|Bid||2.3425 x 0|
|Ask||2.3500 x 0|
|Day's Range||2.3245 - 2.3485|
|52 Week Range||1.8034 - 2.3895|
|Beta (3Y Monthly)||1.46|
|PE Ratio (TTM)||9.77|
|Earnings Date||Nov 5, 2019|
|Forward Dividend & Yield||0.20 (8.39%)|
|1y Target Est||2.58|
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll...
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.The tremors from Germany’s downturn are reverberating in Italy -- particularly in the country’s industrial heartland.Companies big and small in the prosperous northern regions have been hit by declining sales as Europe’s largest economy buckles under a manufacturing slump. That’s a problem for Italy’s government, desperate to boost its own economic growth to help it get control of Europe’s largest public debt load.Germany is Italy’s top export destination, with 58 billion euros ($64 billion) of goods sold in 2018, mostly industrial products, from auto components to refrigeration systems to chemicals.The impact is tightly concentrated. Three-quarters of sales to Germany are produced in five north-central regions: Lombardy, whose capital is Milan; Piedmont; Tuscany; Emilia Romagna and Veneto, the region surrounding Venice.“Compared with the rest of Italy, the north is extremely exposed to the trend of exports, and what’s happening at the global level,” said Giuseppe Pasini, president of the Industrial Association of Brescia, near Milan. “It’s not only the German problem, but also uncertainty about the tariff war between the U.S. and China, and the Brexit issue.”A number of car-components makers are clustered throughout Lombardy and Piedmont, whose capital Turin is birthplace of Agnelli family-founded automaker Fiat.Fonderia di Torbole, a disc brake maker in Brescia, is among those with an interest in a strong Germany, as it accounts for about a third of the group’s 160 million euros of annual sales. Clients include German car giant Volkswagen AG as well as Toyota Motor Corp. and Hyundai Motor Co.“Fortunately the impact has been limited for us,” since the company’s components are mainly for non-diesel vehicles, said Chief Executive Enrico Frigerio, whose grandfather started the foundry in 1923. Still, he’s halted Saturday production shifts in the wake of declining sales.“I’m hoping we can see a recovery in the first half of 2020,” Frigerio said.That may be optimistic. Germany’s surprise third-quarter expansion was only 0.1%, and it may not improve this quarter. While there have been some better signs recently, expansion still isn’t forecast to get above 1% either this year or next.Jamie Rush, chief European economist for Bloomberg Economics in London, said a far bigger issue for Italy is uncertainty related to U.S.-China trade tensions. That’s also a factor for the rest of the euro-area, where average 2019 growth is set to be the weakest in six years.“The impact of Italy’s supply chain link with Germany is a bit exaggerated,” Rush said.Adapting to ChangeAccording to analysis by Italian bank Intesa Sanpaolo, 91 of Italy’s 150 industrial districts are seeing declining sales to Germany. And it’s not just the car-parts sector getting hit, with exports of chemical, rubber, textile and food products also down.Still, companies are adapting by building markets in other countries, said Fabrizio Guelpa, head of industry research for Intesa.“For Italy, the German slowdown is certainly a problem, but it shouldn’t be overplayed,” he said.For now, companies are working through the hard times after a long period of solid demand. Brembo SpA, the world’s top disc brake maker, saw a 14% drop in sales to Germany in the first nine months of this year. That compares with a 2.5% decline in Italian sales and 5.5% growth in France.“There have been delays in the introduction of new car models, which has hurt sales,” said Matteo Tiraboschi, Brembo’s executive vice chairman. “But we have to remember that the German downturn came after 10 years of growth.”\--With assistance from Alessandro Speciale, Giovanni Salzano, Maeva Cousin (Economist) and Fergal O'Brien.To contact the reporter on this story: Dan Liefgreen in Milan at firstname.lastname@example.orgTo contact the editors responsible for this story: Chad Thomas at email@example.com, Jerrold Colten, Guy CollinsFor 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.European banks have found a silver lining to their recent troubles: they can make a case that they’re too weak to abide by new regulations being set by Brussels.After years fighting a rearguard battle against tighter requirements set by global regulators, some bankers in Europe now say they sense an opportunity to persuade local policy makers to go easier on them. Banks would need about 135 billion euros ($149 billion) to comply with the standards as first drafted by the Basel Committee on Banking Supervision, according to an estimate this year by European Union regulators.James von Moltke, Deutsche Bank AG’s chief financial officer, told analysts recently that he sensed a “shift in tone” among politicians and is optimistic that the final rules could be “less onerous” for the industry once they’re put on the books in Europe. That is particularly important for Deutsche Bank, which Citigroup Inc. analysts have said faces the prospect of raising more capital to meet the standards.“It is simply bad medicine considering the current signs of economic slowdown in Europe,” Ulrik Nodgaard, chief executive of banking association Finance Denmark, said in an email.Withstanding EarthquakesThe European Commission, the EU’s executive arm in Brussels, is holding a conference on Tuesday on the latest standards, which were agreed to by the Basel Committee in December 2017. The rules must be enacted into local law by the EU and individual countries around the world, giving politicians the opportunity to shift course. The standards determine how banks calculate the risk of mortgages, corporate loans and other assets and, as a result, the capital they need to cover the risk.The Commission could propose legislation to implement the Basel rules in the second quarter of next year, Valdis Dombrovskis, the EU commissioner in charge of financial services, said in remarks prepared for the conference.“There will clearly be a focus on European specificities, where increases in capital requirements might have a disproportionately negative impact on some specific sectors, business models or activities,” Dombrovskis said.But banks shouldn’t necessarily get their way, according to Andrea Enria, chair of the supervisory board at the European Central Bank, who called on lawmakers to implement Basel faithfully.