|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||10.72 - 10.96|
|52 Week Range||9.10 - 13.12|
|Beta (3Y Monthly)||1.35|
|PE Ratio (TTM)||8.00|
|Forward Dividend & Yield||0.69 (6.39%)|
|1y Target Est||N/A|
Today we'll take a closer look at Crédit Agricole S.A. (EPA:ACA) from a dividend investor's perspective. Owning a...
(Bloomberg) -- Hong Kong’s dollar punched into the strong half of its trading band for the first time since September, riding on momentum provided by elevated borrowing costs in the city.The currency climbed as much as 0.19% to 7.7987 a dollar on Tuesday, crossing the 7.8 threshold. Local interbank rates remain near a decade high, outstripping the income a trader can expect on U.S. dollars. That’s undermining a carry trade -- sell Hong Kong dollars, buy greenbacks -- that had been profitable for years.The tight liquidity is coinciding with dramatic street protests, just like last month, when the surge in borrowing costs suddenly accelerated. But market watchers see other reasons for the trend: companies are hoarding cash to pay quarterly dividends and at least two large share sales may lock up funds.“These tightening events will keep market players cautious and prompt them to continue hoarding cash,” said Carie Li, an economist at OCBC Wing Hang Bank Ltd.Rates are likely to remain elevated in July, Li said. By contrast, U.S. interest rates are dropping as the Federal Reserve prepares to ease monetary policy.Li said one- and three-month interbank lending rates, known as Hibor, are likely to stay above 2% in July. One-month Hong Kong dollar Hibor was at 2.49% on Tuesday and the three-month rate was 2.44%, dipping slightly from last week. Hong Kong’s financial markets were shut for a holiday Monday.The Asia-Pacific arm of Anheuser-Busch InBev is offering shares in a proposed Hong Kong listing that could raise as much as $9.8 billion. Alibaba Group Holding Ltd. is also said to have filed for a share sale that could raise as much as $20 billion -- which would make it the financial hub’s biggest since 2010. This squeezes liquidity as investors set aside cash for a chance to own a piece of the world’s biggest brewer or China’s largest company.The Hong Kong dollar carry trade was a steady winner for years as investors borrowed the currency cheaply to invest in higher-yielding American assets. It became less of a sure thing after the Hong Kong Monetary Authority started buying the local dollar to defend the peg from April 2018.March: What’s Pulling at the Hong Kong Dollar’s Peg: QuickTakeThe city’s aggregate balance now stands at just HK$56 billion, down from HK$180 billion before the HKMA began intervening. The HKMA, which effectively imports U.S. monetary policy, said in June that a higher Hibor and a stronger local dollar are “consistent” with the currency peg system, though uncertainty over the Fed’s policy was increasing.Eddie Cheung, an emerging-market strategist at Credit Agricole SA in Hong Kong, says the currency’s strength won’t last.“The liquidity will likely come back in July and August as seasonal factors wane, though large IPOs may trigger temporary spikes in Hibor,” he said. “It’s challenging to see a near term driver for strong inflows into the local equity market."\--With assistance from Tian Chen and Philip Glamann.To contact Bloomberg News staff for this story: Claire Che in Beijing at email@example.comTo contact the editors responsible for this story: Sofia Horta e Costa at firstname.lastname@example.org, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Markets may breathe a sigh of relief after President Donald Trump and President Xi Jinping decided to resume trade negotiations after a six-week stalemate, with the U.S. agreeing to a temporary freeze on further tariffs on Chinese goods.Trump told reporters he wouldn’t put new duties on China for the “time being” after Xi’s administration agreed to buy a “tremendous” amount of agricultural products. Trump also said that he’ll allow Huawei Technologies Co. to buy some products from U.S. suppliers after the Commerce Department last month blacklisted the company for national security reasons.Read more: Trump, Xi Hit Pause on Trade War Again for Talks on Lasting DealRecent concerns about global trade have prompted investors to bet on central-bank easing and pile into haven assets. Here is how markets will likely react when they open on Monday, according to strategists and investors:Mansoor Mohi-uddin, senior macro strategist at NatWest Markets in Singapore:“Investor sentiment is set to be buoyed in the week ahead by a truce in the U.S.-China trade war.”“Financial markets are unlikely to significantly reduce their expectations for Federal Reserve rate cuts despite global trade tensions easing. Thus risk assets -- stocks, commodities and emerging markets -- are set to rally while the safe-haven dollar, yen and Swiss franc underperform.”Stephen Innes, managing partner at Vanguard Markets in Bangkok:The “reset button” being hit on trade talks was the markets’ base-case scenario, and this is supportive for risk, but the lack of a timeline for progress may cap “bullish topside ambitions.”“With no news reading algorithms to steamroll the markets on Saturday, traders will have a 36-hour cooling off period to quantify their next move. And I would expect the markets to be very orderly on Monday open.”The extensive lists of demands from both sides may be “a bridge too far.”