|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||45.27 - 47.04|
|52 Week Range||38.13 - 50.14|
|Beta (3Y Monthly)||1.47|
|PE Ratio (TTM)||7.76|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||3.02 (6.65%)|
|1y Target Est||61.49|
Deutsche Bank is in the spotlight after the company transferred its hedge fund business to its French rival BNP Paribas. Yahoo Finance's Heidi Chung, Brian Cheung, and Julia La Roche discuss.
French glass bottle maker Verallia traded on the stock exchange for the first time on Friday as it became the largest initial public offering in the country for more than two years. Verallia, the glass manufacturer responsible for Dom Pérignon bottles and Nutella jars, priced its IPO at the lower end of the range on Thursday, raising €888m for a market capitalisation of €3.2bn and an enterprise value of €5bn. The company’s share price had gained 4 per cent by the close of its first day of trading on Euronext in Paris.
(Bloomberg) -- A BNP Paribas SA division created to make speculative bets for the bank’s own account lost tens of millions of dollars last year as trading revenue slumped amid volatile markets, leading executives to shutter the business.Opera Trading Capital, which ceased trading in January, posted a loss of 26 million euros ($30 million) for 2018, filings show. Net banking income before operating expenses slumped 91% to less than 3 million euros, the worst result since Opera began trading in 2015, in a year that started with a sudden spike in volatility, moved on to repercussions from Turkish economic turmoil and was capped by a plunge in U.S. stocks.Opera’s disappointing performance was part of a wider trading slump at BNP that prompted Chief Executive Officer Jean-Laurent Bonnafe to overhaul the Paris-based bank’s markets division in January and push through a fresh round of cost cuts. The closure -- and the almost simultaneous wind-down of a similar unit run by Societe Generale SA -- also marked the end of French banks’ ambitions for proprietary trading; prop desks were banned for deposit-taking lenders in the U.S. after the financial crisis, but only restricted in Europe.BNP executives have completed the wind-down of Opera, according to Alexandra Umpleby, a spokeswoman for the lender in London. She declined to comment further.Rate DerivativesThe accounts also show how Opera increased in size last year, by contrast with SocGen’s prop desk, called Descartes Trading, which was being pared back by the bank’s executives. Descartes lost about 18 million euros last year, Bloomberg reported in July.Assets at the BNP unit climbed 4% to 2.6 billion euros as traders piled into “unlisted” bonds and other fixed-income securities, filings show. The division’s portfolio of interest-rate derivatives -- complex products that investors can use to profit from changes in the direction of interest rates -- swelled 14% to a notional value of 393 billion euros.Most of Opera’s traders have since departed BNP for roles at hedge funds. Stephane Liot, who had overseen the business, joined Brevan Howard Asset Management as chief operating officer for trading in June.(Updates with chart.)To contact the reporter on this story: Donal Griffin in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Keith Campbell, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Deutsche Bank AG finalized a deal transferring its business with hedge fund clients to BNP Paribas SA as part of the German lender’s historic retreat from investment banking.About 1,000 Deutsche Bank employees will move to the French rival through 2021, according to people with knowledge of the matter. Ashley Wilson, one of two executives at the German bank overseeing the disposal of unwanted assets, will head the business during this period and may eventually leave to run the combined unit at BNP, the people said, asking not to be identified as the matter is private.The volume of assets BNP will ultimately add remains uncertain because Deutsche Bank’s client balances slumped by about half to $80 billion since it announced its intention to transfer the business. The lenders expect clients to come back now that there’s more certainty, the people said. But analysts at Citigroup Inc. led by Andrew Coombs questioned whether there will be anything left to transfer by the time the deal is closed.The two firms had agreed on the move in principle in early July, as Deutsche Bank Chief Executive Officer Christian Sewing retreats from equities trading -- which houses the prime business-- in the bank’s biggest restructuring in decades. But finalizing the accord has been complicated by the client defections. For Sewing’s counterpart at BNP, Jean-Laurent Bonnafe, the deal could bring the scale needed to compete with the bigger players.Top ContenderShares of both lenders fell Monday along with the broader market. Deutsche Bank declined 3.5% at 12:52 p.m. in Frankfurt, curbing gains this year to 1.3%. BNP lost 2.8% in Paris and is up 11% in 2019.The agreement, which is subject to regulatory approval, could vault BNP into the global top 4 of prime brokerages over the next 12 months, reaching $250 billion to $300 billion in client balances eventually, according to the people. Deutsche Bank will continue to manage the platform until clients can be passed over, the two banks said on Monday.