|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||25.23 - 25.51|
|52 Week Range||20.81 - 38.44|
|Beta (3Y Monthly)||1.37|
|PE Ratio (TTM)||6.87|
|Forward Dividend & Yield||2.20 (8.55%)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Mario Draghi’s public scolding of Europe’s lenders this week matters more than what he did for them.Banks in the region have long complained of the squeeze negative interest rates are putting on their profits — upending their traditional business model of borrowing money for the short term to lend to clients in the long run. But there’s little they can do to ease the pain: Charging ordinary citizens to hold their deposits, for example, is controversial and may even be illegal. As he cut rates deeper into negative territory this week, the president of the European Central Bank showed that he had listened to these complaints, announcing a package of measures to spare banks some of the pain of negative rates. But he accompanied this with a blunt message: Banks need to get their own houses in order.While there’s a growing acceptance that the industry will be hurt by a prolonged spell of low rates, there’s a danger that this becomes an excuse for executives to shrug their shoulders and accept that returns won’t improve. That’s wrong.Draghi didn’t mince his words on what bank executives could be doing instead of venting their anger. Costs at some European banks are “completely way off,” he said, without identifying any individual firm. And banks should be investing more in technology. He’s right on both counts.While there’s significant divergence between lenders, expenses ate up more than 70% of revenue at some of France’s biggest banks last year, and even more at their German counterparts — levels that are not sustainable. Deutsche Bank AG’s latest (and long overdue) turnaround effort should see its cost-income ratio finally fall to a more sustainable 70% in three years from closer to 94% last year. Yet Chief Executive Officer Christian Sewing has been among the most vocal on the consequences of negative rates.France’s Societe Generale SA is studying ways to save a further 600 million euros at its Paris operations. Italy’s UniCredit SpA is considering a further 10,000 job cuts. More than a decade after the financial crisis, banks — when pushed — still seem to be able to find excess capacity to cut.Draghi also had some advice for what should be getting executives more excited: technology. Hampered by old, often overlapping, systems that continue to soak up expenses, lenders have been slow to jump on the digitization bandwagon.They have also found themselves at the center of money-laundering scandals that are costing them in fines. Technology can help them: Dutch banks are teaming up to build algorithms to prevent the flow of illicit funds, a move other lenders could copy.To be sure, investing in technology and cutting fat comes with upfront costs that could further erode short-term profit, hurting investors. Labor opposition has also proven difficult to overcome. When Deutsche Bank and Commerzbank AG weighed a merger earlier this year, unions made it very clear they weren’t in favor of the tens of thousands of job cuts that would have been needed.But this medicine is necessary — for the sake of all of us. We may be approaching a level at which the industry’s meager profitability forces some European lenders to scale back, a problem in a region where companies still rely on bank lending rather than the bond market for the bulk of their borrowings. Short-term loans show signs of weakness, Draghi warned on Thursday. That’s a worrying prospect.The departing president’s latest message could not have been clearer. Industry leaders should listen.To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: Stephanie Baker 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.
