|Bid||6.65 x 200000|
|Ask||6.65 x 110000|
|Day's range||6.54 - 6.66|
|52-week range||4.66 - 8.26|
|Beta (5Y monthly)||1.87|
|PE ratio (TTM)||10.45|
|Earnings date||13 May 2020|
|Forward dividend & yield||0.20 (3.11%)|
|Ex-dividend date||07 May 2020|
|1y target est||11.78|
You can share your thoughts with Thyagaraju Adinarayan (email@example.com), Joice Alves (firstname.lastname@example.org), Julien Ponthus (email@example.com) in London and Danilo Masoni (firstname.lastname@example.org) in Milan. European shares are down about 0.4%, so just off yesterday's record highs as an earnings galore triggered lot of action at the open.
Today we'll take a closer look at Commerzbank AG (ETR:CBK) from a dividend investor's perspective. Owning a strong...
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.European Central Bank President Christine Lagarde warned investors not to assume that current monetary policy is locked in for the foreseeable future just because officials are focused on reviewing their strategy.“To those who think it’s on autopilot, that’s ridiculous,” she said in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland. “Let’s look at the facts. Let’s look at how the economy evolves.”Lagarde spoke a day after announcing the first reappraisal of the ECB’s inflation goal and tools since 2003, in a process that won’t conclude until around December. With the euro-area economy stabilizing and a stimulus package already in place, few analysts see much chance of a change in policy any time soon.Economists predict the quantitative-easing program, which was resumed by former President Mario Draghi just before he handed over to Lagarde in November, will run until the end of next year, with interest rates on hold until early 2022. Markets aren’t pricing a change in rates until at least mid 2021.Still, the economic threats haven’t entirely subsided. Data published Friday showed private-sector activity remained muted at the beginning of 2020, despite signs of a pickup in Germany. In its policy meeting, the ECB continued to describe the risks to its outlook as tilted to the downside, if less pronounced. U.S. President Donald Trump used his appearance in Davos to revive the prospect of tariffs on Europe’s car industry.“The ECB is still far from bringing inflation to its target and we believe it will act in the next few months,” said Nick Kounis, an economist at ABN Amro in Amsterdam. “I don’t think a central bank like that can close the shop for a year.”Read more: Euro-Area Economic Growth Remains ‘Muted’ at Start of 2020Lagarde said the rethink will be separate from the monetary-policy decisions that the Governing Council takes every six weeks.Policy “will be conducted irrespective of the strategy review,” she said. “So to those who say it’s going to be completely static and stable for 12 months, I say ‘ah, watch out,’ because things change and we might have different signals and we might reconsider. We might. I don’t know at this point in time.”Scant DetailsDetails on precisely what policy makers will study in their review were scant on Thursday, beyond general observations that it will be wide-ranging and focus on topics such as financial stability and climate change. The key question for the ECB is why it has fallen short of its inflation goal of “below, but close to 2%” for years.Lagarde has her own views on what needs to be done but says she doesn’t want to disclose them for fear of influencing the debate before others have had their say. The intention is to reach out to academics and the wider public via national central banks.“I know some people are disappointed that we didn’t say much more,” Lagarde said. “But a strategy review starts here and finishes there, and you cannot say here what you’re going to do there -- otherwise you don’t do a strategy review.”Bank of France Governor Francois Villeroy de Galhau told Bloomberg Television in Davos that he believes the inflation goal must be “symmetric, flexible and credible” -- reflecting the debate over whether to set a precise 2% goal with a range of tolerance either side.His Dutch counterpart Klaas Knot said in a panel discussion alongside Villeroy that the ECB must be “honest and open” about its failure to hit its target, and “at a minimum, I would say that it needs to be clarified.”For some ECB watchers, officials have effectively hinted that there is little urgency to share their thinking, and that they’re in no hurry to getting back to tweaking their current monetary stance either.“I get the sense that until the review is complete, or at least until you have some idea of what’s going to come out of it, it doesn’t make sense to be very activist,” said Peter Dixon, an economist at Commerzbank AG.The ECB also has less ammunition than it used to, giving it cause for caution before attempting more easing. Resorting to more QE, for example, might mean confronting self-imposed limits on the volume of purchases that could reopen wounds from a bitter showdown among policy makers last year. The program is particularly disliked by the Bundesbank, and indeed faces a ruling on its legality in Germany’s top court in March.The central bank isn’t alone in benefiting from what is, for now, a relatively benign economic outlook. Economists including those at Goldman Sachs Group Inc. predict most major central banks, including the Federal Reserve, which meets next week, is likely to keep its monetary policy on hold for the rest of the year.Lagarde will discuss the global growth outlook at Davos later on Friday with a panel of luminaries including her Bank of Japan counterpart Haruhiko Kuroda, as well as U.S. Treasury Secretary Steven Mnuchin, and Kristalina Georgieva, her successor as head of the International Monetary Fund.