7 per barrel from $62.6; for this year, it’s cut to $63.4 from $65 previouslyThe central bank expects headline inflation to remain elevated throughout the first quarter of next year and start decelerating toward single digits from the second quarter, according to a forecast range chart accompanying the inflation reportUysal confirmed that the monetary authority is funding banks largely through the swaps market, instead of its repo window. The swap rates are in the vicinity of the benchmark rateThe central bank is looking to roll back its crisis-level monetary settings that were needed after a price spike caused by the lira’s crash in 2018. It cited a faster-than-expected slowdown in food prices and a stable lira for its revisions.Uysal was guarded when asked what he deems to be a “reasonable” rate of return, an issue on which there’s little consensus among investors. The governor only said it’s a “a difficult subject” and “we don’t want to mention a band for this.”Currency CrutchEven as Turkey has stood by its free-floating currency despite more than a year of turmoil, Uysal said state banks have lately been “seen being active” in foreign-exchange markets. He was responding to a question about whether the lenders were intervening to prop up the currency.The admission marks the first time that a central bank official has spoken openly about state banks wading into the currency market.While there is no change in the central bank’s policy of boosting reserves, volatility in its foreign holdings is a result of the various instruments it uses and is also “due to some transactions by the Treasury,” Uysal said.Although he didn’t elaborate, the governor did say Treasury operations that affect the level of central bank reserves include foreign debt repayments and its borrowings, and they can work “both ways.”(Updates lira’s performance in seventh paragraph.)\--With assistance from Taylan Bilgic.To contact the reporters on this story: Cagan Koc in Istanbul at ckoc2@bloomberg.net;Asli Kandemir in Istanbul at akandemir@bloomberg.netTo contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Paul Abelsky, Onur AntFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • India Stocks Cool Down After Setting a Record Intraday High
    Bloomberg

    India Stocks Cool Down After Setting a Record Intraday High

    (Bloomberg) -- India’s benchmark Sensex index pared gains from a record intraday high following a U.S. interest rate cut that spurred expectations that foreign funds might be attracted to Indian shares.The S&P BSE Sensex climbed 0.2% to 40,129.05 at the 3:30 p.m. close in Mumbai, gaining for a fifth day. The NSE Nifty 50 Index advanced 0.3%.Seventeen of 26 Nifty companies that have reported earnings so far have either beaten or matched estimates, while one had no estimates, according to Bloomberg calculations. Indian Oil Corp. reported net income below the lowest analyst estimate.Strategist View“The rate cut by the U.S. Federal Reserve should promote the inflow of foreign funds,” said Chokkalingam G, the Mumbai-based founder of Equinomics Research & Advisory Pvt, which advises clients on equity investments. “There are many stocks available at good valuations in the broader market.”“We do not believe the current rise in share prices has fully captured India’s longer term economic improvement, given that the return on equity of the Indian market was on the verge of recovering from a multi-year low,” said Felix Lam, senior portfolio manager at BNP Paribas Asset Management, in Hong Kong.The NumbersSixteen of 19 sector sub-indexes compiled by BSE Ltd. gained, led by a gauge of technology companiesEighteen shares out of the 31 on the Sensex rose, while 13 fellInfosys Ltd. contributed most to the index advance with a 3.8% gain, while Yes Bank Ltd.’s 24% jump was the biggest. HDFC Bank Ltd. weighed most on the gauge with a 1.5% fall, while Tech Mahindra Ltd.‘s 2.1% drop was the steepest.Related StoriesFixing India’s Financial System Is Like Playing Whack-a-MoleAsia Set for Best Month Since June on Fed Boost: Taking Stock\--With assistance from Anto Antony and Ishika Mookerjee.To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Teo Chian WeiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • BNP Paribas Fixed-Income Trading Outperforms European Rivals
    Bloomberg

