|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||22.47 - 23.04|
|52 Week Range||20.81 - 38.50|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||5.79|
|Earnings Date||Aug 1, 2019|
|Forward Dividend & Yield||2.20 (9.85%)|
|1y Target Est||43.49|
(Bloomberg) -- Turkey’s opposition twice took on President Recep Tayyip Erdogan’s political machine in Istanbul and won.Dismantling what it calls a legacy of waste and runaway debt in the country’s biggest city might prove a bigger challenge.An internal audit found that the municipality’s unconsolidated debt more than tripled since 2014, with new Mayor Ekrem Imamoglu expecting its outstanding liabilities to grow another 30% this year to as much as 35 billion liras ($6.1 billion). Given the wild swings in the lira, another vulnerability is the city’s unhedged foreign debt, which accounts for 84% of the total, according to Fitch Ratings.“Although the debt figure is nominally small for a city the size of Istanbul, repaying this debt without creating additional funds looks very difficult,” said Mert Yildiz, co-founder of Istanbul-based political research firm Foresight. “And there seems to be no additional funds for Imamoglu at the moment.”Municipal finances are shaping up as a battleground after the opposition wrested control of major metropolitan areas this year, including the capital of Ankara and commercial hub Istanbul. Although the sovereign balance sheet is among the strong points for Turkey as a whole, local budgets are more at the mercy of currency fluctuations and shifts in the economic winds.The downturn affecting Turkey is taking an even deeper hold of Istanbul, a city of 16 million that accounts for about a third of the country’s economy. Unlike previous years, Fitch expects local growth to fare worse than the performance of the national economy in 2019.‘Aggressive Frontloading’“Aggressive frontloading” of capital expenditure before this year’s elections is to blame for “a significant increase in borrowing and deterioration of spending discipline,” Fitch analysts including Nilay Akyildiz said in a report.Istanbul’s former mayor, Mevlut Uysal, and his media aides couldn’t be reached for comment on this story.Imamoglu, a former businessman and until recently a little-known district mayor of an Istanbul suburb, made the emphasis on ending the squandering of taxpayer millions one of the signature themes of his campaign.The criticism carried over after his landslide victory ended a quarter-century reign in Istanbul by Erdogan’s party and its predecessors. After initially refusing to concede defeat over allegations of fraud, it forced a do-over ballot last month, which Imamoglu won by an even bigger margin.Now in the driver’s seat, the opposition found itself staring at debt on an alarming trajectory and a budget it says is riddled with waste.‘Mismanagement of Funds’The outstanding debt is a result of “mismanagement of funds” by Imamoglu’s predecessors, according to Tarik Balyali, a member of the Istanbul city council’s auditing committee who represents Imamoglu’s Republican People’s Party. The new administration can cope only by coming up with measures that boost budget savings, he said in an interview.“The new mayor’s aim should be to cut spending significantly and implement all the savings possible,” said Balyali. “And then he should share them among the residents of the city through reductions in the price of gas and other utilities.”Citing a report he prepared with other internal auditors, Balyali said the municipality’s debt includes 11.3 billion liras borrowed from international banks and 3.3 billion liras from local lenders, with another 3.8 billion liras owed to the city’s subsidiaries. Istanbul owes 2 billion liras, including interest, to its unit Igdas, the operator of the city’s gas grid, according to the report.The European Investment Bank, or EIB, is a top creditor to Istanbul with a total of $1.1 billion, according to data compiled by Bloomberg. Other institutions that lent to the city in the past include the European Bank for Reconstruction and Development, the World Bank, ABN Amro Bank NV and Societe Generale SA.Patronage NetworkThe auditing committee additionally found the city management awarded several project tenders to municipal subsidiaries at auctions that featured a single participant. One of the new mayor’s immediate plans is to stop giving away money to “certain government-backed foundations” and cut off funds on leased automobiles and car purchases, Balyali said.Saving as much as 5.5 billion liras a year, equivalent to more than a fifth of annual spending, is possible by “preventing squandering,” according to Imamoglu. He also told Haber Global television in an interview that he plans a retroactive independent audit of the city’s accounts, and the city may look for new financing as some of its debt may be restructured.Still, Imamoglu can’t afford to alienate Erdogan, even as he’s emerging as a potential rival to Turkey’s president.Little AutonomyThe nationally collected and distributed tax revenue accounts for 80% of the city’s operating revenue, according to Fitch. The rating company also said in the report that Istanbul’s ability to generate additional sources of funding at times of economic decline is “limited,” given the restrictions on its tax autonomy.Should the issue of debt go political or be used to settle scores, the risk of a falling out with Erdogan could put the municipality under even more strain. Imamoglu has already said that a circular issued by the central government may be an effort to curb his powers.Turkey’s lack of a municipal bond market also limits the city’s options. Regardless, the issue is certain to fester, and what Imamoglu chooses to do about it could define much of his tenure.“Istanbul’s rating is constrained by its relatively high debt burden,” Moody’s Investors Service analysts including Mauro Crisafulli said in a report. It “will remain elevated during 2019-20 and facing upward pressure on debt-servicing costs given the city’s significant exposure to foreign currency debt.”(Updates with chart, top creditors to Istanbul under ‘Mismanagement of Funds’ subheadline.)To contact the reporters on this story: Ercan Ersoy in Istanbul at email@example.com;Fercan Yalinkilic in Istanbul at firstname.lastname@example.orgTo contact the editors responsible for this story: Onur Ant at email@example.com, ;Stefania Bianchi at firstname.lastname@example.org, Paul Abelsky, Michael GunnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares in Rallye, the parent company of French retailer Casino, fell almost 5 per cent on Monday following the disclosure of a series of complex financing arrangements in the empire built by controlling shareholder Jean-Charles Naouri. Casino’s three parent companies, which also include Foncière Euris and Finatis, late on Friday said that they had entered into a number of structured finance agreements with banks. The most significant involved Rallye, which had pledged almost 9 per cent of Casino stock as collateral in €231m worth of structured finance agreements in the form of prepaid forward and equity swaps.