“Now that the deal has signed, we believe we have the basis to regain and expand on the business,” Deutsche Bank Chief Operating Officer Frank Kuhnke said in a telephone interview. The deal “provides tangible real benefits for our customers and gives our staff a way forward.”The agreement comes just a few days after Deutsche Bank sold its first portfolio of equity derivatives, another key step to exit equities trading and get the associated assets off its balance sheet. The bank has said it will provide more details when it publishes third-quarter results on Oct. 30.Representatives of BNP Paribas and Deutsche Bank declined to comment.When the two firms first discussed the deal, Deutsche Bank’s prime brokerage business was set to move about 150 billion euros ($165 billion) of balances, people familiar with the matter have said. Yet clients put off by the uncertainty of the deal headed for the exit, pulling about $1 billion of funds per day, the people said at the time.Prime-brokerage divisions cater specifically to hedge funds, lending them cash and securities and executing their trades, and the relationships can be vital for investment banks. The prime business generated about $18.3 billion in fees across the industry in 2018, about the same as revenue from trading corporate debt and currencies combined, data from Coalition Development Ltd. show.The deal will give BNP the technology it needs to improve trading with asset managers and hedge funds specializing in quantitative strategies, Olivier Osty, global head of markets at the Paris-based bank, said in an interview. Executives at the French lender had been planning to develop a platform themselves but had estimated it would take three to four years, he said.Quant Muscle“The electronic platform is dedicated to managing all the big quant funds that we’re missing in our franchise,” Osty said. “So this is the opportunity to bring to BNP Paribas a product that was missing and that could allow us to grow.”Quantitative hedge funds, such as Winton Capital Management and AQR Capital Management, use computer algorithms to evaluate risk, pricing and timing in financial markets. Investors, fed up with years of lackluster returns by other kinds of managers, have flocked to the industry. Assets under management at so-called quants have surged 88% since 2010 to $951 billion, compared with a 53% gain for other funds, according to data from Hedge Fund Research Inc.Deutsche Bank, which became a force on Wall Street in the wake of the financial crisis, has struggled to keep hedge-fund clients in recent years as it lurched from one problem to another. U.S. rivals JPMorgan Chase & Co., Morgan Stanley and Goldman Sachs Group Inc. are the top three firms in the business, while Deutsche Bank wasn’t among the top seven prime brokers in 2018, Coalition data show.Little LeftBNP has sought to profit from crisis before. The lender bought Bank of America Corp.’s prime-brokerage business in June 2008 as the credit crunch raged, acquiring more than 500 clients and 300 employees. Still, the firm has one of the smallest prime units among global banks, according to Coalition.Deutsche Bank’s hedge fund balances have been declining throughout the year as speculation swirled around Sewing’s intentions for the prime brokerage unit. One major client -- Renaissance Technologies -- has been pulling money from the firm, people familiar said earlier.“The majority of prime finance mandates appear to have been put out for tender,” Citigroup’s Coombs wrote in a note to clients. “By the time the transaction finally closes, there may therefore be little by way of outstanding prime balances to transfer across.”(Updates with shares in fifth paragraph.)\--With assistance from Nishant Kumar and Jan-Henrik Förster.To contact the reporters on this story: Donal Griffin in London at firstname.lastname@example.org;Steven Arons in Frankfurt at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Lawyers for Huawei Chief Financial Officer Meng Wanzhou will be in a Canadian courtroom on Monday to press for details surrounding her arrest at Vancouver's airport nearly 10 months ago. Meng, 47, was detained on Dec. 1 at the request of the United States, where she is charged with bank fraud and accused of misleading HSBC Holdings Plc about Huawei Technologies Co Ltd's business in Iran. Meng, who is expected in court, has said she is innocent and is fighting extradition.
PARIS/FRANKFURT (Reuters) - A deal to transfer Deutsche Bank's prime brokerage business to BNP Paribas could see up to 1,000 staff move from the German lender to the French bank, BNP said on Monday. The deal is a pillar of Deutsche's restructuring. Under the agreement, Deutsche would continue to operate the platform for global prime finance and electronic equities clients until the customers can be migrated to BNP, the banks said.