    BNP Paribas Fixed-Income Trading Outperforms European Rivals

    (Bloomberg) -- BNP Paribas SA posted a third straight gain at its fixed-income trading business, outshining its Wall Street and European peers while keeping costs under control.Fixed income, currency and commodity trading revenue surged 35% to 915 million euros ($1 billion) in the three months through September, according to a statement on Thursday. That surpassed the performance of competitors including Barclays Plc and Deutsche Bank AG, and beat the 9% gain in the second quarter and a 29% rally in the previous three months.Chief Executive Officer Jean-Laurent Bonnafe is slashing costs after tough market conditions complicated his plans to take on the trading might of U.S. banks. BNP has shut a proprietary trading unit and exited U.S. commodity derivatives to curb risk, while seeking to take advantage of Deutsche Bank’s retreat through the acquisition of the German lender’s hedge fund business.“What is important is that we continue to serve clients and, therefore, grabbing market share,” Chief Financial Officer Lars Machenil said in a Bloomberg Television interview when asked if growth in FICC will continue.FICC benefited from “a sharp rise in credit and primary issues, a rebound in forex and emerging markets, and a good performance of rates,” BNP said. That helped BNP’s global markets unit -- its key trading division -- post a 15% increase in revenue. Equity and prime services income fell though by the same amount, with the bank blaming a “lackluster market on flow activities,” countered somewhat by structured products.Revenue grew 5.3% in the quarter, outpacing a 2% increase in costs. The bank’s common equity Tier 1 ratio, a measure of financial strength, rose 10 basis points to 12%.“Strongest Beat”“By division, the strongest beat came from global markets, mostly thanks to strong FICC,” Morgan Stanley analysts wrote in a note to clients. “Capital is in line with consensus at 12%, which corresponds to BNP 2020 capital target.”BNP shares fluctuated between gains and losses in early trading and were 0.2% lower at 46.8 euros as of 9:42 a.m. in Paris. Like many other European lenders, the bank cautioned that the European Central Bank’s move to push interest rates deeper into negative territory will have an impact. “The new monetary policy measures occurred at the end of the quarter, and they will produce their full effect only in 2020,” BNP said.Bonnafe cut 2020 earnings targets in February and announced an additional 600 million euros in cost cuts to weather a trading slump. The bank is targeting about 3.3 billion euros of expense reductions by 2020. That followed a particularly difficult end to the year, when it lost about $80 million on derivatives trades linked to the U.S. stock market. Last year, BNP was also caught on the wrong side of a selloff in developing-market assets and blindsided by the Turkish currency crisis.The French bank is about halfway through its 2020 cost plan, but has so far stayed clear of suggesting any big job-cutting plans like those at Parisian rival Societe Generale SA or the thousands of planned reductions at Deutsche Bank. Instead, BNP’s moves have included outsourcing equity research in Asia to Morningstar Inc.So far, about 1.7 billion euros in costs have been saved since the program began in 2017, BNP said. One-time charges related to the cost-cutting plan fell to 178 million euros from 248 million euros in the same quarter of 2018.Machenil also indicated BNP isn’t interested in bidding for HSBC Holdings Plc’s French retail lender or Poland’s MBank, which is up for sale by Commerzbank AG.“We’re investing in digital channels,” the CFO said. “Buying a branch network is not something we are looking at.” The lender has shut 356 branches in France, Belgium and Italy since the end of 2016.BNP Paribas is targeting its spending to win clients in countries such as the U.S., the U.K. and especially Deutsche Bank’s backyard, Germany, where the mass of small and medium-sized companies have traditionally been the backbone of its export-oriented powerhouse economy.(Updates with shares in eighth paragraph.)\--With assistance from Caroline Connan.To contact the reporter on this story: Keith Campbell in London at k.campbell@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The OUTstanding Top 100 Role Model LGBT+ Executives 2019
    Yahoo Finance UK

    The OUTstanding Top 100 Role Model LGBT+ Executives 2019

    The executives on the list — who identify as LGBT+ — reflect the incredible achievements of LGBT+ people in the business community.

  • The OUTstanding Top 50 LGBT+ Ally Executives
    Yahoo Finance UK

    The OUTstanding Top 50 LGBT+ Ally Executives

    All of the allies — who must be senior executives who are not LGBT+ but support LGBT+ inclusion — were nominated by peers and colleagues, or put themselves forward.