(Bloomberg) -- Societe Generale SA started cutting positions in London, adding to gloom in the city that’s been hit by job losses at rivals including Deutsche Bank AG.Dozens of job losses have already taken place at the French bank’s London operations in recent weeks, including 30 positions in commodities, people with knowledge of the matter said. SocGen’s voluntary departure program is kicking off in Paris with reductions set to take place over coming months, they said, asking not to be identified as the matter is private.Chief Executive Officer Frederic Oudea is restructuring parts of SocGen’s investment bank in an attempt to preserve its leadership in equity derivatives, focusing his efforts on fixed-income, and boost profitability. The bank in April announced plans to cut 1,600 jobs globally and exit capital-intensive businesses such as over-the-counter commodities trading.Societe Generale isn’t providing any further breakdown of job reductions by country or business beyond the announcements it made in April, a spokesman said.In London, equities job losses may follow those in commodities, the people said. The closure of SocGen’s Descartes proprietary-trading business also added to the loss of trader jobs in the City on top of 10 positions in Paris, the people said.Still the French lender’s redundancies are a fraction of Deutsche Bank’s planned 18,000 cuts and include administrative workers at the Paris head office as well as traders.The reductions cast another cloud over the City of London, already threatened by Brexit uncertainties and undermined by new technology replacing humans. HSBC Holdings Plc and Nomura Holdings Inc. are contributing to thousands of job reductions in the financial district this year. Cuts are mostly concentrated at non-U.S. investment banks, with European lenders hobbled by weak domestic growth, negative interest rates and falling market share for years.(Updates with spokesman’s comment in fourth paragraph.)To contact the reporters on this story: Fabio Benedetti-Valentini in Paris at email@example.com;Stefania Spezzati in London at firstname.lastname@example.org;Donal Griffin in London at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The buzz around possible U.S. currency intervention is growing louder as Goldman Sachs Group Inc. has now weighed in on an idea that’s been making the rounds on Wall Street.President Donald Trump’s repeated complaints about other countries’ foreign-exchange practices have “brought U.S. currency policy back into the forefront for investors,” strategist Michael Cahill wrote in a note Thursday. Against a fraught trade backdrop that’s created the perception that “anything is possible,” the risk of the U.S. acting to cheapen the dollar is climbing, he said.The U.S. last intervened in FX markets in 2011 when it stepped in along with international peers after the yen soared in the wake of that year’s devastating earthquake in Japan. That effort buoyed the dollar. However, more analysts in recent weeks have been contemplating the wild-card notion that the U.S. could forcibly weaken the dollar. The U.S. hasn’t taken that step since 2000.“Direct FX intervention by the U.S. is a low but rising risk,” Cahill wrote. “While this would cut against the norms of recent decades, developed-market central banks have recently used their balance sheets more actively, and FX intervention is akin to unconventional monetary policy.”Growing RanksGoldman joins analysts from banks such as ING and Citigroup Inc. in writing on the prospect. Intervention has become a hot topic since Trump tweeted last week that Europe and China are playing a “big currency manipulation game.” He called on the U.S. to “MATCH, or continue being the dummies.”Buoyed in part by a round of Federal Reserve rate increases, the dollar has strengthened against many of its peers. A Fed trade-weighted measure of the greenback isn’t far below the strongest since 2002, underscoring the competitive headwinds American exports face overseas. Trump has grown concerned that the currency’s strength will undermine his economic agenda, which has also fed into his criticism of the U.S. central bank.Still, in a tweet on Thursday, where Trump criticized Facebook Inc.’s plan for a digital currency, the president came out in support of the greenback, calling it “by far the most dominant currency anywhere in the world.”There may be some wrinkles to consider with intervention, Cahill wrote. While the Treasury and Fed have typically contributed equal amounts in past episodes, if the Fed chooses not to participate it would “substantially limit” the potential scale, he said. Treasury’s Exchange Stabilization Fund holds roughly $22 billion in greenbacks and around $50 billion in special drawing rights that it could convert, in addition to euros and yen.To be sure, even if the Treasury acted on its own, “we would expect that the symbolic importance of this step would still have a significant market-moving effect,” he wrote.Read: Currency Wars Are Easy to Start and Tough to Win: Daniel MossTrade BackdropThat’s not to say it’ll be easy to leave a lasting impact on a market that trades about $5 trillion daily. In past interventions, various nations’ central banks typically acted together, strengthening the signal to investors. But this time, the U.S. may find itself flying solo, especially if its efforts would work to the detriment of American allies as trade tensions simmer.