(Bloomberg) -- Societe Generale SA is studying ways to save 600 million euros ($662 million) in annual costs tied to its operations in Paris, part of an effort to win back investor confidence and improve returns.The review, known internally as “Ithaque,” started in June, according to a person familiar with the matter. No decision has been made and the savings target may still change, said the person, asking not to be identified because the matter is confidential.The bank declined to comment.Chief Executive Officer Frederic Oudea is under pressure to go beyond existing cost cuts amid an economic slowdown and the prospect of even lower interest rates. The new reductions would focus on Paris support functions and add to an ongoing restructuring that aims to save 500 million euros and eliminate 1,600 jobs, mainly in the investment banking unit.Banks across Europe have been cutting costs, with Deutsche Bank AG unveiling some 18,000 job reductions in July and UniCredit SpA weighing thousands of cuts. While SocGen and bigger crosstown rival BNP Paribas SA have been more reluctant to make bold moves, the prospect of slower growth will likely prompt more measures, UBS Group AG analyst Lorraine Quoirez wrote in a note earlier this week.SocGen rose 1.6% at 11:08 a.m. in Paris trading, paring losses this year to 6.7%. The stock has trailed peers in 2019, which are roughly flat by one industry gauge.Strengthening CapitalOudea, more than 10 years in the job, is slashing costs and selling assets after a surprise profit warning in January. He wants to preserve the bank’s leadership in businesses such as equity derivatives while strengthening capital.SocGen has hired Bain & Co. to help identify ways to slash expenses by about a fifth on services such as information technology, human resources and the finance department, Bloomberg reported last month. The review might lead to hundreds of additional job cuts in Paris, one person familiar with the matter has said.The firm is also working with McKinsey & Co. to find ways to bolster its key capital level and keep up with regulatory demands in a review known internally as “Optica,” Bloomberg reported in June.In addition, Oudea has been exploring asset sales. SocGen is considering options for its Lyxor asset-management business, which oversees about 151 billion euros, people familiar with the matter said last month. The company is also weighing exits from its U.K. private banking business and Nordic equipment-leasing operations, people familiar with the matter have said. Last year, it agreed to sell its Belgian private banking unit to ABN Amro Group NV.(Adds industry background in fifth paragraph.)To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Christian Baumgaertel, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Barclays Plc is making cuts to its Japanese fixed income business as Chief Executive Officer Jes Staley slashes costs globally to counter weak profits at its markets unit.The British bank is parting ways with several salespeople and traders in Tokyo, according to people familiar with the matter who asked not to be named discussing information that isn’t public. The reductions were made in the last week, the people said.Barclays joins Societe Generale SA and Deutsche Bank AG in cutting their fixed income divisions, which are in the business of trading bonds. Banks are contending with a decade of low and negative rates, eroding trading profits -- and with no end in sight as the European Central Bank remains in easing mode. Japan has been in a similar environment for years. Deutsche Bank moved to eliminate workers in high-yield trading last week, while SocGen has focused the deep cuts to its markets division in fixed income.Barclays’s corporate and investment bank posted a 4% fall in half-year income to 5.2 billion pounds ($6.4 billion) in August, hit by lower banking fees and a 6% decline in markets income. Operating expenses for the unit were stable at 3.6 billion pounds.Staley has faced criticism from some shareholders over the performance of the investment bank, which is a centerpiece of his strategy. The American-born CEO is fending off activist investor Edward Bramson, who wants to see the investment bank shrink, by keeping a tighter control on expenses. The bank eliminated 3,000 jobs in the second quarter and is offloading businesses including its automated options business in New York.A Barclays spokeswoman declined to comment on the Tokyo cuts.(Adds detail of other banks cutting jobs in third paragraph.)To contact the reporters on this story: Viren Vaghela in London at email@example.com;Harry Wilson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rating Action: Moody's has assigned provisional ratings to Spanish consumer loan ABS of Sabadell Consumo 1, Fondo De Titulizacion. Global Credit Research- 09 Sep 2019. Madrid, September 09, 2019-- Moody's ...