  • Oil Falls on New Signs of Sizable U.S. Crude Stockpiles
    Bloomberg

    Oil Falls on New Signs of Sizable U.S. Crude Stockpiles

    (Bloomberg) -- Oil fell for the first time in a week amid renewed signs of swelling crude inventories in the world’s biggest economy.Futures dropped 1.5% in New York on Monday with the biggest settlement change in two weeks. Data provider Genscape Inc. said oil stored at a key Oklahoma storage hub expanded by 1.5 million barrels last week, reviving concerns about sluggish demand and ample inventories. Meanwhile, Russia threw cold water on expectations a new round of major supply curbs are imminent.“Economic uncertainties continue to weigh on prices, as they raise questions around oil demand growth and reduce risk appetite,” said Harry Tchilinguirian, head of commodity and market strategy at BNP Paribas in London.Oil prices have been under pressure for months as the protracted trade dispute between the U.S. and China erodes demand growth and clouds the worldwide economic outlook. Global markets are “awash” in crude amid booming output from U.S. shale fields, Energy Secretary Rick Perry said in an interview on Sunday.WTI for December delivery fell 85 cents to settle at $55.81 a barrel on the New York Mercantile Exchange.Brent for December settlement fell 45 cents to close at $61.57 on the London-based ICE Futures Europe Exchange. The global benchmark traded at a $5.76 premium to WTI.While net-long positions on WTI crude rose in the week ended Oct. 22, those bets are still at half the level they reached last month. That signals there’s still a lot of skepticism, and it will probably take major news to trigger a sustained rally.“There’s hesitation on heavily long positions to start the week,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.To contact the reporter on this story: Jacquelyn Melinek in New York at jmelinek@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Catherine Traywick, Mike JeffersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Argentina Investors Look Ahead After Fernandez Pulls Out Win
    Bloomberg

    Argentina Investors Look Ahead After Fernandez Pulls Out Win

    (Bloomberg) -- Argentina investors are watching for leading candidate Alberto Fernandez’s next steps after the results of Sunday’s presidential election were tighter than expected.Fernandez won the race for the country’s top job with 48% of the vote, above the 45-point threshold needed to win outright. But with 91% of votes counted, the big surprise of the night was that incumbent President Mauricio Macri narrowed Fernandez’s margin of victory to seven points from a 16-point gap in an August primary.Analysts and investors are now watching for two key items as they prepare for the market reaction Monday morning. First, what the final composition of congress will be, and how that may impact key legislation ahead, including a debt restructuring. Second, they’ll be keeping an eye on any details Fernandez gives of his economic plan.In a speech Sunday evening, Fernandez called on all Argentines to rebuild the country. Alongside him, his vice-president and former president, Cristina Fernandez de Kirchner, asked Macri to take any measures needed to address Argentina’s financial issues. The speeches did not add clarity on who will make up the new economic team, or address bondholders or the International Monetary Fund directly. Macri and Fernandez are expected to have breakfast Monday morning.Read More: Fernandez Wins in Argentina as Voters Rebuff Macri’s Austerity“We need a transition team and an economic plan or this gets ugly,” said Siobhan Morden, New York-based head of Latin America fixed-income strategy at Amherst Pierpont. “Sooner the better.”Here’s what analysts are saying:Tsutomu Soma, general manager of fixed-income business solutions at SBI Securities:Fernandez’s win has already been priced in to the nation’s assets, including concerns of further worsening of the nation’s fiscal conditionThe amount of Argentine assets owned by foreign investors should already be quite limitedThose with any exposure left probably had built their short positions, helping to further limit any risks from the electionJean-Charles Sambor, London-based deputy head of emerging-market fixed income at BNP Paribas Asset Management:The asset manager is “cautiously optimistic” on Argentine bonds after Fernandez’s win“A lot of negativity is already priced in. We think we might be a bit below recovery value”Among Argentine securities, the company sees more value in euro-denominated debt and the century bondFernandez is likely to attempt restructuring debt initially in a market-friendly fashion; but, if rhetoric heats up and a market-friendly restructuring plan becomes unlikely, this could potentially be very negativeEzequiel Zambaglione, head of strategy at Buenos Aires-broker Balanz Capital:“We’ll have to look at the numbers and see what the makeup of Congress looks like, especially in the lower house. But the main market driver will still be what Alberto Fernandez comes out and says in his speech”Alberto Bernal, chief strategist at broker XP Investments:“The difference was tight, so Fernandez will have to be a little bit humble about the victory.”“The Fernandez win was priced in, but this tight of a difference was not priced in.”The results show that “something like 44% of Argentina is voting for economic orthodoxy, and still wants to do the right thing in terms of real adjustments. The populist view was not overwhelming, and I think that most of the market was convinced that it was going to be overwhelming.”Jimena Blanco, political research director at consulting firm Verisk Maplecroft in Buenos Aires:“I don’t expect massive volatility -- markets will be waiting to see who Fernandez appoints to his cabinet and the economic plan he announces”“If anything, this greater balance could have a positive impact for those looking to acquire Argentine assets.”“The implication is that any restructure taken to Congress will be moderated by Macri’s coalition, and also that it will be hard, if not impossible to undo many of the Macri reforms.”Siobhan Morden, New York-based head of Latin America fixed-income strategy at Amherst Pierpont:Fernandez’s speech on Sunday will be hugely important to how markets react on MondayAlthough Fernandez would not officially take the top job until Dec. 10, “there is no honeymoon,” and he will be expected to offer an economic plan and cabinet appointees quickly“The only solution for Argentina is reform-based fiscal discipline,” she said in an interview. “If this is what voters are saying, it’s that they expect responsible management.”(Updates with details from Fernandez speech in fourth paragraph.)\--With assistance from Yumi Teso, Lilian Karunungan and Tomoko Yamazaki.To contact the reporters on this story: Scott Squires in Buenos Aires at ssquires4@bloomberg.net;Sydney Maki in New York at smaki8@bloomberg.netTo contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, Carolina Millan, Andrew DunnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    UPDATE 2-UAE's Majid Al Futtaim to raise $600 mln with green dollar sukuk