“The international community would be unlikely at this stage to coordinate with the U.S. to weaken the dollar,” Cahill said.There’s also the question of whether it would make sense for the U.S. to boost holdings of the low-yielding currencies it’d wind up buying should it sell dollars.Intervention by the U.S. would increase portfolios of euro, yen and especially Chinese yuan, wrote Sebastien Galy, a senior macro strategist at Nordea Investment Funds. The U.S.’s reserves in euro and yen “in a base case scenario earn nothing.”The market has yet to display much concern about the prospect of U.S. intervention: Global currency volatility is at a five-year low. However, the risk of Trump moving beyond words to achieve a weaker greenback would increase if the European Central Bank pursues further monetary stimulus, according to analysts at ING and Societe Generale.“In in the intensifying currency war against the Eurozone (Germany), he will instruct the US Treasury (via the NY Fed) to intervene directly and unilaterally to drive the dollar lower,” SocGen global strategist Albert Edwards wrote in a note Thursday. “I am surprised he has not done so already, but any additional ECB easing will surely be the straw that will break the camel’s back.”(Adds Trump tweet in seventh paragraph.)\--With assistance from Ruth Carson.To contact the reporter on this story: Katherine Greifeld in New York at email@example.comTo contact the editors responsible for this story: Benjamin Purvis at firstname.lastname@example.org, Mark Tannenbaum, Greg ChangFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The family of the former owners of a Cuban bank seized by Fidel Castro's government nearly six decades ago sued Societe Generale for approximately $792 million, saying the French bank owes damages for circumventing U.S. sanctions against Cuba. In a complaint filed on Wednesday with the U.S. District Court in Miami, 14 grandchildren of Carlos and Pura Nuñez, who once owned Banco Nuñez, want to hold Societe Generale liable under U.S. law for doing business with Cuba's central bank, which nationalized Banco Nuñez and other lenders in 1960. A lawyer for the plaintiffs said he believed the case was the first against a bank that allegedly "trafficked" in property expropriated by the Castro regime, since the Trump administration said in April it would begin letting U.S. nationals sue companies for such conduct.
(Bloomberg Opinion) -- For the bond market’s “tale of two cities,” look at Rome and Vienna. Both Italy and Austria have come to the market recently with ultra-long duration debt sales. It’s remarkable that the latter managed to get a 98-year issue away with a 1.17% interest rate, but Italy’s 48-year offer this week at a near 3% yield is pretty miraculous too given all of the political and economic risk in that country.Kit Juckes, a currency analyst at Societe Generale SA, wrote on Tuesday that “the shortage of positive-yielding ‘safe’ bonds is still driving investors to overpay for what’s left.” Not half.I’ve written before about the Austrian offer and what it said about the market’s abject desperation for yield, but the Italian sale is the other side of the same crazy coin. Things are at a pass when “safe” investors have to sign up for 98 years to get 1.2% (a similar level to euro zone inflation), and those with appetite for a bit more risk have to swallow 48 years of Italy for a not-exactly eye-watering 2.85%. Many investors will be dead before the Italian paper matures; definitely so at the end of the Austrian bond’s term.Bondholders are clearly dicing with danger by taking on such long-dated debt of a country like Italy, whose populist government is still battling with the European Union over its budget deficit. Whatever. There were still more than 18 billion euros ($20.2 billion) of orders for the 3 billion-euro offer. That was despite it offering just 11 basis points more yield than Italy’s 30-year benchmark bond.The hope among those buying in now is that Italian yields will fall further (bonds rise in value when yields drop) if relations stay cordial between Rome and Brussels after a recent thawing. The spread between the German 10-year benchmark bund and its Italian equivalent was as tight as 140 basis points in 2016; it is 210 basis points currently.It’s certainly smart of the Italian treasury to take advantage of the unique environment to reach for ultra-long financing. At the half-year mark, more than 60% of the country’s 250 billion-euro funding requirement for 2019 has been completed. Significantly, much of it has been of a longer duration and that will relieve pressure for many years to come. At least this offers some consolation to investors that the risk of an Italian funding crunch is being reduced rapidly. Of course, Austria's 98-year ultra-long security also carries risk given that its meager return is at or below the prevailing euro area inflation rate. Knowing whether either country will remain in fit shape to repay the principal over such a long time requires a strong constitution. Still, the key metric for bond investors is that Austria’s government debt was just shy of 73% of gross domestic product at the end of the first quarter this year. Italy’s debt is running at 132.2%, and the European Commission estimates it will exceed 135% in 2020.Yield-starved, euro-denominated investors probably have had little option than to buy both issues and blend the risks. But it’s alarming that these buying decisions – between safe and a bit more risky – are now having to be made on such absurdly distant time horizons. Who would want to be a fund manager holding a parcel of ultra-long bonds when the music stops?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.