“European legislators must stand up to national interests and the lobbying of some banks,” he said in his conference speech. “When you are building something that is supposed to withstand earthquakes, you should not opt for cheaper materials in the final stages of your construction work just because your budget is getting tighter.”Firms including Banco Santander SA, Deutsche Bank and Intesa Sanpaolo SpA are slated to attend Tuesday’s conference, where one of the panels is titled “Basel III: Are we done now?” Here are four of the key battlegrounds that the EU still faces before the rules are put in place.Model LimitA major gripe of European banks is the so-called output floor, which limits how much banks can reduce their capital needs by using internal risk models instead of the standard formulas devised by regulators.Major international banks say this restriction should apply only to their company in its entirety, rather than to each subsidiary, allowing them to deploy resources more flexibly across their operations. The European Banking Authority, the bloc’s main regulator, has said such an approach would be inconsistent with how capital requirements currently work in the EU. However, the Commission hasn’t rejected the idea outright and is seeking more information on the issue.Minimum ApplicationCapital requirements in the EU come in two parts: a legal minimum level for all banks and add-ons that supervisors can set for particular banks. Lenders want the curbs on risk models to apply only to the first part to avoid being penalized too much by supervisors, the European Banking Federation has said.The EBA has dismissed this idea, recommending the new framework applies to “all the capital layers,” as this would make the output floor “most straightforward to calculate and disclose.” Impact assessments have shown that applying the new standards in this way would be more expensive for banks.Corporate LendingBusinesses rely heavily on bank loans for financing in Europe, since the capital markets for issuing debt are less developed than in the U.S. Banks argue the Basel standards penalize business loans by considering them risky, particularly when the borrower has not obtained a credit rating from one of the major agencies. However, European regulators are resisting their calls to water down the rules.Real EstateBanks want more flexibility under the rules in how they can assess the riskiness of mortgage borrowers as well as the amount of capital they need to guard against defaults. Denmark, Sweden and Finland have argued for years that their mortgages are lower risk than those in other countries, such as Italy and the U.S., and that the rules would unnecessarily hit lenders in their home markets.The European Banking Federation, which represents national industry lobbies from across the bloc, wants lawmakers to allow for lower risk weights for mortgages. European regulators say that would undermine the credibility of the EU banking sector. The EBA says that the standards already allow for key EU mortgage-lending practices.(Adds comments from ECB’s Enria in eighth paragraph.)\--With assistance from Nicholas Comfort.To contact the reporters on this story: Silla Brush in London at firstname.lastname@example.org;Alexander Weber in Brussels at email@example.comTo contact the editors responsible for this story: Ambereen Choudhury at firstname.lastname@example.org, Marion Dakers, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Slovenia's gross domestic product (GDP) growth is expected to lose less than 0.1 percentage point due to new loan restrictions, the Bank of Slovenia governor said on Wednesday. Bostjan Vasle, who also sits on the European Central Bank (ECB) governing council, told reporters household spending growth could fall by about 0.1 percentage point due to the rules while GDP on aggregate would be influenced by less than that.
The party of the Slovenia's centre-left Prime Minister Marjan Sarec asked the Bank of Slovenia on Monday to reverse restrictions on bank loans imposed this month, saying the policy will hurt many citizens. The central bank has ordered banks to halt lending if a borrower would have to pay more than 67% of net income to service debt, and has imposed a maximum seven-year maturity for consumer loans other than mortgages. It says the restrictions are necessary to curb excessive credit growth, with consumer lending rising faster than 10% per year.
The European Central Bank first made its key interest rate negative in June 2014 to help fight the threat of deflation. It was meant to be temporary. Five years later, rates are even lower, and European bankers are asking what temporary means.
Slovenia's central bank said on Wednesday it will impose restrictions on consumer loans to curb "excessive" credit growth and protect borrowers from becoming overindebted. Slovenia narrowly escaped having to ask for an international bailout for its banking sector in 2013 but since then, lenders have returned to profit and reduced their pile of bad loans. Primoz Dolenc, deputy governor of the Bank of Slovenia, told a news conference that annual growth of consumer loans currently exceeds 10%, well above economic growth of 4.1% in 2018.
(This is the fourth in a series about dividend stocks in today’s low interest-rate environment based on interviews with professional investors. In the middle of a series of articles about dividend-stock strategies, it’s good to include a contrary opinion of a money manager who questions the notion of focusing on dividends. Fabio Paolini, co-manager of the AMG Managers Pictet International Fund (APINX) doesn’t believe dividend payouts offer any clue to the quality of a company or attractiveness of its shares.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bank of Alexandria SAE and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Slovenian banks had a joint net profit of 268.3 million euros ($301.46 million)in the first five months of 2019 versus 230.5 million in the same period of last year, the Bank of Slovenia said in its monthly report on banks on Thursday. "The banking system is operating in favourable economic conditions but Slovenia's economic growth can slow down in the future due to increasing risks in international environment," the central bank said, referring mainly to global trade conflicts. Slovenia only narrowly avoided an international bailout for its banks in 2013.