(Bloomberg) -- The reasons may vary but an awful lot of strategists are recommending hedges on U.S. equities right now.JPMorgan Chase & Co. recommends buying bearish options on the SPDR S&P 500 ETF Trust because the market may be underpricing risks that a deterioration in corporate America’s health could hurts jobs. Bank of America Merrill Lynch suggests put-option trades because its model suggests increasing risk of trouble for the S&P 500. And Societe Generale SA and Credit Suisse Group AG see some pockets in options tied to the index that are cheap.The recommendations come after a turbulent August that saw markets gyrate to headlines on the U.S.-China trade war, tweets from President Donald Trump and comments from Federal Reserve officials. Another set of U.S. tariffs on Chinese goods took effect Sept. 1. Even so, the S&P 500 gained 1.1% on Sept. 4 to within 3% of its July peak, and futures rose in Asian hours on news that the U.S. and China will meet for trade talks early next month.JPMorgan strategists Shawn Quigg and Marko Kolanovic say buying protection may be rewarding amid a likely weakening in the jobs data. Softening unemployment figures could weigh on equities, and options are pricing a move on the SPY ETF of about 1% through Sept. 6, which they deem as cheap.Trade ideas from the firms include:JPMorgan: Buy Sept. 6-expiry SPY $292 put optionsBofAML: Buy one S&P 500 October 2,825 put, selling two 2,700 puts and buying one 2,575 putSocGen: Sell one S&P 500 95% put with a December 2020 maturity, while buying 4.5 times the 70% putCredit Suisse: Hedge with SPY put strategiesSocGen Financial Engineer Aymen Boukhari notes that short-term S&P 500 volatility skew is very steep, meaning puts are in demand relative to calls. Far out-of-the-money puts are very cheap compared with at-the-money puts, Boukhari said by email.Credit Suisse’s Mandy Xu also says relative cheapness in puts that are far below current index levels with three-month expiry and shorter, amid little demand for the far out-of-the-money tails versus greater popularity of options closer to index levels.BofAML’s models of market stress are flashing caution, causing strategists led by Lars Naeckter and Stefano Pascale to advice hedging bullish wagers.To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Accountancy firm Deloitte & Touche said on Thursday it has been appointed by Singapore's high court to act as interim judicial manager for marine fuel supplier Inter-Pacific Group Pte (IPG) in an application for a court-led debt restructuring process. The appointment, following a nomination by IPG, comes more than two months after IPG unit Inter-Pacific Petroleum Pte (IPP) had a licence to operate bunker fuel tankers suspended by Singapore's Maritime Port Authority (MPA). Following the suspension, "There was a significant cash flow crunch, such that there is insufficient cash to sustain (IPP) operations," according to an affidavit reviewed by Reuters, filed to the court on Aug. 20 on behalf of the company's director and majority shareholder, Hong Kong-based Cheung Lai Na.
The London Metal Exchange's gold and silver futures are being thrown into doubt, with the imminent resignation of Societe Generale as a market maker threatening to deepen a decline in trading activity, three sources said. SocGen, one of five lenders that partnered with the LME to launch the contracts in 2017, is expected to resign shortly as a market maker, taking the number of banks committed to offering tradeable prices to two -- Goldman Sachs and Morgan Stanley, the sources said. The LME bet that the contracts would benefit from tightening regulation pushing some of London's $10 trillion-a-year gold market from over-the-counter (OTC) deals between banks and brokers to centrally cleared exchanges.
Every investor in Société Générale Société anonyme (EPA:GLE) should be aware of the most powerful shareholder groups...