Is Société Générale Société anonyme (EPA:GLE) a good dividend stock? How can we tell? Dividend paying companies with...
Name of issuer: Société Générale S.A. – French public limited company (“SA”) with a share capital of 1,059,665,810.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Resurgent tensions between Japan and South Korea threaten to wallop chipmakers from Samsung Electronics Co. to SK Hynix Inc., upsetting a carefully choreographed global supply chain by smothering the production of memory chips and other components vital to widely used devices.As the world fixates on Donald Trump’s campaign to contain Huawei Technologies Co. and China’s ambitions, a concurrent dispute between Beijing’s two richest neighbors also has far-reaching implications for the production of everything from Apple Inc. iPhones to Dell Technologies Inc. laptops. The industry is now scrambling to gauge the fallout after Japan -- citing longstanding and unresolved tensions -- slapped restrictions on exports to Korea of three classes of materials crucial to the production of semiconductors and cutting-edge screens.That maneuver, the most recent manifestation of decades of war-time tensions, places Samsung at the center of a firestorm and again underscores the global nature of the production machine that cranks out most of the world’s gadgets. Not only does it make memory chips, but Samsung is also the biggest producer of smartphones.Korea’s largest company has lost about 16 trillion won ($13 billion) in market value this month through Monday, while Hynix has shed 1.5 trillion won. The two companies -- which together account for 60% of the world’s memory chip-making capacity -- declined to comment.While inventory levels differ across each material, Samsung has under a month’s worth of supply on average, according to people familiar with the matter. Samsung and SK Hynix are busily sourcing alternatives, the people said, asking not to be identified talking about a sensitive political issue. The two Korean giants assured clients they would try to minimize the impact on output, but Samsung, for one, is bracing for potential production cuts or even stoppages should the situation persist, the people said.That’s why the Korean conglomerate’s de facto leader, Jay Y. Lee, hopped on a jet to Tokyo over the weekend for emergency meetings with Japanese suppliers. It’s unclear how deeply felt the impact might be -- much depends on whether Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-In can work out a compromise. But in a worst-case scenario, flexible screens for iPhones and other mobile devices could sputter, while memory chips used in everything from HP Inc. notebooks to Amazon.com Inc. servers could dwindle.“This is an unprecedented event,” said Jongjun Won, chief executive officer at Lime Asset Management Co. “If it’s lucky, the chip industry may be able to adjust inventories. There could be a happy ending if the Japan issue gets resolved in the meantime. However, the intertwining of politics and business is making it difficult to find a solution.”The dispute has spilled over into social media. South Koreans, angered by Japan’s move, have taken to Instagram and other platforms to call for boycotts of Japanese travel and consumer products.Japan’s targeting a trio of materials that, while little-known outside of the industry, is profoundly important for electronics production. The government says they also have sensitive military applications. Within the tech sector, fluorinated polyimide is required for the production of foldable panels -- such as those used in Samsung’s Galaxy Fold -- among other things. Photo-resists are key to chipmaking, while hydrogen fluoride is needed for both chip and display production.Finding substitutes won’t be easy: Korean corporations now depend on Japan for over 90% of all the fluorinated polyimide and resists it needs, and 44% of its hydrogen fluoride requirements, Societe Generale estimates. Ironically, if the dispute drags on, Japanese suppliers of those chemicals -- companies from JSR Corp. to Shin-Etsu Chemical Co. that comprise a small but inextricable link in the chain -- could take a hit as well.“This could be a negative factor for the world economy,” Huh Nam-Kwon, CEO at Shinyoung Asset Management Co, said by phone. “All we need to do is wait and see how the situation goes. Just one word from Abe could decide anything. It’s hard to predict.”The most significant impact will be on Samsung’s next-generation products: foldable displays as well as chips of 7 nanometer line-widths or less that’re made via the so-called extreme ultra-violet (EUV) process. That puts at risk Samsung’s express goal of investing $116 billion to become the No.1 in the logic chip business by 2030. Without Japan’s materials, Samsung may be hamstrung in efforts to develop an EUV-based foundry business and in advanced memory chipmaking.Their rivals may step in to fill that gap in the interim. Micron Technology Inc., the only other memory chip maker of significance, stands to benefit. Taiwan Semiconductor Manufacturing Co. could further widen its lead over Samsung when it comes to made-to-order chips, vying for Samsung customers like Qualcomm Inc. and Nvidia Corp.