|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||50.38 - 50.78|
|52-week range||38.88 - 54.00|
|Beta (5Y monthly)||1.38|
|PE ratio (TTM)||8.57|
|Earnings date||05 Feb 2020|
|Forward dividend & yield||3.02 (5.95%)|
|Ex-dividend date||29 May 2019|
|1y target est||61.49|
(Bloomberg) -- BNP Paribas SA and Citigroup Inc. are among global banks with the most exposure to about $14 billion of accepted claims related to the collapse of two Saudi business empires more than a decade ago.The French bank is owed about $750 million by Maan al-Sanea’s Saad Group and Ahmad Hamad Algosaibi & Brothers Co. -- two family holding companies that defaulted on roughly $16 billion in 2009 -- after a Saudi court accepted its claims, according to documents seen by Bloomberg. The U.S. bank is owed about $270 million by Saad Group, the documents show.The court’s approval last month of claims from more than 100 local and international banks, hedge funds and other creditors is a milestone in the Middle East’s longest-running and biggest defaults that have involved court cases spanning from London to the Cayman Islands.Family-owned conglomerate Algosaibi, known as AHAB, defaulted on about $9 billion of debt, while Saad Group was unable to repay roughly $7 billion after the global economic crisis froze credit markets and asset prices slumped.Global ClaimsThe court also accepted about $170 million worth of claims from Deutsche Bank AG, roughly $200 million from Standard Chartered Plc and $175 million from Raiffeisen Bank International AG, according to the documents.Regional lenders are also heavily exposed: Mashreqbank PSC had about $630 million of its claims accepted, Emirates NBD Bank PJSC about $330 million, and Abu Dhabi Commercial Bank PJSC, about $470 million.Representatives for BNP Paribas, Citigroup, Raiffeisen Bank, Emirates NBD, Deutsche Bank and Abu Dhabi Commercial Bank declined to comment. Representatives for Mashreqbank, Standard Chartered and Saad Group didn’t respond to requests for comment.Following the court’s decision, AHAB will start to form a new creditors’ committee and propose a revised restructuring proposal to claimants, according to Algosaibi’s acting Chief Executive Officer Simon Charlton.The case is currently going through recently-established bankruptcy proceedings in Saudi Arabia, introduced as part of the kingdom’s efforts to attract foreign investors. A resolution would end uncertainty for banks and help the country’s business appeal.\--With assistance from Geraldine Amiel and Boris Groendahl.To contact the reporters on this story: Nicolas Parasie in Dubai at email@example.com;Zainab Fattah in Dubai at firstname.lastname@example.orgTo contact the editors responsible for this story: Stefania Bianchi at email@example.com, Claudia MaedlerFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Gold held near the highest level in more than six years on demand for the metal as a haven as investors watch for Iran’s next move in the showdown with the U.S.Bullion, which climbed 2.4% over the previous two sessions to approach $1,600 an ounce, advanced even after a gauge of U.S. service activity rose to a fourth-month high in December. The S&P 500 headed for its second drop in three days.“The tensions with Iran are everything right now,” Peter Thomas, a senior vice president at Chicago-based broker Zaner Group, said by phone. “What you have to do is discount everything that’s going on and just watch Iran now, that’s really percolating under the surface. The numbers that come out, unless they are really earth-shattering, which they haven’t been, I think you’re going to see continued support” for gold prices, he said.Bullion investors have been in thrall to developments in the Middle East after a U.S. drone strike killed a powerful Iranian general. The Islamic Republic is assessing 13 scenarios to respond and even the weakest of those options would be a “historic nightmare” for the U.S., the head of Iran’s national security council was cited as saying by the semi-official Fars news agency.“Elevated geopolitical risks across the heart of the Middle East should support a stronger gold price environment this winter,” Citigroup Inc. analysts including Aakash Doshi and Tracy Liao said in a note. The bank cautioned that it’s difficult to trade gold purely from the angle of heightened military tensions, but noted there are “bullish fundamental tailwinds” in place.Spot gold rose 0.4% to $1,572.64 an ounce at 1:46 p.m. in New York. On Monday, the metal hit $1,588.13, the highest since April 2013.Gold futures for February delivery rose 0.4% to settle at $1,574.30 on the Comex.History suggests that gains driven by geopolitical tensions alone may be short-lived, Macquarie Group Ltd. strategists including Marcus Garvey said in a report.“To illustrate this with the examples of Gulf War 1, the World Trade Center attack of 9/11 and last year’s strike on Saudi Aramco’s Abqaiq facility, gold prices initially jumped higher but were ultimately unable to sustain their newly elevated level,” they said.Still, there are several other factors in place that are supportive for gold prices, Credit Suisse analysts including Fahad Tariq said in a note this week. Those include a weaker dollar, dovish central bank policies and uncertainty over a more comprehensive deal between Washington and Beijing.In other precious metals, palladium hit a fresh record, with spot prices reaching $2,050.63 an ounce on Tuesday. Silver and platinum also gained.To contact the reporters on this story: Ranjeetha Pakiam in Singapore at firstname.lastname@example.org;Elena Mazneva in London at email@example.com;Yvonne Yue Li in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Phoebe Sedgman at email@example.com, ;Lynn Thomasson at firstname.lastname@example.org, Joe Richter, Steven FrankFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- BNP Paribas SA is planning to join JPMorgan Chase & Co. and Citigroup Inc. by setting up an electronic currency trading and pricing platform in Singapore.The facility will support electronic trading of 50 currencies in spot, forward, swaps, non-deliverable forwards and options, according to a company statement. It will also allow trading of precious and base metals.