|Bid||5.45 x 200000|
|Ask||5.45 x 110000|
|Day's Range||5.36 - 5.66|
|52 Week Range||4.66 - 8.26|
|Beta (5Y Monthly)||1.87|
|PE Ratio (TTM)||10.68|
|Earnings Date||May 13, 2020|
|Forward Dividend & Yield||0.20 (3.47%)|
|Ex-Dividend Date||May 07, 2020|
|1y Target Est||11.78|
European stocks drifted lower in volatile trading on Tuesday as markets failed to set a floor after the pounding they took over the spread of the coronavirus in Italy and South Korea
(Bloomberg) -- Fears that the coronavirus could be a disaster for the global economy and a drumbeat of speculation over central-bank stimulus are driving another rally in precious metals.Gold surpassed $1,600 an ounce this week and is closing in on a seven-year high. Palladium climbed for a sixth day in the spot market, extending its record-breaking rally.“Gold is continuing to resist the firm U.S. dollar and appears to remain in good demand as a safe haven because of the Covid-19 virus,” Daniel Briesemann, an analyst at Commerzbank AG analyst, said in a note. “The madness on the palladium market continues.”The most surprising metal remains palladium, which rose as much as 8.4%. The metal used to curb emissions from vehicles rallied as the Chinese government pledged to stabilize car demand in the Asian country. Efforts to contain the coronavirus earlier prompted manufacturing shutdowns.Companies from Apple Inc. to Adidas AG are starting to account for the economic damage of the coronavirus, which has already killed more than 2,000 people. At the same time, traders are paying more attention to the possibility of central bank easing in the coming months.The Federal Reserve has said the effects of the virus have presented a “new risk” to the outlook and traders will study minutes from the latest meeting, due later Wednesday, for any hint of a dovish tone. Lower borrowing costs boost the investment appeal of precious metals that don’t offer yields.Palladium generated a 148% return in the past two years -- the biggest among the raw materials tracked by a DCI BNP Paribas gauge. Prices rallied as supply continued to trail consumption.“There is nothing on the horizon to change the direction of these shortages,” Neal Froneman, the chief executive officer of Sibanye-Stillwater Ltd., said at a presentation in Johannesburg, referring to palladium and rhodium.Stricter vehicle emissions standards are spurring more demand for the metals, which are used to clean car fumes, he said.In China, the world’s largest auto market, areas with purchase limits should be encouraged to soften curbs by increasing car plate quotas, according to an article by President Xi Jinping published in Communist Party-run magazine Qiu Shi on Sunday.Why Palladium Is Suddenly a More Precious Metal: QuickTakePalladium rose 1.9% to $2,678.03 an ounce at 1:53 p.m. in New York after reaching a record $2,849.61 earlier. For a second straight day, the metal’s 14-day relative index stayed above 70, a level seen by traders who study charts as a sign that the commodity is overbought and poised to decline. Futures settled 2.9% higher on the New York Mercantile Exchange.Tighter supply and China’s support for the auto sector “do not justify the renewed upswing in price in our opinion,“ Commerzbank’s Briesemann said.Spot gold advanced 0.5% to $1,609.05 an ounce. Futures closed 0.5% higher on the Comex in New York.\--With assistance from Eddie van der Walt, Felix Njini, Justina Vasquez and Yvonne Yue Li.To contact the reporters on this story: Lynn Thomasson in London at email@example.com;Ranjeetha Pakiam in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Luzi Ann Javier at email@example.com, ;Lynn Thomasson at firstname.lastname@example.org, Joe RichterFor 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.