“There will be considerable impact on both sides,” said Heungchong Kim, a senior research fellow at the Korea Institute for International Economic Policy. “Those materials are not something that can be replaced in a short period. This is becoming a weird situation.”The situation may worsen if Japan removes South Korea from a so-called “White List” of countries treated as presenting no risk of weapons proliferation, a move Tokyo is now considering.Japan and Korea have traditionally turned to the U.S. to mediate in their clashes, but it’s unclear this time if Trump is keen to step into the fray. Compounding the situation are the basic mechanics of the restrictions. While not a ban per se, would-be exporters of the affected materials need to obtain a license from the government. That could take up to 90 days -- an eternity for a fast-moving industry.There’s also disagreement by industry analysts over which corporations exactly will get hit hardest, in part because some Japanese firms have either localized production in South Korea or maintain plants in countries such as China.“In the near-term, we do not expect Korean companies’ major customers to move to other component vendors due to high switching costs and long qualification process times,” said J.J. Park, head of Korean equity research at JP Morgan. But “if there is a bottleneck due to a shortage of key materials resulting from Japan’s curb on export of materials, we can’t rule out potential market-share loss to their peers.”Japan’s Sumitomo Chemical Co. is a key supplier of polyimides, according to Taipei-based WitsView and Isaiah Research -- but company representatives deny it makes the material. IHS Markit analyst David Hsieh said in addition to Sumitomo Chemical, SKC -- like Hynix, an affiliate of the giant SK Group -- or Kolon Industries are viable local substitutes.JSR is a major resist producer, while the global hydrogen fluoride market is dominated by Kanto Denka Kogyo Co., Showa Denko KK and Daikin Industries Ltd., according to Taipei-based Isaiah Research. Resist manufacturer Tokyo Ohka Kogyo Co. said it already supplies South Korean customers locally. Daikin said the restrictions will have no impact on its hydrogen fluoride because the materials are made in China, while Morita Chemical Industries Co. is building a plant there that will go online next year.“While high levels of semiconductor inventory might provide some cushion, time may not be on Korea’s side,” Citigroup economists Jin-Wook Kim and Johanna Chua said in a recent note. “Displacing Korean chips would disrupt the supply chain because building alternative sources needs specific technology and sizable capex.”(Updates with analyst’s comments from the 18th paragraph.)\--With assistance from Heejin Kim, Yuki Furukawa and Isabel Reynolds.To contact the reporters on this story: Sohee Kim in Seoul at email@example.com;Debby Wu in Taipei at firstname.lastname@example.org;Pavel Alpeyev in Tokyo at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Trade tensions and uncertainty surrounding Brexit are raising economic risks for the euro region that may require central bank action, according to Societe Generale SA Chairman Lorenzo Bini Smaghi.“At some point the slowdown may reach bottom, and we want to have the monetary instruments in place to avoid that this becomes a recession,” he said in a Bloomberg News TV interview on Saturday at an economics conference in Aix-en-Provence, southern France. “We have all the factors of uncertainty.”German factory orders slumped in May in the latest sign that global trade uncertainty is turning Europe’s temporary slowdown into a more serious downturn. The economy ministry reported huge declines in export orders and investment goods, after a survey showed factory activity shrank for a sixth month in June. The continued gloom is increasing concern at the European Central Bank, and a growing number of economists are predicting it will add more monetary stimulus as soon as this month.The ECB may have to take action even before the newly-nominated Christine Lagarde takes over in October, Smaghi said. “If the Fed is very aggressive in July, why should the ECB wait for the new president, actually maybe it could make its life easier if the stimulus was provided already in the fall without waiting for Lagarde,” he said.Also speaking in Aix-en-Provence, French Finance Minister Bruno Le Maire raised the specter of an economic slowdown, calling on European countries to invest to ward it off. It would be irresponsible not to take action now, he said, adding that negative interest rates run the risk of turning into an addiction, preventing countries from dealing with reality. The region and especially Germany, its biggest economy, must put money into areas such as innovation and infrastructure, rather than social spending, he said.While orders data can be volatile, there’s little doubt the numbers are disappointing. The 2.2% overall drop on the month was far worse than the 0.2% fall predicted by economists in a Bloomberg survey. The year-on-year decline of 8.6% was the biggest in almost a decade.By contrast, the CEO of the European stock exchange Euronext NV Stephane Boujnah painted a brighter picture of the months ahead. “The momentum in the euro zone is good,” he said in an interview. “Some countries have slowed down in orders, but others are making real progress,” he said. In the euro zone, he expects the second part of the year to be “better than the first.”The French official added that German CDU party chief Annegret Kramp-Karrenbauer, who took over from Chancellor Angela Merkel, supported French President Emmanuel Macron’s economic policy.