(Bloomberg) -- Just when it looked like gold’s rally was starting to founder, the Federal Reserve and an escalation in the U.S.-China trade fracas have given the metal new life.Gold, which had been headed for a weekly loss Friday morning, closed at a fresh six-year high after the U.S.-China trade fight intensified and Federal Reserve Chairman Jerome Powell said the U.S. economy faces significant risks from slowing global growth. Bullion’s rebound comes after mixed economic data and doubts expressed by some U.S. central bank officials on further U.S. interest-rate cuts crimped demand for the metal earlier in the week. With the rebound on Friday, prices have now posted seven straight weekly gains, the longest run since 2011.“With the macro environment deteriorating, i.e. China ratcheted up tariffs today, Brexit, Hong Kong, and the weakness of European bank balance sheets, you can now add a supportive U.S. central bank,” Jim Wyckoff, senior analyst at Kitco Metals, said in an emailed report. “Fed Chairman Powell indicated the Fed would do what was necessary to keep the economy rolling, adding new momentum to gold prices.”Trade-policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the U.S., Powell said in the text of remarks Friday in Jackson Hole, Wyoming. “We will act as appropriate to sustain the expansion,” he said. That bolstered expectations the central bank will cut U.S. interest rates further.“That’s a very accommodating statement,” Bob Haberkorn, senior market strategist at RJO Futures in Chicago, said by phone. “They’re going to keep this thing going for as long as they can.”Traders of fed funds futures jacked up their expectations for the amount of easing they expect from the U.S. central bank this year after Powell’s remarks. The outlook for lower rates may help revive investor demand for gold, which erased a weekly loss. Lower rates are a boon for the metal, which doesn’t pay interest.Gold futures for December delivery rose 1.9% to settle at $1,537.60 an ounce at 1:32 p.m. on the Comex in New York, after falling as much as 0.4% earlier.The new salvos on the trade war added to concerns that demand for copper and other industrial metals will be further hurt. December copper futures fell 1.1% to $2.5375 a pound on the Comex, the lowest since May 2017.A gauge of gold miners climbed to a three-year high on Friday, led by Toronto-based miners Yamana Gold Inc. and Kinross Gold Corp., while an index of global base-metals companies touched an eight-month low.“The headlines coming out of China and Jackson Hole today, combined with a long weekend in U.K., see people taking some risks off” in the base metals market, Thomas Capalbo, vice president, hedge funds and financial institutions, at Societe Generale SA, said by phone.To contact the reporters on this story: Justina Vasquez in New York at firstname.lastname@example.org;Yvonne Yue Li in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe Richter, Steven FrankFor 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.Societe Generale SA is considering options for its Lyxor asset-management business overseeing about 151 billion euros ($167 billion) as the company accelerates asset disposals, according to people familiar with the matter.The French bank is weighing alternatives for the unit, including a sale or merger, amid heavy competition in the asset-management industry, the people said, asking not to be identified because the deliberations are private. A process may kick off in the fourth quarter, the people said. No final decisions have been made and France’s third-largest bank may still decide to retain the business, they said.A representative for SocGen declined to comment.Chief Executive Officer Frederic Oudea has been cutting costs and selling assets as the bank seeks to shore up its finances after a surprise profit warning in January. The company is also weighing exits from its U.K. private banking business and Nordic equipment-leasing operations, people familiar with the matter have said. Last year it agreed to sell its Belgian private banking unit to ABN Amro Group NV.SocGen’s American depositary receipts rose 2.2% to $5.07 at 3:36 p.m. Thursday in New York, giving the company a market value of $21.6 billion.Consolidation in the asset management industry is on the rise as competition from large competitors, such as BlackRock Inc. and Vanguard Group, cuts margins and puts pressure on firms to get bigger or get out. Deutsche Bank AG and UBS Group AG have held talks to combine their asset management businesses in a deal that would’ve created a European giant, though negotiations broke down after the companies couldn’t agree on how to share control, people familiar with the matter said earlier this year.Lyxor managed about 151 billion euros of assets at the end of July, with almost half in exchange traded funds. Lyxor is one of the largest providers of exchanged-traded funds in Europe.Cost CuttingThe company has also hired Bain & Co. to help it reduce expenses at its Paris headquarters by about a fifth, focusing on services such as information technology, human resources and the finance department, a person familiar with the matter said earlier Thursday.The review may lead to hundreds of additional job cuts in Paris, a person familiar with the matter said. Jean-Francois Mazaud, the former private banking boss who is overseeing SocGen’s investment-banking overhaul, added the review of the potential cuts at headquarters in June, the person said.Read more about the cost cutting initiative here.Any new job and cost reductions would be on top of ongoing efforts. SocGen announced 1,600 job cuts earlier this year as it seeks 500 million euros in savings to try to salvage profitability. The firm’s also working with McKinsey & Co. to find ways to bolster its key capital level as it confronts higher regulatory demands in a review known internally as “Optica,” Bloomberg reported in June.