(Updates with comment from Knot in 13th paragraph)\--With assistance from Carolynn Look and Jana Randow.To contact the reporters on this story: Paul Gordon in Frankfurt at email@example.com;Francine Lacqua in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Alaa Shahine at email@example.com, Craig Stirling, Fergal O'BrienFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Commerzbank has purchased a block of shares in Comdirect that pushes its ownership of the online brokerage to over 90%, paving the way for a full takeover, the German lender said on Friday. Commerzbank, which previously owned more than 82% of Comdirect, has been in the process of taking over the entire online bank as part of a broader restructuring. Commerzbank bought the stake from Petrus Advisers, which said in December that it owned 7.5% in Comdirect.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. European bourses closed the day in positive territory as they got a boost from the news that China's central bank is cutting the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in funds to revive the economy. The pan-European index was up 1% and the euro-zone blue chip index was up 1.37% at the end of the session, led by banks up 2%.
Ideally, your overall portfolio should beat the market average. But even the best stock picker will only win with some...
(Bloomberg Opinion) -- Jean Pierre Mustier’s new four-year plan for Italy’s UniCredit SpA marks a victorious milestone for the chief executive officer. He’s managed to turn a sprawling European bank laden with bad loans into a simpler entity that promises to improve its returns to shareholders. It leaves him well-placed to plot his biggest move yet (should he so choose): cross-border M&A.The Italian bank has cut costs, sold non-core units and eliminated a bad-debt mountain. While he’s forfeited growth by exiting businesses in Poland and Italian online lending, Mustier has improved profitability. The group return on tangible equity is targeted to exceed 9% this year, up from just 4% in 2015.He’s convinced regulators that the bank doesn’t need as much capital and he’ll seek their approval for the company’s first share buyback since 2004. The 27.8 billion-euro ($31 billion) lender plans to return 8 billion euros ($8.9 billion) to investors in dividends and stock purchases through 2023, giving an implied yield of as much as 7%. That compares with a 6% average for the sector, according to UBS Group AG analysts.All this good work is just as well. While the Frenchman has made UniCredit a more stable, cross-border commercial lender, it still faces huge challenges. That was plain to see in some of the key targets in his “Team 23” strategic plan unveiled on Tuesday.Under assumptions for interest rates that UniCredit says are more severe than the market’s, it sees ROTE declining again. Under this scenario, the measure will be no higher than 8% through 2022, while the bank’s revenue will increase by a meager 0.8% on average annually during the four-year plan. That’s below analyst estimates. Mustier won’t be able to do much more on costs, either; they’ll remain little changed throughout the plan’s duration.Crucially, eking out that modest growth in revenue will depend on UniCredit expanding loans to Europe’s small and medium-sized businesses and consumers at a pace that exceeds GDP expansion.There are some more levers Mustier can pull. UniCredit plans to set up an Italian holding company for foreign assets that could lower its capital needs. It still owns 32% of the Turkish bank Yapi ve Kredi Bankasi, a stake that could be sold.But Mustier’s vision for a “pan-European winner” (his words) may require more radical thought. For the moment, he’s adamant there will be “no M&A,” pointing to smaller, bolt-on purchases. Valuations are a stumbling block to large deals. With UniCredit’s shares trading well below its book value, it makes more sense to pursue buybacks — as Mustier says.Nonetheless, the bank’s smaller, nimbler form positions it for a cross-border deal should the European Union ever complete its banking union. Germany’s Commerzbank AG is often mooted as a partner. If UniCredit’s share price ticks up in the meantime, that would certainly help.To contact the author of this story: Elisa Martinuzzi 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.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.
Commerzbank managers are keeping employees in the dark about the German lender's overhaul plans, a union representative said on Wednesday. The state-backed bank earlier this year announced plans to restructure after a failed merger attempt with Deutsche Bank .
* 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.