“In Southeast Asia, we have seen our e-FX trading volumes grow by double-digits year-on-year,” Christophe Jobert, head of global markets for Southeast Asia at BNP, said in the statement. With the new hub “our clients will benefit from better access to liquidity, more efficient price discovery and timelier trade execution,” he said.READ: Singapore Woos Banks in Battle of Asia’s Biggest Forex HubsSingapore’s currency market saw average trading volumes of $633 billion a day in April 2019, according to the latest data available from the Bank for International Settlements. That’s higher than Hong Kong and Japan, and trails only the U.K. and U.S., the data showed.BNP’s e-trading launch comes as the bank prepares to roll out its Cortex LIVE single dealer platform to Singapore clients, according to the statement.To contact the reporter on this story: Ruth Carson in Singapore at email@example.comTo contact the editors responsible for this story: Tan Hwee Ann at firstname.lastname@example.org, Joanna Ossinger, Nicholas ReynoldsFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The clock is ticking for Frederic Oudea. After more than 11 years running Societe Generale SA, the French bank is searching for an eventual successor. A new leader may bring a change of course, but undoing the lender’s strategic missteps will require some fancy footwork.SocGen wants a replacement to succeed the 56-year-old Frenchman once his term expires in three years, Bloomberg News reported this week. That a search is underway shows SocGen knows it needs to look beyond the obvious contenders, Oudea’s deputies — an acknowledgment that succession planning hasn’t gone well.And Oudea might be replaced before his term expires, according to Bloomberg. That the bank should be open to finding a new chief executive officer just months after reconfirming Oudea signals a lack of confidence in his restructuring plan, the bank’s biggest in years.SocGen’s shares value it at less than half of its tangible book; that’s well below its big domestic peers. BNP Paribas SA and Credit Agricole SA trade at more than 77% and 87% of book, respectively. No wonder the board is concerned.After failing to meet revenue, cost to income and profitability targets in his previous three-year plan, Oudea is cutting another 2,000 jobs, retreating from parts of fixed-income trading and selling some smaller foreign offshoots to improve capital. The moves are helping somewhat. The bank’s CET1 ratio — a measure of its ability to absorb potential losses — rose almost 50 basis points to 12.5% at the end of the third quarter, ahead of its own 2020 target.The trouble is that SocGen is far too exposed to a cut-throat, low-margin French consumer banking business, and a volatile investment bank. The two units made up a combined 60% or so of group revenue in the third quarter, and 50% of operating income. Revenue was flat in the retail business and fell in investment banking. Income from equities plunged, a reminder that even the bank’s areas of traditional strength cannot be relied upon when markets turn against them.While there were higher returns in the company’s insurance, car leasing and international businesses, SocGen’s exit from asset management has left it less diversified than peers. While the need to bolster capital didn’t give Oudea much choice but to sell Amundi SA, the strategy is hurting.With capital buffers just about where they need to be, Oudea or a potential successor are somewhat constrained. Dipping back into fund management now might be costly.Unless the outlook for interest rates improves, or there’s a sustained rebound in investment banking, it’s hard to see an alternative to finding more cuts, reducing risk and quitting non-core businesses. Making SocGen palatable to a potential buyer isn’t very aspirational but it’s better than standing still.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis 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.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
* European shares rise on trade deal optimism: STOXX 0.6% * Trump says U.S. is very close to "big deal" with China * ECB keeps generous stimulus unchanged, Lagarde notes recovery * FTSE 100 outperforms as UK polls open, up 1.2% * S&P 500 hits record high 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. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com BASEL III: FRENCH BANKS STRIKE BACK (1542 GMT) The French banks' lobbying efforts to soften the impact of the so-called Basel III rules have not gone unnoticed.
Some of Europe's biggest banks are being challenged by environmental groups to sever all lending to utilities which they say are still developing new coal-fired power plants. The call comes as some 190 countries meet in Madrid to assess progress on the 2015 Paris Climate Agreement, which demands a virtual end to coal power by 2050. A United Nations report last year said almost all coal-fired power plants would need to close by the middle of this century to curb a rise in global temperatures to 1.5 degrees Celsius, in line with the level scientists say is needed to stave off the worst effects of climate change.
BNP Paribas is considering laying off around 250 employees in Switzerland, France's biggest bank said on Friday, blaming "major challenges" in the Swiss financial environment and as it seeks to cut costs group-wide. The bank said it has begun an employee consultation period, which will to run through Jan. 14, to consider measures that could reduce the number of job cuts which will be implemented in 2020 and 2021. "BNP Paribas in Switzerland, like other banks, currently finds itself facing major challenges: negative rates, a contraction in margins and a speeding-up of technology investments, all against the backdrop of a contrasted global growth environment within Europe," it said.
BNP Paribas 's Nickel bank, which sells debit cards and current accounts at tobacconist networks in France, plans to launch in Spain across lottery shops next year as part of a strategy to expand in Europe by 2024. It is also seeking to increase the number of clients in France to 4 million by end-2024 from 1.5 million currently. Nickel accounts are available at more than 5,000 tobacconists in France, as the bank seeks to lure people who may be unable to open a traditional bank account.
* 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.
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.
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis 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.
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.
(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 firstname.lastname@example.orgMarcus Ashworth at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis 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.