(Bloomberg) -- Turkey’s central bank cut interest rates again, delivering the smallest decrease of its seven-month easing cycle but still risking a backlash as investor tolerance of lower borrowing costs starts to wane.Looking past market unease, Governor Murat Uysal is pushing Turkey’s inflation-adjusted rates further below zero at a time price pressures are intensifying. The Monetary Policy Committee reduced its key rate for a sixth straight time on Wednesday to 10.75% from 11.25%. While most analysts surveyed by Bloomberg predicted a cut, a sizable minority saw no change.“Today’s decision serves to illuminate the priorities at the central bank,” said Phoenix Kalen, a strategist at Societe Generale SA in London. “It appears that the revival of credit growth -- particularly to corporates -- seems to be the overriding objective, worthy of the recent interventions,” she said, referring to the various measures authorities have taken to get in the way of the currency’s slide.After weathering 13.25 percentage points of easing since July, the lira has grown more volatile and Turkey’s geopolitical entanglements are unsettling nerves among investors. The latest move brings Turkey’s real rate to minus 1.4%, below such developed countries as the U.S., the U.K., Japan and Canada.Turkey’s currency has lost more than 3% against the dollar over the past month. It erased an earlier gain after the rate announcement and traded 0.2% weaker at 4:06 p.m. in Istanbul.The MPC left its guidance unchanged while adding a word of caution on Turkey’s lending boom. It also removed a mention of an improving outlook for inflation.‘Closely Monitored’“Developments in credit growth and its composition are closely monitored for their impact on the external balance and inflation,” it said in a statement. “The central bank will continue to use all available instruments in the pursuit of price stability and financial stability objectives.”Rattled by the drop in the lira, Turkish authorities have made it more difficult for foreign investors to bet against the currency by cutting the amount of foreign-exchange swaps and derivatives deals that banks can carry out with non-residents. State banks have also been making a stand by flooding the market with dollars.Interrupting the easing cycle carried risks for Uysal, whose predecessor was fired by President Recep Tayyip Erdogan for not reducing rates fast enough. Contrary to the thinking of most economists and central banks, Erdogan believes lower borrowing costs are more effective at slowing prices and has repeatedly said that rates will drop into single digits this year.“Despite interest rates falling, the exchange rate didn’t explode, inflation didn’t jump, markets didn’t get stirred up, nor was any other difficulty experienced,” state-run Anadolu Agency cited Erdogan as telling lawmakers last week.Meanwhile, inflation accelerated faster than forecast for a second month, reaching 12.2% in January. The central bank expects price growth to stay elevated in the first quarter at around 11.5% before it starts decelerating and drops to single digits from the second half.Uysal said the central bank expects to offer investors a positive real rate of return when taking the projected path of inflation into account. Its current forecast is for consumer price growth to slow to 8.2% by year-end.“Our understanding of Turkish inflation indicators does not support monetary easing from current levels,” Commerzbank AG economist Tatha Ghose said in a report. “Nevertheless, the political reality of Turkey is that the benchmark rate is very likely to be cut further.”(Updates with economist’s comment in final paragraph)\--With assistance from Harumi Ichikura, Zoe Schneeweiss and Constantine Courcoulas.To contact the reporter on this story: Cagan Koc in Istanbul at email@example.comTo contact the editors responsible for this story: Onur Ant at firstname.lastname@example.org, Paul Abelsky, Constantine CourcoulasFor 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.
(Bloomberg Opinion) -- Italian banks embarking on a round of consolidation was always a matter of when, not if. Meager profitability, a fragmented industry and a desperate need for investment are obvious ingredients for M&A. Lenders have rid themselves of most of the bad loans that crippled Italy’s banks after the financial crisis, so dealmaking should be unhindered.Intesa Sanpaolo SpA’s surprise $5.3 billion offer for a smaller Italian rival in a four-way carve-up may not have been what investors had in mind. Intesa is already Italy’s biggest bank and its target, Unione di Banche Italiane SpA — the country’s fourth-largest — was seen as more of an acquirer of weaker rivals than a target.But the deal may provide the jolt the European industry needs. Almost a year has passed since the failed effort to combine Germany’s Deutsche Bank AG and Commerzbank AG through a more complex, risky deal. The completion of a simpler union could embolden chief executives elsewhere in the continent too.Intesa’s unsolicited all-stock bid, at a 25% premium to the closing price, would make it one of the biggest European banking mergers since the Lehman crisis. UBI, which hasn’t commented on the approach, was caught off guard. Just hours earlier in London, it presented its strategy as a standalone company.A deal would move Intesa into the group of top 10 European lenders, measured by operating income. Though UBI investors could argue for juicier terms, the strategic and financial rationale for a deal is compelling. The European Central Bank’s initial positive feedback on the merger should improve Intesa CEO Carlo Messina’s chances of persuading his UBI counterpart.A takeover would create a joint business with a market share of about 21% in loans and deposits, 23% in asset management and 19% in life insurance. To avert antitrust concerns, Intesa has agreed to sell as many as 500 branches to a regional lender and to dispose of insurance activities too. The banks have similar business models and the 5,000 anticipated job cuts are expected to be voluntary (3,400 job losses have already been announced by the