\--With assistance from Angelina Rascouet and Fabio Benedetti-Valentini.To contact the reporters on this story: Angeline Benoit in Paris at email@example.com;Caroline Connan in Paris at firstname.lastname@example.org;Ania Nussbaum in Paris at email@example.comTo contact the editors responsible for this story: Anthony Palazzo at firstname.lastname@example.org, Tara Patel, Andrew DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Marex Spectron Group Ltd has hired former Societe Generale SA agriculture staff members as part of a push to expand its over-the-counter derivatives business.David Cohen and Nicholas Burke are joining Marex Solutions, the London-based brokerage’s OTC derivatives arm, the company said in a statement to Bloomberg. Cohen was named head of agricultural commodity solutions, and Burke will be responsible for U.S. agricultural commodity sales.The brokerage is expanding at a time banks are retrenching. SocGen said in April it was shutting its OTC commodities business and its proprietary trading subsidiary as part of a global move to cut about 1,600 jobs. That followed the closure of BNP Paribas’s U.S. commodities derivatives desk earlier this year.“We are expanding aggressively in OTC and agriculture is a big part of what we have achieved so far,” Nilesh Jethwa, chief executive officer of Marex Solutions, said by phone. “We think this is an interesting market and SocGen pulling out presents an opportunity to work with some hugely talented and experienced people.”Cohen was previously managing director and head SocGen’s OTC agricultural sales desk in London, and Burke was director of OTC agriculture sales. They will be both based in London, according to the Marex statement.Marex Solutions has handled transactions worth over $7 billion since its launch in 2017. It also offers a mobile app called Agile, which allows customers to structure, execute and then monitor their own deals in an easy and interactive way, Jethwa said.To contact the reporter on this story: Isis Almeida in Chicago at email@example.comTo contact the editors responsible for this story: Tina Davis at firstname.lastname@example.org, Millie Munshi, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Paris La Défense, 3 July 2019 Half-year statement on the liquidity agreement of SOCIETE GENERALE Under the liquidity.
(Bloomberg) -- Treasury 10-year yields dropped to the lowest level in more than two years amid prospects for additional global monetary easing.U.S. notes rallied as investors sought havens before a raft of data in coming days including June payrolls, and the market’s closure for the July 4 holiday. Bonds have gained around the world after Bank of England Governor Mark Carney on Tuesday warned of downside risks to growth and as Christine Lagarde’s nomination for European Central Bank president was seen bolstering the chances of further quantitative easing.“A major driver of Treasury yields lower is a dovish shift of central banks, including the ECB and BOE,” said Hidehiro Joke, a bond strategist at Mizuho Securities Co. in Tokyo. “Ten-year yields may risk falling toward 1.70% as markets are very pessimistic” about economic growth, he said.U.S. 10-year yields slid as much as four basis points to 1.94%, the lowest since November 2016, while two-year yields dropped three basis points to 1.73%. In Germany, 10-year yields fell as much as three basis points to nearly touch the ECB’s deposit rate of -0.40%, while 20-year bonds joined a record global pile of negative-yielding debt.U.S. economic data to be released Wednesday include durable goods orders, factory orders, and ADP employment figures. The payrolls data on Friday may either reassure investors concerned about the weak numbers for May or validate suspicions the economy is faltering.“For what should be a quiet holiday week there is a lot of data for the markets to digest,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale in New York.This week’s data may help determine whether the Federal Reserve will fulfill market expectations for monetary-policy easing at its July 30-31 meeting. Fed funds rate futures are pricing in more than a quarter point of cuts, while some traders have predicted a half-point reduction.Japanese bonds also joined the global rally even after the Bank of Japan cut purchases of intermediate and ultra-long bonds at its regular operation Wednesday.The nation’s five-year yield fell one basis point to minus 0.25% after dropping to minus 0.29% last month, the lowest since July 2016.The BOJ trimmed buying of three- to five-year and 10- to 25-year maturities by 20 billion yen ($186 million) each. The central bank boosted purchases of one- to three-year bonds by 30 billion yen.To contact the reporters on this story: Masaki Kondo in Tokyo at email@example.com;Emily Barrett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Tan Hwee Ann at email@example.com, Neil ChatterjeeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Saudi Arabia has hired a group of banks including Goldman Sachs and Societe Generale to arrange a global investor call ahead of an issuance of euro-denominated bonds, its first in that currency, as the kingdom seeks to diversify its investor base. Riyadh has become a regular debt issuer over the past few years to offset the impact of lower oil prices on its finances. It has so far issued debt in Saudi riyal and U.S. dollars, but its planned debut in the euro-denominated markets shows it is targeting new funding sources for future issues.