(Bloomberg) -- Saudi Aramco has added banks including Barclays Plc, BNP Paribas SA, Deutsche Bank AG and UBS Group AG as bookrunners on its planned initial public offering as it pushes ahead with plans for the blockbuster deal, people with knowledge of the matter said.The energy giant also picked Credit Agricole SA, Gulf International Bank BSC and Societe Generale SA, the people said, asking not to be identified because the information is private. Aramco is planning to select about 15 bookrunners in total, including two Chinese firms, one of the people said.Aramco is moving fast to add banks in junior roles on the deal after choosing the top underwriters last week. Bankers from the newly-appointed underwriters are flying to the Middle East for meetings with Aramco starting Monday, according to the people.The oil producer, officially known as Saudi Arabian Oil Co., is still planning to add more local firms in junior roles on the offering, the people said. Representatives for BNP, Deutsche Bank, Societe Generale and UBS declined to comment. Aramco, Barclays, Credit Agricole and GIB didn’t immediately respond to requests for comment.Aramco held kickoff meetings with the top banks in Dubai earlier this month. Bank of America Corp., Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley were chosen earlier for senior roles on the deal, Bloomberg News has reported.Aramco aims to stick to its schedule for planned analyst presentations and hasn’t told banks of any plans to delay the IPO, even after devastating attacks on its biggest facilities slashed oil output, Bloomberg News reported last week.The company was considering holding analyst presentations the week of Sept. 22 and listing on the Saudi bourse as soon as November, people with knowledge of the matter have said.\--With assistance from Archana Narayanan, Carol Zhong and Vinicy Chan.To contact the reporters on this story: Dinesh Nair in London at email@example.com;Myriam Balezou in London at firstname.lastname@example.org;Matthew Martin in Dubai at email@example.comTo contact the editors responsible for this story: Ben Scent at firstname.lastname@example.org, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Every major U.S. electricity grid is getting significantly greener.Except for the massive one serving 65 million Americans.That’s just as problematic as it sounds for the policymakers, power providers and climate activists looking to wean Americans off fossil fuels. While members of other systems move quickly to add solar and wind to their mixes and slash carbon emissions, the network that keeps the lights on from Chicago to Washington has effectively doubled down on natural gas.In the past two years, it has boosted the amount of power generated with gas by 11,131 megawatts. And developers are planning 34,507 megawatts more. Meanwhile, solar and wind account for 1% of the grid’s installed capacity. “How do you manage the gas build-out with more states boosting renewables targets?” asked Toby Shea, a New York-based analyst at Moody’s Investors Service. “There’s already an overbuild of gas.”It’s not that there’s no interest in the renewable trend in the 13 states connected to what’s called the PJM Interconnection. In fact, it has been inundated with applications from renewable developers — 67,000 megawatts of wind and solar in total, from 684 projects.But there’s also this economic reality: PJM crisscrosses a section of the U.S. that’s home to some of the world’s most abundant natural gas reserves. As fast as the cost of wind and solar energy has been dropping, gas in some of these parts is cheaper.The hundreds of cities, counties, states and utilities linked to PJM have different and often competing goals and interests. Some are keen on getting greener, and the continued gas build-out threatens those ambitions.But the rush to make electricity without carbon emissions could put the gas plants in a bind. The potent brew of falling costs for emissions-free renewables could jeopardize facilities that are built to last for decades. They could end up as expensive bit players, filling in only during extreme weather or when the wind or sun aren’t cooperating.By 2035, it will be more expensive to run 90% of the gas plants being proposed in the U.S. than it will be to build new wind and solar farms equipped with storage systems, according to the Rocky Mountain Institute, a nonprofit supporter of cleaner energy. It will happen so quickly, the institute says, that plants will become uneconomical before their owners finish paying for them.More than half of U.S. states — including New Jersey, which is in PJM — have required renewables in their electrical blends. This group includes California, which aims to get all of its electricity from emission-free sources by 2045. Even oil-mad Texas is favoring clean power, because wind and solar are so cheap in the Lone Star State. There’s little debate, though, that natural gas is still needed. A Texas heat wave that drove its grid to the brink of blackouts last month was a reminder of how essential the fuel remains. Even in California, gas continues to provide round-the-clock power.