“Underlying sentiment remains quite bearish in terms of the medium-term outlook for a U.S.-China trade deal as well the global growth outlook.”Raymond Yeung, chief China economist at ANZ in Hong Kong:“Today’s outcome, similar to last December’s, still does not convince us that the trade tensions have been resolved. China and the US have not made any progress on key issues, namely, intellectual property rights and technology transfer.”“Trump’s softer stance seems to be driven by US corporate interests, as billion dollar contracts for US farmers and Huawei suppliers are involved.”“Today’s outcome suggests that future negotiations could be characterised by US stepping back in exchange for China’s purchases. But as China has said it is prepared for a ‘Long March’, the U.S. needs to compromise further to reach a real deal before the next presidential election.”Chris Weston, head of research at Pepperstone Financial in Melbourne:“I can’t see this meeting doing risk assets any harm, but there is still a lot of work to do to convince central banks they don’t need to act to keep the economic expansion in check.”“A few weak shorts may look to close out on Monday” given the tariff reprieve, prospects for negotiations to restart and that both sides “actually appear more united than expected.”Watch Sunday’s China PMI data.Alfonso Esparza, senior market analyst at Oanda in Toronto:“Everybody played their part without any additional drama and until more details emerge we are back at square one.”“Gold will be pressured as trade optimism reduces the appeal of the yellow metal as a safe haven.”Jean-Charles Sambor, deputy of head of emerging-market fixed income at BNP Paribas Asset Management in London:“This is of course good. Investors have been generally negative on both the probability of a meeting and the probability of a positive outcome following this meeting.”“High-yield spreads should do well. China high yield remains very cheap especially, and emerging-market currencies should continue to rally on the news.”Valentin Marinov, head of G-10 currency research at Credit Agricole:The outcome was “largely as expected," but there’s now a chance for a rebound in carry-trade optimism, with long dollar vs EUR and CHF the best picksOutcome may also be seen as positive for G-10 currencies with China exposure, such as AUD, NZD, JPY, and EURThe implication is that further easing of U.S. conditions stemming from stock-market optimism following the G-20 summit "should reduce the need for imminent Fed rate cut in July." This makes the upcoming U.S. payrolls and ISM data “very important" to the near-term rates outlook.David Page, senior economist at AXA Investment Managers:The lack of detail elevates uncertainty "as markets reflect on the similarity to last November’s situation"No escalation in the trade war "reduces the likelihood of a sharp Fed cutting cycle." Page maintains his view of two cuts in 2019, starting in September.(Adds comment from Credit Agricole and Axa.)\--With assistance from Moxy Ying.To contact the reporters on this story: Lilian Karunungan in Singapore at email@example.com;Abhishek Vishnoi in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Shamim Adam at email@example.com, Kurt Schussler, Stanley JamesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Last week, the New York State Assembly passed the most aggressive clean-energy target in the United States, requiring New York to get 100 percent of its electricity from zero-emissions sources by 2040. Governor Andrew Cuomo, who is expected to sign the bill into law, called it “the most aggressive in the country.” On the other side of the country, Oregon’s state Legislature is attempting to pass another ambitious climate bill, an effort now stalled by the fact that Republican senators have walked off the job. In the absence of federal action on decarbonizing the power sector, states are taking action on their own.These state goals are ambitious, and they’re potentially unachievable using current technologies. But they are becoming policy reality, not political rhetoric. Businesses and investors thinking of what assets to build and finance, and where, are signaling that they are aligning themselves with these ambitious climate goals. The Network for Greening the Financial System, a group of central banks and supervisors that assesses climate risk and mobilizes climate finance, doesn’t see climate change as abstract. Rather, it is of a “foreseeable nature,” and “while the exact outcomes, time horizon and future pathway are uncertain, there is a high degree of certainty that some combination of physical and transition risks” will eventually materialize. If those risks are foreseeable, then they can be priced. And if those risks manifest themselves financially, then they should be disclosed as well. In its most recent status report, the Task Force on Climate-Related Financial Disclosures said that it now has almost 800 supporters, up from just over 100 only two years ago. The group’s disclosure framework has been appearing as corporate commitments to reduce exposure to climate change or curtail business activities that cause it. Crédit Agricole recently published its 2022 Medium-Term Plan, which not only aligns itself with the TCFD, but also goes directly after its own book of business in thermal coal used for power generation. The bank says it will