    Majid Al Futtaim, a UAE-based developer and shopping mall operator, is set to raise $600 million by selling "green" sukuk, or Islamic bonds, a document issued by one of the banks leading the sale showed on Wednesday. Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries. BNP Paribas, Citi and HSBC have been hired to coordinate the deal, with Abu Dhabi Islamic Bank , Dubai Islamic Bank, ENBD Capital, and First Abu Dhabi Bank also participating.

  • Reuters - UK Focus

    UPDATE 2-BNP Paribas takes Allfunds platform stake as fund managers cut costs

    PARIS/LONDON, Oct 21 (Reuters) - French bank BNP Paribas has obtained a 22.5% stake in wealth management platform Allfunds in the latest sign of asset managers looking to trim costs in the face of rising regulatory expenses and pressure on fees from investors. Under the deal, for which financial terms were not announced, BNP Paribas will entrust Allfunds with managing the distribution of third-party investment fund contracts for several BNP Paribas Group entities.

  • Mark Hurd: Silicon Valley’s Ultimate Salesman
    Bloomberg

    Mark Hurd: Silicon Valley’s Ultimate Salesman

    (Bloomberg) -- Mark Hurd was in his element at Indian Wells.The tennis tournament–more formally known as the BNP Paribas Open at Indian Wells, California— provided him with the perfect backdrop to flex his passions: tennis and selling stuff. Hurd turned the event, which Oracle Corp. co-founder Larry Ellison bought in 2009, into a two-week database and software sales extravaganza. He could be seen strolling the grounds or at nearby hotels constantly schmoozing with customers and using his connections with tennis legends like Chris Evert and Rafael Nadal to win people over and help close a deal. Along the way, Hurd, Oracle’s co-CEO, would sneak in a hit–he had a big serve and liked to flaunt it–or check on the American college players he was mentoring and the young pros he was quietly helping with financial aid. For Hurd, business and pleasure were one and the same and almost always intermixed in his life.This is what I’ll remember most about Hurd, who passed away Friday morning after a protracted illness: he was a relentless hustler and loved the art of doing business more than just about any other executive I’ve ever run across. In a statement issued after Hurd’s death, Ellison pointed to his friend’s business acumen. “Oracle has lost a brilliant and beloved leader who personally touched the lives of so many of us during his decade at Oracle,” Ellison said. “All of us will miss Mark’s keen mind and rare ability to analyze, simplify and solve problems quickly.” Hurd arrived at Oracle in 2010 under tumultuous conditions. He’d resigned as CEO of Hewlett-Packard after being investigated by the company’s board for a relationship Hurd had with a marketing contractor. The board argued that Hurd had tried to cover up the relationship and misused his expense account, and Hurd argued that they were wrong and making much ado about nothing. The squabble was acrimonious enough to end Hurd’s time at HP, even though he had revived the company’s fortunes and turned it into a lean, mean maker of corporate technology products, printers and personal computers.At Oracle, Hurd applied his trademark skills at analyzing balance sheets and streamlining operations to try and improve the software maker’s bottom line. He could recite from memory the financial minutiae of every division and be blunt about what was working and what needed to be fixed. During his years at Oracle, the company’s share price more than doubled, and Hurd was a constant presence at the company’s events, sales meetings and customer sites. In many ways, he became the public face of Oracle, enjoying the limelight while Ellison made the occasional appearance and co-CEO Safra Catz