(Updates with ADR price in fifth paragraph)\--With assistance from Fabio Benedetti-Valentini, Myriam Balezou, Suzy Waite, Sree Vidya Bhaktavatsalam and Matthew Monks.To contact the reporters on this story: Jan-Henrik Förster in London at email@example.com;Geraldine Amiel in Paris at firstname.lastname@example.org;Nishant Kumar in London at email@example.comTo contact the editors responsible for this story: Dinesh Nair at firstname.lastname@example.org, Amy Thomson, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It didn’t take long for the Donald Trump tweet. That you can get more than 7 Chinese yuan to the dollar for the first time since 2008 was always going to be a red rag to the White House bull in the escalating economic battle between Washington and China. The president tweeted on Monday morning – inevitably – that Beijing was a currency manipulator and asked the U.S. Federal Reserve whether it was “listening.”Although Trump’s economic adviser Larry Kudlow so far has ruled out any currency intervention by the U.S. Treasury to weaken the dollar, it would be a brave trader who took this at face value.Perhaps the people to feel most sorry for in this arm-wrestling between the world’s two most powerful countries are the Europeans and the Japanese, who might end up as collateral damage. Both the U.S. Treasury and the Chinese authorities have the capacity to ramp up or deescalate their currency hostilities. After years of ultra-expansive monetary policy, Japan and Europe have almost no room left for their own defensive maneuvers. The European Union has managed to shrug off one rate cut by the Fed; as my colleague Ferdinando Giugliano noted recently, the European Central Bank will have been delighted that the half-hearted Fed reduction made the dollar even stronger against the euro (a boon for struggling European manufacturers). But a series of easing moves by the Americans would be a totally different story. The ECB has already fired its biggest policy gun by signalling a move toward even deeper negative rates after the summer and the possible restart of net bond purchases. It is out of ammunition.In the meantime, a weaker yuan is by itself very bad news for Europe. As Kit Juckes, a currency analyst at Societe Generale SA, points out, the euro is even more exposed to trade with China than it is to trade in dollars. An unwanted rise in the euro as China and the U.S. duke it out to weaken their own currencies would be a disaster for Europe’s export-dependent manufacturers and could plunge the continent into recession.For a sense of how badly this might play for Europe, look at its industrial powerhouse Germany. The country’s exports equate to nearly half of its gross domestic product, compared to 12% for the U.S. and 20% for China. Germany is far more exposed to international trade despite a buoyant domestic economy and falling debt. And Trump is in no mood to do the Germans, or their carmakers, any favors.Japan, the world's third-largest economy, is similarly at the mercy of its bigger rivals. The yen has strengthened recently against the dollar to early 2018 levels and is back to 2016 valuations versus the yuan. That puts huge pressure on Shinzo Abe’s government in its efforts to resuscitate the economy.One shouldn’t assume, of course, that a U.S.-China currency war – to sit alongside the trade war – is inevitable. The yuan is not a fully free-floating currency, which means Beijing is nominally in control of where it ends up (although things got out of hand back in 2016). And while China might be happy to send a signal that it can weaponize its currency, this is no doubt just a warning shot as my colleague Shuli Ren has written.The U.S. has the leverage to resist. Unfortunately, those who have already played their negative rate and quantitative easing cards look close to busted in the global currency poker game. To contact the author of this story: Marcus 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.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.
Based on Société Générale Société anonyme's (EPA:GLE) earnings update in March 2019, it seems that analyst forecasts...
Shares of Societe Generale, France's third-largest bank by market capitalisation, jumped on Thursday after it hit its solvency target a year early, easing investor concerns it would have to raise more capital. Although net profit fell in the second quarter, the bank met its 2020 goal of raising its common equity tier 1 ratio, an indicator of a lender's solvency, to 12% from 11.5%, thanks to asset disposals and the payment of parts of its dividends in shares instead of cash. At the beginning of the year, some of our investors wondered whether we would need to raise capital," SocGen's Chief Executive Frederic Oudea said in an interview with French radio station BFM.