“We just can’t turn that gas off today,” said Joseph Fiordaliso, president of the New Jersey Board of Public Utilities. “The infrastructure was built years ago. We have to build the infrastructure for wind.”As a grid, PJM is most focused on providing reliability at the lowest cost, said Stu Bresler, its senior vice president of markets and planning. In other words, just because projects are in the queue — gas-fired, wind or solar — doesn’t mean they’ll come to fruition.There is, however, a $70 billion offshore wind market forming off the Atlantic coast. And while renewable energy is still a fraction of PJM’s grid today, Bresler said, ``It’s still growing, and we're going to continue to see penetrations of solar and wind’’ as some states work to meet their renewable energy goals. He also pointed out that renewable energy makes up a larger share of the actual power generated in PJM -- as much as 5%. It makes sense, considering solar and wind farms have essentially zero fuel costs and can produce cheaper than other resources. The gas-fired bet once seemed pragmatic. Appalachia needed new electricity to replace gigawatts of retiring coal-fired power and nuclear reactors. The cheap shale reserves were right there. Meanwhile, the region isn’t endowed with the sunshine of California or the constant breezes of Texas. ``PJM doesn’t have the advantage geographically when it comes to wind and solar,’’ Bresler said.Private equity responded by pouring in tens of billions of dollars to build a new gas-fired fleet.Several of the nuclear plants are now being subsidized to stay online. As for gas, the threats posed by renewables prompted Devin McDermott, a commodities strategist at Morgan Stanley, to write a recent research note that he titled, “Could natural gas be a bridge to nowhere?”His question takes the premise that has underpinned the boom and flips it on its head: What if grids need new gas plants for only half of their lives? The economics do seem to be changing. In Texas, a gas plant built in this decade went bankrupt in 2017, in part because it struggled to compete with the state’s cheapest power sources: renewables.Among the half-dozen competitive power markets in the U.S., PJM is a big draw for investors, thanks to its size, capacity payments granted through an annual auction and the proximity to shale formations, said Mark Florian, head of the global energy and power infrastructure team at BlackRock Inc.Ravina Advani, head of energy, natural resources and renewables at BNP Paribas SA, estimated that there will be $6 billion of debt financings supporting new gas-fired plants in PJM by mid-2020.Last year’s auction was a boon for developers. More than $8 billion in supplier payments were granted for the year starting in June 2021. But the next auction, originally scheduled for May and then for August, won’t be held until a federal agency decides how to balance the competing interests of states and power generators in PJM’s territory.Backers of gas-fired units are “taking a lot of risk going into this type of market, when it’s already oversupplied and with renewables coming,” said Moody’s Shea. “It’s just a matter of time.” (Updates with comments from senior vice president at PJM starting in 13th paragraph)\--With assistance from Dave Merrill, Christopher Cannon, Hannah Recht and David R Baker.To contact the authors of this story: Brian Eckhouse in New York at email@example.comNaureen Malik in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Lynn Doan at email@example.com, Simon CaseyReg GaleAnne ReifenbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Moody’s Investors Service Inc. changed its outlook on Hong Kong’s Aa2 issuer rating to negative from stable on Monday, citing growing risk that protests will undermine the city’s attractiveness as a trade and financial hub.The agency said the ongoing demonstrations could hurt government and policy effectiveness more than it had previously assessed, as well as damage Hong Kong’s credit fundamentals. Still, it affirmed the Aa2 long-term issuer and senior unsecured ratings, saying they reflect the city’s strong buffers as it has minimal government debt and large fiscal and foreign-exchange reserves.Hong Kong has been rocked by unrest this summer, with weekends marked by clashes between police, protesters and pro-China groups. There’s little sign of any end in sight as demonstrators continue to call on the government to act on their demands, which include an independent investigation into the police’s use of force. The turmoil has affected transport networks and businesses, weighing on the economy and causing a slump in visitor numbers.“While the outcome of the standoff remains highly uncertain, the longer it persists, the greater the risk that it precipitates a response from the authorities, which would demonstrate a tightening in the institutional linkage to China and signifies a diminution of the predictability of Hong Kong’s own governing and judicial institutions,” Moody’s said in a statement.Hong Kong Financial Secretary Paul Chan responded by saying the city’s financial markets and banking system have been operating as usual in the past few months.“The linked exchange rate system is functioning well, banks are well-capitalized, liquidity management is sound, and there is no significant outflow of Hong Kong-dollar funds or from the banking system. Hong Kong and U.S. dollar deposits have remained stable,” he said in a statement. “We do not agree with Moody’s decision to downgrade Hong Kong’s rating outlook.”Earlier this month, Fitch Ratings Inc. downgraded Hong Kong as an issuer of long-term, foreign currency debt for the first time since 1995. Fitch said political turmoil in the territory raised doubts about its governance.To contact the reporter on this story: Carol Zhong in Hong Kong at firstname.lastname@example.orgTo contact the editor responsible for this story: Will Davies at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.