(Bloomberg) -- Stock markets in Asia surged in a relief rally Monday after the world’s largest economies declared a truce in their trade war. The sector that just won the biggest reprieve is tech stocks.President Donald Trump’s decision to allow U.S. corporations to resume sales to Huawei Technologies Co., China’s largest telecommunications-equipment maker, and plans to hold off imposing an additional $300 billion in tariffs made tech stocks the best performers in Asia Monday. The MSCI Asia Pacific Infotech Index soared as much as 2%, while the regional benchmark climbed 0.9%.Trump and Xi Call Time (For Now) on Trade War: Balance of PowerShares of chipmakers -- among the biggest contributors to the MSCI Asia Pacific Index -- have been embroiled in the U.S. and China trade conflict for more than a year. Trump’s move to cut off supplies to Huawei in May added to the sector’s wall of worry. Volatility has soared by about 300% since its low just before the trade spat escalated.These Asia Stocks May Benefit From Halt to Huawei Ban, Citi Says“The lifting of a ban on the sale of technology to Chinese companies was a step beyond expectations and the market reaction come Monday will likely be positive,” said Kerry Craig, global market strategist at JPMorgan Asset Management, by email.Samsung Electronics Co. -- the world’s biggest chipmaker -- erased early gains and fell 0.9% after Japan said the exporters of chip materials to South Korea will have to apply for individual approvals from July 4, citing a worsening bilateral trust relationship. SK Hynix Inc., a supplier to both Huawei and U.S. companies, stayed buoyant.On the flipside, Huawei’s limited supply of imported chips that had helped boost China’s domestic producers amid Trump’s blacklist may be negatively impacted. Watch Unigroup Guoxin, Ingenic Semiconductor, Wuhan P&S Information Technology, Hangzhou Silan Microelectronics and Konfoong Material.“The most fragile part of the tech sector in our view remains semiconductor names, due to the uncertainty surrounding Huawei and the entity list combined with persistent price decline in memory chips,” said Frank Benzimra, head of Asia equity strategy at Societe Generale SA.PC, Phone SuppliersTrump’s decision to hold off on an additional levies will be good for suppliers of personal computers and smartphones.“We expect the market to react positively as the next batch of tariffs impacting PCs and smartphones now will not be imposed,” Citigroup analyst Arthur Lai said in a June 30 report. Lai pointed to companies that are “fast and flexible enough to adapt to operating environment changes” like Taiwan’s Delta Electronics, Micro-Star International, Inventec and Wistron.Here are some other sectors to watch:China StocksChina investors can finally turn their focus elsewhere after the Trump-Xi meeting showed some progress on trade. Fund managers weren’t expecting much as the two leaders met Saturday at the Group of 20 summit in Japan. An agreement to resume negotiations will be welcomed by investors.Chinese video surveillance giants could rally -- Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. -- after the U.S. and China agreed to resume negotiations. In May, the U.S. administration considered barring both companies from purchasing U.S. technology.The DMZ MeetTrump’s brief crossing of the North Korean border in the Demilitarized Zone and an agreement to restart stalled nuclear talks in a historic meeting with Kim Jong Un may also move defense-related stocks:South Korea’s so-called ‘‘peace stocks’’: Hyundai Rotem rose 5.9%, Hyundai Elevator climbed 8.5%, Namhae Chemical gained 3.7%, Hyundai Engineering climbed 2.6%, HDC Hyundai Development advanced 0.6%Japan: Ishikawa Seisakusho, Howa Machinery, Hosoya Pyro-Engineering, Mitsubishi Heavy IndustriesJapanWatch auto stocks as Japan and the U.S. agreed to speed up trade talks after Trump threatened to raise auto tariffs on Tokyo. The U.S. is Japan’s largest export market after China and its biggest car customer. Companies to keep an eye on include: Toyota Motor, Honda Motor, Nissan Motor, Isuzu, Hino and Subaru.As disputes over wording on climate change and trade became a focus at the G-20, a Japanese stock that could bear the brunt of any issues on this front is Hitachi Zosen. There are more than 370 waste-to-power plants operating in Japan, according to the environment ministry’s Kurisu. Japanese companies including Hitachi are producing and exporting the facilities.South KoreaPresident Moon Jae-in’s meeting with Trump on Sunday could also give Korea’s stocks a jolt Monday:Auto stocks and their suppliers: Kia Motors, Hyundai Motor, SL Corp., Hyundai Wia, Mando Corp and Hankook TireKorean steel: PoscoSoutheast AsiaVietnam’s recent fame as a big winner of the U.S.-China trade war, putting itself in Trump’s crosshairs, may lead to some moves in the nation’s stock market: Kinh Bac City, Gemadept, Thanh Cong Textile, Vietnam National Textile & Garment Group, FPT Corp., Mobile World.SkepticismWith no real trade deal in place, some aren’t convinced the relief rally expected on Monday will last.