banks). The deal would bring 510 million euros of cost savings and 220 million euros of revenue synergies, according to Intesa. The buyer is promising to pay a cash dividend of 0.2 euros per share for 2020, and higher from 2021, above current consensus estimates. To cover the deal’s cost, Intesa expects to benefit from about 2 billion euros of negative goodwill to help pay for integration expenses and a deeper clean-up of bad loans.Investors like what they’re hearing. A bond UBI sold five weeks ago has delivered an impressive 12% return, making it the best-performing bond in Europe this year. UBI shares rose as much as 29% on Tuesday, above the offer price; Intesa shares rose as much as 3.6%.Some investors had hoped that Intesa would make a bolder move to diversify its business away from Italy and to reduce its reliance on lending income. But support from the ECB for the UBI approach would at least show the regulator is willing to countenance much-needed M&A in Italy, and Europe.Messina’s unexpected move might inspire a broader consolidation. As sub-zero interest rates persist and economies sputter, European banks’ low profitability is unlikely to improve. Cross-border deals are still complicated by different national insolvency laws and the absence of a common European deposit-insurance scheme. At least Messina is doing something.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 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Jupiter Fund Management Plc is getting something of a bargain in its purchase of Merian Global Investors, based on the post-announcement pop in the acquiring firm’s share price. Odd, then, that the deal has a clause that could see a dramatic drop in the takeout price if the target firm stumbles in the next two years.Jupiter is paying 370 million pounds ($482 million) for Merian, which is owned by TA Associates Management. The Boston-based private equity firm agreed to pay 600 million pounds for Merian a bit more than three years ago, backing its managers in a buyout from Old Mutual Ltd. So it’s taking a hit on its initial investment.Moreover, Jupiter has secured what it calls “downside protection” if Merian’s assets under management decline by the end of 2021. The purchase price falls by 20 million pounds if assets decline by 15%, by 40 million pounds if the drop is 25%, and the full 100 million pounds if Merian manages 40% less money. Reductions between those levels will be applied proportionately, while Merian’s management can earn an additional 20 million pounds by increasing revenue.It’s a smart hedge for Jupiter, given the inability of many active fund managers to stop money from walking out of the door. Jupiter itself has had seven consecutive quarters of net outflows, and saw customers withdraw 4.5 billion pounds last year, so the value of its assets under management was only defended by rising global market values.And Merian had 25.7 billion pounds under management at the time of its buyout in December 2017; based on Monday’s offer documents, it’s down to a bit more than 22 billion pounds now.Once the deal is completed, TA Associates will end up with about 16% of Jupiter, while Merian’s management will own about 1% of the firm. It’s a case of back to the future for the buyout firm. In 2007, TA Associates backed Jupiter’s managers and took a 22% stake in the London-based firm when it was spun off from Commerzbank AG. It maintained a stake in Jupiter until 2014, when it offloaded its final 10.6% holding. So the private equity outfit still has skin in the U.K. active management game, which is a vote of confidence of sorts.The deal will mean Jupiter has more than 65 billion pounds of assets under management, an boost of more than 50% from the 43 billion pounds it currently has. The transaction offers “substantial cost efficiencies,” which Jupiter says will eventually allow Merian to deliver an operating margin of at least 50%, handily outstripping the 43% margin Jupiter generated in 2019.Jupiter’s shares jumped as much as 10.4% in the wake of the deal’s announcement, driving them to their highest since July 2018. But it’s hard to shake the suspicion that the insurance clause Jupiter has included in the transaction — and which the vendor has accepted — suggests that takeovers alone can’t fix what ails the active fund management industry. What’s needed is a solid period of outperformance against benchmarks. Otherwise investors will continue to vote in favor of low-cost passive products, and will be right to do so.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today we'll take a closer look at Commerzbank AG (ETR:CBK) from a dividend investor's perspective. Owning a strong...
Deutsche Bank AG has delayed raises to fixed pay compensation at the German bank by three months until after April 1, citing the need to further improve cost management, according to a memo seen by Reuters on Tuesday. "After thorough discussions, we on the Management Board have taken the decision that, from 2020, any fixed pay adjustments in connection with the annual review or promotion process will be effective April 1 (not retroactively effective as of January 1)," Christian Sewing, the bank's chief executive, wrote in the memo. The memo added that the bank will continue to review fixed pay at regular intervals and make adjustments as necessary.
Women held 22.8% of supervisory board seats at banks and 22.2% of those at insurance companies, down from 23.2% and 22.5% respectively the year before, according to the study by the German Institute for Economic Research, or DIW. The decline contrasts with other industries, where women had an overall 28.2% share of seats, an improvement on the previous year's 26.9, DIW said.
Ideally, your overall portfolio should beat the market average. But even the best stock picker will only win with some...
Banks around the world are on track for making their biggest round of jobs cuts in 4 years, according to Bloomberg. This year over 50 lenders have announced plans to cut nearly 80k jobs combined. Yahoo Finance’s Heidi Chung and Brian Cheung discuss with Barron’s Reporter Carleton English.