be exiting from thermal coal production in EU and OECD countries by 2030 (no new business relations with companies for which thermal coal accounts for over 25% of their revenues except those that have announced plans to close their thermal coal activities or which intend to announce such plans by 2021). In a separate news release, the bank said it would also double its green loan portfolio to 13 billion euros by 2022. Its planned increase tracks an expanding market that could top 2018’s record $182 billion of green bond issuance.Credit Agricole and its peers are typical green bond issuers, and as Brian Chappatta of Bloomberg Opinion noted, the green bond field is not only growing, but it is also becoming more diverse. That’s a welcome change from last year, when Chappatta said the market “appeared to be stuck in infancy because of self-designating and a general lack of enforcement”: It’s not entirely clear what changed. Maybe countries and companies truly are reacting to the U.N.’s October report, which argued that the world has 12 years to avert catastrophic climate damage, and just needed time to get their financing in order. Regardless, the diversity of borrowers coming to market stands out as an important trend. About 39% of issuance in the first five months of 2019 came from countries other than China, France, the U.S., Germany, the Netherlands and Sweden, the most since at least 2014, Bloomberg data show. It is important to note two things about how the corporate world is adapting to a changing climate beyond the here and now. First, working to combat it has financial rewards, encouraging more of these efforts; second, almost every big business is building climate change into its forecasts. We can see this in the CDP’s recent Global Climate Change Analysis 2018. As Bloomberg’s Eric Roston reported, the world’s 500 largest companies tallied $970 billion in risks from climate change, as well as $2.1 trillion of “potential good news” in doing something about those risks. Acknowledgement of climate change at the highest corporate levels is already nearly unanimous: That acknowledgement has also become a matter of business strategy: Businesses and investors like certainty. Long-term and extremely ambitious policies such as New York’s ensure a bit more certainty, even if the exact mechanisms of achieving those policies remains uncertain. Climate change is all that most people have ever known, as I wrote last week, and it’s the same story for global corporations. Get Sparklines delivered to your inbox. Sign up here. And subscribe to Bloomberg All Access and get much, much more. You’ll receive our unmatched global news coverage and two in-depth daily newsletters, the Bloomberg Open and the Bloomberg Close.To contact the author of this story: Nathaniel Bullard at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nathaniel Bullard is a BloombergNEF energy analyst, covering technology and business model innovation and system-wide resource transitions.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Peers should take note: Credit Agricole SA is an example of how diversification helps. The French lender outlined its three-year plan on Thursday. Credit Agricole revamped itself after the financial crisis, through a series of acquisitions and disposals, to reduce its reliance on trading and bolster capital.
Today we're going to take a look at the well-established Crédit Agricole S.A. (EPA:ACA). The company's stock received...
European shares rose on Thursday, as expectations the European Central Bank will provide more stimulus for an ailing euro zone economy countered disappointment over the collapse of Renault-Nissan's merger with Fiat-Chrysler. The pan-European STOXX 600 index was up 0.3% by 0717 GMT, with the auto sector, down 0.48%, preventing stronger gains. The ECB, which announces its interest rate decision at 1130 GMT, is expected to seek to give the economy a boost and may even set the stage for more action later this year as the trade tensions unravel the benefits of years of ECB stimulus.
Credit Agricole reported a bigger-than-expected fall in first-quarter net profit after an increase of costs eclipsed higher profits at its French retail bank and corporate and investment banking arm. The bank said on Wednesday costs during the first quarter rose, most notably because of a higher contribution to the EU's Single Resolution Fund (SRF) and accounting changes. Net profit fell 11% profit to 763 million euros (662.26 million pounds), missing the 789 million euros forecast in a poll of analysts by Infront Data.
European stocks traded mixed Wednesday as markets tried to rebound from a sell-off Monday resulting from China's announcement of retaliatory tariffs on U.S. imports.
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France's Credit Agricole and Spain's Santander plan to combine their custody and asset servicing operations, in a deal that could point the way for European banks to achieve scale without the complexity of a full merger. The new business will have around $3.8 trillion (£2.9 trillion) of assets under custody, closing the gap on European leaders and providing scope for savings and cost reductions. Credit Agricole will own 69.5 percent of the merged unit, which will keep the brand name of Agricole's existing asset management arm - Caceis.
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are li...