preferred to operate in the background.Though Oracle remains the dominant database company, it still has much work to do to catch up in the booming market for cloud-based software and services. Oracle was late to the game modernizing its products. Hurd tried his best to paper over Oracle’s weaknesses through salesmanship and often succeeded. One of the biggest weaknesses throughout his career, though, was favoring bottom line performance over investing in research and development and revolutionary new products. Hurd often seemed to focus on the here and now, rather than plotting for what lay ahead. Oracle’s dual-CEO structure was unusual and not always to Hurd’s liking, as he reveled in controlling a business and overseeing all of its operations. He took on sales, marketing and press and investor relations, and Catz handled finances and legal. Last month Oracle said that Hurd was taking a leave of absence for an unspecified illness and that Ellison and Catz would assume his responsibilities. Ellison has said that Catz will stay in place and that he would like to keep the two-CEO structure. He cited Don Johnson, head of Oracle’s cloud infrastructure division, and Steve Miranda, head of Oracle’s applications unit, as possible partners to Catz in the future.What’s clear is that Hurd will not be easy to replace. On a personal note, he shared a tight bond with Ellison around tennis. The two men have been pumping money into American tournaments and players for years, hoping to spark a revival of U.S. male pros. And, when Hurd was at his lowest moment after the HP fiasco, it was Ellison who came to the rescue, championing Hurd in the press and offering him a high-profile gig at Oracle. These actions–along with massive annual pay packages-made Hurd very loyal to Ellison and left Hurd as eager as ever to prove Ellison right and his critics wrong.Not short on ego, Hurd saw business as a battlefield and perceived himself as a master general. On his worst days, he was short of temper and combative. But, on his best days–of which there seemed to be many–he was a numbers and strategy savant with a rare ability to inspire those under him to work incredibly hard. Hurd himself was a workaholic and considered Oracle’s performance as a reflection on his character. Very few people are as committed to their work or as passionate in their pursuit of it.Vance covered Hurd for 15 years in his roles as CEO of NCR, HP and Oracle and even played tennis with him once. To contact the author of this story: Ashlee Vance in Palo Alto at avance3@bloomberg.netTo contact the editor responsible for this story: Molly Schuetz at mschuetz9@bloomberg.net, Robin AjelloFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • BNP Paribas appoints new head of wealth management in Italy
    Reuters

    BNP Paribas appoints new head of wealth management in Italy

    BNP Paribas , France's biggest bank, on Friday named Elena Goitini as its head of private banking and wealth management in Italy, and added it was launching a new growth strategy for the unit. Banks are looking for ways to diversify their business and sell more fee-based products in order to protect their profits from the impact of a negative interest rate environment. BNP Paribas hired Goitini from Unicredit Group where she held key roles in Italy and in Central Eastern Europe.

  • Reuters - UK Focus

    BNP frontrunner to take over Deutsche Bank derivatives unit - report

    BNP Paribas is the frontrunner to take over Deutsche Bank's business that sells certificates and warrants to retail investors, a German newspaper reported on Friday. Boersen-Zeitung, which cited no sources, said analysts had estimated the unit's value at 400-500 million euros ($445-$556 million). BNP declined to comment.

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