“The reprieve may be short-lived and there is still no guarantee that a deal can be reached or even that any deal would completely address all of the differences that have driven investor anxieties, particularly when it comes to technology and the enforcement of a possible deal,” JPMorgan’s Craig said.(Updates throughout with Monday's market moves.)\--With assistance from Naoto Hosoda, Kurt Schussler, Min Jeong Lee, Nguyen Kieu Giang and Cormac Mullen.To contact Bloomberg News staff for this story: Jackie Edwards in Sydney at firstname.lastname@example.org;Abhishek Vishnoi in Singapore at email@example.com;Amanda Wang in Shanghai at firstname.lastname@example.org;Heejin Kim in Seoul at email@example.comTo contact the editors responsible for this story: Divya Balji at firstname.lastname@example.org, Joanna OssingerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Rating Action: Moody's assigns a Prime-1 rating to Columbia Funding Company, LLC. Global Credit Research- 21 Jun 2019. New York, June 21, 2019-- Moody's Investors Service has assigned a Prime-1 rating ...
(Bloomberg Opinion) -- Earlier this month, my colleague Elisa Martinuzzi suggested that merging Deutsche Bank AG and UBS Group AG would, on paper at least, create a European banking champion. She concluded, though, that the regulatory obstacles to such a deal would probably be insurmountable. But there is a three-way combination that could create a regional lender with the heft to take on the U.S. banks without falling foul of national regulators.Jean Pierre Mustier has done much house-cleaning in his two years as chief executive officer of Italy's UniCredit SpA. So it’s not much of a stretch to posit that he might regard himself as the right leader to forge a European powerhouse. And while his current institution owns HypoVereinsbank in Germany, it still depends on Italy for almost half of its revenue.Mustier has already dallied with the idea of buying Commerzbank AG after talks between the German lender and Deutsche Bank broke down in April. Adding Commerzbank would increase his access to the small- and medium-sized German clients known as Mittelstand companies.With Deutsche Bank still in intensive care, the German authorities should welcome the opportunity to see its other problem child adopted by UniCredit for many of the same reasons as they championed the mooted domestic tie-up. But to build a true challenger to the growing U.S. dominance of European lending, Mustier would need to add a third geographic region to his stable – and here his nationality might be key to overcoming tribal objections.As a Frenchman running an Italian-German institution, Mustier would be well-placed to convince the authorities in Paris that Societe Generale SA would thrive under his stewardship.Adding SocGen’s expertise in derivatives would expand the range of balance-sheet tools that Mustier can offer to those Mittelstand companies and other customers in Europe. And the newly merged triumvirate – let’s call it UniComSoc, ignoring the Orwellian overtones – would be a true regional champion. In international bond underwriting, the trio would command a 6.3% market share based on the individual performance of the three banks in the first five months of this year. None of the trio is currently a top ten player; the merged group would rank behind only JPMorgan Chase & Co. with 7.2% of the market, and Citigroup Inc. with 6.9%.In European equity offerings, the merged firm would sneak into a top 10 dominated by U.S. and Swiss firms, again based on market share through May:But in European loans, a market worth almost 300 billion euros ($336 billion) so far this year, the combination would be a market-beating powerhouse with a share of almost 13 percent. Given European companies remain reliant on bank loans rather than the capital markets to satisfy the bulk of their funding needs, that’s the most important reservoir of capital and the one that European regulators would be keenest to see being provided by a leading domestic source.The futures market is now starting to anticipate a cut in borrowing costs from a European Central Bank whose ultra-low interest rates have already weighed heavily on bank profitability. The worsening economic outlook that’s seen European government bond yields drop to record lows this week should add a sense of urgency to the acknowledged need for cross-border banking mergers.If the combination of Deutsche Bank and Commerzbank turned out to be shooting for the moon, maybe Mustier should aim even higher to land among the stars.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or 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/opinion©2019 Bloomberg L.P.
Name of issuer: Société Générale S.A. – French public limited company (“SA”) with a share capital of 1,009,897,173.75.
The ordinary General Meeting of Societe Generale held on 21 May 2019 set the dividend per share for the 2018 financial year at EUR 2.20 and resolved to grant each shareholder the possibility to opt for the payment of the dividend in shares.